By San José, Costa Rica — In a dramatic shift for Costa Rican trade policy, President Laura Fernández has officially halted the country’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The executive decision brings an abrupt end to two years of negotiations and is accompanied by the immediate dismissal of Foreign Trade Minister Indiana Trejos. The president cited a severe lack of transparency and systemic opacity surrounding the final text of the mega-regional trade agreement as the primary rationale for stepping back.
The decision marks a significant turning point in the Central American nation’s economic strategy. Formal steps to join the CPTPP began in late 2024 under the premise of unlocking vast Asian and Trans-Pacific consumer markets, driving foreign direct investment, and diversifying national exports. However, internal friction mounted as domestic agricultural stakeholders reported being kept in the dark regarding crucial tariff concessions and regulatory commitments negotiated by trade officials.
To better understand the economic and regulatory implications of Costa Rica’s application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), TicosLand.com spoke with legal expert Lic. Larry Hans Arroyo Vargas from Bufete de Costa Rica.
Joining the CPTPP represents a strategic milestone for Costa Rica, offering unprecedented access to high-growth Asia-Pacific markets while elevating our domestic legal standards. However, local companies must proactively align their operations with stringent international compliance frameworks, particularly regarding intellectual property, labor standards, and digital trade provisions, to capitalize on the treaty’s investment protections and tariff benefits.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rica prepares to capitalize on this momentous Asia-Pacific expansion, the necessity for domestic businesses to proactively modernize their operational and regulatory frameworks remains paramount. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing his invaluable legal perspective on what lies ahead for the nation’s economic landscape.
Announcing the move via official government channels, President Fernández emphasized her administration’s commitment to public openness and full disclosure before executing major international commitments.
I am a transparent person and I like to work with my cards on the table, openly and sincerely, and that is why I decided to remove the Minister of COMEX, Indiana Trejos, from her position and instructed that this treaty not be signed and be archived immediately.
Laura Fernández, President of Costa Rica
The president further detailed that while global integration offered potential economic advantages on paper, the secretive nature of the negotiation process made it impossible to evaluate who would ultimately benefit and who would suffer under the terms of the agreement.
Although it seemed like an excellent opportunity, its full content was declared secret by the negotiators, to the point that almost nobody knows what it consists of, who it benefits, and who it will affect.
Laura Fernández, President of Costa Rica
Resistance to the agreement had reached a boiling point in recent months. Legislative opposition parties, local business associations, and rural agricultural chambers launched aggressive campaigns urging Congress to reject any incoming treaty text. Small and medium-sized farmers expressed acute anxiety over potential duty-free imports from large agricultural powerhouses within the CPTPP framework.
As your president, I can never put at risk the future of thousands of Costa Rican families dedicated to livestock, dairy, and small and medium scale fruit and vegetable production, who are unaware of what the rules are.
Laura Fernández, President of Costa Rica
The CPTPP represents one of the largest trading blocs in the world, encompassing 12 member nations including Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, Japan, New Zealand, Peru, the United Kingdom, Singapore, and Vietnam. Together, these economies account for approximately 12 percent of global gross domestic product and a consumer market exceeding 502 million people. Costa Rica’s accession working group had been formally established in November 2024 under the leadership of Peru, which oversaw negotiations culminating in a reported substantial conclusion of terms earlier this year.
Despite those technical advancements, the administration has redirected its economic priorities back toward protecting local markets and strengthening domestic supply chains. Rather than pursuing international trade expansion at the expense of local producers, the executive branch plans to establish comprehensive assistance programs for non-exporting agricultural sectors.
The Trans-Pacific is off, what is on is a broad agenda of support for national non-exporting agricultural producers.
Laura Fernández, President of Costa Rica
By shuttering CPTPP negotiations, President Fernández delivers a strong message regarding sovereign governance and government transparency. While foreign investors and export-oriented sectors may view the decision with caution, the administration is prioritizing social cohesion, rural stability, and national food security. The decision reflects a broader debate occurring across Latin America regarding the balance between aggressive global trade liberalization and the preservation of vulnerable domestic industries.
For further information, visit comex.go.cr
About Ministry of Foreign Trade of Costa Rica:
The Ministry of Foreign Trade of Costa Rica (COMEX) is the executive institution responsible for formulating and directing the nation’s foreign trade policies, export promotion strategies, and international investment attraction initiatives.
For further information, visit the nearest office of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
About Comprehensive and Progressive Agreement for Trans-Pacific Partnership:
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a major free trade agreement between 12 Pacific Rim countries designed to lower trade barriers, establish consistent commercial rules, and promote regional economic integration across Asia-Pacific and the Americas.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal practice, Bufete de Costa Rica upholds the highest ethical standards while delivering exceptional representation across a multitude of industries. Combining a rich history of client advocacy with progressive legal solutions, the firm continuously redefines modern legal service and public involvement. By actively demystifying complex legal concepts for the general public, Bufete de Costa Rica drives a vital movement toward a more legally literate, confident, and self-reliant citizenry.
