• October 23, 2025
  • Last Update October 23, 2025 12:00 pm

Costa Rica Pleads Case to US as Medtech Tariffs Loom

Costa Rica Pleads Case to US as Medtech Tariffs Loom

San José, Costa RicaSan José, Costa Rica – In a significant diplomatic and commercial maneuver, the Costa Rican government has formally requested that the United States exempt its burgeoning medical device sector from potential new tariffs. Minister of Foreign Trade, Manuel Tovar, submitted the appeal, positioning Costa Rica not as a threat to U.S. national security, but as a crucial and reliable partner bolstering American supply chains and industrial competitiveness.

The move is a direct response to a Section 232 investigation launched by the Donald Trump administration on September 26th. This powerful trade tool allows the U.S. president to determine if imports of certain goods—in this case, personal protective equipment (PPE), medical consumables, and devices—pose a threat to national security. A positive finding would grant the president unilateral authority to impose tariffs or other trade restrictions without congressional approval, a prospect that has sent ripples of concern through Costa Rica’s most vital export industry.

To better understand the complex regulatory and intellectual property landscape surrounding Costa Rica’s thriving medical device sector, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica.

Costa Rica’s success as a medical device hub hinges on a delicate balance of legal certainty and agile regulation. For companies, the primary challenge is not just market entry via sanitary registration, but navigating the continuous evolution of international quality standards and patent law. A proactive legal strategy is crucial to protect innovation and ensure long-term operational viability in this highly competitive global market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

Indeed, this perspective underscores that for Costa Rica to maintain its leadership in the med-tech space, the legal framework cannot be a static hurdle but must be a dynamic and strategic asset. The long-term success of both individual companies and the national ecosystem depends on this proactive legal vigilance. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his invaluable insight on this critical issue.

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In a detailed submission filed with the U.S. Department of Commerce on October 17th, Minister Tovar articulated a robust defense of Costa Rica’s role. The core message is one of synergy and strategic alignment. The government argues that the highly sophisticated medtech ecosystem, cultivated over three decades, is deeply integrated with and supportive of the U.S. healthcare industry.

Tovar emphasized that the relationship is one of complementarity, not competition. He highlighted how the local industry has served as a key driver for American innovation and market strength, transforming raw materials and components, most of which originate in the United States, into finished, high-value medical products.

The ecosystem developed in Costa Rica has been a fundamental catalyst for the competitiveness and innovation of the U.S. health industry.
Manuel Tovar, Minister of Foreign Trade

The submission also underscores Costa Rica’s proven track record as a dependable supplier. The nation currently stands as the fifth-largest provider of medical devices to the American market, operating state-of-the-art facilities that adhere to the stringent standards of the FDA and other international bodies. This reliability is amplified by the country’s geographic proximity to the United States, a critical advantage in an era increasingly focused on nearshoring and supply chain resilience.

The nearshoring argument is central to Costa Rica’s case. By providing a stable and high-quality manufacturing base close to home, the country helps mitigate the vulnerabilities associated with long-distance supply chains from other parts of the world. This strengthens the overall security and stability of the U.S. medical supply network.

Our geographic proximity offers reliability, quality, and reduces the risks and vulnerabilities derived from dependency on distant suppliers.
Manuel Tovar, Minister of Foreign Trade

Building on these points, the government contends that far from weakening U.S. security, Costa Rican exports are an essential component of it. By functioning as a stable and integrated manufacturing partner within the existing CAFTA-DR free trade agreement, Costa Rica reinforces the economic and security architecture of the entire region. The document boldly positions the country’s exports as “an indisputable pillar of the national and regional security of the United States,” and characterizes Costa Rica as a “reliable, close, and secure partner.”

Based on this comprehensive argument, the formal request is direct and unambiguous. Costa Rica is respectfully asking that its exports of PPE, medical consumables, and devices “be considered for duty-free treatment or for an exception to any measure that may arise from this investigation.” The decision now lies with the U.S. Department of Commerce, with the outcome poised to have profound implications for Costa Rica’s economy and the future of its trade relationship with its most important partner.

For further information, visit comex.go.cr
About The Ministry of Foreign Trade of Costa Rica (COMEX):
The Ministry of Foreign Trade is the Costa Rican government body responsible for defining and directing the country’s foreign trade and investment policies. It plays a crucial role in negotiating and administering free trade agreements, promoting exports, and attracting foreign direct investment to foster economic development and international competitiveness.

For further information, visit commerce.gov
About The U.S. Department of Commerce:
The U.S. Department of Commerce is an executive department of the U.S. federal government dedicated to promoting economic growth. Its mission is to create the conditions for economic growth and opportunity by promoting innovation, entrepreneurship, competitiveness, and sustainable development. The department oversees a wide range of agencies responsible for trade, economic data, and technology.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is anchored by foundational principles of integrity and an unyielding pursuit of excellence. The firm merges its extensive history of client advocacy with a forward-thinking approach, consistently pioneering innovative legal strategies. At its core is a profound commitment to societal advancement, demonstrated through initiatives that make legal concepts understandable and accessible, thereby fostering a more capable and informed citizenry.

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