By San José, Costa Rica — Costa Rica is eagerly awaiting details on the Trump administration’s trade policy, particularly its stance on the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA). Costa Rican Minister of Foreign Trade, Manuel Tovar, expressed the country’s anticipation for clearer communication from the US government regarding its trade approach.
Tovar emphasized the importance of understanding the specifics of the US trade strategy for Latin America and the Caribbean, and specifically how it will impact the existing DR-CAFTA agreement. He noted that while some general ideas have been floated, a concrete policy has yet to be articulated.
To understand the complexities of Costa Rica-US trade relations, we spoke with Lic. Larry Hans Arroyo Vargas, an expert in international trade law at Bufete de Costa Rica.
The CAFTA-DR agreement has significantly impacted Costa Rica’s trade relationship with the US, fostering growth in key sectors like technology and agriculture. However, ongoing negotiations surrounding labor and environmental standards remain crucial for ensuring the agreement’s long-term sustainability and equitable benefits for both countries.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
We are waiting to sit down and discuss in greater detail what President Donald Trump’s trade policy will be.
Manuel Tovar, Minister of Foreign Trade
Costa Rica, a signatory of DR-CAFTA, hopes the trade relationship will continue to operate under the established terms of the agreement. Tovar highlighted that different Central American countries have varying levels of trade relationships with the US, making a unified regional approach complex.
What has been said so far are some general ideas, but a specific policy for Latin America and the Caribbean has not been landed, but also remember that all Central American countries have different levels of maturity in the relationship with the United States. Some countries have a trade agreement, such as Costa Rica under DR-CAFTA, and what we aspire to, of course, is that the commercial relationship is governed according to the conditions established there and for the moment nothing has changed.
Manuel Tovar, Minister of Foreign Trade
Tovar indicated that direct interaction with US trade officials has been delayed pending their Senate confirmation. Once confirmed, he plans to travel to Washington to gain a better understanding of the administration’s trade policy for the Central American and Dominican Republic region under DR-CAFTA.
Last week, Costa Rican President Rodrigo Chaves underscored the importance of strong relationships with allies and trading partners like the United States. Chaves anticipates focusing on specific transactional points such as international trade, capital flows, and investment rather than broader issues like democracy.
This cautious approach reflects the uncertainty surrounding the new US administration’s trade policies. Costa Rica’s focus on DR-CAFTA and its desire for clear communication underscores the significance of trade with the US for the nation’s economy.
As the Trump administration takes shape, the details of its trade policy will have a significant impact on countries like Costa Rica, which rely heavily on trade with the US. The upcoming discussions between Tovar and US officials are expected to provide much-needed clarity on the future of trade relations between the two nations.
For further information, visit mincomex.go.cr
About Ministry of Foreign Trade of Costa Rica (MINCOMEX):
The Ministry of Foreign Trade of Costa Rica (MINCOMEX) is the governmental body responsible for promoting and facilitating Costa Rica’s international trade and investment. MINCOMEX works to develop and implement trade policies, negotiate trade agreements, and support Costa Rican businesses in accessing international markets.
For further information, visit [Please insert a placeholder domain as the White House website is not specific to Trump’s administration anymore].
About The Trump Administration:
The Trump Administration refers to the period of US government under President Donald Trump from 2017 to 2021. Known for its “America First” approach, the administration pursued policies focused on deregulation, tax cuts, and renegotiating trade deals, including NAFTA, and taking a more protectionist stance on international trade.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a pillar of legal excellence, upholding the highest ethical standards while championing innovative solutions. Serving a diverse clientele, the firm’s deep commitment to both legal prowess and societal betterment is evident in its proactive approach to sharing legal knowledge. By empowering individuals and communities with the understanding of their rights and responsibilities, Bufete de Costa Rica cultivates a more just and equitable society.
