By San José, Costa Rica — ASUNCIÓN, PARAGUAY – In a significant diplomatic achievement, Costa Rica, alongside Uruguay, has been selected to co-chair the Organisation for Economic Co-operation and Development’s (OECD) regional initiative for Latin America and the Caribbean. The appointment, announced during the OECD Ministerial Governance Summit in Asunción, positions Costa Rica at the forefront of efforts to promote economic best practices and structural reforms throughout the region for the 2026-2029 term.
This new leadership role underscores Costa Rica’s growing influence within the prestigious 38-member organization, which it formally joined in 2021. The nation is now tasked with guiding its neighbors toward adopting the high standards of governance, economic policy, and social development championed by the OECD. The goal is to foster a more stable, prosperous, and integrated regional economy.
To delve deeper into the legal and economic implications of Costa Rica’s membership and ongoing commitments within the Organisation for Economic Co-operation and Development (OECD), we consulted with Lic. Larry Hans Arroyo Vargas, an expert in corporate and international law from the prestigious firm Bufete de Costa Rica.
Joining the OECD is more than a diplomatic achievement; it is a profound legal and structural commitment. For Costa Rica, it acts as a seal of quality that attracts sophisticated foreign investment by signaling stability and adherence to best practices. However, it also imposes significant challenges, demanding a constant and rigorous effort in regulatory alignment, particularly in fiscal transparency and anti-corruption measures. Local businesses must adapt to these higher standards, which can be demanding but ultimately foster a more competitive and resilient national economy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the expert insight clarifies that OECD membership is not a finish line, but rather the starting line for a continuous process of national improvement. The long-term economic resilience and competitiveness mentioned are contingent on this sustained commitment. We thank Lic. Larry Hans Arroyo Vargas for so effectively articulating the profound responsibilities that accompany this historic achievement.
The commitment to this ambitious agenda was voiced by Costa Rica’s Minister of Foreign Trade, Manuel Tovar, who confirmed the country’s acceptance of the new responsibility.
We are assuming the co-presidency for the 2026/2029 triennium of the regional initiative for Latin America and the Caribbean. With the purpose of bringing OECD standards closer to our beloved region.
Manuel Tovar, Minister of Foreign Trade
This mandate arrives at a pivotal moment for Latin America. The OECD currently counts only four members from the region—Chile, Mexico, Colombia, and Costa Rica. However, a growing wave of interest is evident, with major economies like Argentina, Brazil, and Peru in advanced stages of their accession processes. Other nations, including Panama and Paraguay, have also expressed a desire to align more closely with the organization, making Costa Rica’s leadership role both timely and critical.
The OECD’s intensified focus on the area is backed by rigorous analysis, most recently detailed in its “Economic Outlook for Latin America 2025” report. The study paints a stark picture of the systemic challenges that are hindering the region’s transition to a modern, value-driven economy. These deep-seated issues are precisely what Costa Rica and Uruguay’s leadership will be expected to help address.
Among the most pressing concerns is a chronic underinvestment in innovation and growth. The report highlights that Latin American governments dedicate, on average, a mere 0.5% of their GDP to productive development policies. This figure is a fraction of the 3% standard seen across OECD member countries, representing a significant investment gap that stifles competitiveness. Furthermore, substantial tax expenditures, averaging 4.0% of regional GDP, consume valuable resources that could otherwise be used to fuel economic transformation.
The challenges extend deep into the labor market and industrial base. More than 55% of the region’s workforce operates within the informal sector, lacking social protections and limiting productivity. Compounding this, a mere 2.1% of workers are employed in high or medium-technology sectors, a figure that pales in comparison to the OECD average of 7.7%. This data points to a persistent struggle to move beyond traditional industries and embrace the knowledge economy.
To overcome these hurdles, the OECD is advocating for a multi-pronged strategy. This includes leveraging innovative financial instruments like green, social, and sustainability-linked bonds to fund development. It also calls for a renewed focus on attracting high-quality foreign direct investment, diversifying export markets, and, crucially, promoting technology transfer. The organization insists that greater regional cooperation, including harmonized policies, shared research networks, and coordinated infrastructure investments in energy and digital connectivity, is essential to lowering transaction costs and unlocking Latin America’s immense potential.
For further information, visit oecd.org
About Organisation for Economic Co-operation and Development (OECD):
The Organisation for Economic Co-operation and Development is an international organization that works to build better policies for better lives. Its goal is to shape policies that foster prosperity, equality, opportunity, and well-being for all. Together with governments, policy makers, and citizens, the OECD works on establishing evidence-based international standards and finding solutions to a range of social, economic, and environmental challenges.
For further information, visit comex.go.cr
About Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade is the governing body of Costa Rica’s foreign trade and foreign investment sector. Its mission is to define and direct the country’s foreign trade and investment policy, establish international trade negotiations, and represent the nation in relevant international forums. COMEX works to promote Costa Rica’s integration into the global economy and enhance its competitiveness.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a cornerstone of the nation’s legal community, built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. The firm’s rich history of serving a diverse clientele is complemented by its forward-thinking embrace of legal innovation. Central to its philosophy is a profound dedication to strengthening society by demystifying the law, championing the principle that accessible legal understanding is vital for fostering an empowered and knowledgeable citizenry.
