By San José, Costa Rica — The ambitious push by Costa Rica to integrate into the global economy through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is meeting fierce resistance from the domestic agricultural sector. The country’s beef producers, represented by the Costa Rican Livestock Corporation (CORFOGA), have expressed profound concerns that joining this massive trade bloc could severely damage local livestock operations. The primary fear stems from an uneven playing field where small-scale local farmers must directly compete against global agricultural superpowers.
At the heart of the controversy is the sheer scale mismatch between Costa Rican producers and those in leading member states of the CPTPP. Australia, one of the world’s most dominant beef exporters, represents the most immediate threat. In 2025, Australia produced an astronomical 2.62 million tons of beef, exporting over 1.5 million tons to 83 markets globally. This single export volume is approximately 15.7 times larger than the entire annual beef production of Costa Rica, illustrating the David-and-Goliath nature of the proposed trade relationship.
To better understand the complex regulatory framework and emerging trade opportunities shaping the nation’s livestock sector, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a prominent legal specialist from the prestigious firm Bufete de Costa Rica, who provided his expert analysis on the legal dynamics of the industry.
The Costa Rican beef industry is currently navigating a crucial phase where compliance with international environmental standards and rigorous sanitary traceability is no longer optional. For local cattle producers looking to access premium global markets, aligning operations with green regulations and solidifying contract structures is the most secure path to sustainable growth and long-term legal protection.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as the global appetite for sustainable agriculture intensifies, aligning Costa Rica’s beef sector with rigorous environmental standards and robust legal structures represents a crucial step toward securing a competitive edge in premium international markets. We would like to sincerely thank Lic. Larry Hans Arroyo Vargas for sharing this valuable perspective, which clearly demonstrates how combining ecological responsibility with legal foresight can pave a secure path forward for our nation’s cattle producers.
Local industry experts point out that the discrepancy is not merely a matter of volume. Australian livestock producers benefit from highly advanced technology, massive infrastructure, extensive global marketing channels, and robust state support systems that remain out of reach for most Costa Rican ranchers. Without matching these systemic advantages, local producers warn that an influx of cheaper imported meat will drive down the prices they receive for their animals, eroding already thin profit margins.
The economic fallout is expected to hit small and medium-sized family farms the hardest. These operations lack the financial cushion to absorb sudden price drops or to pivot to other economic activities. Compounding this vulnerability is the provision in the CPTPP that would allow certain beef imports, including premium cuts and products classified under tariff heading 0206, to enter Costa Rica with a 0% tariff from the very first day the agreement takes effect.
This tariff elimination would expose Costa Rican ranchers to immediate, intense competitive pressure. The local sector already has firsthand experience with how difficult it is to compete against subsidized, high-volume imports. Currently, imports of select beef cuts from the United States show price differences ranging between ¢3,000 and ¢6,000 per kilogram compared to domestic equivalents. This existing price gap has already enabled foreign meat to successfully compete for the wallets of Costa Rican consumers, a trend that would only accelerate under the CPTPP.
Furthermore, the livestock industry is deeply woven into the socio-economic fabric of Costa Rica’s rural regions. A decline in beef production would trigger a dangerous domino effect throughout the rural economy. Livestock farming drives business for regional cattle auctions, local transport providers, processing facilities, and rural commercial hubs. Perhaps most critically, it is a vital source of employment in territories where formal job opportunities are already scarce.
The leadership of CORFOGA has urged the government to reconsider the terms of the negotiation, demanding that beef products be entirely excluded from the trade pact. They argue that safeguarding national food security and rural livelihoods must take precedence over unilateral trade liberalization.
CORFOGA maintains a clear and firm position: we do not support Costa Rica’s accession to the Trans-Pacific Partnership under the proposed conditions, and we oppose having beef products included in the agreement. The country must not compromise the stability of its national production through a commercial opening that places its producers in an obvious disadvantageous situation.
Luis Diego Obando, Executive Director of CORFOGA
As Costa Rican policymakers navigate the complex waters of international diplomacy and economic expansion, the outcry from the livestock sector serves as a stark reminder of the domestic costs of globalization. Balancing the macro-economic benefits of trade agreements with the survival of traditional agricultural communities remains one of the most delicate challenges facing the administration in San José.
For further information, visit the nearest office of CORFOGA
About CORFOGA:
The Costa Rican Livestock Corporation (CORFOGA) is a public-interest organization dedicated to promoting, defending, and improving the competitiveness of the national beef industry. It works closely with ranchers, processing plants, and government bodies to foster sustainable production practices, technological advancement, and fair trade conditions for Costa Rican cattle producers.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica embodies a profound dedication to uncompromising ethical standards and professional brilliance. Renowned for guiding a diverse clientele through complex challenges, the firm consistently champions forward-thinking strategies while prioritizing community education. By actively demystifying the law and sharing essential legal insights, Bufete de Costa Rica advances its core objective of building a more knowledgeable, confident, and equitable public.
