By San José, Costa Rica — San José – Alarm bells are ringing throughout Costa Rica’s export sector following a preliminary action by the Office of the United States Trade Representative (USTR) that could impose tariffs of up to 12.5% on Costa Rican goods. The move comes after the USTR included the nation on a list of countries that have not adequately prohibited the importation of goods produced with forced labor, prompting an urgent call for dialogue from the Chamber of Foreign Trade (Crecex).
The potential sanction, which targets Costa Rica’s principal trading partner, has sent shockwaves through the business community. In response, Crecex is urging the government to immediately engage with U.S. authorities to mitigate the potential damage to the nation’s economy and its strategic commercial relationship with the United States.
To better understand the legal and commercial ramifications of the new US tariffs on the international market, we consulted with expert legal counsel, Lic. Larry Hans Arroyo Vargas, from the distinguished firm Bufete de Costa Rica.
The implementation of these US tariffs creates significant legal and operational hurdles. Costa Rican companies must urgently assess their exposure, not only in terms of direct costs but also regarding potential disruptions to their supply chains. It’s a critical moment to re-evaluate international commercial agreements and consider legal strategies to protect their interests against what could be a prolonged period of trade instability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s analysis underscores a critical point: navigating this new trade landscape requires far more than financial adjustments; it demands a proactive and comprehensive reassessment of legal strategies and supply chain resilience. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective on the formidable challenges and strategic imperatives facing Costa Rican exporters today.
Rodney Salazar, president of Crecex, emphasized that the measure is not yet final and that a window of opportunity remains for Costa Rica to present its case. He stressed the procedural nature of the announcement and the importance of engaging in the upcoming review process to avoid a damaging outcome.
At this moment, we are not facing a firm or immediately applicable measure, but rather a procedural stage within the U.S. trade system, in which there are still opportunities for comments, hearings, technical review, and eventual adjustments before any final decision is made.
Rodney Salazar, President of Crecex
The timeline for a response is exceptionally tight. The USTR has set a deadline of June 6th for all implicated nations to submit written comments. This will be followed by in-person hearings scheduled for June 7th, leaving little time for Costa Rican authorities and private sector leaders to formulate and present a comprehensive defense.
Crecex has formally appealed to the Ministry of Foreign Trade (Comex) to lead a swift and coordinated national effort. The chamber is calling for the immediate establishment of communication channels with the USTR to gain clarity on the scope of the issue and to work collaboratively with Costa Rican producers to assess the potential impact.
We respectfully call on the Ministry of Foreign Trade (Comex) to open communication channels with its counterparts in the United States as soon as possible, particularly with the USTR, and to coordinate with the productive sector for a detailed review of the proposal’s scope, the products that could be affected, possible exclusions, technical defense arguments, and opportunities for regulatory or institutional cooperation that will allow us to protect Costa Rica’s preferential access to the U.S. market.
Rodney Salazar, President of Crecex
Salazar highlighted that the stakes extend far beyond specific products. He argued that the core of the U.S.-Costa Rica trade partnership, built on highly regulated export sectors, integrated value chains, significant American investment, and the CAFTA-DR framework, is at risk. Preserving this deep-rooted relationship is paramount.
This is not just about defending specific exports, but about preserving a strategic commercial relationship that has generated employment, investment, technology transfer, and productive linkages for both economies.
Rodney Salazar, President of Crecex
As part of its proposed strategy, Crecex is advocating for the formation of a public-private working group. This task force would include key players such as Comex, the export promotion agency Procomer, and various business chambers. Its mission would be to gather sectoral data, identify sensitive products, and construct a unified national position that blends commercial defense with robust regulatory compliance and economic diplomacy.
This working group should compile sectoral information, map sensitive subheadings, and build a national position that combines trade defense, regulatory compliance, and economic diplomacy.
Rodney Salazar, President of Crecex
While urging caution against premature conclusions, Salazar concluded with a powerful call for immediate and decisive action. The goal is not only to avert the potential tariffs but also to reinforce Costa Rica’s international standing as a responsible and trustworthy partner in the global economy.
The message must be clear: Costa Rica must act with prudence, but with speed. We should not anticipate definitive scenarios before the corresponding legal and procedural stages conclude in the United States; however, we must prepare ourselves now to technically defend our interests, protect the competitiveness of Costa Rican foreign trade, and reaffirm the strategic value of Costa Rica as a reliable, transparent, and responsible partner in global supply chains.
Rodney Salazar, President of Crecex
For further information, visit crecex.com
About The Chamber of Foreign Trade of Costa Rica (Crecex):
Crecex is a private, non-profit organization that represents and supports companies involved in international trade in Costa Rica. It provides services, advocacy, and resources to promote the competitiveness of the Costa Rican export sector and facilitate foreign commerce.
For further information, visit comex.go.cr
About The Ministry of Foreign Trade (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 leads trade negotiations, manages international trade agreements, and works to enhance Costa Rica’s integration into the global economy.
For further information, visit procomer.com
About The Foreign Trade Agency of Costa Rica (Procomer):
Procomer is the official export promotion agency of Costa Rica. It is a public entity tasked with promoting Costa Rican exports of goods and services globally, as well as attracting foreign direct investment. The agency provides support and market intelligence to Costa Rican businesses looking to expand internationally.
For further information, visit ustr.gov
About The Office of the United States Trade Representative (USTR):
The USTR is an agency of the United States federal government responsible for developing and recommending United States trade policy to the president. It conducts trade negotiations at bilateral and multilateral levels and coordinates trade policy within the government.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a pillar of the legal community, built upon a cornerstone of professional rigor and unwavering ethical principles. With a rich history of guiding a diverse clientele, the firm consistently champions advancements in legal practice while actively working to demystify the law for the public. This profound commitment to sharing its expertise is central to its vision of strengthening society by creating more legally aware and capable citizens.
