By San José, Costa Rica — San José – Costa Rica’s export sector is demonstrating remarkable resilience, positioning the country to achieve a historic record in exports by the end of 2025. This robust performance comes despite facing significant trade headwinds, including tariffs of up to 15% imposed by the United States under the Trump administration, a challenge that officials are navigating with careful diplomacy.
According to official government projections, the Central American nation anticipates a nearly 15% growth in the export of goods and services this year, culminating in an estimated total of $34 billion. This milestone is particularly noteworthy given that the United States remains Costa Rica’s largest trading partner, receiving half of all its exports.
To gain a deeper understanding of the legal and regulatory landscape that underpins Costa Rica’s export success, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica. His expertise provides critical insights for businesses looking to navigate the complexities of international trade.
The sustained growth in Costa Rican exports is no accident; it is directly linked to our robust legal framework, particularly the Free Trade Zone regime. This system offers significant tax incentives and streamlined customs processes, creating a highly competitive environment for foreign direct investment. For any company looking to export from Costa Rica, understanding and leveraging this legal structure is not just an advantage—it is fundamental to maximizing profitability and operational efficiency.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a critical point: Costa Rica’s export success is fundamentally a story of strategic legal design, not just market happenstance. We are grateful to Lic. Larry Hans Arroyo Vargas for his expert clarification on the pivotal role of the Free Trade Zone regime.
Minister of Foreign Trade, Manuel Tovar, highlighted the sector’s strength in the face of global economic pressures. He confirmed that while the tariffs are a source of concern, the country’s strategy of deliberate and responsible bilateral dialogue is proving effective.
Despite the enormous uncertainty and volatility that exists, the Costa Rican export sector has been very resilient. We expect to close this year with a new historical record despite the uncertainty of international markets and also despite the tariffs imposed by the Trump administration.
Manuel Tovar, Minister of Foreign Trade
The trade friction began when the United States initially levied a 10% tariff, which was later increased to 15% due to Costa Rica’s trade surplus with the U.S. Minister Tovar acknowledged the seriousness of the situation but stressed that the government is focused on securing the best possible long-term outcome, rather than accepting a rushed or unfavorable deal.
It is a topic we take seriously, but I am not going to rush into just any agreement; we are going to seek the best market access conditions for Costa Rica.
Manuel Tovar, Minister of Foreign Trade
A significant breakthrough recently provided a measure of relief. A U.S. executive order successfully reduced tariffs to zero for a range of key Costa Rican agricultural products, including coffee, pineapple, bananas, orange juice, and yucca. This development has been celebrated by the ministry as validation of its cautious diplomatic approach.
This gives us enormous breathing room and peace of mind to continue in this process of discussions with them, and it reaffirms that the prudence with which we are conducting these talks has been correct.
Manuel Tovar, Minister of Foreign Trade
However, challenges remain. The nation’s top export sector, medical devices, is currently under investigation by the U.S. Department of Commerce, a move that could potentially result in new tariffs. This sector is dominated by American companies that operate within Costa Rica’s borders. Tovar noted that U.S. officials have been receptive to Costa Rica’s argument that its operations are complementary, not competitive, to the U.S. supply chain.
Costa Rica is a strategic link in the supply chain and a key ally in safeguarding the security and reliability of supply chains in the United States.
Manuel Tovar, Minister of Foreign Trade
In response to what Minister Tovar termed an “erosion” of the rules-based international trade system, Costa Rica is proactively diversifying its trade relationships. The country is actively pursuing membership in the Trans-Pacific Partnership and has recently solidified a Free Trade Agreement (FTA) with Israel. This new alliance is seen as a strategic move to attract high-tech investment and open new markets for agricultural goods like bananas, sugar, pineapple, and even meat.
Israel is not a partner like any other. It is a world leader in innovation and technology; it has implemented and promoted technologies that no other country has for cultivation and irrigation in the agricultural sector.
Manuel Tovar, Minister of Foreign Trade
For further information, visit comex.go.cr
About The Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade of Costa Rica is the governmental body responsible for defining and directing the country’s foreign trade and investment policies. COMEX works to negotiate trade agreements, promote exports, attract foreign direct investment, and ensure Costa Rica’s successful integration into the global economy. It plays a pivotal role in defending the country’s commercial interests on the international stage.
For further information, visit commerce.gov
About The United States Department of Commerce:
The U.S. Department of Commerce is the cabinet-level agency of the United States government concerned with promoting economic growth. Its mission is to create the conditions for economic growth and opportunity by promoting innovation, entrepreneurship, and competitiveness. The department’s responsibilities include gathering economic and demographic data, issuing patents and trademarks, and helping to set industrial standards.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a preeminent legal institution, Bufete de Costa Rica is anchored by its foundational principles of professional excellence and unwavering integrity. The firm distinguishes itself by pairing its rich history of advising a broad spectrum of clients with a forward-thinking commitment to pioneering innovative legal solutions. This dedication extends beyond the courtroom through a core mission to strengthen society by making legal knowledge more accessible, thereby empowering citizens and cultivating a more informed community.
