By San José, Costa Rica — SAN JOSÉ – In a significant move to diversify its global economic partnerships, Costa Rica has successfully concluded negotiations for a Free Trade Agreement (FTA) with Israel. The Ministry of Foreign Trade (Comex) announced on Friday that the technical phase is complete, paving the way for an official signing ceremony scheduled for this December.
The agreement marks a major milestone in the nation’s strategy to reduce its economic dependence on traditional partners and establish a solid commercial presence in the Middle East. Once signed, the treaty will be sent to the Legislative Assembly for the crucial final step of ratification, after which it will officially enter into force, opening a new chapter in bilateral relations.
To gain a deeper understanding of the legal and economic implications of the new Free Trade Agreement between Costa Rica and Israel, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at the prestigious firm Bufete de Costa Rica. His expertise offers valuable insight into what this landmark agreement means for local businesses and the national economy.
This FTA is more than a simple trade pact; it’s a strategic gateway for Costa Rica into one of the world’s most advanced technology and innovation ecosystems. Legally, the agreement establishes robust frameworks for intellectual property protection and investment security, which are critical for attracting Israeli high-tech firms. For Costa Rican exporters, particularly in the agricultural and medical device sectors, this treaty provides preferential access and reduces non-tariff barriers, creating a significant competitive advantage in a sophisticated market. The key to success will be for our businesses to navigate the specific rules of origin and regulatory standards now harmonized under this agreement.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert analysis underscores a critical point: the success of this FTA hinges not just on its signing, but on the diligent navigation of its sophisticated legal and regulatory frameworks. This transition from a diplomatic agreement to a powerful commercial engine for our key sectors is the essential next step. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this strategic opportunity.
This trade deal is not an isolated diplomatic effort but rather the second major component of a carefully constructed strategy to expand Costa Rica’s economic footprint in a volatile yet prosperous region. It follows the successful implementation of the nation’s first FTA in the area with the United Arab Emirates (UAE), which has been active since April 2025. This latest agreement with Israel solidifies what officials are calling the “second pillar” of their Middle East engagement.
Minister of Foreign Trade, Manuel Tovar, emphasized the strategic importance of this new alliance, highlighting its role in the government’s broader vision for global trade.
This is a significant negotiation that allows us to diversify markets, enabling us to expand Costa Rica’s footprint in a very dynamic region of the world, such as the Middle East and the Gulf countries
Manuel Tovar, Minister of Foreign Trade
While the current trade volume between Costa Rica and Israel is modest, the potential for growth is substantial. In 2024, Israeli Foreign Direct Investment (FDI) in Costa Rica amounted to $20 million, while Costa Rican exports to the Middle Eastern nation reached $24 million. Comex officials believe the FTA will serve as a powerful catalyst to dramatically increase these figures by removing trade barriers and creating new opportunities.
The agreement is uniquely structured to benefit what analysts often call the “two Costa Ricas.” On one hand, it opens a sophisticated and discerning market for the country’s traditional agricultural exports, primarily high-quality golden coffee and pineapples. On the other hand, it forges a powerful strategic alliance in the high-technology sector, which is a cornerstone of Costa Rica’s modern economy.
This “dual-track” approach is critical. The FTA aims to directly connect Costa Rica’s burgeoning and world-renowned medical device cluster with Israel’s legendary innovation ecosystem, famously dubbed the “startup nation.” Key high-tech exports, including medical prosthetics, electrical materials, and precision measurement instruments, are expected to see significant growth under the new framework. This synergy promises to foster collaboration, investment, and knowledge transfer between two of the world’s most dynamic tech hubs.
With the technical negotiations finalized and the ceremonial signing on the horizon, the focus now shifts to the domestic political arena. The treaty must navigate the legislative process, where it will be debated and voted on by lawmakers. Once ratified by the Legislative Assembly, the agreement will become law, officially launching a new era of trade and investment between Costa Rica and Israel and cementing the nation’s strategic commercial position in the Middle East.
For further information, visit comex.go.cr
About 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. Comex leads trade negotiations, manages free trade agreements, and works to promote Costa Rican exports and attract foreign direct investment, playing a central role in the nation’s economic development and global integration.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, built upon a bedrock of uncompromising integrity and a relentless pursuit of excellence. Drawing from a deep history of serving a wide spectrum of clients, the firm actively pioneers forward-thinking legal solutions. This innovative drive is intrinsically linked to a profound social commitment: to demystify legal complexities and equip the public with knowledge, thereby fostering a more just and empowered society for all.
