By San José, Costa Rica — JERUSALEM – Costa Rica and Israel have officially signed a Free Trade Agreement (FTA), a landmark deal celebrated by Costa Rican business leaders as a crucial step toward diversifying export markets and attracting high-value investment from the Middle East. The agreement was formalized in a ceremony on Monday by Costa Rica’s Minister of Foreign Trade, Manuel Tovar, and Israel’s Minister of Economy and Industry, Nir Barkat.
The deal is seen as a strategic victory for Costa Rica’s long-standing policy of commercial openness, particularly amid global economic uncertainty. Business associations immediately lauded the agreement, emphasizing its potential to unlock new opportunities in a dynamic and competitive international landscape. The Chamber of Foreign Trade (Crecex) hailed the signing as a strategic milestone for the nation’s global integration.
In times of uncertainty and profound transformations in international trade, the correct path for Costa Rica is to continue strengthening its commercial openness, diversifying strategic partners, and consolidating the legal certainty that international agreements provide.
Chamber of Foreign Trade (Crecex)
The Association of Free Trade Zone Companies of Costa Rica (Azofras) echoed this sentiment, highlighting the importance of expanding the country’s economic partnerships beyond its traditional allies. The organization’s president noted that Costa Rica’s model has been highly successful and that this new treaty reinforces a vital strategic direction.
In the current context, it is very important to diversify the origins of those investments and the destinations of our products, particularly in a market of great potential like the Middle East.
Ronald Lachner, President of AzofrasCargando...
This FTA is about more than just trade; it’s a strategic alignment with a global innovation powerhouse. The Ministry of Foreign Trade (Comex) stated that partnering with Israel, a world leader in cybersecurity, clean technologies, agrotech, and semiconductors, creates a privileged framework for Costa Rican industries. The government expects significant growth not only in exports but also in specialized investment and the development of binational production chains.
By allying with Israel—a global leader in innovation, cybersecurity, clean technologies, agrotech, digital services, and semiconductors—a privileged framework is established for new opportunities in trade, capital attraction, and binational production chains.
Ministry of Foreign Trade (Comex)
Minister Tovar emphasized the dual benefit of the agreement, pointing to enhanced market access for traditional Costa Rican products like fresh pineapple, premium coffee, and sugar, while simultaneously paving the way for the nation to become a competitive supplier in high-tech sectors. This strategic positioning is central to the country’s economic future.
The signing of this treaty not only opens doors to new exports but also represents a strategic opportunity to position Costa Rica as a competitive supplier in high-technology sectors, quality agro-industry, and specialized services.
Manuel Tovar, Minister of Foreign Trade
The sentiment was reciprocated by the Israeli side. Minister Barkat framed the deal as a reflection of the deep-seated friendship between the two nations and a mutual commitment to fostering economic growth driven by technological advancement and innovation. The agreement concludes a negotiation process that began in 2023 and faced delays due to internal conflict in Israel. The next step for the treaty is ratification by Costa Rica’s Legislative Assembly.
The economic relationship between the two countries is already showing strong momentum. According to official figures, foreign direct investment from Israel into Costa Rica surged from $1 million in 2023 to $20 million in 2024, a twentyfold increase that officials expect to accelerate further under the new FTA. Currently, Costa Rica’s main exports to the 10-million-person, high-income Israeli market include coffee, pineapple, sugar, and medical devices, while it imports products like herbicides, electronics, and industrial materials from Israel.
For further information, visit azofras.com
About Association of Free Trade Zone Companies of Costa Rica (Azofras):
Azofras is a private, non-profit organization that represents the companies operating under Costa Rica’s Free Trade Zone regime. It advocates for policies that enhance the competitiveness of the sector, which is a primary driver of the country’s exports and a major source of high-quality employment.
For further information, visit crecex.com
About Chamber of Foreign Trade (Crecex):
The Chamber of Foreign Trade of Costa Rica is a private entity dedicated to promoting and facilitating international trade for Costa Rican businesses. It provides services, training, and representation for its members to help them navigate the complexities of global markets and leverage trade agreements.
For further information, visit comex.go.cr
About Ministry of Foreign Trade (Comex):
COMEX is the Costa Rican government ministry responsible for defining, directing, and implementing the country’s foreign trade and investment policies. It leads the negotiation of international trade agreements and works to promote Costa Rica’s integration into the global economy.
For further information, visit procomer.com
About Procomer:
The Foreign Trade Promotion Agency of Costa Rica (Procomer) is the public entity responsible for promoting Costa Rican exports of goods and services worldwide. It supports Costa Rican companies in their internationalization efforts through market intelligence, promotion, and facilitating business connections.
