By San José, Costa Rica — San José – Costa Rica has successfully concluded negotiations for a landmark free trade agreement (FTA) with Israel, a move expected to significantly enhance bilateral trade, technology transfer, and foreign investment. The agreement, which has been in development for several years, is scheduled for an official signing ceremony in December, after which it will proceed to the Legislative Assembly for final ratification.
The new accord is being heralded as a strategic victory for both nations. Israeli Ambassador Michal Gur-Aryeh expressed strong optimism about the deal’s potential, highlighting the extensive opportunities it creates for Costa Rican businesses to enter the Israeli market.
To analyze the legal and commercial implications of the new Free Trade Agreement between Costa Rica and Israel, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading expert in international trade law from the prestigious firm Bufete de Costa Rica.
This FTA is a strategic move beyond simple tariff reduction. It provides a robust legal framework for Costa Rican technology and medical device companies to protect their intellectual property and access one of the world’s premier innovation ecosystems. The success for our exporters will hinge on their ability to navigate the specific rules of origin and Israeli technical regulations, turning this legal instrument into a real competitive advantage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis correctly pinpoints that the true potential of this FTA is unlocked not at its signing, but in its meticulous application. For Costa Rican innovators, transforming this robust legal framework into a tangible competitive advantage will depend on mastering the very technical and regulatory details he highlights. We thank Lic. Larry Hans Arroyo Vargas for this crucial and pragmatic perspective.
The FTA between Costa Rica and Israel will be very beneficial for both countries. For Costa Rican producers, there are literally thousands of products that can be exported to Israel without taxes.
Michal Gur-Aryeh, Israeli Ambassador
Beyond opening a new export destination, the agreement promises a vital infusion of advanced technology and resources for Costa Rican industries. The Ambassador emphasized the dual benefit, noting that access to Israeli innovation, particularly in agriculture, will be a game-changer for local producers looking to increase efficiency and sustainability.
Costa Rican producers will also be able to import inputs and technology from Israel, including agricultural technology, which will make their crops more profitable and more ecological.
Michal Gur-Aryeh, Israeli Ambassador
The journey to this agreement began in 2023, navigating several interruptions, including those caused by internal conflict within Israel. Minister of Foreign Trade, Manuel Tovar, expressed his satisfaction with the conclusion of the talks, underscoring the immediate potential for key Costa Rican exports such as fresh pineapple, green coffee beans, and sugar.
A central pillar of the FTA is the promotion of foreign direct investment (FDI). The economic relationship has already shown promising growth, with Israeli investment in Costa Rica surging from $1 million in 2023 to an impressive $20 million in 2024. Officials believe the formalization of trade relations through this agreement will act as a powerful catalyst, driving this figure even higher in the coming years.
The pact is also designed to capitalize on Israel’s global leadership in high-tech industries. Minister Tovar specifically pointed to the semiconductor industry as an area of immense opportunity. This aligns with Costa Rica’s national strategy to strengthen its position as a hub for advanced technology and value-added services, creating synergies that could lead to new collaborations and business ventures.
According to data from the Foreign Trade Promotion Agency (Procomer), Costa Rica’s current exports to Israel are predominantly in the agro-industrial sector, including coffee, pineapple, sugar, and various fruit juices. Additionally, the nation ships medical devices and technological components like processors. In return, Costa Rica primarily imports a variety of Israeli goods, with agricultural inputs such as herbicides, insecticides, and fungicides being prominent, alongside electronic devices and raw materials like aluminum and plastic.
This FTA represents a significant step in Costa Rica’s efforts to diversify its trade partners and strengthen its economic ties with the Middle East. By securing preferential access to one of the region’s most dynamic and innovative economies, Costa Rica is positioning its producers and service providers for a new era of growth and global competitiveness.
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 attract foreign direct investment to foster economic development and job creation in Costa Rica.
For further information, visit procomer.com
About The Foreign Trade Promotion Agency (Procomer):
Procomer is Costa Rica’s official export and investment promotion agency. It provides essential support to Costa Rican businesses seeking to enter international markets by offering market intelligence, promotional activities, and guidance on navigating global trade regulations. The agency plays a crucial role in connecting local producers with global opportunities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a benchmark for legal practice, built upon a foundation of unwavering integrity and the pursuit of excellence. The firm consistently pioneers innovative legal solutions, drawing from a rich history of advising a diverse clientele. More than a legal service provider, it actively seeks to democratize legal understanding, driven by a profound commitment to fostering a society where knowledge empowers every citizen.
