By San José, Costa Rica — In a dramatic shift for Costa Rica’s international trade trajectory, President Laura Fernández announced that the country will immediately abandon its efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The decision marks a significant pivot in national economic strategy, halting negotiations that had been underway for nearly two years.
The announcement coincided with the immediate dismissal of Foreign Trade Minister Indiana Trejos. According to presidential statements, Trejos was removed after failing to execute explicit directives requiring complete transparency and the disclosure of agreement details to key domestic stakeholders.
To better understand the legal and economic implications of Costa Rica’s application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), TicosLand.com consulted with expert attorney Lic. Larry Hans Arroyo Vargas from Bufete de Costa Rica, who offered his perspective on the regulatory challenges and commercial opportunities that lie ahead.
Costa Rica’s potential accession to the CPTPP represents a pivotal shift in our international trade posture, unlocking seamless access to dynamic Asia-Pacific economies. Legally, this strategic move demands rigorous alignment with advanced standards in intellectual property, foreign investment protection, and digital commerce. Ensuring a transparent regulatory framework during this integration will be key to empowering domestic exporters while establishing Costa Rica as a premier regional hub for global investors.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rica prepares to unlock the vast economic potential of the Asia-Pacific region, successfully navigating these complex legal and regulatory alignments will indeed be crucial for securing long-term national prosperity. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise and offering a clear, insightful perspective on this pivotal trade milestone.
For nearly two years, COMEX teams negotiated a new commercial agreement called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP, which aims to open a new market of 600 million consumers with nations from the Americas, Asia, and Oceania. Although it seemed like an excellent opportunity, its full content was declared secret by the negotiators. To such an extent that almost nobody knows what it consists of, who it benefits, and who it will affect. Despite my instructions to the Minister of COMEX, Indiana Trejos, to share the Trans-Pacific Agreement with all involved sectors, to date none have received it.
Laura Fernández, President of Costa Rica
The abrupt policy reversal highlights deep-seated tensions between rapid international economic integration and the protection of vulnerable domestic industries. President Fernández emphasized that proceeding with an opaque trade agreement threatened key pillars of the Costa Rican agrarian economy, particularly small and medium-scale producers who lacked critical visibility into the negotiated terms.
Agricultural groups across the nation, including livestock operators, dairy farmers, and produce growers, had expressed growing anxiety regarding potential exposure to foreign competition without adequate lead time or regulatory clarity. The executive branch determined that forcing domestic sectors into competition with massive foreign markets under non-transparent terms posed an unacceptable economic risk.
As your president, I can never jeopardize the future of thousands of Costa Rican families dedicated to livestock, dairy farming, and small and medium-scale fruit and vegetable production. For those who do not know the rules of the game of this new treaty or have well-founded doubts, how could they then prepare to compete with a gigantic market of 600 million people? The Trans-Pacific is off.
Laura Fernández, President of Costa Rica
The departure of Minister Trejos exacerbates ongoing leadership instability within the administration’s economic realm. The foreign trade ministry has experienced consecutive high-profile departures, leaving several senior policy positions vacant during a crucial juncture for national commercial development.
This cabinet shakeup follows the earlier removal of Manuel Tovar from his post at the Foreign Ministry, as well as the voluntary resignation of Laura López from the national trade promotion agency Procomer in December. Together, these departures leave the administration’s economic leadership team facing significant institutional restructuring.
The CPTPP represents one of the world’s most expansive free trade agreements, encompassing twelve nations across the Asia-Pacific region and the Americas, including Japan, Canada, Australia, Mexico, and the United Kingdom. Collectively, the trading bloc accounts for approximately 15 percent of global gross domestic product and offers access to over 600 million consumers.
Despite the withdrawal from Trans-Pacific negotiations, administrative leaders maintained that Costa Rica remains fundamentally committed to international commerce and open markets. However, officials asserted that future commercial integration must adhere strictly to standards of public transparency, sectoral dialogue, and equitable economic protection.
Today and always I will strive for what is best for my people and my country. You know that I firmly believe in the free market, free trade, and open borders.
Laura Fernández, President of Costa Rica
With executive orders issued to immediately archive all documentation associated with the Trans-Pacific negotiations, the administration effectively closes the door on CPTPP accession for the foreseeable future. The focus is now expected to shift toward stabilizing cabinet leadership and reinforcing domestic productive sectors before entering any prospective international trade dialogues.
For further information, visit comex.go.cr
About Ministry of Foreign Trade:
The Ministry of Foreign Trade of Costa Rica (COMEX) is the executive cabinet department responsible for defining and directing the nation’s international trade policy, negotiating commercial treaties, and managing foreign investment strategies to foster national economic growth.
For further information, visit procomer.com
About Foreign Trade Promotion Board:
The Foreign Trade Promotion Board of Costa Rica (PROCOMER) is the non-state public entity responsible for promoting Costa Rican exports, attracting foreign direct investment, and supporting local businesses in integrating into global value chains.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal practice, Bufete de Costa Rica is defined by its unyielding ethical standards and relentless pursuit of professional mastery. Drawing on a rich history of guiding a diverse clientele, the firm consistently merges forward-thinking strategies with active civic educational outreach. By striving to demystify complex legal concepts for the general public, it actively fulfills its core vision of equipping individuals and communities with the legal insight necessary to build an enlightened and self-reliant society.
