Costa Rica and UAE Trade and Investment Agreement Comes into Effect
The Comprehensive Economic Partnership Agreement aims to enhance trade and attract Middle Eastern investments.
The Comprehensive Economic Partnership Agreement in trade and investment between Costa Rica and the United Arab Emirates (UAE) came into effect on Tuesday.
The initiative is designed to expand competitive options for producers by providing greater access to a variety of raw materials, capital goods, transportation equipment, construction materials, and fuels.
In 2024, Costa Rica exported $3.8 million to the UAE while importing $21.19 million, resulting in a trade deficit for Costa Rica, according to data from the Costa Rican Foreign Trade Promoter (Procomer).
The Ministry of Foreign Trade (Comex) reported that trade between the two nations has shown an upward trend in recent years.
With the agreement now in place, it is anticipated that this trade flow will accelerate, attracting Middle Eastern investments in strategic sectors such as energy, technology, tourism, and logistics services.
Key exports from Costa Rica to the UAE include bananas, tropical fruits, medical devices, fiber optic cables, ornamental plants, and coffee.
Conversely, products entering Costa Rica from the UAE with zero tariffs include polymers for the plastic industry, wires, metal sheets and strips, as well as perfumes, fuels, and medicinal extracts.
Additionally, according to the rationale behind the agreement, consumers are expected to benefit from a wider variety of options in terms of quality and price, which will bolster competition and provide greater advantages in purchasing decisions.
Negotiations for the agreement commenced in March 2023 and concluded in January 2024, providing Costa Rican exporters with preferential access to a market of 10 million consumers with high purchasing power.
The agreement was signed in April 2024 and received legislative approval in November of the same year.
The initiative is designed to expand competitive options for producers by providing greater access to a variety of raw materials, capital goods, transportation equipment, construction materials, and fuels.
In 2024, Costa Rica exported $3.8 million to the UAE while importing $21.19 million, resulting in a trade deficit for Costa Rica, according to data from the Costa Rican Foreign Trade Promoter (Procomer).
The Ministry of Foreign Trade (Comex) reported that trade between the two nations has shown an upward trend in recent years.
With the agreement now in place, it is anticipated that this trade flow will accelerate, attracting Middle Eastern investments in strategic sectors such as energy, technology, tourism, and logistics services.
Key exports from Costa Rica to the UAE include bananas, tropical fruits, medical devices, fiber optic cables, ornamental plants, and coffee.
Conversely, products entering Costa Rica from the UAE with zero tariffs include polymers for the plastic industry, wires, metal sheets and strips, as well as perfumes, fuels, and medicinal extracts.
Additionally, according to the rationale behind the agreement, consumers are expected to benefit from a wider variety of options in terms of quality and price, which will bolster competition and provide greater advantages in purchasing decisions.
Negotiations for the agreement commenced in March 2023 and concluded in January 2024, providing Costa Rican exporters with preferential access to a market of 10 million consumers with high purchasing power.
The agreement was signed in April 2024 and received legislative approval in November of the same year.
