Following the central axis of their foreign trade and investment policy, Costa Rica's Legislative Assembly approved in recent weeks two major free trade agreements, which are expected to favour the country's integration to international markets and increase Costa Rica's growth and development.
European Free Trade Association
Costa Rica's Ministry of Foreign Trade (Comex) reported that, last week, in its first debate, the Legislative Assembly approved the FTA between Switzerland, Iceland, Liechtenstein and Norway (Member States of the European Free Trade Association, EFTA) and Costa Rica and Panama.
The trade agreement will strengthen the access of exports to Europe. According to Anabel González, Foreign Trade Minister, "this treaty is a natural and strategic step after the entry into force of the Association Agreement between Central America and the European Union."
According to Comex, trade between EFTA and Costa Rica increased about 2.5 times in the last decade. The Costa Rican official stated that, "once the agreement comes into force, this trend will increase."
"We are confident that this agreement will also become a valuable tool to promote investment from this block," said the head of Comex.
Once the FTA is enforced, 98.7% of Costa Rican exports to the bloc would be free of tariffs; 93.3% of the products exported by the EFTA countries to the Latin American country would also be exempted from tariffs.
According to data from Comex, the agreement provides favourable access conditions for products like bananas, fresh fruits, flowers and foliage, vegetables, root crops, coffee and all industrial products.
The door to the Pacific Alliance
This week, the Legislative Assembly also advanced the FTA with Colombia, which will allow Costa Rica to become the fifth full member of the Pacific Alliance.
After the FTA was approved by the Legislature, it was sent to the Constitutional Court where it should be approved within one month, before being subjected to the debate in Congress.
The Central American country committed to immediately release 70.6% of its tariffs on Colombian products, while Costa Rican exports will be free of 69% of Colombia's tariff program.
Costa Rica's timetable for tariff reductions are: 4% in five years, 16.5% in ten years and 4.8% in fifteen years. Meanwhile Colombia's deadlines are: 0.3% in three years, 15.5% in five years, and 10% in ten years.
marcotradenews.com