Israel and Costa Rica have signed a Free Trade Area (FTA) agreement at the Ministry of Economy and Industry in Jerusalem. The agreement is expected to expand bilateral trade, influence Israeli export growth, and lower import costs for a range of products, including horticultural goods.
Minister of Economy and Industry Nir Barkat said, "Costa Rica is a natural trade partner for Israel – an OECD country with a deep commitment to free and open trade. The Free Trade Agreement is expected to strengthen the trend of growth in Israeli exports, deepen business collaborations, and help reduce the cost of living in Israel by lowering import prices."
The agreement eliminates over 90 percent of tariffs immediately. This opens the Costa Rican market to Israeli industrial and agricultural products, while Israel will reduce import costs on items such as tropical fruits, nuts, and vegetables. Fresh pineapple, Costa Rica's leading export to Israel, will continue to receive exemption from customs duties.
Costa Rica's Minister of Foreign Trade, Manuel Tovar Rivera, said, "This agreement opens significant new avenues for both Costa Rica and Israel. It enhances access to high-quality Costa Rican goods and services while creating a mutually beneficial platform for collaboration in high-technology industries, premium agribusiness, and specialized services."
Under the agreement, Israeli exports to Costa Rica will benefit from zero tariffs on fertilizers, agricultural chemicals, plastic sheets, machinery, laboratory equipment, aluminum profiles, printing ink, olive oil, dates, grapefruit, citrus fruits, waffle cookies, and roasted grains. Costa Rican exports to Israel, such as asparagus, nuts, mushrooms, cabbage, celery, dried pineapple, and tropical fruits.
The FTA includes updated trade provisions such as replacing Certificates of Origin with Declarations of Origin, recognizing software as part of production, flexible rules of cumulation, and measures suited to global supply chains. It also regulates trade in services for the first time between the two countries, enabling remote services, secure digital trade, and recognition of electronic signatures.
Current Israeli exports to Costa Rica average around US$32 million per year. Officials expect the agreement to broaden commercial activity once ratified. Costa Rica holds trade agreements with 18 major partners, including the European Union, the United States, China, and South Korea.
Roy Fisher, Director of the Ministry of Economy and Industry's Foreign Trade Division, said, "The signing of the agreement is a significant achievement for Israeli industry. Upon its entry into force, Israeli exporters will enjoy preferential access to a market where customs rates are high. Israel and Costa Rica complement each other in the fields of agriculture, manufacturing, and technology."
Source: The Jerusalem Post
