Costa Rica Eu Free Trade Agreement

Although there are plans for rationalisation, commercial decision-making is decentralized and therefore depends to a large extent on cooperation between the relevant authorities. The Ministry of Foreign Trade (COMEX) assumes overall responsibility for the formulation and implementation of trade policy, including sectoral coordination, as well as representation in multilateral for a such as the WTO and the continuation of bilateral negotiations. The Ministry of Economy, Industry and Trade (MEIC) is addressing the issue of tariff policy in Central America. Costa Rica`s foreign trade is based on four pillars: the multilateral trading system as an active member of the World Trade Organization (WTO), the Central American Economic Integration System (SIECA), bilateral free trade agreements and so-called bilateral investment agreements. Among these platforms, a small country like Costa Rica has managed to become an active member of the global economy. The EU and Central America meet annually to discuss issues and best practices for implementing the Association Agreement. A WTO secretariat report on the country`s trade policy in trade in goods and services states that Costa Rica`s shift from import substitution to an export-oriented model has helped reduce average nominal customs protection from about 17% in 1989 to 11.2% in 1994. In 1990, Costa Rica limited its tariffs to an overall maximum of 55%. This will be reduced to 45% by 2004 as part of the Uruguay Round commitments. The report indicates that tariffs and taxes have recently been increased to contribute in the short term to the reduction of budget deficits and current account deficits; Given the larger gap between applied tariffs and bound scales, these increases can create uncertainty about the stability of the trading system, curb structural changes and sacrifice higher trade profits. Thirty years ago, Costa Rica`s trade policy underwent a significant change by adopting an export-based system as a new model of development. The diversification of export supply, the opening of new markets and the attractiveness of foreign direct investment have set the pace of its development model. Costa Rica is taking steps to better address the new challenges of multilateral trade, in order to build the institutional capacity needed to play an active and constructive role in the years to come.

In the first three years of the agreement, trade increased by 36% (from $324 million to $440 million). [2] European Union – The EU is one of Costa Rica`s main trading partners. The two companies entered into a free trade relationship in 2013. Since then, total merchandise trade between Costa Rica and the European Union has increased by only 0.5%. This stability in costa Rica`s trade relations with the EU can be explained by a stagnation of the EU economy. The new agreement aims to promote sustainable development and deepen its process of regional integration. This closer economic integration between the countries of the Central American region is important to attract investment in the region and help local businesses develop the strength of their regional market in order to be internationally competitive. For Costa Rica, there is cause for concern that some trading partners are increasingly being brought before this forum of new issues that are not relevant to the Uruguay Round discussions and their provisions, not even for trade.

Share