UAE and Costa Rica finalise trade pact terms

The UAE and Costa Rica have concluded negotiations on the final terms of a comprehensive economic partnership agreement (Cepa) between the two countries.

Once implemented, the Cepa will eliminate or lower tariffs, reduce trade barriers, promote private-sector collaboration and develop pathways for investment, the UAE state-run Wam news agency reported.

The UAE’s minister of state for foreign trade, Dr Thani bin Ahmed Al Zeyoudi, and Costa Rica’s foreign trade minister, Manuel Tovar, confirmed the end of negotiations.

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Bilateral non-oil trade between the two countries has been growing consistently year on year, climbing 23 percent to $60.4 million in 2022.

Costa Rica’s economy grew by 4.7 percent in the first half of 2023, with services contributing 66.9 percent to the country’s GDP.

“The UAE and Costa Rica see the immense benefits of open trade, and the opportunities for further economic collaboration in key sectors such as tourism, renewable energy, food security, ICT and manufacturing,” said Al Zeyoudi.

“Costa Rica is one of the most promising, investment-friendly economies in Latin America, and we look forward to building on our positive relationship to accelerate trade flows and establish platforms for investment and joint ventures,” he said.

A Cepa with the UAE marks a milestone for Costa Rica, as it is the first time the country has signed an agreement with a Middle Eastern and Gulf country, Tovar said.

The UAE launched its Cepa programme in September 2021 and has concluded deals with India, Indonesia, Israel, Turkey, South Korea, Cambodia, Colombia, Georgia, Mauritius and the Republic of Congo.