Costa Rica: The Free Trade Agreement between Costa Rica and China: A Decade of Opportunities and Challenges

The Free Trade Agreement (FTA) between Costa Rica and the People’s Republic of China, in force since August 2011, marked a milestone in Costa Rica’s foreign and trade policy. It was the first agreement of this kind signed by China with a Central American country, granting Costa Rica a strategic position in the region and establishing a framework of economic, legal, and commercial cooperation that continues to bring benefits today.

Since its signature, the treaty opened a horizon of opportunities for national exporters. It is estimated that 99.6% of Costa Rican exports obtained immediate access to the Chinese market without tariffs. This directly boosted sectors such as medical devices, agricultural products, fresh fruit, coffee, and certain manufactured goods. At the same time, the agreement facilitated foreign investment, strengthened bilateral cooperation, and diversified Costa Rica’s trade partners beyond the United States and Europe.

However, as in most free trade agreements, challenges have also emerged. The main issue has been the trade deficit. While Costa Rica increased its exports to China, imports from that country—particularly manufactured goods, textiles, electronics, and machinery—grew exponentially. This has posed a constant challenge to maintaining a sustainable trade balance and highlighted the need for a more diversified and competitive export base.

Another relevant point is technical and sanitary barriers. Although the treaty eliminated most tariffs, real market access depends on specific authorizations and sanitary protocols, which often require lengthy approval processes. As a result, there are still Costa Rican agricultural products with significant growth potential that have not fully entered the Chinese market.

Despite these challenges, the FTA has strengthened diplomatic and trade relations between the two countries. China has consolidated investments in infrastructure, energy, and telecommunications in Costa Rica, while Costa Rican exports to the Asian giant, though concentrated in certain products, continue to drive development.

More than a decade after its entry into force, the Costa Rica–China FTA remains a vital instrument for competitiveness and international integration. Its success will depend on Costa Rica’s ability to diversify its export base, strengthen business innovation, and provide world-class advisory services.

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Reference/Citation

1. Tratado de Libre Comercio entre la República Popular China y la República de Costa Rica | Ministerio de Comercio Exterior de Costa Rica (COMEX) – https://www.comex.go.cr 
2. Free Trade Agreement between the Government of the Republic of Costa Rica and the Government of the People’s Republic of China | World Trade Organization (WTO) – https://www.wto.org 
3. Costa Rica–China FTA: Trade Flows and Challenges | International Trade Centre (ITC) – https://www.intracen.org 
4. Costa Rica-China Trade Balance 2011–2023 | Banco Central de Costa Rica (BCCR) – https://www.bccr.fi.cr ‍
5. International Accounting Bulletin (IAB) Rankings | International Accounting Bulletin – https://www.internationalaccountingbulletin.com