Historic Economic Partnership: The Legislative Assembly of Costa Rica has officially ratified the Comprehensive Economic Partnership Agreement (CEPA) with UAE.
The Legislative Assembly of Costa Rica has officially ratified the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE), marking a milestone in the trade and investment relations between the two nations. The agreement, unanimously approved by all 50 deputies, promises to unlock significant opportunities for economic growth and cooperation.
A New Era of Trade
The CEPA is designed to bolster trade by eliminating barriers and expanding market access for key industries in both countries. For Costa Rica, the deal facilitates the export of high-demand products such as bananas, tropical fruits, medical devices, fiber optic cables, ornamental plants, and coffee. Meanwhile, the UAE will export to Costa Rica duty-free products like polymers for the plastics industry, metal wires and sheets, perfumes, fuels, and medicinal extracts.
This agreement is not only about trade but also aims to empower consumers by introducing a greater variety of goods at competitive prices. Costa Rican Minister of Foreign Trade, Manuel Tovar Rivera, emphasized the broader implications:
“This agreement represents a significant step for our integration into global value chains, positioning Costa Rica as a key player in international trade.”
Diplomatic Voices of Support
UAE Ambassador to Costa Rica, Rawdha AlOtaiba, described the agreement as a landmark achievement. “Today marks a milestone in our fruitful relations with Costa Rica. The final approval of CEPA will eliminate most tariff barriers and provide immense support to small and medium-sized enterprises. This is the beginning of a stronger, more dynamic partnership,” she stated.
Ambassador AlOtaiba also acknowledged the collaborative efforts of both nations’ trade ministries in making this agreement a reality. Her remarks underline the UAE’s commitment to enhancing trade relations with Latin America, a region that continues to grow in strategic importance.
Strategic Potential
The UAE, as one of the world’s leading hubs for trade and innovation, offers Costa Rican exporters preferential access to a lucrative market of over 10 million consumers with high purchasing power. For Costa Rica, this opens the door to diversifying its trade portfolio and reducing reliance on traditional markets.
The deal also reflects a broader strategic alignment. With the UAE’s interest in securing sustainable food supplies and Costa Rica’s expertise in agriculture and renewable energy, the partnership has potential beyond immediate trade gains, paving the way for joint initiatives in innovation, sustainability, and technology.
Next Steps for Growth
This landmark agreement is part of the UAE’s broader strategy to establish deeper economic ties with Latin America. Over recent years, the UAE has signed similar agreements with countries in the region, underscoring its growing interest in fostering cross-continental economic integration.
For Costa Rica, the CEPA represents a stepping stone toward becoming a regional leader in trade and sustainability. As Ambassador AlOtaiba aptly noted, “This agreement is a testament to what can be achieved through mutual respect, collaboration, and a shared vision for prosperity.”
The official signing in April followed the conclusion of negotiations in January, but its unanimous approval this week demonstrates the strong bipartisan support for Costa Rica’s global economic ambitions.
The CEPA’s implementation will set the stage for both nations to redefine their trade landscapes, bridging Latin America and the Gulf region with a framework for mutual growth and shared prosperity.
A Model for Future Partnerships
As the Costa Rica-UAE CEPA comes into force, it provides a blueprint for other nations seeking to build stronger economic ties across regions. The agreement highlights the potential for smaller economies like Costa Rica to leverage their strengths through strategic global partnerships.
This historic deal signals a new chapter in Latin Gulf relations, one that promises to elevate trade, investment, and mutual understanding to unprecedented levels.
“We are ready to deepen trade and investment with the United Arab Emirates, a key market for Costa Rican products. This agreement strengthens the country’s integration into global value chains and opens doors to new economic opportunities,” stated Manuel Tovar, Minister of Foreign Trade.
The CEPA includes 18 chapters covering market access, rules of origin, digital trade, and support for SMEs, among other topics. The treaty negotiations concluded in December 2023 after several rounds of dialogue led by the Ministry of Foreign Trade.
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