In a landmark development for global trade relations, Costa Rica and the United Arab Emirates (UAE) have signed,a Comprehensive Economic Partnership Agreement (CEPA), marking a historic milestone in their bilateral economic ties. This agreement, finalized with the exchange of instruments of ratification and will come into effect this Tuesday, April 1st, holds vast potential for both nations and the global economy at large.
The agreement is expected to unlock new opportunities in trade, investment, and innovation, particularly in strategic sectors such as digital services, renewable energy, tourism, and advanced manufacturing. These sectors will drive the diversification and long-term growth of both nations’ economies.
The CEPA prioritizes sectors where both Costa Rica and the UAE hold strong potential and shared ambitions. In digital services, the UAE’s thriving tech sector, combined with Costa Rica’s growing innovation ecosystem, creates a promising partnership. Both countries recognize the critical role of digital transformation and innovation in fuelling economic development.
The renewable energy sector also presents exciting prospects. Costa Rica has emerged as a leader in green energy, while the UAE has made significant strides as a global leader in clean energy. Through the CEPA, both nations will exchange knowledge, technology, and resources to accelerate the transition toward sustainable energy.
Tourism and advanced manufacturing are also key areas of collaboration, with Costa Rica’s eco-tourism offerings complementing the UAE’s world-class infrastructure and logistics capabilities. This synergy creates vast opportunities for Costa Rican exporters, particularly in eco-friendly tourism.
In the wake of the historic signing of the Comprehensive Economic Partnership Agreement (CEPA) between Costa Rica and the United Arab Emirates, LatinGulf.ae sat down with Manuel Tovar, Costa Rica’s Minister of Foreign Trade, for an exclusive conversation. In this interview, Minister Tovar reflects on the strategic significance of the agreement, the sectors poised to benefit most, and how Costa Rica is forging deeper ties with the Gulf region — not only through trade, but through shared values and long-term vision.
What conclusions do you draw from the signing of the CEPA agreement that took place the past month, and what short-term benefits do you foresee for your country?
We have now completed the formal process to bring into effect the CEPA – the commercial agreement between the United Arab Emirates and Costa Rica. This is the first agreement Costa Rica has negotiated with this part of the world, with a Gulf and Middle Eastern nation. It’s a market with a very high purchasing power — over $50,000 per capita — and a consumer base of 10 million people. Moreover, the UAE is a global logistics hub, not just regionally but worldwide.
“It is also a country that imports many of the foods we produce. But the UAE is more than that. It is a highly sophisticated and diversified economy, particularly in the service sector, with strengths in cybersecurity and corporate services — areas where Costa Rica also plays an important role in international markets.”
We see opportunities, of course, to export products that are already traditional for Costa Rica — beyond coffee, bananas, and pineapples — such as medical devices and semiconductors. We know the UAE is also seeking to advance in these areas. Additionally, we see potential in renewable energy and tourism.
Costa Rica offers jungles, beaches, tropical forests — and here, the desert landscape of the UAE can be both mysterious and captivating for Costa Ricans. These are two complementary and very interesting value propositions. We trust this agreement will not only boost trade in both directions but also stimulate foreign direct investment into Costa Rica.
Minister, which products would you consider the most important in this newly formalized commercial relationship? Which products from both sides do you believe have the most traction?
First and foremost, let’s remember that Costa Rica is a natural food producer. The UAE, after the COVID-19 pandemic, went through significant challenges and realized the importance of diversifying its food sources for national food security. Costa Rica can be part of that solution.
Of course, we produce high-quality coffee. While we may not match the volumes of Colombia or Vietnam, our coffee is premium, and this market is quite sophisticated with a taste for quality. We’re the world’s leading exporter of pineapples, and we also export bananas and cassava. There are also non-traditional products that could fit well into this market.
“On the industrial side, Costa Rica is Latin America’s hub for medical devices. We host some of the world’s top multinational companies that manufacture devices to improve and save lives — heart valves, stents, orthopedic parts, implants — all of which make up over 40% of Costa Rica’s global goods exports.”
Let’s also remember that trade isn’t only about goods. About 44% of Costa Rica’s exports are services — software, information and communication technologies, corporate services like back-office operations, accounting, legal, human resources, and cybersecurity.
A more personal question, Minister. You are seen as a key figure in Latin America’s relationship with the Arab world. You’ve managed to build a unique cultural connection that few others have. Many Latin American countries are still trying to develop such ties. What would you say is the secret to your success?
If there’s a “secret sauce,” I’d say it lies in two aspects. First, Costa Rica has a very strong international reputation and a compelling value proposition as a country — despite being a small economy in terms of scale. We’re incredibly diverse: we produce everything from bananas and pineapples to highly sophisticated products like medical devices and semiconductors.
“Companies like Intel operate in Costa Rica, and many of the chips found in phones, tablets, and navigation systems are made there. But beyond our reputation and success, we’ve adopted public policies that allow us to integrate effectively into international markets.“
Personally, I’ve had the opportunity to represent Costa Rica in various international forums, especially in Europe and with the OECD, where I led the country’s accession process to this highly selective organization. These experiences have helped me understand that we live in a diverse, yet interconnected world.
It’s also clear to me that this region — the Gulf — offers tremendous opportunities for our economies. Gulf countries, with the UAE as the prime example, are looking to open up, diversify their markets and their partners. Costa Rica is also looking to reduce its overreliance on the North American market.
Of course, that relationship with the U.S. will always remain due to geography, history, tradition, and shared market preferences. But if the U.S. economy catches a cold, we risk getting pneumonia. That’s why diversification is essential.
In the UAE, we’ve found a market that is hungry for quality — and a partner that shares many of our values. Values like family, multilateralism, and the idea that small nations can achieve great things when their voices are heard in the international arena.
Last year, Dr. Thani Al Zeyoudi from UAE, my counterpart chaired the WTO ministerial meeting. This year, I’ll be representing Costa Rica as we host the OECD ministerial. This shows that small countries can lead on the global stage.
In the UAE, I’ve found a sincere people who share many of the same values as Latin Americans — love for family, responsible global citizenship, and a belief in open markets. The more open we are, the more opportunities we create for our consumers — and of course, for job generation.
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