The UAE and Costa Rica have finalized negotiations for a comprehensive economic partnership agreement (CEPA), as announced by UAE’s Foreign Trade Minister Dr. Thani bin Ahmed Al-Zeyoudi and Costa Rican trade minister Manuel Tovar. This agreement aims to reduce tariffs, streamline trade, foster private sector partnerships, and open avenues for investment.
In 2022, non-oil trade between the two countries increased by 23%, reaching $60.4 million, which is over twice the amount in 2018. The partnership is expected to boost economic cooperation in areas like tourism, renewable energy, food security, ICT, and manufacturing, with both countries looking to build sustainable, forward-looking economies.
Despite global economic challenges,
Costa Rica's economy grew by 4.7% in the first half of 2023, largely fueled by its service sector. The country is a leader in renewable energy, particularly hydropower, offering investment opportunities.
Minister Tovar expressed pride in finalizing this agreement, remarking it as a historic move for
Costa Rica to partner with a Middle Eastern and Gulf nation. He believes the CEPA will strengthen the
Costa Rica-UAE relationship, diversify trade, provide legal certainty, and encourage economic cooperation.
The UAE has been active in forming CEPAs since September 2021, securing agreements with several countries, including India, Indonesia, Israel, and Turkiye, among others, with the first four already in effect.