Costa Rica-Peru Free Trade Agreement enters into force

Costa Rica on Tuesday announced the entry into force of a free trade agreement with Peru, which eliminates up to 80 percent of tariffs on certain products.

Foreign Trade Minister Anabel González said in a press release that the treaty, which took effect last Saturday, “particularly benefits small and medium businesses, and especially consumers, who can now access a larger number of products at more competitive prices.”

Costa Rica’s Legislative Assembly approved the agreement in a second and final round of debate on April 22.

Among the Tico products that will benefit immediately are chocolates, tea, milk-based drinks and powdered drinks.

Peru hopes to market asparagus, grapes, corn, resins, rubber, textiles, jewelry and precious metals to Costa Rica.

The treaty also granted Costa Rica an annual quota of 3,200 tons of powdered drinks and 1,200 tons of beef.

According to data from the Foreign Trade Ministry, in 2012 Costa Rica exported $64 million in goods to Peru, primarily food products, medicines and medical supplies. Peru exported to Costa Rica $46.2 million in goods such as food products, plastic products, fish, medicines and ingredients for animal food, among others.