President Carlos Alvarado signed on Monday a law in Costa Rica that puts into effect the Central American free trade agreement (FTA) with South Korea, the government announced.
The treaty with South Korea grants immediate, tax-free access to 80 percent of Costa Rican products, while 16 percent of the country’s goods will see a gradual reduction of tariffs and 4 percent will maintain the current tariffs.
Among the Costa Rican products that will have immediate free trade are coffee, sugar, non-alcoholic beverages, medical devices, medicines, plastics, iron and glass products, and prosthetic devices, the government reported.
Meanwhile, 68 percent of Korean goods will not require a tariff when the agreement is in force, including vehicle parts, medicines, cosmetics, some electronics and textile products.
The pact was negotiated between South Korea and all Central American countries except Guatemala, which plans to sign a bilateral pact.
“This treaty is part of our country’s strategy to seek a closer relationship with the Asia-Pacific,” said President Alvarado when signing the treaty at a ceremony.
The president stressed that the FTA will allow Costa Rica to deepen its commercial relationship with South Korea, which he described as a “world leader in innovation.”
South Korea is considered an attractive trading partner for Central America, as it is a country of 51 million people with high purchasing power and is a net importer of food.
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