Costa Rica enters into free-trade agreement with South Korea
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.
This story was made possible thanks to The Tico Times 5% Club. If only 5 percent of our readers donated at least $2 a month, we’d have our operating costs covered and could focus on bringing you more original reporting from around Costa Rica. We work hard to keep our reporting independent and groundbreaking, but we can only do it with your help. Join The Tico Times 5% Club and help make stories like this one possible.
You may be interested
Costa Rica to reapply restrictions in Greater Metropolitan AreaAlejandro Zúñiga - July 1, 2020
Costa Rica will apply stricter health restrictions within the Greater Metropolitan Area in response to Wednesday's record-breaking increase in coronavirus…
Costa Rica coronavirus data for July 1, 2020Alejandro Zúñiga - July 1, 2020
Costa Rica confirmed 294 new cases of the coronavirus over the past day, totaling 3,753 cumulative known cases, the Health…
EU reopens to outside visitors; Costa Rica and U.S. not on list of approved countriesChantal Valery and AFP bureaus - July 1, 2020
The European Union reopened its borders on Wednesday to visitors from 15 countries but excluded the United States, where coronavirus…