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HomeCosta RicaCosta Rica's Agri-Food Sector and the European Green Deal

Costa Rica’s Agri-Food Sector and the European Green Deal

In a recent study conducted by Costa Rica’s Foreign Trade Promoter (PROCOMER), it has been highlighted that the European Green Deal will bring about challenges and necessitate changes in the country’s agri-food sector. The European Green Deal, introduced by the European Union in 2019, is a far-reaching geopolitical strategy aimed at achieving climate neutrality by 2050. It sets out a clear path for various sectors, including energy, construction, mobility, and agriculture.

According to the PROCOMER study, the Green Deal will establish standards for countries and industries to access the EU’s internal market. This means that many sectors, particularly agriculture, must enhance their competitiveness and embrace innovation. Hence, it is crucial for national companies to adequately prepare for these upcoming changes.

One significant aspect highlighted in the report is the EU’s plan to reduce pesticide use by 50% by 2030. Consequently, the list of authorized chemicals will be significantly curtailed, and residue limits will undergo modifications.

This shift will have a substantial impact on Costa Rican producers, particularly those in the coffee, palm oil, cocoa, and wood industries. They will be required to demonstrate that their lands are not contributing to deforestation and provide geolocation data.

Marta Esquivel, Director of Planning and Business Intelligence at PROCOMER, emphasized the importance of keeping a close eye on the changes introduced by the European Green Deal. Timely monitoring will enable Costa Rica to respond effectively and avoid being caught off guard.

Erick Apuy, another expert in the field, sees this as an opportunity for the country despite the initial challenges. Apuy believes that proper management will allow Costa Rica to benefit from and seize opportunities such as developing local productive chains in sectors like biocontrols and bioplastics.

He also suggests that Costa Rican companies can occupy market space left behind by other countries due to their lower environmental competitiveness. By specializing as a country with green services, Costa Rica can position itself favorably in the global market.

The European Green Deal presents both challenges and opportunities for Costa Rica’s agri-food sector. By anticipating and adequately preparing for the changes, the country can navigate this transition successfully. Embracing innovation, demonstrating environmental competitiveness, and exploring new avenues for green services will position Costa Rica as a key player in the evolving global market.

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