Costa Rica-UAE Economic Pact Opens Doors To Middle Eastern Markets

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Costa Rica marks a significant step for Costa Rica in broadening its presence in the Middle East, as stated by Costa Rican Minister of Foreign Trade, Manuel Tovar. In a conversation with the Emirates News Agency (WAM), Tovar highlighted the importance of this agreement, noting it as Costa Rica's first with a Middle Eastern nation and underscoring the UAE's pivotal role as a global trade hub and key regional player.

Concluded in January, the CEPA aims to enhance trade by eliminating or reducing tariffs, minimizing trade barriers, fostering private-sector cooperation, and creating investment opportunities. The agreement comes at a time when bilateral non-oil trade between the two nations saw a 23 percent increase in 2022, reaching US$60.4 million, more than doubling the figure from 2018.

During his attendance at the World Trade Organisation’s (WTO) 13th Ministerial Meeting (MC13) in Abu Dhabi, Tovar spoke about the complementary nature of the UAE and Costa Rican economies. He identified food security, renewable energy, and infrastructure projects as potential areas for collaboration. The minister also highlighted Costa Rica's status as a significant producer of agricultural products and processed foods, aligning with the UAE's role as a major consumer of these goods.

Furthermore, Tovar praised the UAE’s leadership at the WTO conference, particularly lauding Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and MC13 Chair, for his organizational efforts. He emphasized Costa Rica's commitment to the WTO as fundamental to its trade policy, supporting initiatives like the extension of the moratorium on e-commerce tariffs and advocating for WTO dispute settlement system reforms.

The minister welcomed Comoros and Timor-Leste as new WTO members and suggested plurilateral negotiations as effective means to achieve progress when unanimous agreement is not possible. He called for a more responsive WTO that engages in continuous dialogue with stakeholders from business organizations, academia, and civil society.

The MC13 concluded with the adoption of the Abu Dhabi Declaration, reflecting consensus on crucial trade and development policies. Hosted by the United Arab Emirates Ministry of Economy and the Abu Dhabi Department of Economic Development (ADDED), MC13 spanned five days at the Abu Dhabi National Exhibition Center from 26th February to 2nd March. The WTO, with 166 members, serves as the sole multilateral organization governing global trade rules aimed at improving living standards, creating jobs, and enhancing life quality worldwide through trade.

With inputs from WAM