WT/TPR/M/392  
1 November 2019  
(19-7384) Page: 1/44 
Trade Policy Review Body  
18 and 20 September 2019   
 
  
TRADE POLICY REVIEW  
COSTA RICA 
MINUTES OF THE MEETING  
Chairperson: H.E. Mr. Manuel A.J. Teehankee (Philippines)  
CONTENTS  
 
1  INTRODUCTORY REMA RKS BY THE CHAIRPERS ON ................................ .......................  2 
2  OPENING STATEMENT  BY THE REPRESENTATI VE OF COSTA RICA  ................................  3 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ................  7 
4  STATEMENTS BY MEM BERS  ................................ ................................ ..........................  9 
5  REPLI ES BY THE REPRESENTA TIVE OF COSTA RICA A ND ADDITIONAL COMMEN TS ... 36 
6  CONCLUDING REMARK S BY THE CHAIRPERSON  ................................ .........................  43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Costa Rica  are reproduced in document WT/TPR/M/ 392/Add.1 and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/392 • Costa R ica 
 
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  1  INTRODUCT ORY REMARKS BY THE C HAIRPERSON  
1.1.  The fifth Trade Policy Review of Costa Rica was held on 18 and 20 September 2019. The 
Chairperson, H.E.  Mr. Manuel Teehankee (Philippines), welcomed the delegation of Costa Rica , 
headed by H.E. Mr. Duayner Salas , Vice Minister of Foreign Trade in the Ministry of Foreign Trade ; 
H.E. Ambassador Gloria A braham , Permanent Representati ve of Costa Rica to the WTO ; the rest of 
the delegation; and the discussant, H.E. Ambassador Mikael Anzén (Sweden) . 
1.2.  The Chairperson recalled the purpose of trade policy reviews and the main elements of 
procedures for the meeting. The report by Costa Rica  was contained in document WT/TPR/G/3 92 
and that of the WTO Secretariat in document WT/TPR/S/3 92. 
1.3.  Questions by the fol lowing delegations were submitted in writing before the deadline: 
Guatemala; Uruguay; European Union; New Zealand; Canada; Hong Kong, China; Chile; Australia; 
Switzerland; Brazil; Indonesia; United States; Ecuador; Colombia; Mexico; Dominican Republic; and  
China . The following delegations submitted written questions after the deadline: Argentina;  
El Salvador; Peru; Singapore; Republic of Korea; Philippines; Iceland; and Trinidad and Tobago . 
1.4.  At the time of its previous Review, Members had noted that Costa Ri ca had successfully 
diversified its economy and its exports of goods and services. This transformation had been  
underpinned by open trade and investment policies. However, at the same time, Members had 
remarked that improving the linkages between the expor t-oriented activities and the rest of the 
economy was a challenge, and that Costa Rica 's trade had remained heavily dependent on one 
trading partner. Members had expressed concern about the growing fiscal deficit and had 
encouraged Costa Rica to restore it s fiscal balance and, in this context, review and rationalize fiscal 
incentives.  
1.5.  With respect to the investment regime, Members had invited Costa Rica to address issues such 
as the high costs of doing business, and the role of the State in the economy, which  had remained 
significant even in sectors which had been liberalized. Members had congratulated Costa Rica for 
implementing measures to bring its free trade zone regime into conformity with WTO obligations, 
and had asked Costa Rica if it  also intended to reform its Inward Processing Regime. Members had 
called on Costa Rica to make further improvements with respect to IPR protection, especially 
regarding enforcement.  
1.6.  From analysing the reports prepared for the current Review, Members noted  that Costa Rica 
had continued to participate actively in the multilateral trading system. Since its last Review, it ha d 
taken a number of steps to facilitate trade and moderni ze customs procedures , and it had ratified 
the Trade Facilitation Agreement. With res pect to the diversification of export markets and the 
correction of the fiscal imbalance, Members noted  that challenges remain ed. Regarding the latter, 
the further weakening of Costa Rica 's fiscal position during this Review period prompted a response 
from the authorities, who undert ook a process of fiscal reform that would  hopefully alleviate this 
situation. In this respect, the Chairperson was sure that there would be great interest in hearing 
about this reform and its impact on the economy as a whole.  
1.7.  With respect to the concerns expressed during the previous Review regarding the investment 
regime, export policies and IPR protection, the Chairperson was encouraged, from reading the 
Government and the Secretariat reports, that measures ha d been taken to ad dress some of these 
issues. For instance, a National Strategy for Simplification of Procedures and Regulatory 
Improvement was introduced, the Inward Processing Regime was reformed to address concerns with 
respect to its WTO compatibility, and measures to s trengthen IPR enforcement at the border were 
introduced. Day one 's meeting would offer the opportunity for Members to engage in discussions 
regarding these and other issues of interest to them.  
1.8.  Costa Rica received over 350 advance written questions for thi s Review. The Chairperson 
looked forward to hearing Costa Rica 's updates on these issues , as well as on the range of areas of 
interest contained in Members ' written questions.  
1.9.  The Chairperson closed his introductory remarks by wishing Costa Rica a very successful fifth 
Trade Policy Review.  WT/TPR/M/392 • Costa R ica 
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE OF COSTA RICA  (H.E. MR. DUAYNER 
SALAS ) 
2.1.  Good morning, Ambassador Manuel Teehankee, President of the Trade Policy Review Body, 
Ambassador Mikael Anzén, discussant at this trade pol icy review, Ambassadors and delegations 
present.  
2.2.  Costa Rica is a country that aspires to boost development by implementing a trade policy and 
a policy to attract productive investment based on the objectives of the multilateral trading system 
and aimed at promoting the country's integration into international markets.  
2.3.  More than a government policy, Costa Rica's foreign trade policy was designed as a state policy 
in keeping with practice over the years.  
2.4.  This policy has been instrumental in creating opportuni ties and prosperity and in driving rapid 
and deep structural changes to the country's economy. In less than three decades, the country has 
moved from exporting a few primary agricultural products to becoming a significant importer of 
sophisticated manufact ured goods and high value -added services without giving up its agricultural 
focus.  
2.5.  Based on the foregoing, Costa Rica has developed a diversified, sophisticated and balanced 
productive structure targeting mainly international markets, which allows it to ex port over 
4,500  products to a portfolio of over 150 markets. This sustains and opens opportunities for 
prosperity to a large portion of its population.  
2.6.  During the review period, total exports of goods and services grew at an average annual rate 
of 5.6% fro m USD  15,549  million in 2013 to USD  20,408  million in 2018. This increase in total 
exports went hand in hand with a growing balance between goods and services, whose current share 
of total exports is 55% and 45% respectively. Imports grew at an average ann ual rate of 3.1% in 
this period, reaching in 2018 a total value of USD  20.4 million.  
2.7.  In terms of foreign direct investment, Costa Rica is a net recipient. Over the past six years, 
Costa Rica has attracted an average flow of about USD  2.6 million, with 2014  having seen the 
highest amount - USD 3 million - ever recorded for the country. The manufacturing and high tech 
services sectors such as medical devices and equipment, corporate services and information 
technology services - which are dependent on the ski lls and technical and professional know -how of 
highly trained human resources - accounted for the majority of the perceived flow, reaching close 
to 60% of the total amount in the previous year, and stood out for their high growth rates in terms 
of generati ng new jobs in the country.  
2.8.  This high contribution to national development, from adding value to production to its growing 
participation in value global chains and the gradual transformation of the national economy into one 
that is increasingly knowledge -based, explains why efforts to promote foreign direct investment 
features so prominently on the country's agenda.  
2.9.  In fact, the foregoing demonstrates how the external sector has become the strongest driver 
of the Costa Rican economy. Costa Rica has an inter nal market of 5  million inhabitants and is 
signatory to several trade agreements that give it access to markets with preferential conditions and 
legal certainty. These markets, taken together, represent one third of the world population and 
two thirds of g lobal GDP. Total trade and foreign direct investment accounted on average for 71% 
of GDP in the period covered by this report.  
2.10.   Hence the reason why the exercise that brings us here today is so important for Costa Rica: 
because the multilateral trading syst em continues to be the cornerstone of the country's foreign 
trade policy.  
2.11.   We are at a moment in history when, regrettably, most headlines point to the rise of 
protectionist trends and the attendant trade tensions that these generate.  
2.12.   Beyond a doubt, a robu st multilateral trading system based on clear rules is the best 
instrument we have to navigate the turbulent waters of today's international markets. For this WT/TPR/M/392 • Costa R ica 
 
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  reason, Costa Rica reaffirms its commitment to the WTO's agenda and to the reform process that is  
needed to strengthen the Organization. Examples of this commitment are the initiatives we have 
sponsored to improve compliance with transparency obligations and strengthen the functioning of 
the Appellate Body.  
2.13.   The national context in which the foreign tr ade policy is developed is as challenging as the 
external context. Although the Costa Rican economy grew at an average annual rate of 3.3% 
between 2013 and 2018 and GDP per capita on a purchasing power parity rose by 21.3% to 
USD 17,559 in the previous yea r, the fiscal imbalances seriously jeopardize macroeconomic 
instability. This has obliged the country to carry out complex and unpopular reforms to gradually 
and responsibly restore balance to the public finances. Given its importance, I will refer to this  in 
more detail later on.  
2.14.   Due to the role that the multilateral trading system plays in Costa Rica's foreign trade policy, 
a fair share of the work done in the review period is linked to various negotiation initiatives, among 
them achieving and implementin g the Trade Facilitation Agreement, expanded coverage of the ITA, 
the negotiation processes of the TiSA and the EGA, and the agreements on export subsidies and 
some disciplines in agriculture, achieved during the Nairobi Ministerial Conference.  
2.15.   All these e fforts are part of the shared vision of WTO Members, such as the Cairns Group, 
which underscores the importance of continuing to advance on the agenda of trade negotiations. 
Furthermore, we are aware that part of the challenges facing the Organization have  to do not only 
with moving ahead on the traditional issues on the negotiation agenda, but also with identifying and 
including new issues that can help tackle current challenges and whose future impact are crucial for 
promoting a more balanced, inclusive a nd sustainable international development agenda.  
2.16.   Costa Rica, along with other Members, has been spearheading efforts to achieve an agreement 
on e-commerce, mindful of the fact that facilitating access would translate into new opportunities 
for growth and diversification for micro, small and medium -sized enterprises, as well as spread the 
benefits of trade to more consumers. What is more, we are proud to lead current efforts to conclude 
the negotiation of disciplines in the area of national regulation o n services, and we wish to thank the 
Members for entrusting us with the task of advancing this process.  
2.17.   Another important issue on the negotiations agenda which Costa Rica has been following very 
closely is related to the disciplines applicable to fisherie s subsidies. The country is world renowned 
for its efforts in environmental protection and, therefore, we consider it crucial to establish disciplines 
that help avoid the overexploitation of marine resources.  
2.18.   We hope that these efforts that are underway an d others that might be deployed in the near 
future would contribute significantly to promoting more sustainable trade that is more committed to 
environmental protection. Indeed, the country is working with some Members on an initiative that 
pursues these o bjectives.  
2.19.   The Trade Facilitation Agreement represents one of the most significant milestones for the 
WTO in recent years. First because it was the first multilateral agreement reached by the 
Organization since its inception in 1995. Second because it sent  a powerful message to the 
international community about the WTO's capacity to identify and include in its agenda key issues 
for the development of trade in the 21st century. And lastly, because it provided the multilateral 
trading system with a valuable i nstrument for reducing trade costs and fostering participation in 
global value chains. That is why Costa Rica participated actively in its negotiation and ever since its 
adoption, has worked for the effective implementation of its disciplines.  
2.20.   To that end, it established the National Council for Trade Facilitation (CONAFAC), over which 
I preside in my capacity as Vice Minister for Foreign Trade, and which is composed of my 
counterparts in the Ministries of Finance, Agriculture and Livestock, Public Work s and Transport, 
Health, Public Safety, and the Interior and the Police, as well as a representative of the Chamber of 
Exporters of Costa Rica and four representatives of the productive sector designated by the 
Costa  Rican Union of Chambers and Association s of the Private Sector. This new Council acts as a 
decision -making body to ensure public -private inter -institutional coordination for trade facilitation in 
ports, airports and land border posts.  WT/TPR/M/392 • Costa R ica 
 
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  2.21.   To complement its efforts on the multilateral arena, Costa R ica has been implementing a 
strategy in which the negotiation of trade agreements (bilateral and regional) has allowed it to 
intensify its efforts in disciplines and in the process of trade liberalization. This has also contributed 
significantly to a more diversified and sophisticated exportable supply.  
2.22.   As part of that strategy, in the period covered by this review, the Free Trade Agreement with 
the European Free Trade Association and the Free Trade Agreement with Colombia entered into force 
and the trade p illar of the Association Agreement between Central America and the European Union 
was implemented. These three agreements allow Costa Rica to strengthen its strategic relations with 
Europe and South America, providing preferential conditions and legal cert ainty to its trade with 
these partners.  
2.23.   Regarding the negotiation processes that took place in the review period, the trade agreement 
with the Republic of Korea is notable. That agreement had been duly approved by the Legislative 
Assembly of Costa Rica and  its counterpart institution in the Republic of Korea. It is foreseen that 
this instrument will enter into force on 1  November  2019.  
2.24.   The country has also continued to work actively on deepening the process of Central American 
economic integration, focusing  on the adoption of measures to facilitate trade, eliminate non -tariff 
barriers, harmonize technical regulations and resolve specific problems in intraregional trade.  
2.25.   The following were part of the results achieved during the review period: approval of the  
Central American Sanitary and Phytosanitary Directive on Trade Facilitation in Respect of Shipments 
and Goods; the Central American Strategy for Trade Facilitation and Competitiveness with an 
emphasis on Coordinated Border Management; the Framework Agreem ent to Implement Integrated 
Control Systems at the border crossings between Costa Rica and Panama; and the agreement on 
information exchange between Costa Rica and Nicaragua.  
2.26.   The country has been deploying considerable efforts which, although not exclusive ly in the 
ambit of the foreign trade policy, contain some elements that are relevant to its implementation. 
This is the case of the reforms that are being promoted as part of the affiliation process for Costa  Rica 
to become a member of the OECD.  
2.27.   Committed to this objective, the country is carrying out the widest and most ambitious process 
of structural reform in recent history in order to implement several of the recommendations issued 
by 22 WTO committees following review.  
2.28.   To date, 14 of these 22 committee s have given their approval, specifically on issues related 
to trade, agriculture, health, education, science and technology, employment, labour and social 
issues, consumer policies, regulatory policy, the digital economy, insurance and pensions, fiscal 
matters, chemicals, public governance and environmental policy.  
2.29.   Approvals from the statistics, investment, anti -bribery, corporate governance, financial 
markets, competition, fisheries, financial analysis and development committees, are underway.  
2.30.   Without pre judice to the huge relevance of all the reforms under this process, we consider it 
timely to refer to two in particular for their content and significance in the context of the foreign 
trade policy.  
2.31.   The first are competition -related reforms that were inclu ded in the recently approved 
ambitious regulatory framework that modifies the powers, structure and resources of the 
competition authority. It should be noted that the scope of the competition law was extended to all 
economic agents; the competition author ity has technical, financial, budget and operational 
independence; the leniency mechanism was established; and the dissuasive effect of its sanctions 
has been observed.  
2.32.   The other is strengthening of the National Statistical System, particularly as concerns  
providing the System's governing body - the National Institute of Statistics and Censuses (INEC) – 
with the necessary financial resources to achieve its objectives through a multiyear statistics 
production planning scheme. Furthermore, companies have an o bligation to provide the information 
required to be fed into the design of several variables and indicators produced by the System.  WT/TPR/M/392 • Costa R ica 
 
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  2.33.   The Government has set itself the goal of completing all the processes underway for acceding 
to the OECD by May  2020 and to that end, all actions being taken are aligned with this goal.  
2.34.   Beyond a doubt, the fiscal reform approved by the Legislative Assembly at the end of 2018 is 
one of the most important projects undertaken by the current Government administration.  
2.35.   This reform h ad been outstanding for over two decades and is not only indispensable but also 
inevitable in order to restore fiscal sustainability.  
2.36.   The reform includes provisions that convert the general sales tax into a value added tax; 
extend their collection to servi ce transactions (it previously applied only to goods transactions); 
harmonize income tax rates for different sources of income; rationalize salary incentives for public 
servants; and establish a fiscal rule to cap public spending.  
2.37.   Costa Rica is also promot ing initiatives aimed at women's economic empowerment and MSME 
innovation to complement the strategy for the diversification of Costa Rica's exportable supply.  
2.38.   Along these lines, the Foreign Trade Promotion Agency (PROCOMER) has developed the 
Women Export programme with a view to accelerating the internationalization of companies led by 
women in sectors such as the food industry, cosmetics, cleaning products, fertilizers and services.  
2.39.   Regarding the promotion of innovation, PROCOMER formed a partnership with  Seedstars 
World, making Costa Rica one of its event locations. This enables a process of learning and 
interaction between MSMEs and other stakeholders in the country's innovation ecosystem through 
preparation workshops and competitions at which the export  capacity of start -ups is assessed.  
2.40.   Even when the results achieved are very satisfactory, we acknowledge that challenges remain 
which encourage us to keep refining the foreign trade policy. In particular, our future line of action 
will focus on a series of  priority elements that include: broadening the foreign trade platform and 
enhancing the use of prevailing trade agreements; continuing to deepen and modernize 
Central  American economic integration; strengthening the country's competitiveness through 
imple mentation of the Border Integration Programme for the modernization of land checkpoints; 
and continuing to attract productive investment that helps achieve national development objectives.  
2.41.   Costa Rica also continues to contribute to the multilateral trading  system by participating 
actively in monitoring compliance with WTO agreements in its different bodies and negotiation 
processes.  
2.42.   The country's accession to the OECD will continue to be a top priority until May  2020. We are 
convinced that this will transla te into greater efficiency for the public sector and internal markets.  
2.43.   We will continue to work on developing and implementing the new programme, DESCUBRE, 
which aims to diversify agricultural exports and attract new investment to rural areas.  
2.44.   Furthermore,  Costa Rica will continue to develop strategies to promote productivity and more 
inclusive growth that offer more opportunities to start -ups and businesses led by women, who 
increasingly involve more stakeholders so that they share in the benefits of trade  and help transform 
our economy into one based on knowledge, innovation and development.  
2.45.   Mr Chair, I wish to thank all those present for their attention and to reiterate Costa Rica's 
commitment to strengthening the multilateral trading system and this Organization. Thank you very 
much.  
  WT/TPR/M/392 • Costa R ica 
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Vice Minister, excellencies, ladies and gentlemen, colleges.  It's a great honour  for me to be 
your discussant here today at the 5th Trade Policy Review of Costa Rica.  
3.2.  I would also like to welcome the distinguished delegation from San José, Vice Minister of Foreign 
Trade , Mr. Duayner Salas Chaverri, and Costa Rica 's new Ambassador to the WTO , H.E. Gloria 
Abraham Peralata.  
3.3.  I like to thank the Chairperson , H.E. Teehankee , for inviting me as a discussant to this review, 
And, as such , I will try not to repeat everything  we ju st heard  but there will be some similarities . 
3.4.  To start off, being in Switzerland I couldn 't refrain from thinking of the saying that Costa Rica 
is sometimes referred to as "the Switzerland of Latin America ". I had to look that up and I found a 
journalist t hat has gone to the bottom with this expression . He noted rightly that there were a few 
similar points: both countries have high life expectancy of their inhabitants, receive the vast majority 
of their electric power from hydroelectric plants , tourism is an important  sector , the area of the 
countries are roughly the same size , there is access to universal medical care and both countries 
maintain neutrality when it comes to international disputes.  
3.5.  But as a Swede , I would like to spell out a word of caution,  Sweden and Switzerland are 
sometimes  mixed up, so I hope we will not start to mix up Sweden and Costa Rica right now. 
3.6.  TPR is a part of WTO 's important transparency exercise, and this is a good moment for us to 
dig into more details on Costa Rica 's economy, trade policy and trade regime.  
3.7.  Going through the different reports, questions and talking to colleagues , I realize that we talk 
about a rather well established and well -runned country, economy , and nation in Central America. 
As such , Costa Rica  is also aiming to join the OECD.  
3.8.  Let me pin -point a couple of observations on my behalf to set the scene for further discussion s.  
3.9.  On the economic environment, Costa Rica has shown a positive development during the review 
period: GDP grew at a real avera ge annual rate at 3 .5%, which today is rather a good number in a 
world -wide comparison . But unemployment is still rather high, about 10%. Among the recent 
legislative changes to boo st and stabilize the economy , there is a new VAT law that entered into 
force on the 1st of July, with a general rate of 13% ( the Swedish VAT is 25%).  
3.10.   The most dynamic sector in the reviewed period was the financial and insurance service sector 
that grew at an average annual rate of 9 .2 %, and this is also a quite remarkable numb er.  
3.11.   Concerning the trade and investment regime, and coming from a trade dependent country 
like Costa Rica , I note from my perspective many positive measures and incentives to promote an 
open and rule -based trade regime by this country . Costa Rica joined G ATT in November 1990 and , 
consequently , is a founding M ember of the WTO since its start in 1995. As a WTO Member , Costa  Rica 
has been very supportive to the multilateral trading system. As already mentioned by the Chair, 
Costa Rica has ratified the Trade F acilitation Agreement  and also the ITA I and II Agreement .  
3.12.   Since the Buenos Aires Ministerial Conference, Costa Rica also joined the plurilateral initiatives 
on e-commerce, investment facilitation and MESMS. The country is also a good friend: being a Friend 
of the system, Friend of e -commerce for developing countries , and Friend of Anti -dumping 
Negotiations.  
3.13.   Some core numbers from the report  which I think are important : average tariff rate for 
industrial products is 5 .6% and 14 .1% for agricultural products, that makes a total tariff average of 
7.2%. We find tariff peaks at 1 .5% of the tariff lines. Among them , dairy products 53 .8%, animal 
products 28 .8%, sugar 17 .4% and clothing 14 .8%. This is where I must say that Costa Rica is not 
really the same as Switzerland because I 've noted that in Switzerland there are much higher tariff-
peaks for dairy and animal prod ucts. WT/TPR/M/392 • Costa R ica 
 
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  3.14.   Main markets for exports are the United States, the E uropean Union, and the neighbouring  
countries in the CACM (Guatemala, Nicaragua, Honduras and El Salvador). For imports we see the 
same countries, but we can also add China and Mexico. Costa Rican imports are mostly electric 
machines and apparatus, chemicals and mineral products. Exports are mainly precision instruments , 
fruits and vegetables, tobacco and beverages. Much of the high -tech export -oriented sector are 
undertaken in the free trade zones  that are  not subject to local taxes.  
3.15.   Overall , there is a structural current account deficit of balance of payments, but a situation 
that is improving thanks to a net surplus in the services exports.  
3.16.   You s ay "Costa Rica " and I think of a country for my ne xt holiday trip. The tourism sector is 
very dynamic and important for the Costa  Rican economy . It is  a locomotive for attracting foreign 
currency. The sector accounted for 6.3% of GDP and 13.2% of employment.  
3.17.   Outside the WTO , I note that Costa Rica is als o an active trade negotiating partner and has 
free trade agreements with the EFTA -countries, Colombia, the E uropean Union , Mexico, Peru, and I 
also heard now that they are undertaking negotiations with South Korea . 
Some challenges ahead  
3.18.   Overall in the economy , I read that  there are signs of a weakening economic activity with a 
lowing GDP growth as a consequence. A weakening economy will also affect trade. Combined with 
the fact that Costa Rica is still heavily dependent on one single trading partner , there is a weakness 
here. A strategy to lowering that risk would be to further expand the geographical base for trade.  
3.19.   One specific characteristic of Costa Rica is that there is no army – and consequently no public 
spending for military purposes. Although, the public sector remains significant in the economy and 
there are possible efficiency gains to be worked upon. One concrete example is government 
procurement procedures that could be more streamlined , and possibly helping doing  so would be to 
join the Gov ernment Procurement Agreement.  
3.20.   Like Switzerland,  Costa Rica is mountainous, unlike Switzerland the road network and 
especially the rail road network is limited. In the Secretariat report there is one example of the need 
of widening the road between San Jos é and the country 's second largest port , Caldera, but the 
approval has been pending for five years.  
3.21.   Most of the trade (81% in volume) is done by sea, but there is room for improvements for 
multi-modal transports.  
3.22.   I think I will stop here for the moment in order to let other delegations put their questions 
and reflections on the state of affairs in Costa Rica.  
3.23.   I think you will give me the floor again on Friday to comment upon what we will hear. I thank 
you very muc h for your attention.  
  WT/TPR/M/392 • Costa R ica 
 
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  4  STATEMENTS BY MEMBER S 
GUATEMALA  
4.1.  Guatemala highly values its close relationship with Costa Rica in all areas. We share major 
trade and development objectives in various forums in the WTO.  
4.2.  Looking beyond the region, Costa Rica and Guatemala have coordinated their trade policies to 
negotiate and implement the major trade agreements signed, as a Central American bloc, with the 
United States, the European Union, Mexico and Chile, among others.  
4.3.  Regarding bilateral trade, the main produc ts exported by Guatemala to Costa Rica are: articles 
of clothing; bananas; coffee; sugar; edible fats and oils; cardamom; plastics and plastic products; 
fresh, dried and frozen fruit; and beverages, spirits and vinegar.  
4.4.  The main products imported from Cost a Rica to Guatemala are: vehicles and transportation 
equipment; machines and mechanical apparatus for electro -technical use; plastics and plastic 
products; petrol; diesel; miscellaneous chemical products; pharmaceutical products; transmitters 
and receivers ; textile materials (woven or other fabrics); iron and steel.  
4.5.  Turning to the review that brings us here today, we highlight the efforts made by the 
Costa  Rican authorities to develop strategies to attract foreign investment, as one of the main pillars 
of economic growth. As outlined in the 2019 -2022 Development Plan, the main objective of the 
Costa  Rican authorities is to promote foreign trade as a tool for trade openness, which enhances 
development and generates new sources of employment in order to reduce  poverty.  
4.6.  It is important to note that, during the period under review, Costa Rica implemented trade 
facilitation measures, such as the application of the Single Window for Foreign Trade (VUCE  2.0), 
which allows for the use of an electronic payment and dig ital signature system, and the creation of 
the National Council for Trade Facilitation in 2017, with the aim of effectively implementing the Trade 
Facilitation Agreement by establishing measures that contribute to flexible and efficient trade.  
4.7.  The period u nder review also saw the development of the Woman Export initiative by the Costa 
Rican Foreign Trade Promotion Agency (PROCOMER) at the end of 2017, with the aim of expediting 
the process to internationalize enterprises led by women, and the establishment of Seedstars Costa 
Rica as a tool to promote innovation, entrepreneurship and the creation of new production chains, 
and the strengthening of the MSME sector.  
4.8.  We commend Costa Rica for its efforts and achievements during the period under review, and 
we bel ieve that its endeavours will contribute to strengthening both the country itself and our region 
across the world.  
4.9.  We also thank Costa Rica for its replies to Guatemala's questions in the context of this review. 
We wish Costa Rica and its delegation a succ essful conclusion of this Trade Policy Review.  
URUGUAY  
4.10.   Uruguay wishes to extend a most cordial welcome to the delegation of Costa Rica on the 
occasion of its Fifth Trade Policy Review.  
4.11.   Firstly, we welcome the fact that, during the period under review, per capita GDP in current 
terms increased by 20% to reach USD  12,017 in 2018. Real GDP also increased and was sustained 
mainly by the rise in internal demand, with a positive contribution by net exports of goods, 
particularly services. During the period under review, the changes to the productive structure 
continued to be consolidated and the contribution of traditional activities to GDP fell, while the 
importance of the services sector increased.  
4.12.   As a promoter of multilateralism, Costa Rica supports the inclus ion in negotiations of new 
trade -related topics, including through the various joint initiatives.  WT/TPR/M/392 • Costa R ica 
 
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  4.13.   We note that, in 2017, Costa Rica ratified and accepted the Protocol on the Trade Facilitation 
Agreement, and notified that it would immediately implement alm ost all of the provisions in the 
Agreement. Since its previous trade policy review, Costa Rica has adopted various trade facilitation 
measures. It has continued to develop the Single Window for Foreign Trade (VUCE  2.0) to enable 
the use of an electronic pa yment and digital signature system, which will gradually include new 
functions, and has also made progress on certification processes for authorized economic operators 
(AEO). Uruguay observes the creation of the National Council for Trade Facilitation in 2 017 with the 
aim of implementing the Trade Facilitation Agreement, but notes that the services of a customs 
broker remain mandatory for most customs operations.  
4.14.   Costa Rica is signatory to the Information Technology Agreement (ITA) and is an Observer in 
the Committee established under the Plurilateral Agreement on Government Procurement. It has 
regularly submitted notifications under the various WTO  Agreements.  
4.15.   We also note the measures taken to diversify its exportable supply, foster the creation and 
growth  of innovative MSMEs, as well as promote a greater role for women and gender equality in 
the export sector.  
4.16.   Like Uruguay, Costa Rica is part of the Cairns Group of countries that produce and export 
agricultural products, and is a driver of the reform negot iations to significantly and gradually reduce 
the support and protection granted to agricultural products in accordance with the mandate of 
Article  20 of the Agreement on Agriculture.  
4.17.   At the bilateral level, in 2018, our country exported goods to Costa Ric a for a value of 
USD 17,161  million, similar to that recorded in the two previous years. The main export during the 
period under review was rice, which amounted to USD  11,975  million (equivalent to 70% of total 
exports) in 2018, down from 15,081  million in  2016.  
4.18.   Costa Rica continues to have high levels of tariff protection for certain agricultural products, 
to which it has also applied other intervention measures.  
4.19.   During the period under review, Costa Rica applied, for four years, a contested safeguard that 
affected pounded rice and consisted of a tariff surcharge of 24.88% on the applied tariff of 35%. 
Furthermore, in 2017 and 2018, it implemented a special agricultural safeguard that affected brown 
rice. To date, it has not been made clear wh ether this safeguard will be applied in 2019. As stated 
in the Secretariat report, the protection granted to these products has reduced market competition. 
Uruguay welcomes the reply received to the question that it submitted in writing in this regard and 
will continue to closely follow future developments on the matter.  
4.20.   Uruguay looks forward to further cooperation with Costa Rica to continue strengthening their 
trade ties, and wishes it every success in its Fifth Trade Policy Review.  
EUROPEAN  UNION  
4.21.   We appr eciate the opportunity to discuss the trade policy developments of one of the founding 
Members of the WTO. Costa Rica is a country that is well integrated into its region and the world 
economy and attaches great importance to the rules -based multilateral t rading system. Let me here 
express appreciation to the excellent cooperation we have with the Costa Rican mission in Geneva.  
4.22.   The discussant has already noted the positive achievements in the economy of Costa Rica: an 
average growth rate of 3.5% in the per iod under review, which resulted in a 13.9% increase in a 
nominal GDP since the last review in 2013. This is , in particular , due to the strong role of foreign 
direct investment in the country and foreign trade, which accounted for over 70% of the GDP. With  
a GDP per capita based on purchasing power parity of around USD 17 600 in 2018, Costa Rica is 
one of the wealthiest countries in the Latin America region.  
4.23.   We commend the fact that Costa Rica is developing high -tech manufactures, mainly destined 
for export , which have achieved a high level of competitiveness. The share of medical instruments 
and devices in total exports has increased up to 37% in 2018. They also account for an equally large 
share of Costa Rica 's exports to the European Union. As it appears,  the success of these high -tech WT/TPR/M/392 • Costa R ica 
 
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  instruments can be ascribed to the fiscal incentives enjoyed by manufacturing companies in the Free 
Zone Regimes and foreign investment in the sector.  
4.24.   We are encouraged by not only the good economic performance, but also Cos ta Rica 's support 
to the multilateral trading system and its active participation in the WTO work. Costa Rica supports 
the same values as the European Union, in particular, in the area of gender equality and 
environment, including commitments to the Paris Climate Change Agreement. Costa Rica is the 
leader in pursuing environmental policy goals in Latin America as demonstrated by its top-ranking  
position in the region according to the Environmental Performance index.  
4.25.   The EU and the Central America Association Agree ment, signed in 2012, remains the 
cornerstone of the EU -Costa Rica relationship and bilateral trade continues increasing. The EU 
remains the second Costa Rica 's exports destination after the United States and the third source of 
Costa Rica imports. At the same time, over the period of 2013 -2017 investments in general 
increased, more specifically EU investments to Costa Rica increased by 87% in terms of investment 
stocks and by 32% in terms of investment flows.  
4.26.   Yet, despite an overall good economic performa nce, a number of challenges remain for Costa 
Rica's government to keep the country on a path of sustained and inclusive growth. As the 
Discussant, we note the increase in the recent years of the unemployment rate to 10% (in 2018), 
high fiscal deficit resul ting in a high debt to GDP ratio (47.7%) and insufficient investment in the 
country 's infrastructure. It requires a significant reform that we know the government is currently 
undertaking.  
4.27.   As major deficiencies that should be addressed, the WTO Secretaria t has identified a lack of 
competition in the banking sector, deteriorating condition of the transport system through a lack of 
investment, a substantial part of the economy exempt from the competition rules, including the 
electricity sector. Restrictions in the latter are perceived by businesses as major factors contributing 
to increasing production costs.   
4.28.   As highlighted by a number of detailed questions that the EU submitted for the purposes of 
Costa Rica 's TPR, there are also some other areas where we believe there is scope for improvement, 
or where we believe Costa Rica should pay special attention: in particular regarding competition 
policy, taxation, tariffs and customs procedures as well as services and investment.  
4.29.   We appreciate Costa Rica 's commit ment and on -going efforts to facilitate trade and 
investment and we are hopeful that it will address our concerns in this regard. At the same time, we 
would like to reiterate our interest and importance to a better protection and effective enforcement 
of Geographical Indications on the international scene, both on the multilateral and on the bilateral 
level.  
4.30.   Despite these concerns, the EU would like to underline that we are equally positive about 
Costa Rica 's trade policy and our bilateral trade relationsh ip. We would thus simply encourage Costa 
Rica to continue on this path.  
4.31.   On behalf of the EU, I look forward to a constructive exchange of views during this review and 
I wish the delegation of Costa Rica a very successful review.  
NEW  ZEALAND  
4.32.   New Zealand an d Costa Rica were both founding Members of the WTO and continue to be 
active and constructive Members. We share a conviction that a strong rules -based multilateral 
trading system is essential and are committed to safeguarding and strengthening the system. We 
are both also members of the Cairns Group of agricultural exporting countries. For a small economy, 
Costa Rica makes a big impact, and devotes considerable resource to the smooth functioning of this 
organisation for our collective benefit. In addition t o its active participation across the WTO agenda, 
and through groups such as the Friends of the System, this can also be seen through current roles 
chairing the Committee on Subsidies and Countervailing Measures and as facilitator of negotiations 
under the  Joint Statement Initiative for Services Domestic Regulation, as well as its long -standing 
former Chairmanship of the Special Session of the Dispute Settlement Body.  WT/TPR/M/392 • Costa R ica 
 
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  4.33.   We appreciate Costs Rica 's active participation across a range of topics of contemporary 
importance to the WTO, including electronic commerce, services domestic regulation, investment 
facilitation, women 's economic empowerment, MSMEs, fossil fuel subsidy reform and the 
liberalisation of information technology products and environmental goods.   
4.34.   We are, however, disappointed to see that Costa Rica 's applied tariffs for four product lines 
exceed their bound rates. We strongly encourage Costa Rica to bring MFN tariffs for these product 
lines into conformity with its commitments immediately, and upd ate Members on implementation of 
this change.  
4.35.   New Zealand and Costa Rica also share a commitment to ensuring that the benefits of trade 
liberalisation are shared more widely amongst our communities, and that trade promotes sustainable 
economic development and contributes to solving issues of global concern. We particularly 
appreciate Costa Rica 's support for WTO discussions on trade and climate change issues within the 
Committee on Trade and Environment, its participation in the Environmental Goods Agreemen t 
negotiations, and its ongoing advocacy for the phase out of fossil fuel subsidies as a member of the 
Friends of Fossil Fuel Subsidy Reform and endorsement of the Joint Ministerial Statement at MC11.  
4.36.   Costa Rica 's decarbonisation plan launched in March 20 19, with a view to achieving carbon 
neutrality by 2050, makes it a trailblazer. We would appreciate any insights Costa Rica is able to 
share with us as it implements this plan regarding impacts o on economic and trade policy.  
4.37.   We commend Costa Rica 's active  and constructive engagement in agriculture and fisheries 
subsidies negotiations. New Zealand welcomes the ongoing advocacy for a successful outcome on 
fisheries subsidies by December in accordance with the 2017 MC11 decision and Sustainable 
Development Go al target 14.6. We also value Costa Rica 's participation and contribution to the 
agriculture negotiations, particularly contributions in the Cairns Group and on enhancing domestic 
support disciplines.  
4.38.   We share these priorities and look forward to continui ng to work alongside Costa Rica toward 
positive outcomes this year and at MC12.  
CANADA  
4.39.   Canada warmly welcomes the delegation of Costa Rica. I am pleased to participate in 
Costa  Rica's Trade Policy Review, a country with which we have a solid trading relati onship and one 
that has consistently been a regional pioneer in its adoption of a liberal trade policy and its 
commitment to sustainable economic development.  
4.40.   Costa Rica is an active and engaged WTO Member and has contributed to our work since being 
a founding member of the Organization in 1995. Over the years, the Government of Costa Rica has 
taken measures aimed at ensuring that its trade policy tools facilitate the establishment of clear, 
predictable and transparent rules governing trade and that the to ols enable the country to better 
integrate international markets. One of the main thrusts of the country 's trade policy has been trade 
facilitation. Adoption and entry into force of the WTO 's Trade Facilitation Agreement (TFA) during 
that period has gone a long way to helping achieve this goal. Canada recognizes Costa Rica 's 
exemplary notification record and its active and constructive contributions to committee work. In 
doing so, Costa Rica is supporting the WTO 's monitoring function and the ability of other Members 
to understand the policy actions taken by it.  
4.41.   We also want to commend Costa Rica for its active and constructive role in the MC11 joint 
initiatives on Investment Facilitation for Development, Electronic Commerce and on MSMEs, and for 
suppo rting the Buenos Aires Declaration on Women and Trade. We also wish to highlight Costa Rica 's 
leadership as Chair of the initiative on Services Domestic Regulation; and we remain convinced that 
a meaningful outcome is reachable by MC12. On the negotiations  on fisheries subsidies, Canada is 
proud to be a co -sponsor with Costa Rica and others of a draft text that would prohibit subsidies to 
illegal, unreported and unregulated fishing.  
4.42.   These efforts from Costa Rica have helped to consolidate the foundation of trade agreements 
which, thanks to the entry into force in Costa Rica of three new instruments since its previous Trade WT/TPR/M/392 • Costa R ica 
 
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  Policy Review (TPR) and the recent ratification by parliament of another, create a more conducive 
environment for growth, diversification and sophistication of trade and investment in the country.  
4.43.   Moreover, we are pleased that Costa Rica has made it a priority to significantly strengthen its 
public policy as part of  its process of affiliation to the Organization for Economic Co -operation and 
Development (OECD). Costa Rica 's recent efforts to become a full member of the OECD are a 
welcome exercise, one which Canada has been supporting and we strongly encourage the 
Government to continue this difficult but important work.  
4.44.   Permit me to briefly identify three areas that merit further focus in Costa Rica 's ongoing reform 
efforts.  
4.45.   First, we note Costa Rica 's solid economic performance and its efforts to continue with the 
modernization and simplification of its trade regime. Canada and Costa Rica have established a 
longstanding trade relationship through its Free Trade Agreement. Building on this key 
accomplishment, Canadian exporters are still keen to increase trade with Co sta Rica but find it 
increasingly difficult to take full advantage of the business opportunities, due to a challenging trade 
environment and restrictive market access conditions imposed on some agriculture and agri -food 
products. Understanding there are pa rticular circumstances surrounding agricultural production and 
imports, Canada trusts that Costa Rica will maintain a regulatory framework that follows 
international norms which pursue legitimate policy objectives and facilitate free trade as per WTO 
agree ments.  
4.46.   Secondly, Costa Rican services exports have been extremely dynamic. Services exports not 
only grew in size, but also in degree of sophistication. While a number of subsectors that were 
previously state monopolies were opened to competition during t he review period, Canada 
encourages Costa Rica to continue this openness and consider where further services liberalization 
can be pursued and consolidated.  
4.47.   Finally, we note positively that the country continues to implement actions aimed at increasing 
flows of productive investment and the opportunities that such actions provide for Costa Ricans to 
progress and improve their well -being. Similarly, we encourage Costa Rica to continue to work on 
optimizing the use of the foreign trade platform, through coor dination with PROCOMER, for increased 
exports and support for initiatives on trade promotion and production chains. Also, we support the 
Government to pursue cooperation with the Agency for the Promotion of Investment in Costa Rica 
(CINDE) to promote the c ountry as an investment destination. Such initiatives are useful tools to 
modernizing infrastructure that encourage FDI attraction.  
4.48.   In closing, I look forward to the discussion of Costa Rica 's trade and investment policies, and 
I wish Costa Rica a very su ccessful trade policy review.  
HONG  KONG,  CHINA  
4.49.   Hong Kong, China (HKC) maintains close economic ties with Costa Rica, which has been an 
important trading partner of ours in Latin America. In 2018, HKC was Costa Rica 's 9th largest source 
of imports and 18th largest exports market.  
4.50.   At a time when the WTO is facing unprecedented challenges, we welcome Costa Rica 's pledge 
in its Government report that it will fully commit to the multilateral trading system and that it will 
assist in steering the work agenda of t he WTO. We also thank Costa Rica for its participation in the 
discussions of WTO reform and various trade subjects, including fisheries and agriculture. We firmly 
believe that Members ' active engagement in these dialogues is crucial to the effective functi oning of 
the WTO.  
4.51.   Foreign trade remains a strong driver of Costa Rica 's economy. In this regard, in accordance 
with its latest National Development Plan, the main objective of Costa Rica 's foreign trade policy is 
to foster greater openness to trade and int ernationalisation of its economy. We are pleased to note 
that the Costa Rican Government has undertaken various reform measures to ensure that its trade 
policy tools are clear, predictable and transparent. We would encourage Costa Rica to continue to 
further its trade liberalisation and facilitation policies, and see to their effective implementation.  WT/TPR/M/392 • Costa R ica 
 
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  4.52.   Costa Rica ratified the Agreement on Trade Facilitation (TFA) in May 2017 and notified that it 
would immediately implement almost all provisions. Since then, Costa Rica has adopted various 
measures to promote trade facilitation, such as the Single Window for Foreign Trade and the 
Authorised Economic Operators. We welcome Costa Rica 's efforts in implementing the TFA and 
maintaining a high degree of transparency in this regard.   
4.53.   On tariffs, we appreciate that Costa Rica has bound and maintained ad valorem rates for all 
its tariff lines, and the structure of its MFN tariffs is stable during the review period. Nonetheless, 
we note that Costa Rica 's MFN applied tari ff exceeds the bound tariff for a few dairy products, 
beverages and industrial products. We look forward to seeing reduction of the MFN applied tariff of 
these products to a rate within the corresponding bound tariff.  
4.54.   Meanwhile, we note that the state play s a leading role in Costa Rica 's economy, and there 
were no substantial changes concerning state enterprises during the review period. Most of these 
state entities operate in the services sector, including the financial, telecommunications and 
electricity sectors. A draft law to align the corporate practices of public enterprises is in the pipeline, 
while an advisory unit for the management and coordination of state -owned enterprises has been 
established for systematising information on the performance of s uch enterprises and carrying out 
periodic performance audits. The efforts taken to achieve better performance by state -owned 
enterprises and promote transparency in their management and decision -making process are 
appreciated. We would encourage Costa Rica  to further analyse the impact of its state enterprises 
on the competitiveness of its economy, with a view to promoting further reforms for better economic 
efficiency.  
4.55.   HKC looks forward to fostering further the bilateral trade and economic relations with 
Costa Rica. I would like to thank Costa Rica for its replies to our written questions, which we will 
study  carefully. We wish Costa Rica a successful Trade Policy Review.  
CHILE  
4.56.   We commend Costa Rica for the transparency that it has shown in subjecting itself to the 
scrutiny of its peers. This decision will, no doubt, help strengthen the system.  
4.57.   For the purpose of this exercise, we submitted eight questions. We welcome the replies  that 
we have received, which will be analysed by our teams in Santiago.  
4.58.   Costa Rica and Chile have enjoyed excellent relations since bilateral ties were established in 
1857. Our countries share principles and common values such as: defence of democracy, th e 
promotion of human rights, individual freedoms, the fight for peace and disarmament, and protection 
of the environment. Our two States have common positions at international forums, as demonstrated 
by Chile's active support for Costa Rica's accession to the Organisation for Economic Co -operation 
and Development (OECD), which we hope will be completed soon.  
4.59.   The two countries also share the belief that economic openness and free trade are an engine 
for prosperity and sustainable development. At the WTO, Chi le and Costa Rica agree on the 
importance of ensuring an open, transparent and rules -based multilateral trading system. They also 
actively support the ongoing negotiations and the regular work of the different committees, and 
share the same viewpoints on v arious areas of work, such as: trade and environment, services, 
investment facilitation, electronic commerce and agriculture. Both Members also attach great 
importance to regional integration, as reflected by the many trade agreements that they have 
signed . 
4.60.   Trade relations between Costa Rica and Chile have been governed by the Free Trade 
Agreement signed by Chile and Central America, and the Bilateral Protocol that has been in force 
since February  2002. In 2018, bilateral trade amounted to USD 288 million . 
4.61.   Chile notes the new measures adopted by Costa Rica during the period under review in order 
to facilitate foreign trade. Chile also appreciates the diversification of Costa Rica's production, the 
low use of trade defence measures, the exportation of manufac tured products with high value added 
(such as medical and electronic equipment), the positive results achieved for exports of services, 
and the high level of foreign direct investment (FDI) received by Costa Rica.  WT/TPR/M/392 • Costa R ica 
 
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  4.62.   Chile also observes that the open trade an d investment regime has been fundamental in 
achieving the objectives of economic growth and development in Costa Rica, as reflected by the 
sustained growth of its GDP in real terms and per capita.  
4.63.   Lastly, we must also mention the areas in which we have obs erved opportunities for further 
liberalization, as is the case for the energy sector and tariffs that affect certain agricultural products, 
and the introduction of greater competition, as is the case for the telecommunications and financial 
services sector s. 
4.64.   In conclusion, we wish to reiterate our interest in continuing to work with Costa Rica within 
the various bodies of our Organization, and wish it a very successful Fifth Trade Policy Review.  
AUSTRALIA  
4.65.   Australia welcomes the opportunity to participate in Costa Rica 's fifth Trade Policy Review.  
4.66.   Australia and Costa Rica enjoy friendly relations underpinned by our shared membership of a 
number of international fora such as the Cairns Group of agricultural exporting countries and the 
Forum for E ast Asia -Latin America cooperation. Costa Rica is a member of the Central American 
Integration System, of which Australia has been an extra -regional observer since July 2011. Australia 
and Costa Rica are also both observers of the Pacific Alliance, a trade  liberali zing bloc with Chile, 
Colombia, Mexico and Peru.  
4.67.   The Australia -Costa Rica bilateral relationship is growing. In 2017, Costa Rica opened an 
embassy in Canberra and has a consulate in Sydney. Overall trade is modest. Two -way merchandise 
trade in 201 8 stood at A$135 million with Australia 's main exports being ships, boats, and floating 
structures. Australia provides Costa Rica tariff preferences under our Generalised System of 
Preferences scheme: the Australian System of Tariff Preferences. Australia 's trade in services with 
Costa Rica is growing — we imported over $22 million of services from Costa Rica in 2018 and 
exported $6 million.  
4.68.   Australia commends Costa Rica 's commitment to the WTO and free trade. This includes 
Costa  Rica's ratification of the T rade Facilitation Agreement. We note in particular Costa Rica 's 
commitment under this Agreement to implement virtually all provisions immediately on its entry into 
force in February 2017.  
4.69.   This commitment to the WTO and free trade also includes Costa Rica 's good record in meeting 
its notification obligations. In line with this record is Costa Rica 's efforts to improve the level of 
notifications by its co -sponsorship of the  
4.70.   Council for Trade in Goods joint proposal on "Procedures to Enhance Transparency and 
Strengthen Notification Requirements Under WTO Agreements ". 
4.71.   Australia also welcomes Costa Rica 's constructive approach and engagement in the Joint 
Statement initiatives on e -commerce, services domestic regulation, investment facilitation and 
MSMEs. We would particularly like to thank the leadership of Jaime Coghi, Costa Rica 's DPR, as Chair 
of the D omestic Regulation open -ended negotiations.  
4.72.   Australia encourages Costa Rica to continue to ensure that all tariff commitments made under 
the WTO are realised across all products. We recogni ze Costa Rica 's undertaking to ensure that its 
domestic laws and re gulations are consistent with the Marrakesh Treaty and invite Costa Rica to 
maintain its progress on this issue.  
4.73.   We wish Costa Rica well in its Trade Policy Review and warmly anticipate the continuing growth 
in our bilateral relationship.  
SWITZERLAND  
4.74.   Costa  Rica is a "true friend of the system ". The Costa Rican delegation 's constructive and 
active engagement in support of the multilateral trading systems is held in high esteem by all of us. 
Moreover, we wish to commend the country 's commitment in the endeavo ur to phase out fossil fuel WT/TPR/M/392 • Costa R ica 
 
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  subsidies. It is also worth pointing out that Costa Rica has fostered a sensitivity and creative mind 
with respect to the issues of trade and environment long before the question of climate change took 
centre -stage.  
4.75.   We may glean  from the excellent report provided by the Secretariat that Costa Rica continues 
to make great strides on its economic reform path. Per capita income has developed positively. 
There is continuous economic growth, albeit at a slowing pace. The importance of  the services sector 
keeps growing. The country 's workforce is known to be skilful  and well -educated. And many 
knowledge -intensive sectors have the capacity to turn out complex and competitive industrial 
products.  
4.76.   However, Costa Rica 's public finances must  give rise to some concern. This is somewhat 
astonishing given the relatively modest role played by the government as an employer. Yet tax 
revenues do not keep pace with the government 's expenditures, which include high costs of servicing 
an ever -rising na tional debt. This predicament makes the economy vulnerable to economic shocks, 
especially since some of the debt needs foreign funding. There is virtually no fiscal space to 
counterbalance the adverse effects of an economic downturn in the future.  
4.77.   Moreove r, the fact that the central bank has not shied away from monetizing a certain amount 
of the debt could undermine confidence in the country 's currency. We note that the dollarization rate 
of the Costa Rican economy remains high.  
4.78.   The unemployment rate has r eached a high level and refuses to go down. This stickiness is 
perhaps an indication of rigidities inherent in the labour market or an excessively generous minimum 
wage. Costa Rica 's economy could benefit from a loosening up of a somewhat tight regulatory 
framework to make better use of its tremendous potential. The country 's competition policy might 
also be strengthened as many economic operators do not fall under its remit.  
4.79.   We encourage the Costa Rican authorities to continue to put more emphasis on a du al 
education system to offer better vocational training for the young. The cherished tradition of the 
system of dual training has always stood the Swiss economy in very good stead.  
4.80.   Switzerland takes a particular interest in Costa Rica as a trading partner  not least because of 
our free trade agreement with our partners from Central America which was negotiated together 
with the European Free Trade Association. Entry into force of the Agreement in 2014 was 
immediately followed by an increase in bilateral tra de.   
4.81.   Switzerland had submitted a series of questions in writing and wishes to thank Costa Rica for 
the timely and extensive replies. We are in particular interested in the function and added value of 
the institution of a customs broker for imports or even  exports. We are also aware of the efforts 
being made with the help of the Inter -American Development Bank to render customs procedures 
more efficient. Like others, Switzerland has doubts whether a special tax levied on imported but not 
domestically produc ed beer is compatible with WTO rules. We understand that the case is undergoing 
legal scrutiny and intend to study the result of the review very carefully.  
4.82.   To conclude, I would like to underscore Switzerland 's interest in Costa Rica 's comprehensive 
answer s to our queries with respect to the interface of trade and sustainable development. We agree 
with Costa Rica that the adoption of rules and disciplines for e -commerce, for example, can make a 
valuable contribution. And yes, Costa Rica is right: it should indeed be possible for both the trade 
and the climate change communities to work together to everyone 's benefit. We wish Costa Rica a 
successful outcome of this Trade Policy Review.  
BRAZIL  
4.83.   We start by praising Costa Rica for the positive performance in terms of per capita GDP, which 
had an increase of 20% between 2012 and 2018. Real GDP also increased by an annual average 
rate of 3.5%.  
4.84.   We recognize, nevertheless, that in recent years there have been challenges in relation to the 
maintenanc e of healthy public finances. According to the Secretariat, during all the years within this WT/TPR/M/392 • Costa R ica 
 
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  review the budget deficit has remained above 5% of GDP, while total public debt of the public sector 
reached 70.6% of GDP in 2018.  
4.85.   Moving on to WTO related issues , Brazil notes with satisfaction that Costa Rica ratified and 
approved in 2017 the Protocol on the Trade Facilitation Agreement, notifying that there would be 
immediate implementation of almost all of its provisions.  
4.86.   A worrisome aspect we wish to highlight , tariff protection for agricultural products remains 
higher than that for non -agricultural products, making it more difficult on average for agricultural 
exports to get into Costa Rica. As an important exporter of agricultural products Brazil encourages 
Costa Rica to reconsider its current tariff levels on agricultural products.  
4.87.   We note that during the review period safeguard measures were imposed on pounded rice 
and, also, that special agricultural safeguard measures have been applied on brown rice. 
Furth ermore, in June this year a safeguard investigation on the import of white sugar has been 
initiated. Brazil is following closely this procedure as it could affect our exports. We hope that 
investigations will lead to a result that does not affect our trade . 
4.88.   We also would like to call attention to the fact that certain support program mes to the fisheries 
sector, including exemption of customs duties as well as the establishment of competitive fuel prices, 
have not yet been notified to the WTO. We encourage t he Government of Costa Rica to further 
examine the need of notifying these program mes.  
• Costa Rica and Brazil enjoy a very good bilateral relation.  
• Bilateral trade in 2018 amounted to USD 534 million.  
4.89.   The main products exported by Brazil to Costa Rica in 2018 were airplanes, mechanical 
machines and cars. In the same year Brazil mainly imported precision instruments, rubber and 
electric machines.  
4.90.   There is room for potential growth and improvement, especially in order to obtain a more 
balanced mix of imports  and exports in both directions: While in 2018 Brazil was the 7th main origin 
of imports to Costa Rica, we were only the 25th main destiny for the country 's exports.  
4.91.   Let me conclude  by thanking the delegation of Costa Rica for the replies to Brazil 's ques tions 
and by wishing Costa Rica a very successful Trade Policy Review.  
INDONESIA  
4.92.   This TPR has provided a forum for Indonesia to understand further on how Costa Rica 
administers international trade, and also a forum on how Indonesia could possibly learn fro m 
Costa  Rican best practices in managing international trade.  
4.93.   This TPR is also an important platform for Indonesia to explore further avenues in improving 
bilateral trade relation with Costa Rica.  
4.94.   By the numbers, bilateral trade activities between Indone sia and Costa Rica have been 
increasing.  
4.95.   Between the years 2014 up to 2018, bilateral trade demonstrated an average yearly increase 
of 10.6%. This positive growth in bilateral trade is more heavily attributed to the growth in imports 
from Costa Rica.  
4.96.   The numbers confirmed that between the years 2014 to 2018, the average yearly growth of 
imports from Costa Rica demonstrated an increase of 14.57%, which is higher than the average 
yearly growth of 6.9% experienced by Indonesian exports to Costa Rica  
4.97.   Indones ia is of the view that there are rooms yet to be explored in order to maintain the 
healthy level of our bilateral trade. We view that our discussions leading up to this TPR meeting has 
provided insights into this joint effort for improvements in trade rela tions.  WT/TPR/M/392 • Costa R ica 
 
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  4.98.   Indonesia believes that the objectives of Costa Rica 's trade policy – which includes fostering 
greater openness to trade, while at the same time fostering greater economic internalization – 
demands that the Government intervenes in managing various  aspects of the economy.  
4.99.   Such interventions are conducted, amongst others, through the state -owned enterprises 
including in the telecommunication sector; and through significant government involvement in the 
banking and insurance sector as well as the min ing sector.   
4.100.   Thus, to ensure the presence of a business environment with minimal discretionary decision -
making habits, in which businesses can conduct trade routines with a higher degree of predictability, 
Costa Rica will benefit from a greater degree of transparency in the rules and regulations on trade 
and related investment being adopted and enforced.  
4.101.   In the spirit of transparency, we have forwarded our inquiries, in written questions that we 
have submitted.  
4.102.   We, in this regard, wish to express our app reciation to the delegation of Costa Rica for the 
responses we have received, to our advanced written questions, amongst others:  
• on the legal basis and operational benefits of some aspects of the custom procedures that 
are currently being enforced;  
• on th e economic compensation and the related compensation scheme for agricultural 
projects;  
• on the detail of a specific farmers ' support program provided to the agricultural sector; and  
• on the implementation of the Single Window program me.  
4.103.   Let me conclude  by wishing the delegation of Costa Rica, a successful process in the 
remaining phase of this TPR.  
UNITED  STATES  
4.104.   In the last five years, we observe that the Costa Rican economy experienced positive 
economic growth, with an average 3.5 % GDP rate of growth, as noted in the Secretariat 's report. 
This economic growth reflects several steps that the government of Costa Rica has taken to further 
integrate its economy into the global trading system. The Secretariat, in its report, points to 
accomplishme nts in such areas as increase in internal demand, net exports of goods and services, 
and the good performance of service exports.  
4.105.   We commend Costa Rica for the importance it has placed on trade liberalization and 
integration into the global economy as a m eans to economic growth. The United States and Costa 
Rica are partners under the Dominican Republic -Central America -United States Free Trade 
Agreement (CAFTA -DR). This comprehensive free trade agreement covers trade in goods and 
services, intellectual prop erty rights, investment, telecommunications, labour , and environment, and 
it promotes economic integration within Central America and with the Dominican Republic. In 
addition to Costa Rica 's entry into force of the CAFTA -DR in 2009, Costa Rica has continue d to 
expand its liberalization and has undertaken a number of reforms that also benefited Costa Rica 's 
trading partners more broadly. Since its previous review, Costa Rica has adopted significant trade 
facilitation measures, in addition to substantive legi slative and regulatory measures to comply with 
its FTA commitments, which we believe contributed widely to the multilateral trading system and to 
the expansion of global trade, while also helping to protect and preserve the environment.  
4.106.   As Costa Rica 's principal trading partner, the United States ' commercial relationship with 
Costa Rica is strong, positive, and growing.  Our total two -way goods trade during 2018 was 
USD 11.2 billion. U.S. goods exports to Costa Rica in 2018 were $6.3 billion, and U.S. goods  imports 
from Costa Rica totalled  USD 4.9 billion. U.S. exports of goods and services to Costa Rica supported 
an estimated 37,000 jobs in 2015. Costa Rica is currently the United States ' 45th largest goods 
trading partner.  
4.107.   As noted in the Secretariat 's and Costa Rica 's reports, Costa Rica modified a number of laws 
and regulations in order to implement the CAFTA -DR and other international trade commitments, 
including technical barriers to trade. We are also pleased to recognize the details in the Secretaria t's WT/TPR/M/392 • Costa R ica 
 
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  reporting on the various trade facilitation measures adopted by Costa Rica and Costa Rica 's entry 
into the WTO 's Trade Facilitation Agreement during this period. We recognize Costa Rica 's recent 
ongoing efforts to strengthen IP enforcement, such as the  issuance of decrees to address piracy 
issues and the streamlining of the tasks of the IP offices in general. We encourage continued work 
on ensuring that government agencies use only licensed software. We look forward to updates from 
Costa Rica in this re spect.  
4.108.   While these changes are important and noteworthy actions, they are not sufficient alone. It 
is also important to provide regulatory transparency to facilitate investment and market access, as 
well as to ensure effective enforcement to protect trader s' rights and benefits under those laws. We 
therefore encourage Costa Rica to increase its efforts towards regulatory transparency and effective 
enforcement and ensure that such efforts are followed -through on the ground.   
4.109.   Costa Rica has taken significant  steps in improving its economic competitiveness since its 
last Trade Policy Review.  In order to further improve its competitiveness in an increasingly globalized 
economy, we urge Costa Rica to continue strengthening its policies and practices regarding 
standards and safety, to avoid impeding global trade in such products as food, pharmaceuticals, 
agricultural goods, and chemicals and cosmetics. We hope to hear more in this review about Costa 
Rica's plans to address these types of issues.  
4.110.   Costa Rica has co ntinued to take steps to solidify its presence in the global economy by 
fostering dynamic, inclusive and sustainable economic growth. As part of those efforts, Costa Rica 
has notably taken measures to foster the creation of growth of innovative MSMEs in ad dition to 
diversifying its exportable supply. The United States recognizes the notable achievements Costa Rica 
has made in the last half decade and is optimistic for further growth to come.  
4.111.   We have submitted a substantial list of questions about specific issues in Costa Rica 's trade 
regime. We look forward to reviewing Costa Rica 's responses.  
4.112.   The United States looks forward to further deepening our trade and economic partnership 
with Costa Rica. As a founding Member of the WTO, we commend Costa Rica on its  active 
participation in the organization and for its longstanding commitment to the multilateral trading 
system. We remain committed to continued close cooperation with Costa Rica to deepen our 
relationship bilaterally, in regional fora, and in the WTO.  
ECUADOR  
4.113.   The replies to the questions that we submitted regarding this Trade Policy Review have been 
forwarded to Quito. We welcome Costa Rica's diligence in submitting this information. Ecuador's 
concerns include issues relating to the export incentives reg ime and free zone regime, and the nature 
of certain rates.  
4.114.   The delegation of Ecuador recognizes the positive effects of the steps taken by Costa Rica 
with the aim of achieving healthy and stable public finances. We also wish to highlight the role played 
by foreign trade as a source of revenue and development in Costa Rica. It is a benchmark in terms 
of transformation of the productive structure and diversification of exports, including high technology 
goods.  
4.115.   The Mission of Ecuador recognizes the ef ficiency of Costa Rica's public policies, which have 
led to dynamic growth in services in a wide variety of sectors.  
4.116.   We trust that the measures taken to revitalize the economy will have the desired effect. The 
strength of Costa Rica's institutions is a key  element that will undoubtedly contribute to this task.  
4.117.   Costa Rica is an important partner for Ecuador. The flow of FDI from Costa Rica to Ecuador 
tripled in 2017 compared with 2016. Costa Rican investment contributes to economic growth in 
Ecuador.  
4.118.   Total t rade has remained stable in recent years, though the trade potential of both parties 
has yet to be harnessed. Our exports amounted to USD  33 million in 2018, while imports from 
Costa  Rica totalled USD  44 million. The main products traded include paper, sar dines, tuna, WT/TPR/M/392 • Costa R ica 
 
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  medicines and motor vehicles. Bilaterally -traded goods with potential for growth include medicines, 
canned tuna, preparations for animal feed, frozen shrimps and prawns, and kitchen ranges of iron 
or steel.  
4.119.   Lastly, Ecuador shares Costa Rica's intention to strengthen the multilateral trading system, 
with, of course, a development perspective. To conclude, we wish Costa Rica a successful conclusion 
of its Trade Policy Review.  
COLOMBIA  
4.120.   Costa Rica is one of the most dynamic economies in Latin Ameri ca, with which Colombia has 
maintained strong bilateral cultural, diplomatic and trade ties for years.  
4.121.   We recognize Costa Rica's commitment to the multilateral trading system and its founding 
principles, and the country's active participation in the ongoin g negotiations and the functioning of 
the regular bodies.  
4.122.   Regarding tariff policy, we note that Costa Rica has average applied tariffs of 7% and a 
simple tariff structure that has not undergone significant changes, which demonstrates its openness 
to intern ational trade. However, as mentioned in the Secretariat report, some tariff peaks have been 
recorded in specific sectors.  
4.123.   We also wish to take this opportunity to thank Costa Rica for the further information provided 
on tariff quota administration in the a gricultural sector.  
4.124.   Costa Rica attaches great importance to regional integration as one of the main 
underpinnings of its foreign policy. In this regard, Colombia considers that it is important for Costa 
Rica to pursue the process of reviewing and deepening  relations with its natural trading partners, 
with a view to achieving more favourable access conditions for trade in goods. Taking into 
consideration Costa  Rica's openness regarding the granting of quotas for certain products for which 
there are supply di fficulties on the domestic market, Colombia sees a good opportunity for both 
countries to explore possibilities for working together.  
4.125.   In the area of customs procedures and foreign trade, we welcome the progress made and 
concrete actions carried out during the period under review, which built on the commitments arising 
from the Trade Facilitation Agreement. We draw attention to the progress made in terms of the 
modernization of checkpoints and coordinated action for border management, the implementation 
of technological and regulatory improvements to increase the effectiveness of control processes, and 
the creation of the National Council to promote coordination between public agencies and the private 
sector.  
4.126.   We also highlight the relevance of the FDI policy for Costa Rica's economy and export 
performance. The reports show that the investment regime has played an important role in the 
transformation of the economy and in socio -economic development. We recognize, for example, that 
investment in the manufacturin g sector has increased, especially in high technology segments, and 
amounted to 46% of the total FDI received in 2017. We also note the growth recorded in the tourism 
sector. This momentum has resulted in job creation, increased productivity and the divers ification 
of the economy.  
4.127.   In this regard, Colombia would like to know more about Costa Rica's experience of creating 
and implementing the Investment Single Window.  
4.128.   The Secretariat and Government reports demonstrate the importance of preferential, 
bilateral and regional trade agreements. Currently, there are 14 free trade agreements in force in 
Costa Rica. We are pleased that one of the three new agreements that entered into force during the 
period under review was the Bilateral Agreem ent with Colombia, which was implemented on 
1 August  2016.  
4.129.   For our country, the Agreement with Costa Rica was a fundamental and natural step towards 
the consolidation of trade relations with Central America, which has enabled us to increase trade, 
and to a ccess a sophisticated and highly competitive market with the fifth greatest purchasing power WT/TPR/M/392 • Costa R ica 
 
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  in Latin America. This Agreement has yielded positive results for both parties and has leveraged an 
increase in trade, particularly in manufactured goods and food products.  
4.130.   We welcome the sharing of information in the Government report with regard to women's 
empowerment in foreign trade, and support for the internationalization of micro, small and 
medium -sized enterprises. This is a demonstration of Costa Rica's com mitment to addressing these 
new topics in the Organization.  
4.131.   Lastly, we wish Costa Rica and its delegation a successful Trade Policy Review. We extend 
our warm appreciation to the team in Geneva for the cooperative relationship between our two 
Missions. We reiterate our full support for Ambassador Abraham and wish her every success in her 
work in Geneva.  
MEXICO 
4.132.   I would like to begin by commending Costa Rica for maintaining its human development 
indicators and for ranking 63rd out of 189 countries, according to the report of the United Nations 
Development Programme (UNDP). It also maintained its satisfaction and happiness indicators, 
ranking 13th in the world, according to the World Happiness Report in 2018. We also recognize that 
GDP per capita in Costa Rica grew at an average annual rate of 3.5% during the period under review 
(2012 -2018), sustained mainly by the rise in internal demand.  
4.133.   Despite this economic growth and its high levels of human development and satisfaction, 
Costa Rica continues to face macroec onomic challenges, including the consolidation of its public 
finances and the reduction of its unemployment rate which is almost 10%. We commend the 
Costa  Rican Government for taking measures to revitalize its public finances through the adoption 
of the La w on the Strengthening of Public Finances, with the aim of limiting public debt as a 
percentage of GDP.  
4.134.   The Costa Rican Government's involvement in the banking sector continues to be significant. 
The report indicates that, since 2013, State banking activit y has demonstrated low profitability. The 
preferential treatment granted to State banks has damaged private banking and has also limited 
competition in the sector, resulting in high intermediation margins.  
4.135.    Greater efforts are required to ensure effective competition in the sector, and to expand 
access to credit and deepen financial inclusion.  
4.136.   We recognize that Costa Rica's trade policy has been particularly successful in terms of the 
export of services. Costa Rica has a services trade surplus and the touri sm sector is one of the main 
sources of foreign currency. Furthermore, the export of services related to telecommunications and 
computing and IT has contributed to this surplus. Costa Rica has developed a very successful 
strategy for the exportation of thi s type of services, which has helped to lower the deficit in the 
balance of trade in goods, thus improving the current account balance as a share of GDP.  
4.137.   Mexico and Costa Rica signed a free trade agreement in 2013. Since then, Mexico has 
become one of Cost a Rica's main trading partners and an important investor in the country. In 2018, 
7% of Costa Rica's imports came from Mexico and Mexico was the fourth main investor in Costa 
Rica. Our trade relations have always been mutually favourable. However, we conti nue to have 
differences of opinion regarding the suspension of the issuing of forms on phytosanitary 
requirements for the import of Mexican avocados, which resulted in a complaint brought against 
Costa Rica under the WTO dispute settlement system. Mexico w ill pursue the following steps in this 
process and hopes that Costa Rica will reconsider its measures against Mexican avocados.  
4.138.   We recognize the active role that Costa Rica has played in the WTO, particularly as the 
coordinator of the group of "Friends of E-Commerce for Development", to which Mexico also belongs, 
and also as the current coordinator of the Joint Initiative on Domestic Regulation.  
4.139.   Lastly, we welcome the replies to the questions submitted by my delegation and wish 
Costa  Rica a successful concl usion of its Fifth Trade Policy Review.  
  WT/TPR/M/392 • Costa R ica 
 
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  DOMINICA N REPUBLIC  
4.140.   The Dominican Republic enjoys close bonds of friendship with the Republic of Costa Rica as 
signatory to the Free Trade Agreement between Central America, the Dominican Republic and the 
United States (DR -CAFTA) and the Bilateral Free Trade Agreement between Central America and the 
Dominican Republic.  
4.141.   The Dominican Republic has an important trading relationship with the Republic of 
Costa  Rica. It is important to indicate that exports from the Dominican Republic to Costa Rica 
amounted to USD  27,788,453 in 2018, according to data from the General Directorate of Customs 
in the Dominican Republic.  
4.142.   The main exports include electrical switches, flat -rolled products, and angles, shapes and 
section s. It should be noted that exports of circuit breakers to Costa Rica totalled USD  5,535,000.  
4.143.   Imports to the Dominican Republic from Costa Rica amounted to USD  211,884,000 in 2018.  
4.144.   As regards the state of the economy of the Republic of Costa Rica, we note w ith appreciation 
that, in response to structural challenges linked to the inadequate level of competition and 
competitiveness in the economy, as well as insufficient investment in infrastructure, Costa Rica has 
developed a strategy to reactivate the econom y and has identified issues to be addressed, such as 
ensuring macroeconomic stability, mainly by consolidating public finances, and addressing lags in 
terms of business competitiveness and human resource skill sets in order to bridge productivity and 
incom e gaps.  
4.145.   Regarding trade policy, it is important to note that, in order to meet its foreign trade 
objectives, Costa Rica ratified and approved the Protocol on the Trade Facilitation Agreement in 
2017. It also participated, between 2012 and 2015, in the nego tiations to expand the scope of the 
Information Technology Agreement, and since 2015, it has been an Observer in the Government 
Procurement Committee.  
4.146.   Since its last Trade Policy Review in 2013, Costa Rica has applied the trade agreements 
signed with the E uropean Free Trade Association (EFTA) States and Colombia, Mexico, Peru, 
Singapore and the EU. Moreover, in 2018, it signed a free trade agreement with the Republic of 
Korea.  
4.147.   In conclusion, we welcome the two trade facilitation initiatives implemented by t he 
Government of Costa Rica in 2017.  
4.148.   The first initiative involved the creation of the National Council for Trade Facilitation 
(CONAFAC) to apply the Trade Facilitation Agreement, with two main objectives, namely: the 
implementation of the Border Integrati on Programme (PIF) to modernize infrastructure, equipment 
and information technology systems at interior border crossings to make customs controls more 
efficient, thereby reducing waiting times and improving competitiveness; and participation in the 
implem entation of the Central American Digital Foreign Trade Platform to promote the use of IT best 
practices and simplify procedures.  
4.149.   The second initiative involved the introduction of a new version of the Single Window for 
Foreign Trade (VUCE  2.0), which in ad dition to enabling the processing of the Single Administrative 
Document, import/export permits, certificates of origin, and certificates of free sale for food 
products, it now offers a 24/7 service to operators, through which it is possible to track proced ures, 
use digital signatures, make payments electronically, and apply for the permits needed to import 
foodstuffs, chemicals and pharmaceuticals.  
4.150.   To conclude, Mr  Chair, we welcome the timely reply from the Republic of Costa Rica to the 
questions raised by the Dominican Republic regarding various points in the report, which is being 
examined in the capital. We recognize the efforts made by the Costa Rican authorities to facilitate 
trade and wish Costa Rica every success in its Fifth Trade Policy Re view. 
  WT/TPR/M/392 • Costa R ica 
 
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  CHINA  
4.151.   We are delighted to see that, during the review period, the Costa Rican economy experienced 
higher economic growth, with an average 3.5% real GDP rate of increasing, which was sustained 
mainly by the rise in internal demand. We commend Costa Rica's continuing efforts to further 
integrate its economy into the global trading system since its last trade policy review. These include 
promoting regional integration, developing exports of goods and services and attracting foreign 
direct investment. W e also welcome the trade facilitation efforts to continue developing the Single 
Window for Foreign Trade to enable the use of an e -payment and digital signature system, and 
implementing the Trade Facilitation Agreement (TFA). We are impressed that the Cost a Rica 's foreign 
direct investment stock grew significantly at 93% to USD 43,100 million From 2012 to 2018. Though 
there are still challenges facing Costa Rica including fiscal deficit, China believe that with the 
concerted efforts of the government and pe ople, Costa Rica will foster greater openness to trade 
and economic internalization, and achieve the balance and efficiency of economic development.  
4.152.   As a founding Member of the WTO, Costa Rica consistently supports the multilateral trading 
system and negot iations. Since its last TPR in 2013, Costa Rica has reinforced its multilateral, 
regional and bilateral integration into the global economy. China commends Costa Rica 's 
commitment to the multilateral trading system and its contribution to the global trade liberalization.  
4.153.   China and Costa Rica enjoy fruitful economic ties. Recent years have seen significant growth 
in bilateral trade and investment between China and Costa Rica. China is the third largest trading 
partner of Costa Rica. The total bilateral trade  in goods amounted to US$2.4 billion, which was an 
increase of 6.7% from 2017 to 2018. China 's direct investment abroad into Costa Rica reached 
USD 27.7 million last year. The trade relationship of the two countries has been strengthened by a 
comprehensive  free trade agreement which has entered into force for China since 2011. We are 
confident that the bilateral FTA will help us to further strengthen the business and people -to-people 
links between our two countries.  
4.154.   In early November last year, both the Cos ta Rica 's Government and its enterprises actively 
participated in the first China International Import Expo held in Shanghai. Well -known merchandise 
of Costa Rica, especially agriculture products were exhibited to the Chinese business and consumers. 
This y ear, we would also like to invite Costa Rica and its business sectors to participate in the second 
China International Import Expo with a good will to further exploring the potential of bilateral trade 
and increase China 's import from Costa Rica.  
4.155.   In Septem ber of 2018, China and Costa Rica have jointly signed "One Belt One Road " 
memorandum of understanding. China is looking forward to promoting  cooperation with Costa Rica 
under the Belt and Road Initiative with the main objective of benefiting the people of two countries 
and boosting the economic growth in the region.  
4.156.   To conclude, we would wish Costa Rica delegation a full success review.  
EL SALVADOR  
4.157.   We would like to thank the Government of Costa Rica for the information shared with 
WTO Members and for the replies provided during the process of its fifth trade policy review. This 
provides an opportunity to more deeply explore the reforms that Cos ta Rica has undertaken in order 
to reach its foreign trade policy goals.  
4.158.   From the report submitted by the Government, we take note of its work on tax matters 
aimed at securing greater stability in public finances, and the implementation of economic recover y 
measures, some of which simplify processes and are focused on micro, small and medium -sized 
enterprises (MSMEs) and start -ups, while others seek to promote employability and enhance road 
infrastructure. These measures have led to meaningful advances in C osta Rica's process of accession 
to the Organisation for Economic Co -operation and Development (OECD), one of the strategic moves 
currently pursued by the Government.  
4.159.   The Secretariat report demonstrates the importance that Costa Rica gives to regional 
integration, one of the main underpinnings of its foreign policy. It also highlights the signing of new 
agreements and the consolidation of existing ones, and shows how efforts are focused on promoting WT/TPR/M/392 • Costa R ica 
 
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  and diversifying goods and services exports and markets, f ostering the creation and growth of 
innovative MSMEs, and promoting a greater role for women and gender equality in the export sector.  
4.160.   Costa Rica has continued to use free zones and other incentive schemes to attract investment 
for high value -added sectors , thus allowing for the integration of Costa Rican products into global 
value chains. We also note the PROCOMER production support programme for MSMEs, which aims 
to transform MSME production methods through the incorporation of green technologies, and the  
National Energy Plan, which encourages the use of electric vehicles.  
4.161.   At the bilateral level, our country has maintained close trade and cooperation links with Costa 
Rica for several decades. These historical ties were strengthened by the signing of the Ge neral Treaty 
on Central American Economic Integration in 1960. As participants in the Central American economic 
integration process, we were both involved in the creation of the Central American Customs Union, 
which is a valuable tool for bolstering compet itive development in the region, and for promoting 
sustainable social and economic development for our people.  
4.162.   Both our countries are members of the Central American Integration System (SICA) and we 
share common foreign policy objectives such as respect fo r democracy, consolidation of peace and 
regional security. Within the Central American integration subsystem, we support the process for 
strengthening the Customs Union, and we are pushing forward with the implementation of the 
regional trade facilitation strategy.  
4.163.    In the area of trade, Costa Rica ranks fifth among El Salvador's export destinations, and is 
our seventh largest supplier of goods, which illustrates the commercial importance of Costa Rica for 
El Salvador.  
4.164.   As far as bilateral trade is concerned , exports in 2018 were 10% higher than in 2013, 
amounting to USD  259 million, while imports decreased by 6% in 2018, totalling USD  264 million.  
4.165.   Exports to Costa Rica were chiefly in the form of paper products, fish preparations, cardboard 
boxes, and prefor ms for beverage containers, among other things. The main goods imported from 
Costa Rica included preparations for the beverage industry, aluminium wires and cables, sardines 
and liquid milk.  
4.166.   At the multilateral level, we recognize the Costa Rican delegatio n's important role in the 
Organization's committees, working groups and various negotiating forums.  
4.167.   Finally, all that remains is for me to congratulate our sister republic, Costa Rica, and wish 
her every success in this review.  
PERU 
4.168.   We welcome the positive  economic results achieved in Costa Rica during the review period, 
such as the growth of real GDP per capita, the proper management of inflation, and the country's 
success in attracting  foreign direct investment. Nevertheless, the risk posed by the country 's 
substantial and sustained fiscal deficit over this period, and the increase in the debt/GDP ratio cannot 
be overlooked. Costa Rica has taken satisfactory steps to adopt measures to facilitate trade 
integration, such as the entry into force of several re gional trade agreements and the development 
of the Single Window for Foreign Trade, factors which have, among other things, led to the growth 
and diversification of its exports.  
4.169.   In the context of this review exercise, it is worth noting that Peru and Costa  Rica share some 
aspects of trade policy, encompassing multilateral and bilateral integration, that seek to improve 
our economies' levels of competitiveness and ensure greater international exposure.  
4.170.   In the multilateral sphere, Costa Rica and Peru, along w ith other Members from the 
Latin American region, promote the application and observance of the agreements on which this 
Organization is based. We both cooperate fully in advancing negotiations on fisheries subsidies and 
the domestic regulation of services , and in various multilateral negotiations and joint initiatives at 
WTO headquarters. It is therefore important to recognise the valuable input of the Mission of 
Costa  Rica in the work of this Organization.  WT/TPR/M/392 • Costa R ica 
 
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  4.171.   At the bilateral level, an FTA has been in force between Peru and Costa Rica since June  2013. 
It has helped to maintain a rising trend in our trade, which reached USD  92 million in 2018. Peru's 
exports to Costa Rica are non -traditional goods such as chemicals and textiles; its imports from 
Costa Ri ca comprise manufactured goods, namely, medical instruments and tyres, and other 
products that enhance the diversity of our trading relationship and promote development in our 
respective industries.  
4.172.   Like other Members, and in keeping with the point made in  the report by Secretariat for this 
review, Peru would like to have further explanation as to why certain tariffs applied by Costa Rica 
exceed their bound rates, and we call on Costa Rica to regularize this situation so as to ensure 
compliance with WTO rul es. 
4.173.   Peru has also been interested in Costa Rica's good practices regarding the participation of 
women in production and trade. In an attempt to learn more about the methods and objectives of 
this important policy, we have posed two questions, and we thank the Costa Rican delegation for its 
replies.  
4.174.   In conclusion, we take this opportunity to express our desire to continue working with 
Costa  Rica on developing trade between our two countries. On behalf of the Peruvian delegation, all 
that remains is for me to  wish Costa Rica a successful outcome to this fifth Trade Policy Review.  
SINGAPORE  
4.175.   Allow me to highlight three points.  
4.176.   First, Singapore applauds Costa Rica for its leadership and constructive contributions in the 
WTO. With a population of about 5 million, which is rather similar to Singapore, Costa Rica has been 
punching above its weight and engaging actively in a wide spectrum of issues. This includes 
agriculture, dispute settlement, sustainable trade and transparency. In particular, we appreciate  the 
efforts of Costa Rica 's Minister Counsellor 's Jaime Arias ' (pronounced Hai -Me A-ri-as) in chairing 
discussions on the Joint Statement Initiative on Services Domestic Regulation. We further note from 
the Secretariat 's report that Costa Rica "has regula rly submitted notifications under various WTO 
Agreements ". Indeed, Costa Rica puts into action its belief that the "multilateral trading system 
continues to be a cornerstone of global trade relations ".1 We believe that Costa Rica active and 
constructive ro le in the WTO has set a positive example and underscore the fact that Members ' 
contributions to strengthening the WTO need not be limited by size.   
4.177.   Second, we welcome Costa Rica 's efforts to deepen its integration into the global economy. 
In particular, C osta Rica 's has negotiated several important trade agreements, including the Central 
American Common Market agreement and the Dominican Republic -Central America -United States 
Free Trade Agreement, which signal Costa Rica 's outward -looking approach to econo mic growth. 
Additionally, Costa Rica has simplified customs formalities in order to boost its competi tiveness and 
encourage cross -border trade. All these developments have yielded economic benefits as evidenced 
in the steady growth of the Costa Rican econo my, which averages 3.3% between 2013 -20182. 
Greater regional and global integration has also enabled Costa Rica to maintain its attractiveness as 
a destination of foreign investments.  
4.178.   Third, Singapore looks forward to enhancing bilateral trade with Costa Rica. The 
Singapore -Costa Rica Free Trade Agreement, which entered into force in 2013, has eliminated tariffs, 
provided investment protection and promoted a more predictable operating environment for service 
suppliers. From 2016 to 2018, trade in goods bet ween Singapore and Costa Rica has also increased 
around 30% to US D 115.73 million. Naturally, we firmly believe that there is scope to deepen 
economic relations between our countries in the coming years.  
4.179.   To conclude, Singapore looks forward to continuing to strengthen our cooperation with 
Costa  Rica, both on the multilateral and the bilateral fronts . We wish Costa Rica every success for 
this TPR.  
                                                
1 Secretariat report, paragraph 1.2.  
2 Government report page 3.  WT/TPR/M/392 • Costa R ica 
 
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  REPUBLIC  OF KOREA  
4.180.   As Costa Rica 's real GDP is an annual average of 3.5%, it is maintaining its status as an 
upper middle -income country based on the high potential demand which supports this growth. 
However, as mentioned in the Secretariat 's TPR report, the Costa Rican government is faced with 
solving a high unemployment rate of 8 % to 9% annually and achieving heal thy public finance.  
4.181.   Meanwhile, it is noteworthy that the Costa Rican government has established the Law on 
Strengthening of Public Finances as a measure of reformation to solve the public finance issue. 
Moreover, the fact that Costa Rica is proceeding wit h open trade policies is appreciated. In particular, 
the government has ratified and implemented relevant notification obligations as part of economic 
internalization (for job creation and effective distribution of national resources) and has participated 
as an observer at the GPA committee (Committee on Government Procurement) since 2015.  
4.182.   In the same vein, Costa Rica is placing much emphasis on regional integration, such as the 
Central American Common Market (CACM). To note, the Republic of Korea and five Central American 
countries (El Salvador, Honduras, Nicaragua, Panama) including Costa Rica have concluded an FTA 
in 2018. The FTA is expected to enter into force soon, as each country completes the domestic 
procedures. Korea looks forward to a more active trade and investment exchange with Costa Rica.  
4.183.   Lastly, I appreciate Costa Rica 's responses for the advance written questions.  
PHILIPPINES  
4.184.   The Philippines and Costa Rica enjoy a modest but growing trade relation in the recent years. 
Philippine imports from Costa Rica expanded by 23.33% from USD 11.50 Million in 2017 to 
USD 14.18 Million in 2018 due to the increase in importation of fungicides, airplanes parts, and other 
instruments and appliances used in medical services. Philippine exports to Costa Rica als o rose by 
2.01% from USD 22.38 Million in 2017 to USD 22.83 Million in 2018 due to the increase in the 
exportation of semiconductor devices and printed circuits.  
4.185.   Foreign trade has been the strongest driver of the Costa Rican economy. It has remained 
active in bilateral and regional trade negotiations and is a party to 14 FTAs that regulate its trade 
with 50 trading partners that represent one third of the world population and two thirds of global 
GDP.  
4.186.   The Philippines recognizes Costa Rica 's efforts to ref orm its fiscal policies to restore fiscal 
balance and ensure greater sustainability of its public funds through the passage of the Law on 
Strengthening Public Finances in December 2018. We also acknowledge the measures taken by 
Costa Rica to diversify its exports by fostering the creation and growth of innovative MSMEs, and 
promoting a greater role for women and gender equality in the export sector.   
4.187.   Further, we share the priority given by Costa Rica in the discussions under the WTO informal 
work programme  on MSMEs to enhance the participation of MSMEs in international trade, and we 
continue to work together in advancing this initiative in the WTO.  
4.188.   The Philippines has submitted some advance written questions on the trade policy review 
reports , and we thank  the delegation of Costa Rica for their preliminary replies. We also look forward 
to receiving the rest of the responses in due course.  
4.189.   In closing, the Philippines looks forward to further enhancing the mutually beneficial 
economic relations between our c ountries in the bilateral, regional, and multilateral fora.  
ICELAND  
4.190.   Iceland would like to welcome the distinguished delegation of Costa Rica to their fifth trade 
policy review. I would like to express appreciation to the WTO Secretariat, as well as to Cost a Rica, 
for the reports prepared, as well as the discussant, for his excellent framing of the issues for our 
discussion today.  WT/TPR/M/392 • Costa R ica 
 
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  4.191.   It is a true honour and pleasure to participate in the review of Costa Rica. We appreciate our 
good and open trade relations base d on the FTA between the EFTA states and the Central American 
States. Please allow me to follow up on the Discussant’s comparative analysis. Costa Rica and Iceland 
may seem like two very different countries, one a tropical Central American country with col ourful 
wildlife, the other a cold, windswept island in the North Atlantic Ocean. But at closer look the 
similarities are surprising; as both countries have in recent years focused policies on the use of 
renewable energy resources, including geothermal ener gy, the development of sustainable tourism 
and the promotion of gender equality.  
4.192.   Like Iceland, Costa Rica is a small country, considered exotic with rugged, volcanic 
landscapes that are well suited to adventurous activities. Both countries have experience d a tourism 
boom in recent times, with tourism surpassing the more established and traditional industries in 
terms of foreign exchange earnings.  
4.193.   Since the last review in 2013, Costa Rica has made impressive economic and social progress, 
improving its standard of living while protecting the environment and its abundant biodiversity. 
Iceland congratulates Costa Rica on successfully developing a green er economy focusing on 
sustainable tourism and the development of renewable energy sources.   
4.194.   Costa Rica is a country rich with renewable energy and gets about 99% of all its electrical 
energy from clean sources and is aiming to be the first country to bec ome carbon neutral.  
4.195.   We also share the same views when it comes to gender equality. I would like to thank Costa 
Rica for a fruitful cooperation in advancing the gender agenda within the WTO. Costa Rica was among 
WTO members taking the initiative to launch the joint declaration on trade and women’s economic 
empowerment that aims inter alia at sharing best practices and working together here at the WTO 
to remove barriers for women’s economic empowerment and increase their participation in trade.  
4.196.   According to  the report of the Secretariat the main objective of the country's foreign trade 
policy is to foster greater openness to trade and economic internalization in order to ensure more 
efficient resource allocation and thus create more sources of employment whi le reducing poverty 
and inequality.  
4.197.   Costa Rica has continued to take steps to deepen its integration into the global economy by 
fostering dynamic, inclusive and sustainable growth. As part of those efforts, it has notably taken 
measures to diversify its exportable supply, as well as promote a greater role for women and gender 
equality in the export sector  
4.198.   The trade policy review provides an excellent opportunity to share best practices in this field. 
Iceland submitted advance written questio ns on the participation of women in the economy of Costa 
Rica. We wish to thank Costa Rica for the responses to our written questions. We will review the 
answers thoroughly and request clarifications as necessary during the course of this TPR. The 
answers are very useful as we implement the joint declaration on trade and women’s economic 
empowerment and gather best practices.  
4.199.   Iceland appreciates Costa Rica ‘s active engagement in WTO, including on fisheries subsidies 
as well as the joint statement initiativ es, and their continued support for the multilateral trading 
system in general. We wish the delegation of Costa Rica every success for their third trade policy 
review.  
TRINIDAD  AND  TOBAGO  
4.200.   Having established diplomatic relations since 1971 and worked toward s deepening 
cooperation in several areas inclusive of trade, culture, sport and tourism, my delegation is indeed 
pleased to participate in the review of such a valuable regional partner. We take note of the efforts 
over the reporting period towards ensurin g that the country 's trade policy tools facilitate the 
establishment of clear, predictable and transparent rules governing trade and enable better 
integration into international markets.  
4.201.   In the context of the Buenos Aires Declaration on Trade and Women 's Economic 
Empowerment to which we also subscribe, we commend the launch of the Women Export initiative WT/TPR/M/392 • Costa R ica 
 
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  in 2017 by the Costa Rican Foreign Trade Promotion Agency (PROCOMER). The promotion of equal 
access to international markets for women entrepreneurs based on the four pillars identified, that 
is, information, awareness -raising, capacity building and internationalization, will certainly 
contribute to the achievement of gender equality.  
4.202.   We recogni ze the steps being taken to stimulate innovation and entreprene urship through 
the Seedstars Costa Rica initiative. This strategy which engenders a process of training and 
interaction with various stakeholders inclusive of investors, private enterprises, incubators and 
government agencies, is designed to foster partner ships, create opportunities as well as develop the 
capacity of start -ups and micro, small and medium enterprises. Such an endeavour will augur well 
in the drive towards the diversification of the country 's export base.  
4.203.   My delegation extends its best wishe s to the delegation of Costa Rica for its ongoing efforts 
towards improving its trade policy regime and for a successful Trade Policy Review.  
PANAM A 
4.204.   Apart from being geographical neighbours, our two countries share a vast history of trade 
and strong ties, which make Costa Rica our main trading partner in Central America.  
4.205.   Over the past decade, we have seen Costa Rica reinforce its economy and social sector to 
the extent that it now has one of the highest human development indexes in the region. It has also 
begun working towards membership of the OECD.  
4.206.   Trade in goods plays a fundamental role in the economy of Costa Rica, and the country's 
steady economic growth has been the result of opening up to the world through trade agreements. 
Panama and Costa Rica have promoted and participated in the negotiation of several of these, such 
as our agreements with the EU, the EFTA States and, more recently, with Korea. Mention must be 
made of the 2007 FTA between Costa Rica and  Panama, and both countries are actively promot ing 
economic integration with Central America.  
4.207.   The FTA between Central America and Panama is considered a new -generation agreement 
that covers most tariff subheadings for goods, with tariff preferences between both countries, and 
includes areas such as ser vices, investment, and government procurement. Since the entry into 
force of the Bilateral Protocol between our countries in 2009, over 91% of tariff lines were 
automatically liberalized with respect to the Republic of Panama.  
4.208.   Trade between Costa Rica and Panama exceeds USD  1,200  million. Costa Rica is among our 
five main trading partners both in terms of imports and exports. More than half of this trade is from 
sales to Costa Rica in the Colón Free Zone. In 2018, Costa Rican exports to Panama, valued at 
USD 450 million, included a variety of products, such as extracts, syrups used in the production of 
aerated beverages, medicines and diapers. For its part, exports from Panama included aluminium 
cans, dairy products and crude palm oil.  
4.209.   In addition to trade i n goods, Panama is the second largest Central American investor in 
Costa Rica, followed by Nicaragua. The air route between Panama City and San José served more 
than 800,000 passengers last year, and is Costa Rica's most active air route, and Panama's 
second busiest. We would also like to draw attention to the presence of major Panamanian and 
Costa  Rican companies in the finance, agriculture and tourism sectors operating in both countries.  
4.210.   We wish to commend Costa Rica on its active role in the multilateral  system, as one of the 
founding Members of the WTO. Costa Rica is a Member that is working alongside Panama in the 
negotiations on fisheries. It is a major collaborator on the Committee on Trade in Goods, and is also 
involved in initiatives such as investm ent facilitation, electronic commerce, gender, and in 
discussions aimed at improving the operation of this Organization. We wish to express our 
appreciation to Costa Rica for the cooperation and friendship between our Missions in Geneva, and 
convey our bes t wishes for its success in this Review.  
  WT/TPR/M/392 • Costa R ica 
 
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  ARGENTINA  
4.211.   Argentina is pleased to observe that during the review period Costa Rica experienced 
sustained economic growth and an increase in per capita GDP, which rose to USD  12,000 in 2018. 
We note that Costa Rica's external trade is expected to continue to diversify due to increased levels 
of services among its exports.  
4.212.   All this reflects the positive implementation of the National Development Plan, although, 
certainly, the pillar that seems to have borne the m ost fruit is the investment -attraction policy, with 
an increase of over 90% in the foreign direct investment stock, which currently exceeds 
USD 43,000  million. Foreigners do not need prior authorization to invest in Costa Rica, although 
certain restriction s may apply.  
4.213.   It is also worth highlighting the trade facilitation measures adopted by Costa Rica, such as 
the improvement of the Single Window for Foreign Trade (VUCE  2.0) and of procedures for the 
certification of authorized economic operators (AEO), and the establishment of the National Trade 
Facilitation Council. In 2018, over 90% of imports passed through the green channel and were 
allowed in without inspection.  
4.214.   Relations between Argentina and Costa Rica have been traditionally close, given o ur common 
positions regarding the value placed on democracy, respect for human rights and the strengthening 
of multilateralism in international relations. We agree fully with Costa Rica that it is essential to 
continue to have a strong WTO and a rules -based multilateral trading system.  
4.215.   In this regard, we commend the active involvement of Costa Rica in various working groups, 
as mentioned in paragraph 2.17 of the Report by the Secretariat. To this we wish to add the fact 
that Costa Rica chairs the group of M embers who negotiate disciplines concerning domestic 
regulation in services and co -sponsors, along with Argentina and other delegations, the proposal on 
transparency submitted to the Council for Trade in Goods.  
4.216.   We understand the challenges faced by the Gov ernment of Costa Rica in restoring the health 
of the country's public finances, and reducing the rate of unemployment, and we can only encourage 
it to persevere in its efforts.  
4.217.   Our countries cooperate actively through a Mixed Commission, in the sectors of tourism 
sustainability, agroindustry, innovation, management and health. Among our exports to Costa Rica 
are automobiles, rice, oils, wine and black beans. The year 2018 was positive in terms of reciprocal 
market opening in SPS matters and we continue to h old discussions for the expansion of this opening 
to include other products.  
4.218.   We have expressed our interest to Costa Rica in having more details on the implementation 
of the Border Integration Programme, the simplification of export procedures for MSMEs, i ncentives 
granted to business women, and the protection of on -line consumers. We appreciate the responses 
provided, which have been transmitted to our capital for due consideration by the authorities.  
4.219.   Furthermore, we acknowledge the recent adoption of Law 9703 concerning trade in and the 
distribution of containers and recipients made from expanded polystyrene. We look forward to the 
due notification of this measure so that we can submit our comments.  
4.220.   While reiterating our appreciation for this renewed oppor tunity to exchange views on 
Costa  Rica's trade policies and practices, we again stress the importance of this exercise in 
transparency and we wish the Costa Rican authorities a successful conclusion to this Review.  
PARAGUAY  
4.221.   Paraguay acknowledges the work u ndertaken by Costa Rica  to ensure that its trade  policy 
tools facilitate the establishment of clear, predictable and transparent rules, so that inclusive and 
sustainable trade becomes the driver for the economic development of its people.  
4.222.   A few brief comme nts on the chief reforms that deserve our attention: Costa Rica has 
adopted important reforms aimed at promoting trade and investment. The implementation of a fiscal WT/TPR/M/392 • Costa R ica 
 
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  reform package aimed at reducing fiscal imbalances and restoring public finances in the lo ng term 
has been one of Costa Rica's main challenges. As stated in the Secretariat report, the significant rise 
in the debt/GDP ratio since 2013 triggered a deterioration of public accounts, a critical situation that 
eventually led to the adoption of the L aw on the Strengthening of Public Finances in 2018. This Law 
introduced a series of changes, notably income tax reform; the introduction of a value -added tax; 
the adoption of measures to contain growing expenditure; and the establishment of a fiscal rule t hat 
limits current expenditure and links it to the level of Central Government debt as a percentage of 
GDP, and to average growth of nominal GDP.  
4.223.   Additionally, the drafting of a powerful agenda for markedly inclusive economic reactivation 
defines the roadm ap towards its commitment to fulfil the 2030 Agenda's Sustainable Development 
Goals. In that regard, we applaud the progress made in the area of trade facilitation, the inclusion 
of government programmes focused on the participation of MSMEs, and a greater  role for women 
and gender equality in the Costa Rican economy.  
4.224.   It has been a priority for the Government to significantly strengthen its public policy as part 
of its process of accession to the Organisation for Economic Co -operation and Development (OECD) . 
4.225.   Costa Rica has lent much support in promoting bilateral and regional trade negotiations. The 
fact that there are now 14 free trade agreements governing trade with 50 trading partners, who 
together account for 92.6% of exports and 82.9% of imported goods,  shows the intention of the 
Government to boost regional economic integration with a view to improving trade conditions 
between key partners.  
4.226.   Within the WTO itself, we commend Costa Rica for according such importance and support 
to bolstering the multilate ral trading system, and we especially note its active participation in the 
various WTO committees, groups and initiatives.  
4.227.   Costa Rica has exercised leadership in chairing important committees and negotiation 
processes, among which we would like to highligh t the joint initiative for domestic regulation in 
services. We also commend its high level of commitment to transparency, as is evident through 
regular compliance with its notification requirements and the constructive multilateral work carried 
out by its delegation in Geneva.  
4.228.   We cannot omit mentioning our joint cooperation in achieving progress in the area of 
agriculture within the framework of the Cairns Group. In that context, Costa Rica has provided 
invaluable support to us in technical discussions on m arket access, particularly with regard to tariff 
escalation and tropical products. In the same vein, the Costa Rican Mission's contribution through 
joint actions on SPS measures in Geneva must be recognized.  
4.229.   On behalf of my country, I offer renewed congrat ulations to those conducting this review 
and to the delegates from the Permanent Mission of Costa Rica in Geneva, on their invariably active 
involvement and contribution to the work of the Organization.  
INDIA 
4.230.   Costa Rica is an upper middle -income country wi th positive human development indicators. 
During the period under review, the GDP of Costa Rica grew at an annual average rate of 3.5%, 
mainly driven by internal demand in consumption. The per capita GDP also increased by 20% to 
reach USD 12,017 in 2018.  
4.231.   Costa Rica 's trade in good s and services and the inflow of foreign direct investment also 
registered a growth during the period. However, Costa Rica also faces challenges, including 
addressing unemployment, rise in debt -to-GDP ratio, structural challenges in the economy linked to 
competitiveness, and investing in infrastructure development.  
4.232.   We commend the Government of Costa Rica for its efforts to address these challenges, 
including measures for managing public finances, attracting foreign investment, and diversifying the 
economy.  WT/TPR/M/392 • Costa R ica 
 
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  4.233.   India and Costa Rica share warm, close and friendly relations. There is a broad bilateral 
framework in place for strengthening our relations, including in the area of trade and investment.  
4.234.   Trade between both countries, which stood at USD 186.71 million in 2 018-19, although 
modest, has considerable potential to grow in areas including minerals, electrical equipment, 
machinery, textiles, chemicals, pharmaceuticals, automobiles, and other areas.  
4.235.   There is also a growing presence of Indian IT companies in Costa R ica, and there is 
considerable potential for promoting investments in the area of new and renewable energy, minerals, 
pharmaceuticals, IT and software.  
4.236.   Under our development partnership cooperation, India is also offering Costa Rica assistance 
which includ es setting up of a solar energy research laboratory for training purposes at the University 
of Heredia, assistance in the area of telecommunications, and setting up a centre of excellence and 
information technology.  
4.237.   To conclude, we look forward to working closely with the authorities of Costa Rica for further 
expanding and harnessing the potential of our trade and investment ties for mutual benefit. We wish 
the delegation of Costa Rica a productive and successful Trade Policy Review.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAIN,  PENGHU,  KINMEN  AND  MATSU  
4.238.   My delegation is pleased to note that Costa Rica 's economy has continued to register positive 
results since its last Review in 2013. GDP has grown at a real average rate of 3.5% annually, and 
per capita GDP reached a new high level in 2018. We therefore commend Costa Rica on its successful 
economic performance over the last 5 years. We have also noted, however, that despite this growth 
the unemployment rate has remained relatively high, at around 9 to 10% , and the Central 
Government 's total public debt has increased significantly from 34.3% of GDP in 2012 to 53.6% in 
2018. This suggests that Costa Rica still faces some tough challenges in sustaining economic growth 
while reducing unemployment and public de bt at the same time.  
4.239.   As the Secretariat 's Report confirms, Costa Rica is a strong supporter of the multilateral 
trading system, with a good record of constructive positions offered and notifications submitted 
under various WTO Agreements. Besides that, Cos ta Rica has actively participated in the Joint 
initiative on E -commerce and MSMEs. As we review the challenges and opportunities facing global 
trade today, it is vital that we continue our joint efforts on these initiatives to modernize the global 
trading architecture to ensure a sustainable and growth -oriented economic environment for all.  
4.240.   In addition, through its co -sponsorship of the proposal entitled "Procedures to Enhance 
Transparency and Strengthen Notification Requirements under WTO Agreements " in the General 
Council, Costa Rica demonstrates its recognition of the crucial importance of transparency. We 
appreciate Costa Rica 's consistent efforts to improve and strengthen the multilateral trading system.  
4.241.   In terms of foreign trade, my delegation notes Co sta Rica 's efforts on trade facilitation, such 
as its upgrade of the single window, its establishment of Authorized Economic Operators, as well as 
a National Trade Facilitation Council (CONAFAC) to implement the Trade Facilitation Agreement.  
4.242.   With respect t o its tariff regime, Costa Rica 's applied MFN tariffs since 2013 have remained 
at around the 7% level. However, we notice there are 3 of its tariff lines where the tariffs exceed 
the bound tariff - on dairy spreads, concentrated grape -juice, and resistance -heated furnaces. We 
suggest Costa Rica to review these tariff lines to ensure they are in accordance with the WTO 
commitment.  
4.243.   In conclusion, chair, the bilateral trade between Costa Rica and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Mat su has been increasing steadily in recent years. We 
strongly encourage Costa Rica to continue its structural reforms to further improve the business and 
investment environment. We look forward to strengthening our trade relationship with Costa Rica in 
the future.  
4.244.   We wish Costa Rica a very successful Review.  WT/TPR/M/392 • Costa R ica 
 
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  THAILAND  
4.245.   Thailand and Costa Rica have growing bilateral trading relations. Costa Rica is the second 
largest trading partner of Thailand in Central America, and Thailand is number one trading partner 
of Costa Rica in ASEAN. In 2018, bilateral trade amounted to US D 143.4 million, increasing by 6% 
from 2017. Thailand hopes that our bilateral trade will continue to grow to further strengthen our 
economic relations.  
4.246.   Thailand welcomes the impressive growth of Costa Rica 's per capita GDP at current prices of 
20% from 2012 to 2018. We commend Costa Rica 's consistent efforts in promoting trade facilitation 
and modernization by adopting various trade facilitation measures since the last review. These 
measures include the development of "Single Window for Foreign Trade ", the certification processes 
for autho rized economic operators, and the establishment of National Trade Facilitation Council to 
implement the Trade Facilitation Agreement (TFA). We are convinced that these measures will 
improve business environment and contribute to economic growth in the coun try. 
4.247.   Thailand values Costa Rica 's contribution and commitment to preserving and strengthening 
the multilateral trading system. During the review period, Costa Rica ratified the Protocol on the TFA 
and regularly submitted notifications under various WTO Agr eements. Costa Rica is also a member 
of the ITA Expansion Agreement. However, the modification to Costa Rica 's Schedule of Concessions 
has not entered into force, pending the completion of its domestic procedures. We, therefore, 
encourage Costa Rica to fin alize its domestic procedural requirements at the earliest.  
4.248.   As Cairns Group Members, Thailand has close working relationship with Costa Rica in 
agriculture negotiations with a shared view of pushing for successful reforms in agriculture. We 
appreciate Cost a Rica 's proactive contributions in the ongoing negotiations with a view to achieving 
outcomes in this crucial area by MC12.  
4.249.   In conclusion, we wish Costa Rica every success in this Trade Policy Review.  
JAMAICA  
4.250.   Jamaica and Costa Rica have shared strong bond s of friendship and cooperation  for many 
years at the bilateral, regional and international levels. Historically, these have been grounded in, 
inter alia, migration flows and people to people exchanges and have further extended to the field of 
trade with b oth countries exporting to each other 's markets. In general, the trade balance while 
stable, has been skewed in favour of Costa Rica. In 2018 alone, Jamaica 's imports from Costa Rica 
were valued at approximately US D 58. 5 million, while our exports to Cost a Rica for that same period 
amounted to approximately US D 1 .1 million.  
4.251.   Manufactured goods such as beers, soft drinks  and wines account for Jamaica 's main 
purchases from Costa Rica. Other imports include items such as banana and plantain chips and paper 
products. In contrast, Jamaica 's principal export items to Costa Rica,  while relatively modest, include 
rum, waste and scrap (batteries and electric accumulators) and small quantities of condiments such 
as jam and crushed peppers. Both countries are committe d to further strengthening commercial and 
other ties in the coming years.  
4.252.   We note from the reports that Costa Rica has made significant progress in a number of areas  
since its last trade policy review in 2012. Despite some challenges, including high levels  of inflation 
and debt and rising unemployment within the country,  Costa Rica 's economy grew at an average of 
3.3% between 2013 to 2018.  
4.253.   Trade and investment are key drivers of the economy and have been pursued within the 
framework of Costa Rica 's National  Development Plan: 2019 -2022 While the agricultural sector 
continues to play an important role, with bananas being the country 's main agricultural product, 
services exports have been increasing and represented about 45% of Costa Rica 's total exports 
betwee n 2013 and 2018.  
4.254.   As a founding Member of the World Trade Organi zation, Costa Rica firmly believes that the 
multilateral trading system continues to be a cornerstone of global trade relations. Consequently, 
Costa Rica has been  actively participating in the multilateral trading system, in addition to WT/TPR/M/392 • Costa R ica 
 
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  strengthening its integration and engagement with its Central American neighbours and other key 
partners through a range of free trade agreements.  
4.255.   We further commend Costa Rica for its ongoing efforts to advance the implementation of the 
Agreement on Trade Facilitation which it signed in 2017 at the national level, including through the 
introduction of its Customs Control Information Technology System  
4.256.   (TICA), the Foreign Trade Single Window (VUCE), the Investment Single Window (VUI) and 
the Authorized Economic Operator programme, as well as the implementation of a comprehensive 
risk management system.  
4.257.   Like Jamaica, Costa Rica is also a member of the Small Vulnerable Economies (SVEs) Group. 
We therefore share the vi ew that an effective, rules - based multilateral trading system is of critical 
importance given that trade remains the primary vehicle for the pursuit of economic growth, job 
creation and national development, as well as the attainment of the Sustainable De velopment Goals.  
4.258.   In closing, Jamaica wishes to again congratulate the Costa Rican delegation and extend best 
wishes for a successful Review.  
JAPAN  
4.259.   We appreciate Costa Rica 's efforts and economic achievements during the review period, 
which include a 20% increase of per capita GDP as well as an average of 3.5% real GDP growth. We 
welcome the fact that trade, especially in the form of a good performance in service exports, made 
a positive net contribution to Costa Rica 's GDP.  
4.260.   We believe that Costa Rica 's achievements are the result of its positive attitude toward and 
active participation in the rules -based multilateral trading system embodied in the WTO. As a 
founding Member, Costa Rica has shown strong commitment to and extended its support for the 
WTO on many occasions. I would like to highlight a few ways in which Costa Rica has been doing 
this. As a party to the Trade Facilitation Agreement (TFA), Costa Rica set up the National Council for 
Trade Facilitation to promote implementation of the Agreement 's provisions, and gave notification 
that it would immediately implement almost all of the provisions, except for those for which it would 
require technical assistance. Costa Rica is also a party to the Information Technology Agreement 
(ITA), and took part  in the negotiations to expand its scope from 2012 to 2015. Japan positively 
evaluates these efforts on the part of Costa Rica. At the same time, we encourage Costa Rica to take 
steps toward accession to the Agreement on Government Procurement, which the c ountry has been 
involved in since 2015 as an Observer to the Government Procurement Committee. This would 
contribute to further decreasing Costa Rica 's fiscal deficits through promoting an open and 
transparent government procurement environment, and the ef ficient and effective management of 
public resources.  
4.261.   Additionally, at the Eleventh Ministerial Conference in Buenos Aires in 2017, Costa Rica 
agreed on the "Joint Statement on Electronic Commerce ", the "Joint Statement on Investment 
facilitation for deve lopment " and the "Declaration on the Establishment of a WTO Informal Work 
Programme for Micro, Small and Medium Enterprises ". We appreciate Costa Rica 's active 
participation in these agreements, especially on E -commerce and look forward to seeing Costa Ric a 
further engaging with the respective agendas. We believe that thorough implementation of such 
agreements will promote further economic growth for Costa Rica.  
4.262.   We appreciate that Costa Rica recognizes the importance of foreign trade as a vehicle for 
the country 's further economic and social development, as manifested in its National Development 
Plan.  
4.263.   As a great supporter of the rules -based multilateral trading system, Costa Rica also 
emphasizes the importance of regional integration. We appreciate Costa R ica's participation in trade 
agreements negotiated within the region and the country 's continuing endeavours  to achieve an 
open, modern and accessible economic environment. When promoting regional trade, it is important 
to be consistent with the rules of t he multilateral trading system. In this regard, we appreciate 
Costa  Rica's commitment to the WTO rules, as evidenced by, for example, its regular submission of 
the required notifications.  WT/TPR/M/392 • Costa R ica 
 
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  4.264.   At the same time, we look forward to seeing Costa Rica achieving an  even more open, fair 
and transparent market environment. According to the report by the Secretariat, the State plays a 
major role in some sectors, namely: financial services, communications and energy. Especially, in 
the financial sector  — both in regard to banking and insurance  — State -owned institutions benefit 
from significant advantages for business operations and remain primary players. While recognizing 
the role of State financial institutions from the development aspect, we believe that achieving a 
more competitive market environment in the financial sector would contribute to greater benefits 
for the people of Costa Rica in the long run. At the same time, we believe that promoting an open 
and fair market environment for the financial sector would le ad to a better overall business 
environment. Japan appreciates Costa Rica 's policy on the Free Zone Regime and its achievement 
of increased Foreign Direct Investment in the manufacturing sector, especially for high -tech 
segments such as medical instruments , which enable Costa Rica to produce high value -added  goods 
for export. We therefore look forward to seeing continued commitment on the part of Costa Rica to 
making its business environment even more open, fair and competitive in order to continuously 
attract greater investment by the private sector.  
4.265.   In conclusion, we are convinced that Costa Rica will be well placed to continue pursuing an 
open, transparent and non -discriminatory market by observing its commitments to the WTO. We 
wish Costa Rica a success ful and productive TPR, and look forward to hearing of further progress 
regarding its trade and investment policies at its next TPR.  
HONDURAS  
4.266.   From an assessment of the reports provided, we are pleased to note that in our region 
Costa  Rica is classified as an upper middle -income country with positive human development 
indicators.  
4.267.   Costa Rica is one of the oldest democracies in Latin America, and its stable political system 
has allowed it to achieve constant economic, social and environmental pro gress over time.  
4.268.   The OECD reports that levels of poverty, income inequality and gender inequality, are low 
by Latin American standards, albeit high compared with the OECD countries.  
4.269.   The reports show that between 2012 and 2018, per capita GDP at current pri ces increased 
by 20% . The economy grew by 2.7% in 2018, and fo reign trade has been the strongest driver of 
the Costa Rican economy.  
4.270.   Costa Rica is a net recipient of foreign direct investment and continued to receive large 
FDI flows during the review period . From 2012 to 2018, the FDI stock rose by 93%, which represents 
71.7% of GDP.  
4.271.   FDI in the manufacturing sector went up, especially in high technology segments, such as 
medical equipment produced in free zones.  
4.272.   We also observe that during this same period, Costa Rica implemented significant reforms 
aimed at promoting trade and investment, reducing fiscal imbalances, revitalizing the economy and 
attracting FDI, among other things.  
4.273.   Costa Rica has also worked to consolidate and modernize the legal and instituti onal 
framework in the area of trade defence, economic competition, and consumer protection, and has 
sought to introduce a national statistical system, all with a view to implementing procedures and 
tools in accordance with international best practices, and  to formulating and efficiently administering 
public policy.  
4.274.   It is to be noted that from 2013 to 2019, the country continued to strengthen its prudential 
supervision of the banking system, implementing the Basel principles to that end, and adopting 
minimum  capital requirements for market risk, as a means of protecting bank capital adequacy.  
4.275.   In bilateral terms, as natural partners spanning the decades, our countries have had a solid 
and close relationship, which allows us to have a shared vision and to inten sify and modernize the 
Central American integration process. We have adopted a series of measures and regional policies WT/TPR/M/392 • Costa R ica 
 
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  to facilitate trade, eliminate non -tariff barriers, harmonize community legislation and resolve our 
differences.  
4.276.   As regards regional tra de, member countries of the Central American Common Market 
(CACM), as a whole, received 16% of Costa Rica's exports in 2018 and our joint exports represented 
5.5% of the total in 2018.  
4.277.   At the bilateral level, the value of trade in 2018 reached approximatel y USD  537 million. We 
exported more than USD  106 million worth of paper and cardboard, baked tortillas, grain -based 
preparations, coffee, tobacco and manufactured tobacco substitutes to Costa Rica, and the value of 
our imports from Costa Rica amounted to m ore than USD  431 million.  
4.278.   Like Costa Rica, our country has been building a foreign trade platform based on the rules 
and disciplines of this Organization, the instruments of Central American economic integration, and 
various free trade agreements. We would  therefore like to congratulate Costa Rica on its outstanding 
and significant achievements and wish the country every success.  
  WT/TPR/M/392 • Costa R ica 
 
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  5  REPLIES BY THE REPRE SENTATIVE OF COSTA RICA  AND ADDITIONAL COMM ENTS  
5.1.  Before turning to substantive aspects, I would like to take  this opportunity to join several other 
delegations in thanking you and Ambassador Mikael Anzén of Sweden for your work.  
5.2.  I would also like to express our thanks to the Trade Policy Review division, above all 
Angelo  Silvy, Eugenia Lizano and Stéphanie Dorange, for the enormous amount of effort that went 
into preparing this review. Your dedication was clearly key to ensuring a comprehensive analysis 
that would serve as a basis for discussion.  
5.3.  I also extend my country's profound and sincere than ks to all the delegations for their active 
and enthusiastic participation at our session on Wednesday, especially to those which, through their 
questions and comments, contributed significantly to making this exercise a more enriching 
experience. Having ta ken note of all your observations, suggestions and questions, and I will now 
turn my attention to the issues most frequently raised.  
5.4.  Costa Rica is proud to have been the first country to have its trade policies reviewed under 
WTO rules. Since then, we have  viewed the purpose of this important exercise as two -fold. Firstly, 
it provides us with an objective assessment - one based on the criteria of Secretariat experts and 
your analysis and scrutiny as our peers - of the things that we have done well, which is  vital, as this 
satisfaction of a duty fulfilled can then serve as a basis for the work needed to address other 
challenges. Secondly, the exercise enables us to clearly identify areas in which there is room for 
improvement or in which adjustments need to b e made - areas on which we can then focus our 
actions and efforts.  
5.5.  In order to make my statement easier to follow for Members, we have grouped the issues most 
frequently raised at the first session into the following four categories: (1) trade and investment 
policy; (2) other trade -related policies; (3) trade facilitation, promotion and competitiveness; and 
(4) reform in areas other than trade policy.  
Trade and investment policy  
5.6.  I will begin by addressing the comments received from several Members c oncerning a limited 
number of very specific cases in which, according to the Secretariat report, the MFN applied tariff 
appears to exceed the bound rate. The three tariff items concerned - dairy spreads; concentrated 
grape juice, whether or not frozen; and  resistance heated furnaces for temperatures up to 900ºC, 
except laboratory furnaces - are listed in Table 3.3 of the Secretariat report.  
5.7.  In the case of concentrated grape juice and furnaces, the apparent excess in the MFN applied 
tariff in relation to the  bound rate stems from differences regarding the tariff classification of these 
products. However, our preliminary review of the situation shows that the MFN applied tariff does 
not exceed the bound rate in either case. The tariff subheading under which gr ape juice is classified 
is not 2009.61, but 2009.69, which means that the MFN applied tariff is 1% and not 15% as indicated 
in the report. And while resistance heated furnaces are indeed classified under heading 8486.20.91, 
their bound rate is not 0%, sinc e they were transferred to this heading, following the fourth 
amendment to the Harmonized System, from tariff heading 8514.30.10, which has a bound rate of 
45%.  
5.8.  However, regarding dairy spreads classified under tariff subheading 0405.20, we saw that the 
bound rate for this product - which prior to the second amendment to the Harmonized System fell 
under subheading 2106.90 - is 45%, thus resulting in the inconsistency of the MFN applied tariff.  
5.9.  We can assure you that we will carry out the relevant checks to confirm for definite what I have 
told you regarding these three products, and, on that basis, will take the steps required to make the 
necessary clarifications or corrections.  
5.10.   The other trade policy matter I would like to comment on is the use of safeguard  measures. 
Costa Rica has used trade defence measures only when required and in strict compliance with 
international trade commitments.  WT/TPR/M/392 • Costa R ica 
 
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  5.11.   The safeguard that was imposed on husked rice several years ago was introduced in response 
to a petition filed by the do mestic industry and complied with WTO Agreement rules, including in 
respect of the negotiation and granting of compensation for Members affected by the measure.  
5.12.   In June this year, a safeguards investigation concerning refined white sugar was initiated in 
response to a petition filed by the domestic industry. It should be noted that the decision to launch 
the investigation was based on a preliminary analysis of the relevant information by the investigating 
authority. Not until the current investigation is co mplete will it be possible to determine whether 
WTO Agreement requirements for establishing a safeguard measure have been met. Nevertheless, 
our track record shows that Costa Rica will, as always, honour its commitments regarding the use 
of this type of in strument.  
5.13.   I feel I should also refer to the comments made by some Members on the tariffs applied to 
certain agricultural products. Under the Uruguay Round, Costa Rica undertook to apply ad valorem  
bound rates to all products, and tariffs applied on an MFN basis do not exceed the bound rates, 
except in the case I mentioned before. Costa Rica shares the interest in further deepening 
agricultural trade reform, an issue that must be addressed within the framework of the multilateral 
negotiations.  
Other trade -related policies  
5.14.   We thank all the delegations that have highlighted the importance of transparency in the area 
of regulatory policy. In this respect, a concerted effort has been made to streamline regulatory 
policy, using as a benchmark the best practices ad opted within the framework of the Organisation 
for Economic Co -operation and Development (OECD).  
5.15.   In the specific case of authorization procedures for the importation of products of sanitary 
interest and products of animal and plant origin, we must emphasiz e that the transparency 
obligations established in the Agreements on Technical Barriers to Trade and Sanitary and 
Phytosanitary Measures are met on a regular basis, in relation to both the adoption of national 
regulations and measures, and the approval of Central American technical regulations.  
Trade facilitation, promotion and competitiveness  
5.16.   Some delegations correctly pointed out that Costa Rica has a number of infrastructure gaps 
that are affecting the country's competitiveness. In this regard, it should  be noted that the 
Government of the Republic is fully committed to improving the country's infrastructure, including 
ports and roads. To this end, it recently launched the National Growth, Employment and Well -Being 
Strategy, which establishes total fixed capital investment of 9,500  million dollars for the 2019 -2022 
period, more than two thirds of which corresponds to road and hospital infrastructure works, while 
the remainder will be oriented towards inter alia  water, energy, education and housing projects . 
5.17.   Furthermore, this year saw the beginning of operations at a new, modern container port on 
the Atlantic coast, which has benefited from total investment of more than a  billion dollars. This new 
port permits the berthing of Post -Panamax II vessels, thereby  allowing for the handling of increased 
volumes of freight while reducing the transport costs deriving from economies of scale. The 
Government is also implementing an initiative to modernize all land border posts so as to ensure 
they meet current internati onal trade requirements. This initiative, scheduled for completion in 2022, 
will provide for new infrastructure, aligned control procedures and upgraded computer systems, all 
within the framework of coordinated border management.  
Reform in areas other than  trade policy  
5.18.   Regarding the economic environment, I welcome the useful comments we have received on 
how Costa Rica should seek to ensure more balanced public finances in order to avoid compromising 
the country's future macroeconomic stability. Although not  directly within the purview of trade policy, 
Costa Rica attaches great importance to this matter, and I would therefore like to expand upon our 
initial presentation to describe some of the specific measures that are being adopted in this area.  
5.19.   One of the most pressing issues for Costa Rica during this period was the introduction of a 
tax reform that would enable it to correct a persistent imbalance in, and enhance the sustainability WT/TPR/M/392 • Costa R ica 
 
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  of, its public finances. To this end, after a lengthy and arduous process,  the Law on Strengthening 
Public Finances was adopted in December  2018.  
5.20.   The most significant aspects of this reform include the extension of the levying of VAT to 
service transactions. Generally speaking, the tax rate is 13%, with few exceptions. Amendment s 
have also been made to the Law on Income Tax in order to standardize the tax rates applied to 
different sources of income. The tax rate for the highest wage levels has been increased to 20%.  
5.21.   The Law on Public Service Salaries has also been amended so as to streamline salary 
incentives for government officials. Changes include the introduction of a chapter on fiscal 
responsibility, which establishes a rule limiting the growth of current expenditure according to the 
level of public debt and the growth of th e economy, and which also prohibits the creation by law of 
new expenditure responsibilities for which there is no source of financing.  
5.22.   According to the Central Bank of Costa Rica, the full implementation of this tax reform together 
with the administrative measures adopted in the second half of 2018 to curb spending growth, would 
lead to a significant fiscal adjustment and set the country on the path to gradually restoring the 
sustainability of its public finances. Accordingly, it is estimated that the total  debt of the central 
Government as a percentage of GDP will begin to decrease as from 2024.  
5.23.   Regarding the financial sector, there are currently 15 banks operating in Costa Rica, 11 of 
which are private. Of the latter, nine are foreign -owned and operate on a non -discriminatory basis 
under the same prudential regulations applied to state -owned banks, with no limitations regarding 
capital ownership, or requirements concerning joint ventures with nationals. Legislative reforms 
have recently been approved with a  view to enhancing the independence of both the Central Bank 
and regulators and supervisors. Furthermore, only a few days ago, Costa Rica passed a law 
authorizing foreign banks to provide banking services through branch offices, together with another 
law b roadening investment opportunities through various financial instruments and derivatives. 
Costa Rica is also discussing reforms to enhance the consolidated supervision of financial groups and 
the protection of financial consumers.  
5.24.   Thanks to the opening up of the insurance sector, we have gone from having one monopoly 
supplier in 2008 to 13 insurance companies (one state -owned and 12 private) in 2019. These 
companies supply more than 700 different products to this market.  
5.25.   Regarding the telecommunications market, Costa Rica opened this sector up to competition 
in 2008, and since then has permitted private companies to invest in the sector in accordance with 
the principle of non -discrimination. Both state - and privately owned companies cur rently operate in 
the telecommunications sector, which is an extremely dynamic area of activity. It should be noted 
that between 2013 and 2018, the number of authorized service suppliers rose from 117 to 152 and 
that, in 2018, mobile phone penetration stoo d at 175 lines per 100  inhabitants and mobile internet 
at 94 subscriptions per 100 inhabitants. Prices have fallen significantly. For instance, the mobile 
telecommunications services price index showed an average fall of 12.5% in the first half of 2018 
compared to the first half of 2017. This confirms that people in Costa Rica currently have access to 
high-quality services, thanks to there being not only more choice, but an optimal regulatory 
framework.  
5.26.   With regard to the energy sector, private companies, m unicipal companies and cooperatives 
can participate under various schemes in all electricity market activities - including generation, 
distribution and marketing - except for transmission.  
5.27.   Measures have been taken to foster competitiveness and reduce elect ricity costs; these 
include promoting inter -institutional coordination so as to offer more competitive electricity rates to 
high-consumption users in the commercial, services and industrial sectors. Such rates include those 
that differentiate between the c ost of energy during the day and at night.  
5.28.   Another relevant aspect concerns existing regulations that authorize the generation of 
electricity for one's own consumption through the use of renewable sources, so that industry and 
commerce can reduce the size of monthly energy bills. The publication of an updated National Energy 
Plan is expected in 2019.  WT/TPR/M/392 • Costa R ica 
 
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  5.29.   Regarding competition, I would like to begin by reaffirming that our country is fully aware of 
the need for effective legislation in this area - legislation wh ich encourages companies to constantly 
compete and innovate, and which ensures that the benefits deriving from a consolidated and steadily 
expanding open trade policy fully reach consumers.  
5.30.   The recent legal reform regarding competition therefore marks one of the most important 
milestones reached by Costa Rica in recent years. I think it is important to elaborate on the scope 
of this reform, since it was approved barely two weeks ago and was therefore not yet ready to be 
examined in the reports on which the current review is based.  
5.31.   This reform, which follows the main recommendations put forward by the OECD and is the 
most comprehensive reform of competition law ever to be carried out, is a clear sign of Costa Rica's 
commitment not only to promoting and protec ting competition in all sectors of the economy, but to 
increasing the country's productivity and competitiveness and improving its overall economic 
performance.  
5.32.   One of the most important changes is the reform of the institutional structure of the 
Commissio n for the Promotion of Competition (COPROCOM). This reform seeks to provide the 
Commission with instrumental legal personality and technical, administrative and functional 
independence; it also provides for the appointment of three full -time commissioners and two 
alternates and the establishment of an operational budget with a significantly larger resource 
envelope than at present.  
5.33.   In addition to this, the scope of the Law on Competition has been extended to include all 
economic agents whose actions impact Costa Rica. This amendment eliminates all the exceptions 
that existed previously (holders of public service concessions, state monopolies and municipalities) 
and clarifies that only actions expressly authorized by special laws are exempt. The Supervisory 
Authority for Telecommunications (SUTEL) continues to have exclusive authority over this sector in 
view of the technical nature of the subject matter and the experience it has acquired since its creation 
in 2008.  
5.34.   Regarding the financial sector, the new law grants COPROCOM the power to authorize mergers 
between economic agents supervised by financial regulators, with the exception of transactions that 
may pose a prudential risk to the financial system. Such transactions will be addressed solely by the 
Nationa l Council for Financial System Supervision (CONASSIF) and the respective supervisory 
authority. This will prevent the creation of mergers that may be detrimental to market stability and 
thus pose a risk to the economy. It is important to note that COPROCOM  remains solely responsible 
for investigating and sanctioning anti -competitive practices in these markets.  
5.35.   Other relevant reforms focus on providing the competition authorities with the appropriate 
tools to detect and sanction anti -competitive practices an d mergers. Such tools most notably include 
the clemency mechanism (exemption from or reduction of fines) and increased penalties to ensure 
a deterrent effect. Costa Rica is also increasing the powers and tools of its competition authorities 
in regard to co mpetition law. This includes having the authority to contest, before the Constitutional 
Chamber and the Courts of Justice, any acts, decisions, administrative conduct or regulations that 
run counter to the principles of competition.  
5.36.   Lastly, Costa Rica is w ell aware of the need to take steps to reduce unemployment, given the 
steady rise in its level since the international economic crisis in 2008. Accordingly, the National 
Growth, Employment and Well -Being Strategy promotes the implementation of a dual educa tion 
system. We are, in fact, pleased to announce that, on 12  September this year, the President of the 
Republic signed a law formalizing this method of education in Costa Rica. The system fosters student 
training in two learning environments: an education al institution and an enterprise, thus facilitating 
the student's successful transition into the job market. This instrument could have a significant 
impact in terms of reducing the level of unemployment for young people under 24 years of age, 
who, accordi ng to figures issued by the National Statistics and Census Institute, accounted for 35% 
of all unemployed persons in 2018.  
5.37.   Costa Rica will continue to participate actively and constructively in the WTO's various working 
and negotiating groups and initiatives, with a view to further strengthening the rules -based WT/TPR/M/392 • Costa R ica 
 
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  multilateral trading system and ensuring that the Organization achieves the laudable objectives that 
guide its actions.  
5.38.   I shall conclude by reiterating our most sincere and profound thanks f or the huge efforts made 
to ensure the successful completion of this fifth review of Costa Rica's trade policies. We shall 
endeavour to ensure that the next review yields benefits that are as positive as those produced on 
this occasion and in previous revi ews. Thank you very much.  
DISCUSSANT  
5.39.   Thank you, Mr. Chairperson, for letting me come back and make some final comments with 
you here today.  
5.40.   In my last intervention I forgot to thank the Secretariat , the Trade Policy Review Division,  for 
all the work and ef forts they put into this report and to make  this meeting possible. I would also like 
to extend great thank you to the interpreters  who are doing a great job .  
5.41.   First of all, I would like to make a little reflexion of Sweden 's relations with Costa Rica. And 
there are actually two things that struck my mind.  
5.42.   One is your biggest export merchandise bananas. Sweden happens to be an importer, 90% 
of our trade flows are bananas. And rightly so, Swedes are the biggest consumers of bananas in the 
world as a non -producing country. I can just look at myself, I have at least one banana a day and 
calculating, that makes about 55 kg of bananas for just me.  
5.43.   The s econd important merchandise is coffee. Next to bananas, Swedes are as well the biggest 
consumers of coffee per capita (next to Finland) and some of the most appreciated verities we roast 
in Sweden comes from Costa Rica.  
5.44.   So, now to my impressions from this TPR: I would first like to than Vice Minister Salas for his 
comments on all the questions you put here today. I was struck by the high level of engagement on 
Wednesday 's session. More than 300 written questions and 35 delegations took the floor during the 
meeting.  
5.45.   On substance, I think we all went from here with a very positive impression of Costa Rica 's 
trade policy.  
5.46.   As I mentioned in my initial remarks, the country is a very good and active WTO Member, 
fulfilling its obligations. A good friend of the system and also a good trading partner – and besides 
the WTO, it has negotiated many bilateral and reg ional free trade agreements. We also heard that 
appraisal repeated by many delegation 's comments and someone said  that Costa Rica is  "a small 
economy with a big impact ". That is a pretty good note for you . 
5.47.   One thing I would especially  like to highlight is Costa Rica 's attention to gender. This was also 
noted and raised by many delegations. Costa Rica is a signatory of the Buenos Aires gender 
declaration and an active partner in continuing pushing for gender and trade, women export and 
gender equality. In li ne with that , I'm very pleased that Costa Rica will add to the number of women 
in trade by the nomination of Ambassador Abraham to the WTO. Welcome to Geneva, one more 
time.  
5.48.   Another important area where Costa Rica was applauded is their work related to SD G-goals, 
such as the commitments to the Paris climate change agreement, renewable energy, sustainable 
tourism, fish subsidies negotiations, phasing out fossil fuels and a decarbonization plan making the 
country carbon neutral by 2050. Costa Rica is not onl y saying that they prioritize and negotiate these 
areas, but it 's a country that  actually  lives what they are saying , which we all should do.  
5.49.   So, that was the congratulation  part. But even observing the Latin American sun , bureaucrats 
were able to note so me spots . So, let us recall some of the challenges the delegations raised in their 
questions and comments.  WT/TPR/M/392 • Costa R ica 
 
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  5.50.   My first finding was that most of the comments related to Costa Rica 's economic environment 
– and not necessarily to trade  environment .  
5.51.   Comments focused on high fiscal deficit resulting in a high dept to GDP ratio, and the 
recommendations to the need of fiscal reform. There were comments concerning the competition in 
the financial sector and competition policy in general. Some economic ope rators do not even fall 
under the competition remit and taxation. I believe that the Vice Minister just addressed these 
questions and I hope that Members are happy with the answer.  
5.52.   On Costa Rica 's trade and investment regime , in my initial remarks I referred to tariff peaks 
on dairy products, animal products, sugar and clothing. The same observation was repeated by 
delegations.  
5.53.   There are state enterprises in financial -, telecom - and electricity sector and Members , 
therefore , called for further service s liberalization.  We also heard about the new law in the financial 
sector  
5.54.   A Member was worried about the safeguard measures on rice and the initiated investigation 
on sugar. SPS -requirements of avocados was also mentioned by another  Member .  
5.55.   We noted , as well, that Costa Rica is not a signatory of the Government Procurement 
Agreement – which, from the outside – is not  really  in line with the otherwise very ambitious trade 
profile of the country.  
5.56.   Three tariff lines were pin -pointed where the applied tariff rate exceeded the bound tariff rate . 
I think that Vice Minister Salas just addressed that question too so I hope Members are satisfied 
with the reply . 
5.57.   One Member noted that the ITA Expansion agreement, or ITA II, has not entered into force 
in Costa Rica be cause of pending or completion of domestic procedures.  
5.58.   As discussant , I would urge Costa Rica to look into these issues.  
5.59.   I'm not sure my Swiss colleague , Ambassador Chambovey , liked the comparison I did between 
Switzerland and Costa Rica, but I must still make a final comparison between Costa Rica and 
Switzerland, and that relates to the high cost of living which is an issue . But since my colleague, the 
Icelandic Ambassador Asplund, himself made even better comparisons between your countries in 
his statem ent, maybe we should now not call Costa Rica the Switzerland of Latin America but rather 
the Iceland of Latin America.  
5.60.   I would also like to repeat some maths  because we heard that there was the 3rd or the 4th 
Trade Policy Review but I would just say that i t was the fifth . 
5.61.   On a more serious note , on maths , I will come back to the question of gender. Often, I get 
the question how Sweden – but I think it goes as well for Costa Rica – can be so successful. Well, if 
you, as you do in Costa Rica, focus on gender equality, it means that you actually include half of 
your population in the economy and trade, the other half do esn't have to work for two. Focusing on 
gender is therefore smart economics . I think we  can all learn something from this, and Costa Rica 
has shown this clearly.  
5.62.   I would now urge Members and Costa Rica to follow -up on all those questions and answers, 
see that we all are satisfied with it, and work actively on this so that when we will come back in five 
years ' time, I hope we will not d iscuss the same issues. I thank you very much for your attention.  
UNITED  STATES  
5.63.   The United States thanks Vice Minister Salas and the Costa Rican delegation for their 
participation in their fifth Trade Policy Review. We also thank Ambassador Anzén for his remarks 
and the Secretariat for their Report.  WT/TPR/M/392 • Costa R ica 
 
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  5.64.   The United States recognizes the notable achievements Costa Rica has made during this 
Review and, as multiple Members pointed out, Costa Rica punches above its weight, and we are 
optimistic that Costa Rica will  continue on this positive trajectory.  
5.65.   We thank the Costa Rican delegation for the answers to our written questions, as well as the 
comprehensive remarks made today by Vice Minister Salas which address many of our comments 
from Day 1 of this TPR, regarding  regulatory transparency and enforcement, business 
competitiveness, and policies and practices regarding standards and safety.  
5.66.   The United States recognizes Costa Rica 's recent ongoing efforts to strengthen IP 
enforcement, and we welcome updates to ensure g overnment agencies use only licenced software.  
5.67.   We remain committed to continue close cooperation with Costa Rica,  and wish all those 
returning to capital safe travels.  
EUROPEAN  UNION  
5.68.   First, let me thank Costa Rica for the comprehensive overview presented last Wednesday of 
the main developments in its trade and economic policy which occurred during the review period, 
and for the presentation of the Vice Minister today, as well.  
5.69.   The EU is pleased to note that this Review has been very useful for better under standing the 
trade policy of Costa Rica, and we hope that it will duly take into account some of the challenges 
highlighted by Members.  
5.70.   The EU appreciates the very timely replies provided to our written questions by Costa Rica. 
Nevertheless, we would like to reiterate one question on the tax on imported beer, to which we 
believe we did not receive a full reply. Just to repeat: does the IFAM tax replacement by IVA mean 
that IVA will be equally charged on both imported beer and domestic beer? What is the new IVA rate 
applicable to beer, and does it differ from the IFAM tax?  
5.71.   We look forward to our future cooperation and thank you very much for the Review.  
MR DUAYNER  SALAS  (HEAD  OF DELEGATION)  
5.72.   We once again thank you for your stewardship of this trade policy review. We also reiterate 
our thanks to the Secretariat, and to all the delegations for their interest in the comments received 
on Wednesday and for their presence here today. We note the question posed by the delegation of 
the European Union and wi ll reply to it in a written note. Thank you, Mr  Chairman, and thank you 
Ambassador Anzén for acting as the discussant in our presentation.  
  WT/TPR/M/392 • Costa R ica 
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This fifth Trade Policy Review of Costa Rica has allowed us to deepen our und erstanding of 
Costa Rica 's trade and investment regime since its last review in 2013. I would like to thank 
H.E. Mr. Duayner Salas, Vice Minister of Foreign Trade of Costa Rica, as well as Ambassador Gloria 
Abraham, and the rest of the Costa Rican delegati on, for their active and constructive participation. 
I would also like to thank Ambassador Mikael Anzén, Permanent Representative of Sweden to the 
WTO, for his remarks as discussant, which were instrumental in framing our discussions, as well as 
to the 33 delegations that took the floor during this meeting. Costa Rica has provided comprehensive 
written responses to almost all of the 350 advance written questions posed by Members.  
6.2.  Members noted the overall positive achievements of Costa Rica 's economy during  the period 
under review. In this regard, Costa Rica was congratulated for posting an average GDP growth rate 
of 3.5% during the period, which had allowed an increase in per capita income of some 20%, and 
for keeping inflation under control. This positive performance was linked to the strong role of foreign 
investment and trade, which had resulted from the steps taken to further integrate Costa Rica 's 
economy into the global trading system. However, it was also noted that some challenges to the 
quest of kee ping the economy on a path of sustained and inclusive growth remained. These included 
dealing with labour market rigidities, witnessed by a 10% unemployment rate, continuing with the 
process of regulatory reform, and addressing the persistent fiscal defici ts resulting in a high debt to 
GDP ratio, which was an area of particular concern. In this context, Members welcomed the approval 
and recent implementation of a comprehensive fiscal package, and we thank Vice Minister Salas for 
his extensive comments today  on fiscal reforms.  
6.3.  Costa Rica was commended for its increasing integration into global value chains and the global 
economy in general, a result of its adoption of clear, predictable and transparent trade policies and 
measures. Members remarked the import ance of trade in both goods and services for Costa Rica. 
They noted that, although it was a major exporter of agricultural products, such as pineapples and 
bananas, Costa Rica had also become a significant exporter of manufactured goods, such as electrical  
equipment and parts, and that exports of services have continued to increase considerably in recent 
years. This had been particularly the case for tourism, which had become an important source of 
foreign exchange, but also for other services, such as back  office services. Although Costa Rica 's 
investment regime was open, with few barriers to market access, Members highlighted that state 
ownership and participation in the economy remained important, and that some sectors were 
reserved for public investment.  It was noted that the State continues to play a major role in financial 
services, communications and energy.  
6.4.  Members applauded Costa Rica 's support for the multilateral trading system and its active 
engagement in the WTO. It was noted that Costa Rica had ratified the Trade Facilitation Agreement 
(TFA), had participated in the ITA negotiations, and, in 2015, had become an observer to the 
Agreement on Government Procurement (GPA). Members appreciated Costa Rica 's active 
participation across a range of topics  of importance to the WTO, including electronic commerce, 
services domestic regulation, investment facilitation, women 's economic empowerment, micro, small 
and medium -sized enterprises, fossil fuel subsidy reform and the liberalization of information 
techn ology products and environmental goods. Members commended Costa Rica 's active and 
constructive engagement in the agriculture and fisheries subsidies negotiations. Members also 
recognized Costa Rica 's exemplary notification record and its active and constru ctive contributions 
to committee work in the WTO.  
6.5.  Costa Rica was commended for its commitment to implement virtually all provisions of the TFA 
immediately on its entry into force, and for taking steps towards the facilitation of trade, including 
the intro duction of an electronic payment system and of digital customs clearance forms; the 
implementation of a Single Window for Trade; and the certification of Authorized Economic Operators 
(AEOs). However, Members questioned the need for maintaining the require ment to use a customs 
broker for imports or exports.  
6.6.  Members commended Costa Rica for the stability and predictability of its trade regime. They 
noted that Costa Rica 's applied average MFN tariff had remained mainly unchanged since the last 
Review, but th at tariffs on agricultural products remained high, above the average rate of protection. 
Members also highlighted that applied tariffs for three tariff product lines exceeded their bound rates, 
and strongly encouraged Costa Rica to bring them into conformi ty with its commitments, for which 
we have heard some clarifications from Vice Minister Salas ' comments today. The resort to safeguard WT/TPR/M/392 • Costa R ica 
 
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  measures affecting rice were also noted, as was the initiation of a safeguard investigation on sugar. 
The compatibility w ith multilateral rules of the special tax levied on imported but not domestically 
produced beer was questioned, for which we hope to also have a reply.  
6.7.  Members recognized Costa Rica 's recent ongoing efforts to strengthen IP enforcement, such as 
the issuan ce of decrees to address piracy issues and the streamlining of the tasks of the IP offices. 
At the same time, they reiterated the importance of better protection and effective enforcement of 
IPRs. Members encouraged Costa Rica to take steps toward accessio n to the GPA so as to promote 
an open and transparent government procurement environment and the efficient and effective 
management of public resources. Members welcomed the adoption of the new competition law, and 
encouraged Costa Rica to continue opening  and liberalizing the services sector, in particular the 
financial sector, where state -owned institutions are granted advantages for business operations and 
remain primary players. Members encouraged Costa Rica to further open its agriculture market, as 
they found that restrictions to market access were imposed on some agriculture and agri -food 
products.  
6.8.  In conclusion, Costa Rica was commended for its long -standing commitment to the multilateral 
trading system and its engagement in a wide range of issues s uch as the environment, gender, 
MSMEs and e -commerce. Members welcomed the importance that Costa Rica has placed on trade 
liberalization and deepening its integration into the global economy as its path towards inclusive and 
sustainable economic developmen t. Members also recognized the notable achievements Costa Rica 
has made, and encouraged it to continue on this path. Members noted that they looked forward to 
continuing working with Costa Rica in the WTO and in other fora.  
6.9.  I thank Vice Minister Salas, the discussant, an d Members for contributing to an insightful and 
interesting Trade Policy Review. I hope that Costa Rica will give further thought and consideration 
to the constructive suggestions and comments made by Members during this Review. This TPR will 
be successful ly concluded once all replies to questions are received in one month 's time.  
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