RESTRICTED  
  
WT/TPR/G/392  
24 July 2019 
(19-4910) Page: 1/18 
Trade Policy Review Body  Original:  Spanish  
 
  
TRADE POLICY REVIEW  
REPORT BY  
COSTA RICA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement 
by Costa  Rica is attached . 
 
 
Note: This report is subject to restricted circulation  and press embargo until  the end of the 
first session  of the meeting of the Trade Policy Review Body on  Costa Rica . WT/TPR/G/392 • Costa Rica  
 
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  CONTENTS  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC AND TRADE POLICY ENVIRONMENT  ................................ ..........................  3 
3   TRADE POLICY DEVELOPMENTS  2013 -2018  ................................ ................................  5 
3.1   Multilateral trading system  ................................ ................................ ...........................  5 
3.1.1    Participation in ongoing negotiations and joint initiatives  ................................ ...............  6 
3.2   Trade and investment agreements (2013 -2018)  ................................ ..............................  7 
3.2.1    Agreements given effect  ................................ ................................ ............................  8 
3.2.2    Agreements negotiated  ................................ ................................ .............................  9 
3.3   Other forums  ................................ ................................ ................................ ..............  9 
3.3.1    Trade facilitation  ................................ ................................ ................................ ....... 9 
3.3.2    Central America  ................................ ................................ ................................ .......11 
4   PRINCIPAL REFORMS  2013 -2018  ................................ ................................ ..............  11 
5   OTHER RELEVANT FORUMS AND INITIATIVES  ................................ ..........................  13 
5.1   Organisation for Economic Co -operation and Develop ment (OECD)  ................................ ...13 
5.2   Women Export  ................................ ................................ ................................ ........... 14 
5.3   Seedstars Costa Rica  ................................ ................................ ................................ ..14 
5.4   Draft Law on Competition  ................................ ................................ ............................ 15 
5.5   National Statistical System  ................................ ................................ .......................... 16 
6   FUTURE POLICY DIRECTIONS  ................................ ................................ ....................  17 
 
BOXES  
 
Box 5.1 Main recommendations of the OECD and how they are addressed in the draft Law  ......... 15 
 
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  1  INTRODUCTION  
1.1.  The country 's foreign  trade and direct foreign investment (F DI) policy  has continued to be a 
driver of  growth since the previous  Trade Policy Review (TPR). 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 enable the country to better integrate 
international markets . 
1.2.  Costa Rica  considers that the multilateral trading system continues to be a cornerstone of 
global trade relations . Therefore, it is imperative for the country to adapt to new production realities 
resulting from  the proliferation of glob al value chains, the advent of industr y 4.0, the growth of 
e-commerce  and a greater share of services in the economy . To that end, the country is determined 
to pursue its efforts aimed at achieving consensus  that would allow it to tackle the challenges fac ing 
the multilateral trading system while recognizing the importance of participating actively in the 
various initiatives being promoted to advance negotiations on e -commerce, sustainable trade, 
reform of the World Trade Organization (WTO) and dispute sett lement.  
1.3.  In the past years, one of 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 . In addition , actions have been taken with a view 
to boosting the country's productivity both at the national level  – with the modernization of land 
border posts  – and the regional level  with a coordinated border management strategy.  
1.4.  These efforts will help consolidate the foundation of  trade agreements which , thanks to the 
entry into force of three new instruments since the previous TPR and the recent ratification by 
parliament of another , create a more conducive environment for growth, diversification and 
sophistication of trade and investment . Moreover, the country has made it a  priority to significant ly 
strengthen its public policy as part of its process of affiliation to the Organization for Economic 
Co-operation and Development (OECD).  
1.5.  During the pe riod under  review , the country has implemented cross -cutting reforms  that 
promote trade and investment without prejudice to  its international commitments . Among these are  
the adoption of a fiscal reform package aimed at reducing fiscal imbalances, containi ng public debt  
and consequently ensur ing greater sustainability of public funds in the long term . It is also 
implementing a programme of economic recovery  under which processes are simplified and focused 
on micro, small and medium -sized enterprises  (MSMEs)  and startups , while others aim to  boost 
employability and road infrastructure . 
1.6.  During this period , the investment -attraction policy  was instrumental in consolidating the 
structural transformation of the economy  and promoting the country's socio -economic d evelopment , 
specifically generation of more and better employment opportunities,  gaining momentum for a more 
dynamic economy, a fresh injection of production capital , creation of opportunities to link local 
enterprises  to the global economy , increased efficiency, knowledge transfer  and upgrading the skills 
of nationals.  
1.7.  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, foster the creation and growth of innovative MSMEs , as 
well as promote a greater role for women and gender equality in the export sector . Efforts aimed at 
strengthen ing and modernizing the State in line with best international practice  have led to an 
enhanced  legal and institutional framework for the  competent authorities . In addition, the national 
statistics system, which produces the data that informs public policy decision -making, is being 
improved . 
2  ECONOMIC AND TRADE POLICY ENVIRONMENT  
2.1.  In the period  2013-2018, the Costa Rican economy grew at an average annual rate of  3.3%, 
registering 4.2% growth in 2016. Nominal GDP per capita  increased by  13.9% between 2013 and 
2018, reaching in the last of these years  a nominal value of  USD 12,017. Per capita GDP  adjusted 
to purchasing power parity (PPP) rose 21.3% in that period to reach  USD 17,559 in 2018.  WT/TPR/G/392 • Costa Rica  
 
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  2.2.  The economy grew in  2018 by 2.7%, below the average for the period und er review . This 
slower growth rate was due to various internal and external  factors . The main internal factors were 
pressure generated by fiscal imbalances, strikes by some trade unions in the public sector against 
the public finance strengthening  plan, an d weather events that affected harvests of major crops . 
Regarding the international context , the economy was affected by the monetary policy  implemented 
in some developed countries, with the concomitant hike in international interest rates,  higher prices 
of raw materials  – mainly hydrocarbons  – trade tensions between powerful economies , as well as 
the political situation in neighbouring countries . 
2.3.  In the past three decades, Costa Rica has made  deep structural changes  to its economy through  
the sustained imp lementation of an open trade policy and its policy of attracting FDI . This policy , 
combined with a strategic location , a healthy and favourable business climate and the availability of 
highly qualified human capital,  has led to the diversification and sophistication of Costa Rica's  
exportable supply . This situation has been aided by good jobs  and a more resilient economy in the 
face of  international economic cycles . 
2.4.  Foreign trade  has been the strongest driver of the Costa Rican econo my. Although it has an 
internal market of  close to  5 million  inhabitants , Costa Rica is signatory to several trade agreements  
that gives it access to markets with  preferential conditions and legal certainty . These markets , taken 
together,  represent one thi rd of the world population  and two thirds of global GDP . Trade – exports 
and imports  – and FDI accounted on average for 71% of GDP  during the period covered by this 
report . 
2.5.  Total exports recorded an annual average growth of  5.6%, from USD 15.549  million  in 2013 
to USD 20.379 million  in 2018 . This increase went hand -in-hand with  a growing balance between 
goods and services and an ever -narrowing import -export gap. That gap  was virtually non -existent  
in 2018.  
2.6.  Exports of go ods accounted on average fo r 55% of total export sales . The industrial sector is 
being led by the subsector of precision and medical equipment , which recorded an annual average 
growth rate of  16.7% between  2013 and 2018. This trend resulted in a rise in goods for six years in 
a row from 18 % of export s to 29%. Other subsectors that performed notably are the chemical, 
electricity and electronics industries , as well as the engineering subsector . The primary agricultural 
sector  continues to hold a firm spot within exported goods  and has stood around  25% for the past 
six years . Exports of bananas , pineapple , coffee and yam are major exports . The food processing 
industry sector  has remained steady, accounting for 15% of exported goods , with the notable sale 
of certain  food preparations and palm oil . 
2.7.  Services exports represent ed about  45% of total exports  between  2013 and 2018. This item 
grew by an average annual rate of  5.5%, from USD 6.949 million  in 2013 to USD 9.092 million  in 
2018. Export of business, IT, information and communicatio n services , surpassed  tourism, which 
historically  has always held the top spot  among service exports . In 2018, business,  technology and 
information  services represented  48.4% of the country's total export services , up from  40.1% in 
2013. Services exports not only grew in size , but also in degree of sophistication , and now, in 
addition to call centres , engineering services , production and software services, also encompass  
research and development (R&D) activities,  digital animation  and marke t intelligence services , 
among others . 
2.8.   The policy of attracting FDI  has focused on four specific areas : services, advanced 
manufacturing , life sciences  and clean technology , which  Costa  Rica considers to have a high 
potential for growth and sophistication . Furthermore, significant efforts are being made to further 
attract investment in infrastructure and tourism . This strategy has generated high growth in job 
opportunities and technology and knowledge transfers , which in turn has allowed this sector to 
increase its productivity . The government's strategy  for diversifying FDI  has led to an increase and 
diversification of exports , reform of the country's productive sector  and greater participation in  global 
value chains , particularly in electronics , medical devices , automobiles , aerospace/aeronautics  and 
film equipment . 
2.9.   Despite the downward global FDI trends , Costa Rica has continued to attract productive foreign 
investment . During the review period , the sector that experienced the highest growth was  
manufacturing, which saw a spike in FDI from  USD 316 million  in 2013 to USD 1.088 million  in 2018, WT/TPR/G/392 • Costa Rica  
 
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  accounting for a  51% share in the last year . This sector includes life sciences , advanced 
manufacturing and light manufacturing . The services sector follows  closely  (22%), real estate  
(12%), financial services  (6%) and trade  (6%). 
2.10.   The public finance imbalance affected the Costa Rican economy's performance during the 
review period . That is why the current Administration took measures to contain spending  throug h 
executive decrees and directives  and pushed through passage of the Law on Strengthening  Public 
Finances  in December  2018. Based on these reforms, the government is hoping to lower the fiscal 
deficit by close to 3.5 percentage points  of the GDP  by 2022 and achieve a more sustainable level 
of public finances . 
2.11.   In parallel , the government designed a set of economic recovery measures , which includes 
the following specific actions : simplification of procedures in business construction, openness and 
investment ; support for the business sector , especially MSMEs  and business ventures ; promotion of 
employability  and infrastructure . 
3  TRADE POLICY DEVELOPMENTS  2013 -2018  
3.1.  The country has set up a foreign trade platform based on  WTO rules and discipline s, 
Central  American economic integration instruments and various free trade agreements (FTAs)  in 
force. Costa Rica has remained an active player in bilateral and regional  trade negotiations  and, as 
such,  is party to  14 FTAs that regulate  the country's trade with  50 trading partners , who together 
account for  92.6% of exports and  82.9% of imported goods . Once the FTAs  with the Republic of 
Korea and CARICOM  – which are pending ratification by their respective parliaments - enter into 
force, the number of  preferential trading partners will increase  to 58 and the percentage of trade 
flows covered by these trade agreements will reach  93% of exports and  84% of imported goods . 
3.2.  This trade platform enables the majority of Costa Rica's trade in goods and services to benefit 
from sound  trade rules in preferential conditions  on the markets of its major trading partners . 
Costa Rica is projecting itself as an attractive partner  for foreign investors  interested in accessing 
its markets  by setting up and developing productive operations in the country . It must be said that 
the global economic environment is dynamic and changing . For this reason, the country's foreign 
trade platform must be constantly improved and strengthened . This Will be an ongoing task  to 
ensure that  the platform remains relevant and competitive . 
3.3.  Foreign trade and FDI continued to drive the country's growth  during the review period . Exports 
of goods and s ervices  grew significantly in  2018 to reach USD 20.379 million , or 5.5% higher t han 
the previous year . Also noteworthy are increases in the precisi on and medical instruments  and 
services sectors.  
3.1  Multilateral trading system  
3.4.  Costa Rica has faith in and is fully committed  to the multilateral trading system and the WTO . 
For a small country that is well inte grated into the global economy through trade , it attaches great 
importance to being an active Member of the WTO , as it does to its proper functioning and r espect 
for its rules and principles.  
3.5.  The WTO should continue to play the pivotal role of keeping markets open and preventing 
protectionism through rules and appropriate disciplines  in order to tackle the challenges of the 
21st century . This would require W TO rules to be adapted and take into account new realities such 
as the proliferation of global value chains , which have resulted in increasingly interlinked economies . 
Moreover, the advent of the fourth industrial revolution , e-commerce and trade in servic es, have 
mean t that the usual way of conducting commercial transactions has changed significantly.  
3.6.  Costa Rica considers that it is crucial for the WTO  to continue playing the role of  bastion and 
guardian of the multilateral trading system . The WTO has initiated a reform process  in order to deal 
with the challenges  facing the organization so that it may continue to be an effective forum for 
advancing multilateral trade negotiations, settling trade disputes and monitoring compliance with 
commitments made by Members . Costa Rica has identified some areas which , in its view , will help 
steer the working agenda of the WTO and provide it with tools to enable it and its Members to better 
tackle future challenges . WT/TPR/G/392 • Costa Rica  
 
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  3.7.  Costa Rica considers that timely access to informa tion is crucial to ensuring  the WTO's 
monitoring and negotiation functions  and to lowering the risk of trade wars and tensions . Therefore, 
it is essential for all Members  to comply in a timely manner with their notification obligations  as 
established by th e WTO . Costa Rica presented together with other Members a  proposal on how to 
promote  fulfilment of notification commitments , combined with ongoing efforts to  keep their 
obligations  in this area updated . 
3.8.  Similarly , the country considers it important to pay attention to how the WTO bodies  can be 
more efficient  and better facilitate dialogue  among Members, thus reducing trade tensions, while 
safeguarding the rights and obligations of Members . 
3.9.  The Dispute Settlement Body (DSB)  has been crucial for Members to  resolve their trade 
differences , guaranteeing legal certainty  in trade relations . Restoring its full powers should be a top 
priority for all without exception . Costa Rica has made a contribution to the discussions by presenting 
proposals, along with other Members , aimed at preserving one of the mainstays of the WTO  and 
dealing with the systemic concerns that have arisen  regarding the functioning of the Appellate Body.  
3.10.   On another level, the links between trade and the environment  are increasingly close  and 
offer a growing number of opportunities  to forge virtuous and complementary ties . Both the 
2030 Agenda  and the Paris Climate Change Agreement  have set the scene for trade to play a more 
prominent role  in tackling climate change challenges . Costa Rica is of the view that there is enormous 
potential  for expanding collaboration between  the trade and environment communities so that both  
can work together an d in a mutually beneficial manner . 
3.11.   Costa Rica welcomes the entry into forc e of the FTA which we actively su pported  during its 
negotiation . Costa Rica presented its ratification instrument for the FTA in May 2017. This FTA is the 
fruit of collaboration , flexibility and pragmatism demonstrated by the entire WTO membership, 
convinced that it would benefit everyone , especially the MSMEs in developing countries . 
3.12.   With regard to  the implementation of the agreements reached at the Ninth WTO Ministerial 
Conference in Bali, the new regulations on the allocation of tariff quotas (Executive Decree 
No. 39938 -COMEX), introducing the amendments required to comply with the agreements on t he 
administration of agricultural tariff quotas, were published in September  2016. In order to improve 
the administration and use of tariff quotas, the deadlines for the allocation of import quotas were 
changed, requirements for the publication of allocati on outcomes were established and the 
functioning of the quota allocation mechanism was clarified. Costa Rica submitted the relevant 
notification on 20  September  2017 in document G/AG/N/CRI/61, describing its compliance with the 
commitments made in the Unde rstanding on Tariff Rate Quota Administration Provisions of 
Agricultural Products, as defined in Article 2 of the Agreement on Agriculture.  
3.1.1   Participation in ongoing negotiations and joint initiatives  
3.13.   Costa Rica supports all efforts to bring the negotiations on fisheries subsidies to a satisfactory 
conclusion by the end of 2019, in accordance with the commitment made at the Eleventh WTO 
Ministerial Conference in Buenos Aires1 and Sustainable Development Target 14.6 of the 
2030 Agenda, with a view to the prohibition of fisheries subsidies which contribute to overcapacity 
and overfishing and the elimination of subsidies that contribute to illegal, unreported and 
unregulated fishing by 2020.2 
3.14.   Costa Rica will also continue to support reform of the glob al agricultural sector in order to 
reduce and eliminate market distortions and to create trade opportunities for products of interest to 
developing countries, particularly tropical products.  
3.15.   Strengthening the WTO through new rules and multilateral discipli nes continues to be one of 
Costa Rica's objectives and is the best way to support economic growth, international cooperation 
and the development of all WTO Members and to achieve the Sustainable Development Goals 
(SDGs).  
                                                
1 Fisheries subsidies. Ministerial Decision of 13 December 2017, WT/MIN(17)/64.  
2 2030 Agenda for Sustainable Development. Goal 14.6.  WT/TPR/G/392 • Costa Rica  
 
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  3.16.   While multilateral results are alwa ys preferable, it is not always easy for WTO Members to 
reach a consensus, which has often undermined the WTO's negotiating function. Costa Rica has 
continued to take part in plurilateral initiatives with other WTO Members which, due to their 
compatibility  with WTO rules, enable progress to be made in some areas of the WTO's work.  
3.17.   During the period under review, Costa Rica has actively participated in the negotiations on a 
Trade in Services Agreement (TISA) and an Environmental Goods Agreement (EGA). The co untry 
remains committed to these negotiations and hopes that they will resume in the near future.  
3.18.   Costa Rica is also party to the Ministerial Declaration on Trade in Technology Products, also 
known as the Information Technology Agreement (ITA), and was one  of the countries involved in its 
expansion. Further to the agreement reached on this matter, Costa Rica submitted the applications 
for tariff modification under the Convention on the Central American Tariff and Customs Regime to 
the Council of Ministers f or Economic Integration (COMIECO). These applications are on the agendas 
of the Tariff Policy Committee and the Central American Tariff Technical Group.  
3.19.   E-commerce has proven to be a valuable tool for promoting development. In light of this, 
Costa Rica joi ned forces with other WTO Members and established the Friends of E -Commerce for 
Development (FEDs) Group in July  2016. The FEDs' objective is to provide a forum to discuss the 
challenges and opportunities that e -commerce presents for developing countries a nd, particularly, 
for MSMEs. The FEDs' work has been instrumental in improving understanding of how developing 
countries can better benefit from e -commerce and facilitating their participation in the digital 
economy.  
3.20.   In addition, Costa Rica enthusiasticall y participated in the discussions held after the 
Eleventh  WTO Ministerial Conference under the joint initiative on e -commerce. It therefore welcomes 
the joint Ministerial Declaration signed in January  2019 in Davos, in which ministers confirmed their 
intention to commence WTO negotiations on trade -related aspects of e -commerce, and fully 
endorses the objective of achieving a high standard outcome that builds on WTO Agreements with 
the participation of as many WTO Members as possible.  
3.21.   Costa Rica considers it  essential to maintain and strengthen the WTO work programme on 
e-commerce and to reach an agreement to make the commitment on the non -imposition of tariffs 
on electronic transmissions permanent, so as to ensure predictability in trade in digital products and, 
with it, the proper functioning of markets.  
3.22.   Domestic regulation can have a significant impact on trade in services by facilitating the entry 
of service providers and contributing to the better use of trade opportunities. WTO negotiations on 
discipline s on domestic regulation are a longstanding issue. Costa Rica therefore welcomes the joint 
statement signed by a large group of WTO Members in Paris in May  2019, in which they committed 
to concluding these negotiations at the Twelfth WTO Ministerial Confer ence to held in June  2020.  
3.23.   Costa Rica is also a keen participant in the discussions under the joint initiative on investment 
facilitation at the WTO. Multilateral discussions in this area can make a positive contribution to the 
promotion of a transparent, efficient and predictable environment for the FDI of all Members.  
3.24.   Similarly, Costa Rica considers the discussions under the WTO informal work programme on 
MSMEs, which encourages the search for horizontal and non -discriminatory solutions that favour the 
participation of MSMEs in international trade, a top priority.  
3.25.   Costa Rica is one of the 123 WTO Members that signed the Buenos Aires Declaration on 
Women's Economic Empowerment in December  2017 and follows with interest the discussions on 
this matter, which seek to improve the responsiveness of the multilateral trading system in order to 
create more inclusive trade.  
3.2  Trade and investment agreements (2013 -2018)  
3.26.   During the period under review, Costa Rica expanded and strengthened its foreign trade 
platform in or der to promote the country's competitiveness and to ensure legal certainty and 
predictability in as much of the country's international trade flows as possible. Such efforts are 
reflected in the Association Agreement with the European Union (AACUE) and the  FTAs with the WT/TPR/G/392 • Costa Rica  
 
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  European Free Trade Association (EFTA) and with Colombia, which entered into force during the 
period under review. The FTA with the Republic of Korea was also negotiated, signed and adopted.  
3.27.   In addition to the agreements mentioned above, Cos ta Rica has existing FTAs with 
Central  America, Mexico, Canada, Chile, the Dominican Republic, the Caribbean Community 
(CARICOM), the United States (CAFTA -DR), Panama, China, Singapore and Peru.  
3.28.   Lastly, the Agreement between the Government of the State of Qatar and the Government of 
the Republic of Costa Rica on the encouragement and mutual protection of investments entered into 
force in 2014, and the Agreement between the Government of the Republic of Costa Rica and the 
Government of the People's Republic of China on the encouragement and mutual protection of 
investments came into effect in 2016.  
3.2.1   Agreements given effect  
3.29.   The FTA between Central America and Panama, as well as the Bilateral Protocol between 
Costa  Rica and Panama to that Agreement3, entered int o force on 23  November  2008. The Central 
American Common Market (CACM) is the second largest buyer of Costa Rican goods, with a relative 
share of 21.4 % of total exports in 2018. During the period under review, exports grew at an average 
annual rate of 3.2 %, while imports decreased at an average annual rate of 0.8 %. Exports to the 
CACM are extremely diverse; the ten most exported products to the region (which include food 
preparations, medicaments, napkins and napkin liners, and electrical cables) accounted for only 
36.2% of total exports in 2018. The main imports include medicaments, boxes of paper and 
paperboard, toilet paper, and cleaning preparations.  
3.30.   The FTA between Costa Rica and Peru entered into force on 1  June 2013. Trade between the 
two countries ha s shown great potential for growth, rising from USD  59.9 million in 2013 to 
USD 86.9 million in 2018. During this period, exports grew at an average annual rate of 6.4 % and 
imports at a rate of 8.1 %. In 2018, sales of iron or steel manufactures, medicament s and other 
liquors were notable, while grapes, avocados, plastic sheets and plates stood out among imports.  
3.31.   The FTA between Costa Rica and Singapore entered into force on 1  July 2013. Exports grew 
during the period 2013 -2018 at an average annual rate of 0 .7%, totalling USD  20.8 million in 2018. 
Of note is the rise in medical device sales, which increased fivefold between 2017 and 2018. During 
the same period, imports averaged USD  51.5 million, with average annual growth of 15.1 %, while 
passenger vehicles w ere the main import in 2018.  
3.32.   The FTA between Mexico and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua 
entered into force on 1  July 2013. This Agreement, which replaces the original FTA between 
Costa  Rica and Mexico (in force since 1995), estab lishes an expanded economic area between the 
Central American countries and Mexico, with common rules to facilitate trade in the region. The FTA 
maintains the tariff preferences established in the bilateral Agreement between Costa Rica and 
Mexico and impro ves tariff treatment for some goods that were excluded from the tariff reduction 
programme. It also facilitates cumulation of origin by permitting the use of materials originating in 
other member countries for the production of final goods and establishes mechanisms to expedite, 
simplify and automate customs procedures. During the period 2013 -2018, trade with Mexico 
expanded at an average annual rate of 1.8 % from a total volume of USD  1.3317  billion in 2013 to 
USD 1.4585  billion in 2018. Exports grew over t he same period at an average annual rate of 4.7 % 
and imports at an average 1.2 % per annum.  
3.33.   Costa Rica's third most important trading partner is the European Union, with which it has 
had an Association Agreement (AACUE) in force since 1  October  2013. In 201 8, the European Union 
received 20.7 % of Costa Rican exports, the value of which grew at an average annual rate of 7.5 % 
between 2013 and 2018. The main exports to the European Union in 2018 were medical devices, 
bananas, pineapples, coffee, concentrated fru it juices and tropical fruits preserved in their juice. The 
primary destinations were the Netherlands, Belgium, Germany, Italy, Spain and the United Kingdom. 
                                                
3 Although this instrument did not enter into force during the period under review, it is important to 
include the Central American ec onomic integration process, as it is constantly evolving.  WT/TPR/G/392 • Costa Rica  
 
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  Imports grew over the same period at an annual average rate of 4.5 %, with medicaments, vehicles 
and medical devices comprising the main imports.  
3.34.   During the period under review, the FTA with the countries of the European Free Trade 
Association (EFTA)4 also entered into force. Trade with EFTA grew at an average annual rate of 9.2 % 
from USD  119.5  million in 2013 to USD  185.6  million in 2018. Switzerland was the primary trading 
partner among the four countries in EFTA, accounting for 85.9 % of such trade in 2018. Costa Rican 
exports to EFTA reached USD  23.6 million in 2018 as a result of, inter alia , sales o f bananas (61.8 %), 
coffee (16.2 %), pineapples (11.9 %), cigars and cheroots (3.6 %), and medical devices (2.5 %). 
Imports from EFTA totalled USD  162 million in 2018 and included medicaments, medical devices and 
immunological products put up in measured doses.  
3.35.   The FTA with Colombia entered into force on 1  August  2016. Bilateral trade flows with 
Colombia averaged USD  374 million per annum between 2013 and 2018. In 2018, exports to the 
Colombian market were down 1.3 % from the previous year, mainly due to lower sa les of unwrought 
lead, dropping to USD  56 million. During the same year, imports expanded by 2.7 % per annum, 
totalling USD  307.7  million, consisting primarily of medicaments, carbon and plastic resins.  
3.2.2   Agreements negotiated  
3.36.   In order to promote the expansion and diversification of trade in goods and services between 
Costa Rica and the Republic of Korea, and to improve and enhance the access of Costa Rican goods 
to the Korean market, Costa Rica initiated, together with the Central American countries, the 
negotiation of a trade agreement with the Republic of Korea. Negotiations were officially launched 
in June  2015.  
3.37.   After seven rounds of negotiations and two inter -sessional meetings, negotiations concluded 
in March  2019, and Costa Rica became the third Central American country to ratify the FTA with the 
Republic of Korea.5 Once in force, this Agreement will enable immediate duty -free access to the 
Korean market for 80 % of Costa Rican goods, including coffee, sugar, non -alcoholic beverages, 
medical device s, medicaments, articles of plastic, iron and glass and artificial parts of the body.  
3.38.   In addition, tariffs will be gradually rolled back on 16 % of domestic goods, and only 4 % of 
goods will remain subject to the tariffs in force on the Korean market. Goods such as bananas, frozen 
pork and beef, fresh cassava, pineapples and fruit juices fall under various tariff reduction 
time-frames.  
3.39.   With regard to imports, 68 % of Korean goods will not be subject to duties when the 
Agreement enters into force, including car parts, medicaments, cosmetics and certain electronic, 
electrical and textile products. Some 27 % of Korean goods are subject to various tariff reduction 
categ ories and about 5 % are excluded.  
3.40.   This Agreement is of paramount importance to the country, as the Republic of Korea is a net 
importer of food and agricultural products and is world -renowned for its global leadership in 
innovation and its ability to incorpo rate state -of-the-art digital technologies in its products and 
manufacturing processes.  
3.3  Other forums  
3.3.1   Trade facilitation  
3.41.   Costa Rica has achieved tangible results in trade facilitation as a result of the trade facilitation 
strategy it launched in 2010 under the stewardship of the Ministry of Foreign Trade (COMEX).  
3.42.   At the national level, the modernization of its land border posts – an initiative currently under 
way thanks to an international loan – will make it possible not only to improve the infrastructure 
and equipment of Costa Rica's main border crossings, but also to implement a regulatory and 
                                                
4 The Agreement with Norway entered into force on 19 August 2014, with Switzerland -Liechtenstein on 
29 August 2014 and with Iceland on 5 September 2014.  
5 Out of the countries that initiated the neg otiations, only Guatemala has yet to conclude them.  WT/TPR/G/392 • Costa Rica  
 
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  technological system with more effective monitoring processes and tools through coordinated border 
management. The technological component will enable the modernizat ion of the customs IT system 
or Customs Control Information Technology System (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 comprehensiv e risk management system.  
3.43.   At the regional level, the Central American Strategy for Trade Facilitation and Competitiveness 
with an Emphasis on Coordinated Border Management is being implemented through eight pillars on 
a pairs of countries and pairs of bord ers basis. These pillars provide for the adoption of international 
standards, information interoperability, comprehensive regional risk management, reliable economic 
operators, quarantine control, reform of border infrastructure and equipment, coordination  and 
integration of monitoring procedures, and consideration of the economic and social impacts of 
interventions in border areas.  
3.44.   At the multilateral level, the implementation of the TFA has led to the promotion of 
improvements that are urgently needed in the country, such as the streamlining of procedures, 
availability of information, risk management and inter -institutional coordination.  
3.45.   In April  2017, under Law No.  9430 approving the TFA, the National Council for Trade 
Facilitation (CONAFAC) was establish ed within COMEX as a decision -making body to facilitate 
ongoing inter -institutional coordination between the private sector and government agencies with 
competencies relating to foreign trade procedures, such as export, import and transit of goods 
procedur es, as well as projects to improve both physical and technological processes and 
infrastructure for trade facilitation in ports, airports and land border posts. CONAFAC took over the 
competencies of the Council on Land Border Posts, established in 2013, to  promote coordination 
among the various border agencies.  
3.46.   The criteria issued by CONAFAC, pursuant to the rules and principles of the TFA, are binding 
on the Central Public Administration. CONAFAC consists of the Deputy Ministers of Foreign Trade, 
Finance, Agriculture and Livestock, Public Works and Transport, Health, Public Safety and 
Governance and Police, as well as a representative of the Costa Rican Chamber of Exporters 
(CADEXCO) and four representatives of the productive sector appointed by the Costa R ican Union of 
Business and Private Sector Chambers and Associations (UCCAEP). All members have speaking and 
voting rights.  
3.47.   CONAFAC receives assistance from a technical secretariat, technical committees and local 
(public -private) committees in ports, airpor ts and land border posts, which help it to achieve its 
underlying objectives.  
3.48.   CONAFAC has made it possible to collaborate and coordinate with the institutions that carry 
out controls at the country's points of entry and exit, by supporting and/or carrying out initiatives 
that enhance the country's competitiveness, such as the Border Integration Programme, the National 
Non-intrusive Inspection System, the Remote Inspection Centre for Image Analysis, and the 
Multimodal Transport Project between Costa Rica and  El Salvador.  
3.49.   Within this forum, important regulations, resolutions, circulars and guidelines have been 
adopted by its constituent bodies in order to promote trade facilitation.  
3.50.   Currently, CONAFAC is actively working to promote the proper implementation of  the TFA 
through a trade facilitation -focused agenda, which includes medium - and short -term measures 
concerning, inter alia , customs, migration, and sanitary and phytosanitary measures. At present, 
most measures affect land border posts, but an increasing number of measures affecting ports and 
airports is expected.  
3.51.   Measures include amendments to the Regulations Establishing Routes of Mandatory Passage 
for Motor Vehicles involved in the Customs, Domestic or International Transit of Goods Subject to 
Customs C ontrol in the Republic and Establishing Driving Times between Customs Houses in the 
Country, which will enable goods in transit to pass through the Las Tablillas border post. Along the 
same lines, on 3  April 2019, the Directorate General of Customs issued Circular 
No. CIR-DGA-DGT-018-2019 establishing the new procedure for processing tax credits or returns. WT/TPR/G/392 • Costa Rica  
 
- 11 - 
  It is hoped that this measure will encourage the use of this type of advance declaration of goods by 
trade operators and therefore help decongest border  crossings.  
3.52.   Lastly, the new Moín Container Terminal, located on the Costa Rican Caribbean coast, became 
operational in February  2019.  
3.3.2   Central America  
3.53.   The Central American countries have sought to further enhance their economic integration. 
To achieve this objective, they continue to work on the basis of six -month action plans, which focus 
on the adoption of measures to facilitate trade, eliminate non -tariff barriers, harmonize technical 
regulations and resolve specific problems in intra -regional trade.  
3.54.   During this period, COMIECO signed 121 resolutions implementing tariff reductions or 
eliminations, technical regulations6, sanitary and phytosanitary measures, amendments to specific 
rules of origin, tariff liberalizations and customs procedures. The Regional Integration System for 
the Recognition of Sanitary Registration (SIRRS) for processed foods and beverages was also 
implemented. The approved instruments include:  
a. The Sanitary and Phytosanitary Directive on Trade Facilitation in Respect of Central 
American Shipments and Goods.  
b. The Central American Strategy for Trade Facilitation and Competitiveness with an 
Emphasis on Coordinated Border Management.  
c. The Framework Agreement to Implement Binational Integrated Control Systems at the 
border crossings between Cost a Rica and Panama.  
3.55.   In 2016, the Central American Tariff System (SAC) was brought into line with the changes 
introduced by the Sixth Amendment to the Harmonized Commodity Description and Coding System 
(HS), as recommended by the World Customs Organization ( WCO), and SAC was expanded 
to 10 digits. Moreover, in order to bring the specific rules of origin in the Central American 
Regulations on the Origin of Goods into line with the changes introduced by the Sixth Amendment, 
the Annex to these Regulations was am ended.  
3.56.   During the period under review, the Central American countries conducted negotiations on 
the implementation of the commitments made by Panama under the Protocol of Incorporation to the 
Central American Economic Integration Subsystem (in force since May  2013). Negotiations on the 
products included in the Annex to the General Treaty on Central American Economic Integration 
between Costa Rica and Panama, and between Guatemala and Panama, were concluded, and 
important agreements were reached to ens ure that Panama harmonizes its rules of origin with the 
region's, as well as its tariffs for the edible fats and oils sector. As to common external tariffs, 
Panama adopted a significant number of SAC tariff subheadings.  
4  PRINCIPAL REFORMS  2013 -2018  
4.1.  During t his period, Costa Rica focused on implementing a tax reform that enabled it to correct 
a persistent imbalance and enhance the sustainability of its public finances . To this end, after a 
lengthy  and arduous  process,  the Law on Strengthening  Public  Finances  (Law No. 9635) was finally 
adopted and published in Supplement No.  202 to the Official Journal La Gaceta  of 4 December  2018.  
                                                
6 During this period, two procedures for the recognition of sanitary registration for products used in 
animal feed and for pharmaceutical products for human use were approved, as well as 18 Central Americ an 
technical regulations. In addition, four technical regulations concerning the food, medicaments and similar 
products, and agricultural input sectors were updated in order to harmonize the sanitary registration 
requirements for these products at the regi onal level and thus facilitate trade. In addition, a guide on good 
regulatory practices, as well as a guide on the interpretation and application of the regulations on the general 
labelling of foods, were approved.  WT/TPR/G/392 • Costa Rica  
 
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  4.2.  The main components of this Law are as follows:  
i. A comprehensive reform of Law No.  6826, the Law on the General Sales Tax. In the 
previous law, the value added tax imposed by Costa Rica was not comprehensive. For 
example, it did not apply to certain services, such as restaurants, hotels, telephone 
and Internet services. Furthermore, a rate of 0 % was applied to goods and services in 
addition to exports. The new Law extends the tax base to include services, maintains 
the rate of 13 %, and creates a reduced rate of 4 %, as well as a significantly reduced 
rate of 2 % and another rate of 1 %. It also includes a payment mechanism for Internet 
and other services.  
ii. A reform of Law No.  7092, the Income Tax Law of 21  April 1988, which harmonizes 
rates that had previously been different for various sources of income. It also creates 
an additional tranche with a rate of 20 % for the highest wages, and int roduces other 
changes to increase the progressivity of the taxation scale.  
iii. An amendment to Law No.  2166, the Law on Public Sector Wages, with the aim of 
curtailing rising expenditure. For example, the following areas were subject to 
regulation: full -time e mployment, subsistence allowances, performance assessments, 
incentives, prohibitions, base wages and total wages.  
iv. The inclusion of a chapter on the fiscal responsibility of the Republic (fiscal rules), 
which establishes rules on the management of public fi nances, to guarantee fiscal 
sustainability. The fiscal rule included in this Law determines the manner in which 
public expenditure should be managed. It seeks to prevent the adoption of draft laws 
that do not have a source of funding, slow down current exp enditure over a prudent 
period of time until a reasonable level of "fiscal balance" has been achieved, prioritize 
public investment, and improve the quality of expenditure. It is important to mention 
that an increase in current expenditure will depend on t wo variables: the level of debt 
of the Central Government and the average growth of the economy.  
v. A series of transitional provisions that refer to the aforementioned reforms, including 
tax amnesty.  
4.3.  Tax amnesty was the first element of the reform to generat e revenue. It created additional 
income for the Government, which accounted for 0.2 % of GDP in 2018. The rest of the tax reform 
will enter into force progressively, in accordance with the transitional measures established in the 
Law, and based on the need to regulate and adapt the computer systems to ensure the proper 
collection of taxes.7 
4.4.  According to the Central Bank of Costa Rica (2019)8, the adoption of this tax reform changed 
the fiscal outlook for the medium and long term. The strict implementation of  the provisions of the 
reform, and the administrative measures adopted in the second half of 20189 to contain wage 
growth, would give rise to a significant fiscal adjustment and would restore the sustainability of 
public finances in the long term. It is es timated that the total debt of the Central Government as a 
percentage of GDP will begin to decrease as from 2024.  
4.5.  Furthermore, in September  2018, the Government presented an economic recovery plan, 
comprising four main working areas: (1) the simplification  of procedures; (2) support for the 
business sector, with an emphasis on MSMEs and startups; (3) employability; and (4) investment in 
road infrastructure. The actions for each of these areas will be carried out by the competent 
                                                
7 Central Bank of Costa Rica (2019), Memo rial anual 2018 . Consulted at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocPolticaMonetariaInflacin/Programa_ Macroeconomico_201
9-2020.pdf . 
8 Central Bank of Costa Rica (2019), Memorial anual  2018. Consulted at: 
https://activos.bcc r.fi.cr/sitios/bccr/publicaciones/DocPolticaMonetariaInflacin/Programa_Macroeconomico_201
9-2020.pdf . 
9 A series of measures relating to the growth of public expenditure were implemented, including 
measures on public employment which sought to convert annua l payments into nominal fixed payments, lower 
full-time employment benefits from 30 % to 15% for new public servants, and create budgetary guidelines to 
curb expenditure growth.  WT/TPR/G/392 • Costa Rica  
 
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  institutions. It is hoped th at such actions, together with some of the administrative measures 
adopted to curb public expenditure, will lead to a reduction in the fiscal deficit in the coming years.  
5  OTHER RELEVANT FORUMS AND INITIATIVES  
5.1  Organisation for Economic Co -operation and Development (OECD)  
5.1.  In 2010, Costa Rica began a process of rapprochement with the OECD, and since then, the 
country has been working towards becoming an OECD member. Currently, a team comprising over 
35 public institutions under the coordination of the Mini stry of Foreign Trade (COMEX) is working on 
the technical aspects of the process to enable the country to join the OECD in 2020 as its 
38th member.  
5.2.  As part of the valuable work carried out by Costa Rica and with a view to receiving a formal 
invitation to b egin the accession process, intensive advocacy work has been carried out with OECD 
member countries. Between 2012 and 2013, over 200 meetings were held with delegates from the 
diplomatic service and representatives of OECD countries, with the aim of provid ing information on 
the direction taken by Costa Rica and its aspirations, and how these were aligned with the OECD's 
values and vision. Furthermore, between 2013 and 2015, preliminary studies on technical education, 
competition, the opening of markets and public governance, as well as an economic study, were 
carried out in the framework of an action plan. These studies enabled the OECD members 
represented in the respective committees to obtain first -hand knowledge of certain key areas 
regarding Costa Rica. It should be noted that the action plan also enabled the country to move 
forward with work towards joining the OECD, and to place itself in a strategic position to obtain a 
formal invitation to begin the accession process. The implementation of the action plan also allowed 
for the building of the institutional capacity required to carry out such a major reform process. The 
Action Plan focused on the three main topics, which identified both the country's priorities and key 
areas in the OECD accession process , namely: (i) the review of public policies; (ii) the adoption of 
relevant legal instruments; and (iii) participation in the different committees and working groups of 
the OECD.  
5.3.  In April  2015, the OECD Council invited Costa Rica to begin the formal accessi on process. Then, 
in July  2015, the OECD Council adopted a roadmap that establishes the accession process and sets 
out the terms for members. The Roadmap provides a general overview of the accession process and 
specifies the 22 areas10 on which the country is evaluated by the OECD committees. It also 
determines the core principles to be analysed in each accession evaluation.  
5.4.  It should be noted that the accession process involves evaluations carried out by 22 committees 
to: 
• Analyse the willingness and ability  of the country to implement the OECD's legal instruments; 
and 
• Conduct a comparative evaluation of policies and practices.  
5.5.  Based on the evaluations, the committees can recommend and/or request that the country 
make regulatory, political or practical change s to ensure alignment with the OECD's instruments and 
best practices. Once the 22 committees have issued a formal opinion, they must forward it to the 
OECD Council, which will make a decision on the country's accession. After adopting the decision, 
the Cou ncil will agree on a protocol for Costa Rica's accession to the OECD, which must be submitted 
for parliamentary ratification in the country.  
                                                
10 Investment; bribery; corporate governance; financial markets; insurance and p rivate pensions; 
competition; fiscal affairs; environment policy; chemicals; public governance; regulatory policy; statistics; 
economy and development; education policy; employment, labour and social affairs; health; trade and export 
credits; agriculture; fisheries; scientific and technological policy; digital economy policy; and consumer policy.  WT/TPR/G/392 • Costa Rica  
 
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  5.6.  In the four years since Costa Rica received a formal invitation from the OECD Council to begin 
its accession proces s, the country has received formal opinions from 13 of the 22 committees.11 In 
all of these areas, the country has pledged to implement action plans to comply with OECD 
standards, and will continue to provide periodic updates to the committees.  
5.7.  With the aim  of obtaining approval from the nine remaining committees, a special commission 
was created within the Legislative Assembly, which is responsible for formulating a series of draft 
laws aimed at modernizing the legal framework, and ensuring greater efficien cy, increased 
transparency and good governance, based on the recommendations arising from the assessments 
carried out during the accession process. The establishment of the special commission reflects the 
strong interest of the Legislative Assembly in the OECD accession process, and its hard work has led 
to the formulation of six draft laws since its creation in September  2018, four of which are now Laws 
of the Republic.  
5.8.  It should be noted that the OECD accession process has been of great benefit to the cou ntry, 
as it represents a major opportunity for the State to introduce reforms. It has resulted in the 
introduction of a series of changes to build a more modern, efficient, transparent and participatory 
State, implement the highest standards, and modernize  regulations and procedures for the benefit 
of all citizens.  
5.2  Women Export  
5.9.  Women Export  is an initiative that was developed 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, through the adoption of a personalized approach, and t he provision of 
tools and services.  
5.10.   Enterprises must meet a series of criteria (productive capacity, up -to-date sanitary registers, 
labelling and packing requirements, a minimum participation of two years in the domestic market, 
etc.) in order to be part o f the programme. They then participate in a training and work session 
during which the scope of the project is explained. Lastly, the enterprises must give a presentation 
to the Women Export  panel (comprising experts in trade intelligence, export promotion , value chains 
and general administration). The panel is responsible for selecting 10 women entrepreneurs who will 
be part of each "generation" of the programme.  
5.11.   In 2018, 30 women entrepreneurs from various sectors (food industry, cosmetics, cleaning 
produ cts, fertilizers, services, etc.) were selected to implement the programme.  
5.12.   Consequently, PROCOMER has placed an emphasis on the promotion of gender equality in its 
new strategy. The objective of the strategy for 2019 is to define and develop clear guideli nes and 
priorities for the promotion of equal access to international markets for women entrepreneurs (who 
are exporters or have the potential to become exporters), and is based on four pillars: information, 
awareness -raising, capacity building and interna tionalization.  
5.3  Seedstars Costa Rica  
5.13.   PROCOMER is developing its strategy for the creation and diversification of Costa Rican 
exportable supply in the context of global competition, by promoting the creation of startups and 
boosting innovative MSMEs. In 2016 , PROCOMER formed a partnership with Seedstars World12, 
which has consequently made Costa Rica one of its event locations.  
5.14.   Seedstars Costa Rica by PROCOMER  allows for a process of learning and interaction with 
different stakeholders in the country's innovat ion ecosystem, through the organization of 
preparatory workshops and competitions. At such events, the export capacity of startups is 
evaluated through the identification of issues that they need to resolve, taking into account their 
value propositions, bu siness models and global scalability. Training is also provided for the startup 
                                                
11 Trade; health; agriculture; education; science and technology; labour market and social policy; 
consumer policy; regulatory policy; digital economy; insurance an d private pensions; fiscal affairs; chemicals; 
and public governance.  
12 Seedstars World , which is based in Switzerland, is the largest competition for startups in the world, 
and focuses on emerging markets and rapid growth.  WT/TPR/G/392 • Costa Rica  
 
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  teams. Interaction with investors, private enterprises from various sectors, incubators, accelerators 
and government agencies fosters the creation of contacts and partnerships that help expedite 
projects and increase business opportunities. Each competition aims to increase the number of 
startups, business ideas and innovations, in order to foster interlinkages and internationalization.  
5.15.   This initiative is implemented across Cost a Rica through the organization of five preliminary 
competitions in different parts of the country, and has become a breeding ground for new business. 
While in 2016 and 2017, 45 and 145 applications were received respectively, in 2018, 175 candidates 
applied. This progress demonstrates Costa Rica's innovation potential and confirms the need to 
continue to seek and drive the acceleration of innovative startups and MSMEs.  
5.4  Draft Law on Competition  
5.16.   Prior to conducting a review of the competition regime in Costa  Rica as part of its accession 
to the OECD, the country agreed to undergo a peer review on domestic competition law and policy 
in September  2014.13 With the aim of addressing the OECD's recommendations arising from the 
peer review, the Interinstitutional Co mmission was created, which comprises: the Commission for 
the Promotion of Competition (COPROCOM), which is the national competition authority; the Ministry 
of the Economy, Industry and Trade (MEIC) to which COPROCOM is attached; the General 
Supervisory Au thority for Telecommunication (SUTEL), which is the sectoral competition authority 
for telecommunications; the Ministry of Science, Technology and Telecommunications (MICITT), 
which is the body responsible for telecommunications; and COMEX, which is the na tional coordinator 
for Costa Rica's accession to the OECD.  
5.17.   The Interinstitutional Commission was responsible for preparing the draft Law on the 
Strengthening of the Competition Authorities of Costa Rica, which, after an extensive process of 
consultation wi th the sectors concerned, was submitted to the Legislative Assembly in March  2019, 
under File No.  21.303.14 
Box 5.1 Main recommendations of the OECD and how they are addressed in the 
draft  Law 
Broaden the scope of Law 
No. 7472 to cover all economic 
operators : The draft Law 
introduces an amendment to 
Article 9 of Law No.  7472, which 
provides exemption solely for acts 
permitted under a special law. It 
also includes a periodic review of 
markets that are subject to 
exemption.  Implement a clemency 
programme : The draft Law 
introduces a clemency 
programme that enables the 
competition authorities to 
substantially improve the 
detection of absolute monopolistic 
practices (cartels) that are 
detrimental to consumers. To this 
end, it establishes a system for 
the exemption from or reduction 
of penalties for those who 
collaborate with the 
corresponding authority 
investigating such prac tices.  Establish a single competition 
authority for all sectors : To 
ensure consistency between 
COPROCOM and SUTEL, the draft 
Law standardizes the rules and 
procedures to be applied by both 
authorities. It also establishes 
mechanisms for coordination 
betwee n both bodies, and 
provides for the issuance of 
common guides and guidelines.  
                                                
13 OECD/IDB (2014), Competition Law and Policy in Costa Rica, Peer Review. Consulted at: 
http://www.oecd.org/daf/competition/CostaRica -PeerReview2014en.pdf . 
14 Information provi ded by the authorities.  WT/TPR/G/392 • Costa Rica  
 
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  Grant greater independence 
and increase financial 
resources for the competition 
authority : The draft Law grants 
administrative, budgetary and 
functional independence to the 
comp etition authority. It also 
grants instrumental legal status to 
the competition authority in order 
for it to: engage in contractual 
activities; manage resources and 
wealth; and sign contracts and 
agreements with national and 
international public and private  
entities. The draft Law ensures 
that COPROCOM is allocated the 
necessary and sufficient budget, 
through a minimum annual 
transfer by the State from the 
ordinary budget of the Republic.  Develop a special procedure to 
address the specificities of 
competitio n investigations : 
This draft Law establishes a 
special procedure with 
three  independent stages, which 
provides transparency and legal 
certainty for the applicant.  
 
The time -frames for the 
procedure have been set to 
guarantee the right of defence of 
the party under investigation, and 
to ensure that the authorities 
conduct a proper analysis of 
complicated cases. The 
procedures will be implemented 
by both competition authorities, 
with the aim of standardizing the 
rules applicable in this field.  
 
The draft L aw also stipulates that 
the authorities may implement 
mechanisms for early termination, 
which enable them to eliminate 
distortions in the market in a 
more efficient manner.  Strengthen the advocacy 
functions of the competition 
authorities : The draft Law 
establishes that, as part of their 
activities, the competition 
authorities will issue opinions and 
recommendations, guides and 
market studies. They will carry 
out advisory, training and 
dissemination activities related to 
competition. They will also be 
able t o establish cooperation 
agreements with national and 
international public and private 
entities, for the performance of 
their duties.  
Introduce more dissuasive 
penalties : The draft Law 
establishes adequate and 
dissuasive penalties, with the aim 
of preventi ng economic operators 
from engaging in anti -competitive 
practices. It reclassifies offences 
as minor, serious and very 
serious, and establishes penalties 
in the form of fines proportionate 
to the offences committed.  Authorize only prior 
notifications of ec onomic 
concentrations : The draft Law 
amends the possibility to notify 
economic concentrations ex post , 
meaning that concentrations 
exceeding certain thresholds must 
be notified before the completion 
of the transaction.  Sign and implement 
international coop eration 
agreements : The draft Law 
grants instrumental legal status 
to COPROCOM to enable it to sign 
international cooperation 
agreements.  
Source:  COMEX, based on the draft Law submitted to the Legislative Assembly.  
5.18.   As can be seen in Box 5.1, the draft Law  addresses the recommendations by the OECD, and 
strengthens and modernizes the legal and institutional framework of the competition authorities in 
Costa Rica. Through the adoption of this draft Law, the authorities will be able to implement 
procedures and tools in accordance with international best practices, and thus perform their 
functions in a more efficient manner.  
5.5  National Statistical System  
5.19.   The National Statistical System (SEN) constitutes a group of public sector bodies that carry 
out activities relating to the production, updating and maintenance of official statistics. The latest 
inventory identified 82 statistical operations conducted by 27 public sector institutions. The SEN is 
coordinated by the National Statistics and Census Insti tute (INEC), which is the technical body 
responsible for national statistics. The integration and coordination of the institutions in the SEN are 
necessary for the harmonization and continuous improvement of the quality, timeliness and 
comparability of the  country's statistics.  
5.20.   As part of Costa Rica's accession to the OECD, the country has committed to strengthening 
the SEN, with the aim of ensuring robust and reliable statistics that allow for better evidence -based 
decisions to be made in both the public and private sectors. Such action is of utmost importance, as 
it leads to a more efficient use of resources, improves the formulation and monitoring of public 
policy, and enhances the knowledge of national realities in various sectors (economic, soci al and 
environmental).  WT/TPR/G/392 • Costa Rica  
 
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  5.21.   Costa Rica's legislation on the national statistical system is among the most recent in 
Latin  America, as the current law entered into force in 1998. However, due to global changes, it is 
necessary to update our legal framework in o rder to keep up with international best practices. To 
this end, the draft Law submitted under Legislative File No.  20.404, which aims to update the 
national regulatory framework to achieve international best practices regarding statistics, was 
adopted by t he Legislative Assembly and signed by the Executive, thus becoming a Law of the 
Republic. The draft Law is now awaiting publication in the Official Journal prior to its entry into force. 
The new Law strengthens the planning capacity of the SEN through the establishment of principles 
and tools to ensure its proper coordination (including the possibility of planning statistical output in 
multi-year periods) and the efficiency and quality of statistical output. With the adoption of the Law, 
Costa Rica will bec ome one of the first countries in Latin America to fully align with the international 
best standards in this field.  
5.22.   Furthermore, as part of this process, Costa Rica adopted the Recommendation of the OECD 
Council on Good Statistical Practice of 2015 for imp lementation by all institutions in the SEN.  
6  FUTURE POLICY DIRECTIONS  
6.1.  In light of the current international environment and the actions carried out by Costa Rica in 
various areas, the country's trade agenda focuses on a series of actions to strengthen the c ountry's 
foreign trade platform. These actions include: optimizing the use of existing trade agreements; 
continuing to develop and modernize Central American economic integration; increasing the 
country's competitiveness through the implementation of the B order Integration Programme; 
introducing specific measures to facilitate trade; continuing to make positive contributions to the 
multilateral trading system through active participation in the different bodies of the WTO and 
negotiation processes (such as the initiative launched to establish a plurilateral agreement on 
electronic commerce). Moreover, the country will continue to monitor compliance with trade 
agreements by its trading partners, through the use of dispute settlement mechanisms when 
necessary and the management of ongoing disputes.  
6.2.  Similarly, Costa Rica is ready to implement mechanisms to establish and apply bilateral 
disciplines, which will allow for continued preferential access to the British market and 
British  products, which, to date, has been possible through the AACUE.  
6.3.  Costa Rica will continue to prioritize progress towards the completion of its accession in 2020, 
by moving ahead with the legal and administrative reforms involved in the process, with the aim of 
making significant changes in various areas of the State and thus increasing the efficiency of the 
public sector and enhancing the functioning of internal markets.  
6.4.  One of the main pillars of the country's trade and investment policy is the new programme, 
DESCUBRE, which aims to dive rsify agricultural exports and attract new investment to rural areas. 
The programme seeks to address two well -known market deficiencies that prevent the emergence 
and establishment of new, more productive activities.15 DESCUBRE effectively coordinates the e fforts 
of the foreign trade sector, together with institutions responsible for promoting agriculture and rural 
development. More importantly, the programme is a public -private partnership which involves 
academia and the business sector in its governance. T he programme seeks to address exports, job 
creation and investment. It aims to identify at least 40 new export activities over the next four years.  
6.5.  With regard to competitiveness and the strengthening of the business climate, Costa Rica will 
continue to wo rk on developing strategies to promote productivity and more inclusive growth, which 
will benefit MSMEs both within and outside the Greater Metropolitan Area (GAM), provide more 
opportunities for startups and enterprises run by women, and integrate more st akeholders in order 
for them to benefit from the opportunities created. It will also continue to make significant efforts 
to foster a more competitive business climate to enable stakeholders in the production sector to find 
a suitable place to establish an d develop their operations, and to take advantage of the opportunities 
provided by world markets, so that they may help transform our economy into one that is 
increasingly based on knowledge, innovation and development.  
                                                
15 Such market deficiencies create uncertainty for startups and entrepreneurs and pose problems in 
terms of coordination.  WT/TPR/G/392 • Costa Rica  
 
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  6.6.  Concerning the attraction and retent ion of FDI, the country will continue 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.  
6.7.  Similarly, Costa Rica will continue to work on optimizing the use of the foreign trade platform, 
through coordination with PROCOMER, for increased exports and support for initiatives on trade 
promotion and production chains, and with the Agency for the Promotion of Investment in Costa  Rica 
(CINDE) to promote the country as an investment destination, and to drive forward the 
establishment of FDI outside the Greater Metropolitan Area.  
__________