WT/REG347/M/1  
 
28 July 2014  
(14-4334)  Page: 1/3  
Committee on Regional Trade Agreements 
Seventy-third Session    
 
 FREE TRADE AGREEMENT BETWEEN COSTA RICA AND SINGAPORE,  
GOODS AND SERVICES 
NOTE ON THE MEETING OF 23 JUNE 2014 
Chairman: Ambassador Francisco Pirez Gordillo (Uruguay) 
1.1.  The 73rd Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/4299/Rev.1 dated 13 June 2014. 
1.2.  Under Agenda Item B.II of the session, the CRTA considered the Free Trade Agreement 
between Costa Rica and Singapore, (hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement had entered into force on 1 July 2013. It had been 
notified to the WTO by the Parties on 16 September 2013 under Article XXIV:7(a) of the 
GATT 1994 and the Understanding on the Interpretation of Article XXIV of GATT 1994 as an 
Agreement establishing a free trade area (document WT/REG347/N/1) and under GATS 
Article V:7(a) as an Agreement providing for the liberalization of trade in services within the 
meaning of Article V of the GATS (document S/C/ N/709). The text of the Agreement was available, 
together with its Annexes, on the Parties' official websites. The Factual Presentation on the goods 
and services aspects (document WT/REG347/1 dated 3 March 2014) had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Me chanism for Regional Trade Agreements 
(document WT/L/671). In addition, written questi ons and replies on this Agreement had been 
distributed in documents WT/REG347/2 and Add.1 dated 18 and 20 June 2014, respectively. He proposed to organize the consideration of the Agr eement by first asking the Parties and then other 
Members to give any general comments and then turn  to the specifics of the Agreement, using the 
Factual Presentation, document WT/REG347/1 to guide the debate. They would then go through the questions and replies document.  
1.4.  The representative of Costa Rica welcomed the opportunity to present, with Singapore, the 
Free Trade Agreement between the two countries. He thanked the Secretariat for the Factual 
Presentation and Singapore for the preparatory work carried out for the review. 
1.5.  The Agreement sought to strengthen and diversify the trade relationship between both 
countries, create a stable legal framework that promoted and developed investment and strategic 
alliances, and promote cooperation. The negotiatio n of the Agreement had begun in April 2009 and 
included four negotiating rounds. The text had entered into force on 1 July 2013 and had been 
notified by the Parties to the WTO on 16 Se ptember 2013. The regulatory framework was 
consistent with WTO rules and disciplines and wa s based on the fundamental principles of the 
multilateral trading system, namely national treatment, most favoured nation (MFN) treatment 
and transparency. 
1.6.  The Agreement contained 19 chapters covering: initial provisions and general definitions; 
trade in goods; rules of origin; customs provisions; sanitary and phytosanitary measures; technical barriers to trade; trade remedies; government procurement; competition policy; trade in 
services; investment; electronic commerce; intellectual property and innovation; cooperation, 
promotion and enhancement of trade relations; transparency; administration of the Agreement; dispute settlement; exceptions; and final provisions. WT/REG347/M/1 
 
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  1.7.  Regarding trade and investment relations, he noted that trade between the two countries had 
been dynamic. Costa Rican exports to Singapore had been valued at US$47.4 million in 2013. The 
ten main products sold amounted to 98% of  total exports to Singapore and included 
microprocessors, wood, lamp-holders, plugs and sockets, switches and electrical conductors. Nine 
Costa Rican companies had been recorded as exporting to this destination for the first time, which 
had brought the number of Costa Rican companie s exporting to Singapore to 36. Imports had 
amounted to US$34 million. The ten main products imported from Singapore amounted to 63% of 
total imports in 2013, with the leading products  being syringes, needles and catheters, which 
accounted for 22.4% of total imports. Other import ed products included food preparations, natural 
rubber, articles of plastic, and telephone parts. As for FDI flows from Singapore, no significant 
amounts had been recorded in the review period, with the exception of 2012, when investment of 
US$150,000 had been recorded in the services sector. 
1.8.  The first meeting of the Free Trade Commission had been held in April 2014, with a view 
to ensuring the effective administration and impl ementation of the Agreement. At this meeting, 
trade development had been assessed, and decisions had been taken regarding the procedural 
rules for the Commission and the chapter on dispute settlement. 
1.9.  Costa Rica was convinced that the Agreem ent would maximise benefits for both countries, 
including by stimulating the expansion and diversification of trade, promoting conditions of free 
competition, eliminating trade barriers reciprocally, facilitating the cross-border movement of goods and services, increasing investment opportunities, creating effective procedures for implementing and administering the Agreement, and establishing a framework for cooperation. 
The Government of Costa Rica was firmly committed to the multilateral trading system. This type 
of Agreement, based on WTO disciplines, promoted  the economic growth and efficiency of the 
parties concerned, and complemented multilateral trade liberalization. 
1.10.  He thanked the Chairman for the opport unity to present the FTA between Singapore and 
Costa Rica, an instrument which, in almost one year since its entry into force, had helped to promote trade opportunities between both countries. He thanked the delegations that had 
submitted questions prior to the meeting and would answer any questions that Members might 
have on the Agreement. 
1.11.  The representative of Singapore appreciated the opportunity to present the Costa Rica-
Singapore Free Trade Agreement to Members. Sh e thanked the Secretariat for preparing the 
Factual Presentation; Members for their interest in the Agreement; and the Costa Rican delegation 
for their close cooperation and their opening statement. 
1.12.  The Agreement had entered into force on 1 July 2013. Trade between the two countries had 
been on a constant rise. Both were confident that their economic relations would continue to grow 
from strength to strength with the benefits provided by the Agreement. 
1.13.  The Trade in Goods Chapter had covered all products traded between Singapore and Costa 
Rica. Over 90% of Singapore exports meeting the ru les of origin would enter Costa Rica tariff-free 
upon entry into force. By 2022, all Singapore exports meeting the rules of origin would enter Costa Rica tariff free. 100% of Costa Rica’s exports that  meet the rules of origin would enter Singapore 
tariff free upon entry into force.  
1.14.  The Cross Border Trade in Services Chapter had bound Singapore and Costa Rica to current 
levels of liberalisation and any future liberalisation in most services sectors. The Agreement’s Investment Chapter had aimed to foster an open  environment for cross-border investment, by 
providing access to each other’s markets; minimising restrictions; and strengthening investment 
protection. Both the Services and Investment Chap ters had adopted a negative list approach and 
applied to all sectors except those which had been expressly reserved. Trade facilitation was a key 
objective of the Agreement. The TBT and SPS Chapte rs had supported this objective by providing a 
framework to address potential barriers to trade.  Also, the Customs Procedures Chapter enhanced 
transparency by requiring the publication of Customs laws, regulations and general administrative procedures. The Agreement’s Competition Policy chapter had aimed to curtail anti-competitive 
business practices and encourage cooperation betw een both Parties’ competition authorities. WT/REG347/M/1 
 
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  1.15.  The Costa Rica-Singapore Free Trade Agreement was the cornerstone of Singapore’s 
economic relations with Costa Rica, providing businesses with enhanced access to each others' markets and a platform for regular dialogue between both countries. It was Singapore’s third bilateral Free Trade Agreement with a Latin Am erican country after Panama and Peru. By 
deepening economic relations between Costa Rica and Singapore, it was a building block towards 
increased engagement between Latin America and Asia. 
1.16.  Reiterating its firm commitment to the WTO Singapore placed the highest priority in the 
multilateral trading system and considered that the work on bilateral and regional arrangements 
served as building blocks that complemented the multilateral process. 
1.17.  The representative of the United States thanked the Parties and the Secretariat for the 
materials provided which enabled the consideration of this Agreement. He appreciated in particular 
the informative presentations outlining the Agreement and the interesting aspects that had been 
included. He commended both Parties for eliminating 100% of their duties under the Agreement and encouraged Costa Rica and Singapore to notify as soon as possible under the WTO 
Transparency Mechanism for RTAs those agreemen ts that had been identified in Table 5.1. 
1.18.  The representative of Colombia thanked the Parties for the answers to Colombia's questions 
concerning rules of origin, transit through non-Parties and rules on forum selection for dispute 
settlement contained in Article 17.3 of the Ag reement. She had no follow-up questions. 
1.19.   The Chairman said that consideration of  the Goods and Services Aspects of the Free Trade 
Agreement between Costa Rica and Singapore had allowed the Committee to clarify a number of 
questions and the oral discussion of this RTA could be concluded in accordance with paragraph 11 
of the Transparency Mechanism. If any delegation  wished to ask follow up questions they were 
invited to forward submissions in writing to the Secretariat by 30 June 2014 and Parties were 
asked to submit replies in writing by no later than 14 July 2014. In accordance with paragraph 13 
of the Transparency Mechanism all written submissi ons, as well as minutes of this meeting would 
be circulated promptly, in all WTO official languages, and would be made available on the WTO website. 
1.20.  The Committee took note of the comments made. 
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