WT/REG310/1  
16 January 2013  
(13-0288)  Page: 1/39  
Committee on Regional Trade Agreements   
  
  FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN  CHINA AND COSTA RICA 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
China and Costa Rica has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The report has been drawn up 
in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel: +41 22 739 5422). 
 
 WT/REG310/1 
 
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Table of Contents 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Overview .................................................................................................................. 4  
1.2   Merchand ise trade ..................................................................................................... 4  
1.3   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 7  
2.1   Background  Information ............................................................................................. 7  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 8  
3.1   National Treatment and Mark et Access in Trad e in Goods ................................................ 8  
3.1.2   Liberalization of  trade and ta riff lines ......................................................................... 9  
3.1.3   Liberalization  schedule by  product ............................................................................ 11 
3.1.3.1   Costa Rica .......................................................................................................... 11 
3.1.3.2   China ............................................................................................................... . 13 
3.2   Import duties and charges,  and quantitative  restrict ions ................................................ 14 
3.3   Rules of origin .......................................................................................................... 14 
3.4   Export duties and charges,  and quantitative  restrictions ................................................. 16 
3.5   Regulatory provisions on trade in goods ....................................................................... 16 
3.5.1   Standards ............................................................................................................. 16 
3.5.1.1   Sanitary and phytosanitary measures .................................................................... 16 
3.5.1.2   Technical barriers to trade .................................................................................... 17 
3.5.2   Safeguard mechanisms ........................................................................................... 17 
3.5.2.2   Global safeguards ............................................................................................... 17 
3.5.2.3   Bilateral safeguards ............................................................................................. 17 
3.5.2.4   Safeguards fo r balance of payments ...................................................................... 18 
3.5.3   Anti-dumping and countervailing measures ............................................................... 18 
3.5.4   Subsidie s and State-aid .......................................................................................... 19 
3.5.5   Customs-re lated procedures .................................................................................... 19 
3.6   Sector-specific provis ions on trad e in goods ................................................................. 19 
3.6.1   Agriculture ............................................................................................................ 19 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 20  
4.1   Scope and definitions ................................................................................................ 20 
4.2   Denial of benefits ..................................................................................................... 20 
4.3   General provisions on trade in services ........................................................................ 21 
4.3.1   Mark et acce ss ....................................................................................................... 21 
4.3.2   National and MFN tr eatment .................................................................................... 21 
4.3.3   Movement of  natural persons .................................................................................. 21 
4.4   Liberalization commitments ........................................................................................ 22 
4.4.2   Co sta Ri ca ............................................................................................................  22 WT/REG310/1 
 
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  4.4.2.1   Horizont al Commitments ...................................................................................... 22 
4.4.2.2   Sector-spe cific commitments ................................................................................ 23 
4.4.3   China ................................................................................................................. .. 25 
4.4.3.1   Horizont al Commitments ...................................................................................... 25 
4.4.3.2   Sector-spe cific commitments ................................................................................ 25 
4.5   Regulatory provisions ................................................................................................ 27 
4.5.1   Domestic regulation ............................................................................................... 27 
4.5.2   Recognition ........................................................................................................... 28 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 28  
5.1   Tran sparency ........................................................................................................... 28 
5.2   Current payments and capital movements .................................................................... 29 
5.3   Exceptions ............................................................................................................... 29 
5.4   Accession and Withdrawal .......................................................................................... 29 
5.5   Institutio nal framework ............................................................................................. 29 
5.6   Disput e settlement ................................................................................................... 30 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 31 
5.8   Government  procurement .......................................................................................... 33 
5.9   Intellectual property rights ......................................................................................... 33 
5.10   Coop eration ........................................................................................................... 34 
ANNEX 1 ....................................................................................................................... . 35 
 WT/REG310/1 
 
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Key Facts 
 
Parties to the Agreement:  China and Costa Rica 
 Date of Signature:   8 April 2010 
 
Date of Entry into Force: 1 August 2011 
 
Date of Notification:  27 February 2012 
 Full implementation :  1 January 2026 
 
 1  TRADE ENVIRONMENT 
1.1  Overview 
1.1.  The Free Trade Agreement (FTA) between  China and Costa Rica (hereinafter "the 
Agreement") is Costa Rica's eighth FTA notified to the WTO and its first with an Asian country. It is 
China's third FTA with a Latin American country (following those with Chile and Peru).  
1.2.  The two countries are widely different in terms of size and trade profiles. In 2011, Costa 
Rica's GDP was US$41 billion, with a population of 4.7 million inhabitants, whereas China's GDP amounted to US$7.3 trillion, with a population of  1.3 billion inhabitants. Costa Rica ranked 90
th 
and 82nd among world exporters and importers of good s in 2011, with 0.06% and 0.09% of world 
exports and imports. In comparison, China was th e world's first largest exporter and the second 
largest importer of goods, accounting for 10.4% and 9.5% of world exports and imports in 2011. 
The structure of merchandise trade shows that manufactures account for more than half of total 
imports of both countries and for almost all of China's exports. Costa Rica's exports are concentrated in manufactures and agricultural products (59% and 37%, respectively, of total 
exports).
1 
1.3.  In trade in services, Costa Rica ranked 68th and 110th among world exports and imports of 
commercial services, with 0.12% and 0.05% of gl obal exports and imports in 2011. China was the 
fourth largest exporter and third largest importer  of commercial services, with a share of 10.4% 
and 9.5% of global exports and imports of services.2 
1.2  Merchandise trade 1.4.  In 2011, China was Costa Rica's 11th largest export market, accounting for 2.1% of its total 
exports, and its third largest source of imports, wi th 8.4% of Costa Rica's total imports. Costa Rica 
was China's 110
th largest export destination and 39th import source, accounting for 0.05% and 
0.2% of China's exports and imports. 
1.5.  Recent developments in global and intra-Party trade are presented in Charts 1.1 (China) and 
1.2 (Costa Rica). China has run a global trade surplus for much of the period, while Costa Rica has run a widening trade deficit, especially in 2011. Bilateral trade data from COMTRADE shows some discrepancies: data for China shows China running a growing trade deficit with Costa Rica over the 
period surveyed, while data for Costa Rica shows Costa Rica running a trade deficit with China in 
most years (with figures half the magnitude of those reported in China's data).
3  
                                               
1 WTO Statistics Database, Trade Profiles (September 2012). 
2 WTO Statistics Database, Trade Profiles (September 2012). 
3 According to the Parties, these figures come about specifically from transfer pricing. In particular, 
differences in values are explained by the fact that ex port values from Costa Rica and import values from the 
destination countries show different transactions (value of assembly and testing in Costa Rica versus the sale 
price to the client in the destination country, which includes a profit for the value of the intangible intellectual property right). WT/REG310/1 
 
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  Chart 1.1 - China: Merchandise trade with world and Costa Rica, 2000-2011 
02468
05001,0001,5002,0002,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$billion US$billion
Imports from Costa Rica
Exports to Costa RicaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: UN Comtrade 
 
Chart 1.2 Costa Rica: Merchandise trade with world and China, 2000-2011 
0.01.02.03.04.05.06.0
051015202530
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$billion US$billionImports from China 
Exports to ChinaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: UN Comtrade 
 
1.6.  The commodity structure of trade between the Parties, as well as of their exports and imports 
to the world, in the period 2008-2010 is shown in Chart 1.3 on the basis of the Harmonized 
System (HS) sections.  
1.7.  Over the period surveyed, Costa Rica's imports from China amounted to US$788 million. 
They mainly consisted of machinery (28.2%), ba se metals and textiles (respectively 13.1% and 
12.7% of the total) and reflected in part China's global exports, where machinery accounted for 
43.9% of the total, followed by textiles and ba se metals (representing 12.8% and 7.9% of the 
total). Over the same period, China's imports fr om Costa Rica were valued at US$2.7 billion and 
were dominated by machinery (98.8% of the total). This reflected in part Costa Rica's global 
exports, where machinery is the leading export category, accounting for 25.8% over the period. WT/REG310/1 
 
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  Chart 1.3 Costa Rica and China: product composition of merchandise trade, annual 
average (2008-2010) 
25.8
20.7
10.38.55.94.23.42.62.12.114.4
98.81.243.9
12.87.95.85.24.73.53.02.72.18.4
27.8
12.3
10.7 7.76.55.14.13.93.53.42.312.6
35.6
21.57.66.86.85.74.22.42.27.228.2
13.1
12.78.07.56.46.44.93.12.57.3Costa Rica's imports from China
China's imports from Costa RicaPer cent
Total:  US$788 
Total:  US$ 2.7 billionTotal:  US $14 billion
Total: US $ 1178 billionTotal:  US $ 1403  billion
Total:  US$ 9 billionChina's global exports
Costa Rica's global exportsCosta Rica's global imports
China's global imports
Animal products
Vegetables
Prepared FoodsMinerals
Chemicals
Plastics, rubberWood pulp
Textiles
FootwearArticles of 
stone
Base metals
MachineryVehicles
Optical
MiscellaneousOther
 
Source: UN Comtrade 
 
1.3  Trade in services and investment 
1.8.  Table 1.1 depicts Costa Rica's global trade in services by type of activity for 2008-2010. 
Bilateral trade data with China are not available.  In global trade, Costa Rica is a net exporter of 
services. Costa Rica's top global export categori es in 2010 were travel services (46.4% of total 
services exports), computer and information services (28.1%) and other business services 
(15.9%). Costa Rica's main global import sector in 2010 was transportation services (37.4% of 
services imports), followed by travel (23.8%) and other business services (19.7%).  
1.9.  Costa Rica is a net recipient of foreign direct investment. Inward FDI flows from China almost 
doubled from 2008-2009 to US$ 3.6 million, before  dropping to half that figure in 2010. 
Table 1.1 Costa Rica's trade in commercial services and investment with China and 
world, 2008-2010 
Unit: million US$ 
Service Item World  China 
Exports Imports  Exports Imports  
2008 2009 2010 2008  2009  2010  2008  2009 2010 2008 2009  2010  
Total Services 4,083.3 3,592.9 4,329.9 1,882.4  1,404.8  1,782.7   -  -  -  -  -  - 
Transportation 
Services 371.0 289.3 307.9 683.2  504.0  666.5   -  -  -  -  -  - 
Travel 2,282.9 1,815.0 2,008.6 593.5  367.7  423.6   -  -  -  -  -  - 
Communication 
Services 39.2 45.2 41.5 109.7  100.0  99.3  -  -  -  -  -  - 
Construction - - - -  - -  -  -  -  -  -  - 
Insurance 
services - - - 148.7  119.1  131.3   -  -  -  -  -  - 
Financial services 13.9 16.4 25.7 11.7  9.6 18.0  -  -  -  -  -  - 
Computer and 
information 
services 683.5 758.2 1,216.5 6.1 11.6 21.6  -  -  -  -  -  - 
Royalties and 
licence fees 0.6 0.6 7.5 62.2  64.6 63.6  -  -  -  -  -  - 
Other Business 
Services 662.0 642.3 690.4 263.1  223.7  351.8   -  -  -  -  -  - WT/REG310/1 
 
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  Service Item World  China 
Exports Imports  Exports Imports  
2008 2009 2010 2008  2009  2010  2008  2009 2010 2008 2009  2010  
Personal, cultural 
and recreation services 0.1 0.1 0.1 0.1
 0.1 2.6  -  -  -  -  -  - 
  World  China 
  Outward Inward  Outward Inward  
  2008 2009 2010 2008  2009  2010  2008  2009 2010 2008 2009  2010  
Total FDI stocks 531.2  544.6 648.7 10,877.8  12,385.8  14,065.8  - - - - -  - 
Total FDI flows 5.9 7.5 24.8 2,078.2  1,346.5  1,465.6  - - - 1.9 3.6 1.7 
- no data. 
 
Source: Central Bank of Costa Rica. UnctadStat (FDI data with World).  
 
1.10.  Table 1.2 shows China's trade in services by type of activity for 2008 to 2010, revealing that 
the country is a net importer of services. Bilateral trade data with Costa Rica are not available. 
China's top global export categories in 2010 were other business services (36% of total services exports), travel (26.9%), and transportation services (20.1%). China's main global import sector in 2010 was transportation services (32.9% of serv ices imports), followed by travel (28.6%) and 
other business services (17.9%). 
1.11.  China is a net recipient of foreign direct investment from the world and a minor provider of 
FDI to Costa Rica. 
Table 1.2 China's trade in commercial servic es and investment with Costa Rica and 
world, 2008-2010 
Unit: million US$ 
Service Item World  Costa Rica 
Exports Imports  Exports Imports  
2008  2009 2010  2008  2009  2010  2008  2009 2010 2008 2009  2010  
Total Commercial 
Services 146,446  128,599 170,248  158,004  158,107  192,174  14 21 18 124 152  190 
Transportation 
Services 38,418  23,569 34,211  50,329  46,574  63,257   -  -  -  -  -  - 
Travel 40,843  39,675 45,814  36,157  43,702  54,880   -  -  -  -  -  - 
Communication 
Services 1,570  1,198 1,220  1,510  1,210  1,137   -  -  -  -  -  - 
Construction 10,329  9,463 14,495  4,363  5,868  5,072   -  -  -  -  -  - 
Insurance services 1,383  1,596 1,727  12,743  11,309  15,755   -  -  -  -  -  - 
Financial services 315  437 1,331  566 726 1,387   -  -  -  -  -  - 
Computer and 
information services 6,252  6,512 9,256  3,165  3,233  2,965   -  -  -  -  -  - 
Royalties and 
licence fees 571 429 830  10,320  11,065  13,040   -  -  -  -  -  - 
Other Business 
Services 46,349  45,623 61,242  38,597  34,144  34,310   -  -  -  -  -  - 
Personal, cultural 
and recreation 
services 418 97 123  255 278 371  -  -  -  -  -  - 
  World  Costa Rica 
  Outward Inward  Outward Inward  
  2008  2009 2010  2008  2009  2010  2008  2009 2010 2008 2009  2010  
Total FDI stocks 147,949  229,600 298,411  378,083  473,083  587,817  - - - - -  - 
Total FDI flows 52,150  56,530 68,811  108,312  95,000  114,734  - - - - - 0.1 
- no data. 
 Source: National Bureau of Statistics, WTO Statistics Database, Ministry of Commerce, and UnctadStat (FDI 
data with World). 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  The Agreement was signed by the Parties on  8 April 2010 and entered into force on 1 August 
2011. 
2.2.  The goods and services aspects of the Agreem ent were notified to the WTO by the Parties on 
27 February 2012 under Article XXIV:7(a) of the GATT 1994, and Article V:7(a) of the GATS, WT/REG310/1 
 
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  respectively (document WT/REG310/N/1 and S/C/N/61 8). The text of the Agreement is available, 
together with its related Annexes, on the following official websites:   
 http://fta.mofcom.gov.cn/topic/encosta.shtml  and 
 http://www.comex.go.cr/tratados/vigen tes/china_tlc/texto_tratado.aspx  
2.3.  The Agreement consists of 16 Chapters and 13 Annexes which form an integral part of the 
Agreement (see Table 2.1). 
Table 2.1 Table of Contents of the Agreement  
Preamble 
Chapter 1: Initial Provisions 
Chapter 2: Definitions of General Application 
Chapter 3: National Treatment and Market Access for Trade in Goods 
Chapter 4: Rules of Origin and Related Operational Procedures 
Chapter 5: Customs Procedures  
Chapter 6: Sanitary and Phytosanitary Measures 
Chapter 7: Technical Barriers to Trade 
Chapter 8: Trade Remedies 
Chapter 9: Investment, Trade in Services  and Temporary Entry of Business Persons 
Chapter 10: Intellectual Property 
Chapter 11: Co-operation, Promotion and Enhancement of Trade Relations 
Chapter 12: Transparency 
Chapter 13: Administrati on of the Agreement 
Chapter 14: Dispute Settlement 
Chapter 15: Exceptions 
Chapter 16: Final Provisions 
Annex 1: National Treatment and Import and Export Restrictions 
Annex 2: Tariff Elimination 
Annex 3: Product Specific Rules of Origin 
Annex 4: Certificate of Origin  
Annex 5: Contact Points for Sani tary and Phytosanitary Matters 
Annex 6: Contact Points for Technical Barriers to Trade 
Annex 7: Schedules of Specific Commitments 
Annex 8: Working Group on Temp orary Entry of Business Persons 
Annex 9: Geographical Indications as Referred to in Article 116.1 
Annex 10: Geographical Indications as Referred to in Article 116.2 
Annex 11: The Free Trade Commission 
Annex 12: Implementation of Modifications Approved by the Free Trade Commission 
Annex 13: Free Trade Agreement Coordinators 
 
Source:  Free Trade Agreement between China and Costa Rica. 
 
3  PROVISIONS ON TRADE IN GOODS 
3.1  National Treatment and Ma rket Access in Trade in Goods 
3.1.  Under Article 8, each Party accords nati onal treatment to goods of the other Party in 
accordance with Article III of the GATT 1994, including its interpretative notes, which are incorporated into and made part of the Agreement, mutatis mutandis . National treatment does not 
apply to measures set out in Annex 1, which lists for Costa Rica: controls on the import of crude 
oil, its fuel, derivatives, asphalt, and gasoline; co ntrols on the export of wood in logs and boards 
from forests; controls on the export of hydrocarbons; controls on the export of coffee; controls on the import and export of ethanol and crude rums; controls to establish a minimum export price for 
bananas; measures related to the protection of the environment and natural resources pursuant to 
applicable domestic law and the provisions estab lished in Article 159 (General Exceptions) of the 
Agreement; and actions authorized by the Disput e Settlement Body of the WTO. Measures listed 
by China in Annex 1 are those related to the protection of the environment and natural resources 
pursuant to applicable domestic law and the provisions established in Article 159 (General Exceptions) of the Agreement; and actions authoriz ed by the Dispute Settlement Body of the WTO. WT/REG310/1 
 
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  3.2.  No Party may increase or adopt any new customs duty on originating goods from the other 
Party. Tariff elimination does not apply to used goods, including those identified as such in HS headings or subheadings.
4  
3.3.  Article 10 allows duty-free temporary admissi on of goods such as professional equipment, 
goods intended for display or demonstration, commercial samples and goods admitted for sports 
purposes, regardless of their origin. Each Party's customs or other competent authority shall relieve the importer or other person responsible for a good admitted under Article 10 of any 
liability for failure to re-export the good on presen tation of proof to the satisfaction of the customs 
authority of the importing Party that the good has been destroyed by reason of force majeure . 
3.4.  Article 18 establishes a Committee on Trade in Goods, comprising representatives of each 
Party. The Committee shall consider any matter under Chapters 2 (Definitions of General 
Application), 4 (Rules of Origin and Related Oper ational Procedures) or 5 (Customs Procedures). 
Its functions include: i) promoting bilateral trade in goods, including through consultations on accelerating tariff elimination; ii) addressing barriers to trade, especially non-tariff measures; iii) 
reviewing future amendments to the Harmonized System (HS) to ensure that each Party’s 
obligations under the Agreement are not altered, and consulting to resolve any conflicts between 
subsequent amendments to HS 2007 and Annex 2 or Annex 2 and national nomenclatures; 
iv) consulting on, and endeavouring to resolve any difference on matters related to the 
classification of goods under the HS; and v) establishing ad-hoc  working groups with specific 
functions. 
3.1.2  Liberalization of trade and tariff lines 
3.5.  Trade liberalization covers Chapters 1-97 of the Harmonized System (HS). The tariff 
elimination programme is outlined in Article 9 and Annex 2 to the Agreement; liberalization of trade in goods is to be completed over a tr ansition period of 15 years (2012-2026). Tariff 
elimination started on 1 August 2011, and subseque nt reductions take place on 1 January of each 
year. Upon request by a Party, consultations shall be held to consider accelerating the elimination of customs duties as set out in Annex 2 (Article 9.4). Any agreement to accelerate the elimination 
of a customs duty on a good shall supersede an y duty rate or staging category determined 
pursuant to the Parties’ Schedules in Annex 2, when approved by the Parties in accordance with their applicable legal procedures. A Party may: i) raise a customs duty to the level established in its Schedule in Annex 2 following a unilateral reduction; or ii) maintain or increase a customs duty 
as authorized by the WTO's Dispute Settlement Body  or in accordance with the dispute settlement 
mechanism of the Agreement.   
3.6.  Table 3.1 shows tariff and trade liberalization offered by Costa Rica to China under the 
Agreement. In 2011, 2.2% of Costa Rica's schedule was duty free on an MFN basis, corresponding 
to 12.1% of its imports from China in 2008-2010.
5 Upon the entry into force of the Agreement, 
Costa Rica liberalized another 60.8% of lines which accounted for an additional 43.7% of its 
imports from China. Further tariff eliminations will take place in 2015, 2020 and 2025. By 2020, 
ten years after implementation, 88.5% of Costa Rica 's tariff will be eliminated for imports from 
China. At the end of the implementation period in 2025, 91% of Costa Rica's tariff lines will be duty free for imports from China, corresponding to 85.1% of its imports from China in 2008-2010.
 
Table 3.1 Costa Rica's tariff eliminat ion commitments under the Agreement and 
corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in Costa Rica 
tariff schedule Value of Costa Rica's 
imports from China 
(2008-2010) in 
million US$ % of Costa 
Rica's total 
imports from 
China 
2008-2010 
MFN duty free (2011) 142 2.2 104 12.1 
2011 3,989 60.8 377 43.7 
2015 264 4.0 25 2.9 
                                               
4 Used goods include goods that are reconstructed, repaired, remanufactured or any other similar name 
given to goods that, after having been used, have been su bject to some kind of process to restore their original 
characteristics or specifications, or to restore the func tionality they had when they were new (Article 9.3). 
5 All 6,564 tariff lines in Costa Rica's schedule are subject to ad valorem  rates. WT/REG310/1 
 
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  Duty phase-out 
period Number of 
lines % of total lines 
in Costa Rica 
tariff schedule Value of Costa Rica's 
imports from China 
(2008-2010) in 
million US$ % of Costa 
Rica's total 
imports from 
China 
2008-2010 
2020 1,411 21.5 202 23.4 
2025 167 2.5 26 3.1 
Remain dutiable 591 9.0 128 14.9 
Total 6,564 100.0 863 100.0 
 
Note: Based on the HS 2007 nomenclature. Source:  WTO estimates based on data provided by Costa Rica. 
 
3.7.  As shown in Table 3.2, 9% of China's tariff lines were duty free on an MFN basis in 2011, corresponding to 98.1% of its total imports from Costa Rica in 2008-2010.
6 Following the 
Agreement’s entry into force, China liberalized an additional 56.7% of lines, representing 0.6% of 
its imports from Costa Rica. Further tariff eliminations will take place in 2015, 2020 and 2025. By 2020 95.9% of the tariff will be eliminated and by  the end of the implementation period in 2025, 
96.7% of China's tariff lines will be duty free for imports from Costa Rica, corresponding to 100% 
of its imports from Costa Rica in 2008-2010.
 
Table 3.2 China's tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in China's tariff 
schedule Value of China's 
imports from Costa 
Rica 
(2008-2010) in 
million US$ % of China's 
total imports 
from Costa Rica 
2008-2010 
MFN duty free (2011)  705 9.0 2,622.4 98.1 
2011 4,463 56.7 17.3 0.6 
2015 2,231 28.4 23.1 0.9 
2020 139 1.8 9.9 0.4 
2025 71 0.9 1.4 0.1 
Remain dutiable 259 3.3 0.4 0.0 
Total 7,868 100.0 2,674.6 100.0 
 
Note: Based on the HS 2007 nomenclature. Source:  WTO estimates based on data provided by China.   
3.8.  As shown in Table 3.2, China's trade with Costa Rica is concentrated in a few tariff lines, 
demonstrated by the fact that 9% of China's tariff lines account for 98.1% of its imports from 
Costa Rica in 2008-2010. Table 3.3 shows the top 25 products imported by China from Costa Rica 
with corresponding trade values, trade shares, applicable MFN rates, and year of liberalization. A single product, electronic integrated circuits, which accounts for 95.3% of China's imports from 
Costa Rica in 2008-2010, already enters China at MFN duty-free rates. All other MFN-dutiable 
items in China's top 25 imports from Costa Rica are liberalized, at the latest by 2020. 
Table 3.3 China's top 25 imports from Cost a Rica at 10 digit HS national level, 
2008-2010 
US$ million 
Rank Tariff 
line  
(HS 
2007) Product Description Value of China's imports from Costa 
Rica (Million USD) Share 
% 
(of 
Total) China's 
MFN 
Tariff 
2011 Year of 
liberaliz-
ation 2008  2009  2010  Total  
1 85423100 Electronic integrated circuits, 
processors and controllers, 
combined with memories, converters, logic circuits, amplifiers, clock and timing circuits. 2153.1
 2533.0  2958.5  7644.6  95.3 0.0  
2 85489000 Electrical parts of machinery or 
apparatus 1.5 11.5 47.8 60.9 0.8 12.0 2015 
3 85415000 Semiconductor devices, n.e.s 29.4  27.0 0.2 56.6 0.7 0.0  
                                               
6 China's tariff schedule is composed of 7,868 tariff lines, all of which are subject to ad valorem  rates. WT/REG310/1 
 
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Rank Tariff 
line  
(HS 
2007) Product Description Value of China's imports from Costa 
Rica (Million USD) Share 
% 
(of 
Total) China's 
MFN 
Tariff 
2011 Year of 
liberaliz-
ation 2008  2009  2010  Total  
4 85423900 Other electronic integrated circuits 
other than amplifiers, memories, 
processors or controllers 16.5 5.5 10.2 32.2 0.4 0.0  
5 85423200 Memories of electronic integrated 
circuits 11.8 7.0 9.1 27.8 0.3 0.0  
6 85416000 Mounted piezo-electric crystals 15.7 5.7 6.1 27.5 0.3 0.0  
7 85369000 Electrical apparatus for switching 
or protecting electrical circuits 2.0 5.4 11.1 18.5 0.2 0.0  
8 41071210 Dressed leather, of bovine 
(including buffalo) animals, 
without hair on, other 1.1 3.3 10.3 14.7 0.2 8.0 2020 
9 20083090 Citrus fruit prepared, nes 2.9  4.2 6.4 13.5 0.2 20.0 2011  
10 85334000 Variable resistors, including 
rheostats and potentiometers, 
n.e.s 2.3 1.5 3.1 6.9 0.1 0.0  
11 23012010 Flours or meals of fish, used in 
animal feeding 0.0 6.9 0.0 6.9 0.1 2.0 2020  
12 84733090 Parts/accessories of other 
machines of heading 84.71 3.3 0.9 1.7 5.9 0.1 0.0  
13 76020000 Aluminium waste & scrap 2.7  1.1 1.9 5.7 0.1 1.5 2011  
14 41015011 Whole bovine (incl. buffalo)/equine 
hides & skins, weight >16kg, 1.0 4.4 0.0 5.4 0.1 8.4 2011 
15 85365000 Switches other than isolating 
switches & make-&-break switches, for a voltage not >1000V
 1.7 1.3 2.0 5.0 0.1 0.0  
16 85366900 Electrical plugs & sockets, for a 
voltage not exceeding 1,000 volts 0.7 1.7 2.5 4.8 0.1 0.0  
17 41015019 Whole bovine (incl. buffalo)/equine 
hides & skins, weight >16kg, 0.0 0.8 3.6 4.4 0.1 5.0 2011  
18 85332110 Electrical resistors fixed for a 
power handling capacity ≤20W, 
laminate 1.9 0.8 1.2 4.0 0.0 0.0  
19 06021000 Unrooted cuttings and slips 0.8  1.2 1.9 3.9 0.0 0.0  
20 90189090 Medical/veterinary instruments & 
appliances 0.0 2.6 1.3 3.9 0.0 4.0 2011 
21 08030000 Bananas, including plantains, fresh 
or dried 0.0 0.0 3.7 3.7 0.0 10.0 2025  
22 85389000 Parts for switches, fuses, panels 
and etc., n.e.s. 1.0 0.2 1.7 3.0 0.0 7.0 2011 
23 44034910 Teak wood in the rough 0.9  0.2 1.5 2.6 0.0 0.0  
24 39151000 Waste, parings & scrap, of 
polymers of ethylene 0.3 1.0 1.4 2.6 0.0 6.5 2011 
25 85332900 Electrical resistors, fixed, > 20W  0.9 1.0 0.7 2.5 0.0 0.0  
    Total Top 25  2251.5  2628.1  3088.1  7967.7  99.3 -  
    TOTAL  2270.4  2646.5  3106.8  8023.7  100.0 -  
Source: WTO estimates based on date provid ed by China and UNSD, Comtrade database. 
 
3.1.3  Liberalization schedule by product 
3.1.3.1  Costa Rica 
3.9.  Table 3.4 shows Costa Rica's tariff liberalization by HS section. The lines subject to 
liberalization more than ten years after the Agreement's entry into force fall in HS Sections I-VII, IX, X, XV, and XX. The 591 tariff lines remaining dutiable at the end of implementation fall in 14 HS Sections, with the average final tariff on dutiable items ranging from 8% to 38.9%. 
Table 3.4 Costa Rica: Tariff elimination under the Agreement, by HS section
 
HS 
section MFN 
average. % Total No. 
of lines MFN duty-
free 
(2012) Number of duty-free lines under the 
Agreement No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable)  
% 2011  2015  2020  2025  
I 20.6 299  132  10 78 3 76 38.9  
II 9.5 376  228 14 87 11 36 21.8 
III 8.9 54  8   7 6 33 10.7  
IV 14.0 274  87 23 47 10 107 20.0 
V 3.6 178 11 140  1 22 4   
VI 2.8 961 1 819 7 92 15 27 13.8 
VII 5.2 335  152  11 66 16 90 8.3  WT/REG310/1 
 
- 12 - 
 
  HS 
section MFN 
average. % Total No. 
of lines MFN duty-
free 
(2012) Number of duty-free lines under the 
Agreement No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable)  
% 2011  2015  2020  2025  
VIII 8.8 108  33 53 22    
IX 8.9 138  25  3 34 67 9 8.0  
X 5.6 294  149  109 13 23 12.2 
XI 9.9 920  459  12 416  33 13.7  
XII 12.6 64  15 7 35  7 15.0 
XIII 6.9 176  87  2 58  29 11.2  
XIV 7.5 54  54      
XV 3.9 696  470  1 118 19 88 11.2  
XVI 2.8 974 118 767 11 55  23 9.7 
XVII 6.0 234  148  56 30    
XVIII 4.6 237 12 184 37 4    
XIX 12.9 21    21    
XX 10.9 162  32 12 105 3 10 12.7 
XXI 8.2 9   4 5    
Total 6.8 6564 142 3989  264 1411  167 591 16.8 
 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. At the MFN level, Ad-Valorem Equivalents (AVEs) were used for the calculation.  
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Costa Rica. 
 
3.10.  Chart 3.1 provides a comparison of Costa Rica's average dutiable rates versus MFN rates in 
those HS chapters where preferential duties  remain under the Agreement. The average 
preferential duties are the same as the MFN rate s in all cases indicating that no preferential 
liberalization of these lines has taken place under the Agreement. Average remaining preferential 
rates exceed 30% in five HS Chapters - 1, 4, 7, 10 and 16. 
Chart 3.1 Costa Rica: Average of dutiable rates, by HS Chapter 
0102030405060708090
02
030407080910111215161718192021222324051015202530
32
33
34
3538
39
404448
49
545658
60
6162
63
646869
70
7273
76
828384
85
94HS  01-24 HS 25-94Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
Note: HS chapters not included:1; 5; 14; 25-31; 36; 41-43; 45-47; 50-53; 55; 59; 65-67;71; 74-75; 77-
81; 86-93; 95-97.  
Source: WTO Secretariat estimates based on  the data provided by Costa Rica.  WT/REG310/1 
 
- 13 - 
 
  3.1.3.2  China 
3.11.  In the case of China, those lines subject to liberalization ten or more years after the 
Agreement's entry into force fall in HS Sections I, II and IV, while the 259 lines not liberalized under the Agreement fall in Sections II-IV, VI, and IX-XI. (Table 3.5).   
Table 3.5 China Tariff elimination un der the Agreement, by HS section
 
HS 
section MFN 
average. 
% Total 
No. of 
lines MFN 
duty-
free 
(2011) Number of duty-free lines under the 
Agreement No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2011  2015  2020  2025  
I 12.0 377 51 68  145 81 32   
II 14.4 467 49 126 226 3 35 28 51.7 
III 13.1 54  14  21   19 9.3  
IV 18.0 285 1 76 184 1 4 19 34.5 
V 3.7 200 37 160  3     
VI 6.3 1221 46 1116 56   3 50.0 
VII 9.4 269 1 221  47     
VIII 12.3 106  19 33 54    
IX 4.4 202 74 74  4   50 7.3  
X 5.3 160 35 7    118 6.7 
XI 11.5 1128  626  491   11 38.4  
XII 17.9 69  19 50     
XIII 13.5 186 1 62  123     
XIV 10.0 84 32 25 27     
XV 7.4 737 4 613  120     
XVI 8.2 1448 278 865 295   10 27.0 
XVII 13.2 345 1 211  133     
XVIII 10.1 322 31 154 136   1 5.0 
XIX 13.0 21   21     
XX 11.6 178 62 6 110     
XXI 9.6 9 2 1  6     
Total 9.7 7868 705 4463  2231  139 71 259 16.5 
Note: Based on the HS 2007 nomenclature. 
Source:  WTO estimates based on data provided by China.  
3.12.  Chart 3.2 presents a disaggregated view of Ch ina's tariff liberalization by HS Chapter. Tariffs 
will continue to apply in 15 chapters. Chapters with the highest tariffs are 10 (cereals), 17 (sugars) and 31 (fertilizers) with preferential  tariffs of 62%, 50% and 50%, respectively. The 
average preferential duties are the same as th e MFN rates in all cases indicating that no 
preferential liberalization of these lines will take place under the Agreement.  
Chart 3.2 China: Average of du tiable rates, by HS Chapter 
05101520253035404550556065
9 1 01 11 51 72 02 43 14 44 84 95 15 28 59 0HS Chapter
MFN PreferentialAverage rate of duty (%)  
 
Note: HS Chapters are not included: 1-8; 12-14; 16; 18-19; 21-23; 25-30; 32-43;45-47; 50; 53-84; 85-
89; 91-97.  
Source: WTO Secretariat estimates based on data provided by China WT/REG310/1 
 
- 14 - 
 
   
3.2  Import duties and charges,  and quantitative restrictions 
3.13.  Under Article 11 the Parties may not adopt or maintain non-tariff measures that prohibit or 
restrict the import of any good of a Party, exce pt in accordance with Article XI of the GATT 1994 
and its interpretative notes, which are incorporated into and made a part of the Agreement, 
mutatis mutandis . Article 11 does not apply to measures in Annex 1 to the Agreement. 
3.14.  Article 12 prohibits measures by a Party that are inconsistent with the WTO Agreement on 
Import Licensing. The Parties were to notify each other of any existing import licensing procedures 
upon the entry into force of the Agreement.7 New import licensing procedures and any 
modification to existing procedures or list of pr oducts shall be published, when possible, 21 days 
before the procedure takes effect, and no later than the effective date. Each Party shall notify the 
other of any other new import licensing procedures  and any modifications to existing procedures 
within 60 days of publication.  
3.15.  Each Party is to ensure, in accordan ce with Article VIII.1 of the GATT 1994 and its 
interpretative notes, that all fees and charges of  whatever character (other than customs duties, 
charges equivalent to an internal tax or other internal charges applied consistently with 
Article III.2 of the GATT 1994, an d antidumping and countervailing duties) imposed on, or in 
connection with, imports are limited to the approx imate cost of services rendered and do not 
represent an indirect protection for domestic goods or a taxation on imports for fiscal purposes. 
Consular transactions, including related fees and charges, in connection with the import of any good of a Party are prohibited. The Parties shall make available and maintain through the Internet 
or a comparable computer-based telecommunications network, a current list of fees and charges 
on imports (Article 13).
  
3.16.  The WTO Customs Valuation Agreement and the Decisions taken by the WTO Committee on 
Customs Valuation are incorporated into and form part of the Agreement and the Parties’ customs 
laws are to comply with them (Article 14). 
3.3  Rules of origin 3.17.  Provisions on rules of origin are contained in Chapter 4 which is divided into two sections: 
Section A on rules of origin and Section B on related operational procedures. Article 21 defines an 
originating good as: 
a. a good wholly obtained or produced in the territory of one or both Parties
8; 
b. a good produced entirely in the territory of one or both Parties exclusively from 
originating materials; or 
c. a good produced in the territory of one or both Parties using non-originating materials 
that conform to the product specific rules. 
3.18.  Product specific rules include a change in tariff classification (CTC), a regional value content 
(RVC), a processing operation rule, or a combination of any of these criteria or other requirements as specified in Annex 3 (Article 23). The CTC method requires that non-originating materials used 
in the production of the good undergo a change in ta riff classification as specified in Annex 3 of the 
Agreement. The RVC, expressed as a percentage, is the difference between the f.o.b. value of the good and the value of non-originating materials divided by the f.o.b. value of the good. The value 
of non-originating materials shall be: i) the c.i.f. value of the good; or ii) the earliest ascertained 
price paid or payable for the non-originating materials in the territory of the Party where the working or processing takes place (Article 25).
9 Minimal operations or processes that do not confer 
                                               
7 According to the Parties, no Party has yet applie d an import licensing procedure and therefore there 
has been no obligation to notify such procedures. 
8 A list of such goods can be found in Article 22. 
9 For the purposes of calculating the RVC of a good, the value of non-originating materials used shall not 
include the value of non-originating materials used to pr oduce originating materials that are subsequently used 
in the production of the final good.   WT/REG310/1 
 
- 15 - 
 
  origin are described in Article 28.10 The principle of bilateral cumulation is contained in Article 27. 
A de minimis  rule applies to goods that do not undergo a change in tariff classification, provided 
that the value of all non-originating materials not meeting the CTC rule does not exceed 10% of the f.o.b. value of the good (Article 29).  
3.19.  Specific rules of origin are set out in Annex 3. For most agricultural products 
(HS chapters 1-24), the CTC method applies on it s own; in a few cases the CTC is not required 
provided that there is a RVC of not less than 40 % or 50% (HS chapters 20 - 22). For industrial 
products, the CTC rule is the predominant requir ement in almost all HS chapters. For goods in 
HS chapters 27-40, Annex 3 specifies that the CTC is the main method for determining origin; if the CTC is not feasible, the alternative approaches to be applied in sequence are as follows: i) chemical reaction; ii) mixtures and blends; iii) puri fication; iv) change in particle size; v) standards 
materials; vi) isomer separation.
11 For a few products in some HS chapters, an RVC may be used 
instead of, or in addition to, a CTC. These are HS chapters 41 (RVC of not less than 35%), 44 (50% or 60%), 84 (45%), 85 (40%), 87 (40% or 50%), 90 (50%), and 94 (60%). For a number 
of products considered as waste or scrap, such as cotton, wool, glass, iron, cotton and aluminium, 
the rule is that such products shall be derived from i) processing operations conducted in the territory of China or Costa Rica and fit only for the recovery for the raw materials, or ii) used 
goods collected in the territory of China or Costa Rica, provided that such goods are fit only for the 
recovery of raw materials.  
3.20.  Section A of Chapter 4 contains further prov isions on fungible goods or materials; neutral 
elements; sets; packing, packages and containers ; accessories, spare parts and tools; and direct 
consignment (Articles 30-35). 
3.21.  Section B of Chapter 4 contains operational procedures related to origin. A Certificate of 
Origin issued by the authorized body or bodies of the exporting Party must be submitted by the 
importer at the time of import, for originating goods to qualify for preferential treatment 
(Article 37).
12 A Certificate of Origin is not required in case of imports of goods that do not exceed 
$600 or in other cases, as provided under the domestic law of the importing Party (Article 43). 
3.22.  Procedures for verification of origin when there are reasonable grounds to doubt the 
accuracy or authenticity of the Certificate of Orig in or when performing the control are laid out in 
Article 44. Verification is to be conducted on the basis of written requests and responses or such other procedures as the competent authorities of the Parties may jointly decide, including a 
verification visit. A Party may deny preferential tariff treatment inter alia  if the good does not 
qualify as originating; if the good does not comply with the provisions on direct consignment; if the competent authority of the exporting Party fails to inform the competent authority of the 
importing Party of the name of the authorized body or bodies, any security features of the 
Certificate of Origin; if the importer, exporter, producer or authorized bodies, as appropriate, 
requested by the importing Party, fails to comply with the requirements under the verification of 
origin; if the Certificate of Origin is not duly completed, signed or stamped; if the data provided 
under the Certificate of Origin does not correspon d to that of the supporting documents submitted; 
or the description, quantity and weight of goods, marks and number of packages, number and kinds of packages, as specified in the Certificate of Origin, do not conform to the goods presented 
(Article 45). 
3.23.  A Committee on Rules of Origin is establishe d under Article 46. Its functions are: i) ensuring 
the effective, uniform and consistent administration of the Chapter and enhancing cooperation in 
this regard; ii) updating the specific rules of origin in Annex 3 on the basis of HS transposition; iii) 
advising the Commission of proposed solutions to address issues related to interpretation, application and administration of the Chapter on Rules of Origin; calculation of the RVC; and 
monitoring operational practices not in conformity with the Chapter that may adversely affect the 
flow of trade between the Parties. 
                                               
10 These include:  i) operations to ensure the preser vation of goods in good condition during transport 
and storage; ii) breaking-up or assembly of consignments ; iii) packing, unpacking or repacking operations for 
purposes of sale or presentation ; or iv) slaughter of animals. 
11 Definitions of these are given in Annex 3, pp. 11-12. 
12 The Certificate of Origin covers one or more good s under one consignment and is valid for 12 months 
from its date of issuance (Article 37). The format of the Certificate of Origin is attached in Annex 4 of the Agreement. WT/REG310/1 
 
- 16 - 
 
  3.4  Export duties and charges,  and quantitative restrictions 
3.24.  Article 11 prohibits the Parties from adopting or maintaining non-tariff measures that 
prohibit or restrict the export or sale for export of any good destined for the territory of a Party, 
except in accordance with Article XI of the GATT 1994 and its interpretative notes, which are 
incorporated into and made part of the Agreement, mutatis mutandis . Article 11 does not cover 
measures in Annex 1. 
3.25.  Each Party shall ensure, in accordance  with Article VIII.1 of the GATT 1994 and its 
interpretative notes, that all fees and charges of  whatever character (other than customs duties, 
charges equivalent to an internal tax or other internal charges applied consistently with Article III.2 of the GATT 1994, an d antidumping and countervailing duties) imposed on, or in 
connection with, export are limited to the approx imate cost of services rendered and do not 
represent an indirect protection to domestic goods or a taxation of exports for fiscal purposes. 
Each Party shall make available and maintain through the Internet or comparable computer-based telecommunications network a current list of the fees and charges on exports (Article 13). 
3.5  Regulatory provisions on trade in goods 
3.5.1  Standards 3.5.1.1  Sanitary and phytosanitary measures 
3.26.  Chapter 6 applies to all sanitary and phyt osanitary (SPS) measures of a Party that may, 
directly or indirectly, affect bilateral trade. The Parties reaffirm and incorporate into Chapter 6 their existing rights and obligations under the WTO Agreement on Sanitary and Phytosanitary Measures and apply the decisions on the applic ation of the SPS Agreement adopted by the WTO 
SPS Committee (Article 60). 
3.27.  Each Party shall give positive consideration to accepting the SPS measures of the other 
Party as equivalent, if it is objectively demonstrated that the measures achieve the appropriate 
level of protection desired by the Party (Article 62).  
3.28.  SPS measures are to be based on risk assessment procedures, in line with the risks existing 
for human, animal and plant life and health, and taking into account the techniques developed by 
the relevant international organizations. If a protocol of sanitary and/or phytosanitary 
requirements is needed based on risk analys is, the competent authorities shall enter into 
negotiations as soon as possible, with the aim of adopting the protocol (Article 63). Control, inspection and approval procedures are to be ca rried out in accordance with the provisions of 
Article 8 and Annex C of the SPS Agreement.  
3.29.  The Parties agree to strengthen bilateral technical co-operation on SPS issues, with a view 
to enhancing the mutual understanding of the regulatory systems of the Parties and facilitating 
access to each other's markets with respect, inter alia, to laboratory testing techniques, 
disease/pest control methods and risk analysis me thodology (Article 66). Each Party is to notify 
the other electronically through its respective WTO/SPS Enquiry Points of its proposed SPS 
measures that may affect trade and to provide at least 60 days for comments on any notifications 
except where urgent problems of health protection arise or threaten to arise (Article 65).  
3.30.  A Committee on SPS measures is established under Article 67. It is to convene its first 
meeting not later than one year after the date of entry into force of the Agreement and thereafter 
to meet every two years or whenever necessary.
13 The Committee's functions include: i) to 
facilitate and monitor the Chapter's implementation; ii) to promote and facilitate communication between the Parties on their SPS measures and regulatory processes; iii) to provide a forum for 
discussions on SPS issues that affect trade; iv) to coordinate technical co-operation programmes 
on SPS matters; v) to enhance communication and co-operation in international organizations related to SPS matters; vi) to establish ad hoc working groups in accordance with its terms of 
reference, when necessary; vii) to review the Chapter in light on developments under the SPS 
Agreement and vii) other functions mutually agreed by the Parties. 
                                               
13 According to the Parties, the SPS Committe e held its first meeting on 8-9 August 2012. WT/REG310/1 
 
- 17 - 
 
  3.5.1.2  Technical barriers to trade 
3.31.  Chapter 7 applies to all technical regu lations, standards and conformity assessment 
procedures that may, directly or indirectly, affect trade in goods between the Parties. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement on 
Technical Barriers to Trade (Article 71). 
3.32.  The Parties agree to use relevant international standards as the basis for technical 
regulations and to give positive consideration to accepting as equivalent technical regulations of 
the other Party, even if they differ from their ow n (Article 72). They reaffirm their obligations to 
ensure that their standardization bodies accept and comply with the Code of Good Practice for the Preparation, Adoption and Application of Standard s in Annex 3 of the TBT Agreement (Article 73). 
With regard to conformity assessment procedur es, they agree to exchange information on 
conformity assessment procedures, including testin g, inspection, certification, accreditation and 
metrology, with a view to negotiating co-operation agreements in the field of conformity assessment procedures (Article 74).  
3.33.  Each Party shall notify electronically the other Party's enquiry point, at the same time it 
notifies the WTO Secretariat in accordance with  the WTO TBT Agreement, of its proposed TBT 
measures and shall allow at least 60 days for comments except where risks to health, safety and 
the environment warrant urgent action. The full text of notified TBT measures are to be provided 
within five working days, upon request.  
3.34.  The Parties agree to cooperate on TBT matters with a view to facilitating bilateral trade in 
order to inter alia , increase mutual understanding of their respective systems, strengthen 
co-operation, exchange information and experience s on port inspection and market surveillance, 
notify the exporting Party of any emerging prob lems, and take measures to prevent and correct 
risk situations in bilateral trade of products (Article 76).  
3.35.  A Committee on Technical Barriers to Trade is established (Article 77). It shall convene its 
first meeting no later than one year after the Ag reement's entry into force and meet once every 
two years or at any time agreed by the Parties.
14  
3.5.2  Safeguard mechanisms 
3.36.  Chapter 8 contains provisions on trade remedies which cover global and bilateral safeguards 
and anti-dumping and countervailing measures.  
3.5.2.2  Global safeguards 
3.37.  Under Article 78, the Parties retain their rights and obligations under Article XIX of the GATT 
1994 and the WTO Safeguards Agreement. No Party may apply to the same product and at the same time a bilateral safeguard measure and a measure under Article XIX of the GATT 1994 and 
the WTO Safeguards Agreement. 
3.5.2.3  Bilateral safeguards 3.38.  A Party may apply a bilateral safeguard during the transition period
15 only if, as a result of 
the reduction or elimination of a customs duty pursuant to the Agreement, an originating product 
is being imported into the Party’s territory in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive 
product (Article 79.1). 
3.39.  In imposing a bilateral safeguard, a Party may suspend the further reduction of any rate of 
duty provided for under the Agreement; or increase  the rate of duty on the product to a level not 
                                               
14 According to the Parties, the TBT Committe e held its first meeting on 8-9 August 2012. 
15 The transition period is defined as seven years fro m the Agreement's date of entry into force except 
for products where the liberalization process lasts seven or more years, in which case the transition period is equal to the tariff elimination period (Article 85).   WT/REG310/1 
 
- 18 - 
 
  to exceed the lesser of the MFN applied rate in effect at the time the measure is applied; or the 
MFN applied rate in effect on the date of entry into force of the Agreement. Neither tariff rate quotas nor quantitative restrictions are permissible forms of safeguard measure.    
3.40.  A Party may also impose a bilateral safeguard if an originating product is imported in 
sufficient quantity to cause "material retardation of the establishment of a domestic industry 
producing a like or directly competitive product".
16 In such cases, a Party may impose a safeguard 
measure consisting of an increase of duty not to exceed the MFN applied rate in effect at the time 
the measure is applied. This provision is only applicable for a period of seven years from the date 
of entry into force of the Agreement (Article 79.3). 
3.41.  Safeguards may not be maintained for a period exceeding one year, with possible extension 
up to three years if the competent authorities d eem it necessary. Safeguards imposed for longer 
than one year shall be progressively liberalized. Safeguard measures may not be reapplied to a 
product unless a period of time equal to half th at during which the safeguard measure was applied 
for in the immediately preceding period has elapsed. On termination of the safeguard, the rate of 
duty shall be that as if the safeguard measures had never been applied (Article 80).  
3.42.  Safeguard measures may only be applied following an investigation by a Party's competent 
authorities in accordance with Articles 3 and 4.2( c) of the Safeguards Agreement. In determining 
whether increased imports have caused serious injury or threat thereof, the importing Party shall 
follow the rules in Article 4.2(a) and (b) of the Safeguards Agreement (Article 81). 
3.43.  Provisional bilateral safeguard measures may be applied in critical circumstances. Such 
measures shall not exceed 200 days (Article 82). The Parties are obliged to promptly notify each 
other when initiating an investigation; applying a provisional measure; making a finding of serious 
injury or threat thereof, or "material retardation" caused by increased imports; and taking a decision to impose or extend a definitive safe guard measure or to modify a measure previously 
imposed (Article 83). Upon request, the Parties will enter into consultations to review notifications.  
3.44.  Mutually-agreed trade liberalizing compen sation, in the form of concessions having 
substantially equivalent trade effects or equivalent to the value of the additional duties expected to 
result from the measure shall be provided by the Party imposing the safeguard measure in 
consultation with the other Party. The Party applying the safeguard measure shall provide opportunity for such consultations no later than 30 days after the application of the measure. If the Parties are unable to reach agreement within 30 days after beginning consultations, the 
exporting Party may suspend the application of substantially equivalent concessions (after 
providing 30 days written notice) to the trade of the Party applying the safeguard measure (Article 84). Actions taken in accordance with Article XIX of GATT 1994 and the Safeguards 
Agreement are not subject to the dispute settlem ent provisions of the Agreement (Article 87). 
3.5.2.4  Safeguards for balance of payments  3.45.  Article 163 allows the Parties to adopt measures that are deemed to be necessary to deal 
with serious balance of payments and external financial difficulties, or a threat thereof, in 
accordance with the WTO Agreement and the Articles of Agreement of the International Monetary Fund. 
3.5.3  Anti-dumping and countervailing measures 
3.46.  Under Article 86, the Parties agree to abid e fully by the provisions of the WTO Agreement 
on Implementation of Article VI of the GATT  1994 and the WTO Agreement on Subsidies and 
Countervailing Measures.  
3.47.  With regard to antidumping cases between the Parties, following the receipt of a properly 
documented application for the initiation of an antidumping investigation, the Party receiving the 
                                               
16 According to the Parties, there are no criteria regarding the application of this provision in the 
Agreement and therefore the investigation authorities of  the Parties would determine under which conditions 
domestic industries were undergoing "material retardation". The Parties point out that the concept of "material 
retardation" is included in the WTO Antidumping Agreement, though no criteria or definition of this concept is contained therein. WT/REG310/1 
 
- 19 - 
 
  application shall immediately notify the other Party of its receipt. The Party’s investigating 
authority shall take due account of any difficulties  experienced by exporters of the other Party in 
supplying requested information and provide any a ssistance practicable; on the request of the 
other Party's exporter, the investigating authority shall make available the timeframes, procedures 
and any documents necessary to offer an undertaking (Article 86.2). Actions taken in accordance 
with the Implementation of Article VI of GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures are not subject to the di spute settlement provisions of the Agreement. 
3.5.4  Subsidies and State-aid 
3.48.  The Agreement does not include specific provisions on subsidies and State-aid.  3.5.5  Customs-related procedures 3.49.  Procedures for verification of origin when there are reasonable grounds to doubt the 
accuracy or authenticity of the Certificate of Orig in or when performing the control are laid out in 
Article 44. Verification is to be conducted on the basis of written requests and responses. A party may deny preferential tariff treatment inter alia  if the good does not qualify as originating, if the 
good does not comply with the provisions on direct consignment, and if the Certificate of Origin is 
not duly completed, signed or stamped (Article 45).  
3.50.  In accordance with Chapter 5 on Customs Procedures, the Parties agree to publish their 
customs laws, regulations and rules, including on the Internet (Article 48), and to adopt 
procedures to ensure, to the extent possible, the release of goods within a period not greater than 48 hours after submission of the customs declaration (Article 49). The Parties agree to provide advance notice of any significant modification to its administrative policy and other similar 
development relating to its laws or regulations on imports or exports (Article 51). They agree to 
provide each other with technical advice and assistance for the purpose of improving risk 
assessment techniques, simplifying and expediting customs procedures, advancing the technical 
skills of personnel, and enhancing the use of technologies that lead to improved compliance with 
the laws or regulations governing imports (Article 51). The Parties' customs administrations shall negotiate a Mutual Administrative Assistance Agreement to cover relevant customs issues no later 
than three months from the Agreement's entry into force.
17 
3.51.  Advance rulings prior to the import of a good are available upon written request (Article 56). 
The Parties agree to adopt or maintain measures to allow for the imposition of administrative penalties and, where appropriate, criminal sanctions in case of violations of customs laws and 
regulations (Article 55). They agree to ensure that importers have access to a level of 
administrative and judicial review of administrative decisions with respect to determinations on customs matters (Article 54). 
3.6  Sector-specific provisions on trade in goods 
3.6.1  Agriculture 3.52.  Section F of Chapter 2 covers measures adopted or maintained by the Parties related to 
agricultural trade (Article 15).
18 The Parties share the objective of the multilateral elimination of 
export subsidies on agricultural goods and agree to work together towards an agreement in the 
WTO to eliminate such subsidies and avoid their reintroduction in any form. The Agreement prohibits the Parties from maintaining, introducing or reintroducing any export subsidy on 
agricultural goods destined for the other Party. If  a Party considers that the other has failed to 
carry out these obligations under the Agreement, it may request consultations pursuant to Chapter 14 (Dispute Settlement) with a view to arriving at a mutually satisfactory solution 
(Article 16).  
                                               
17 According to the Parties, the Mutual Administrative Assistance Agreement has not yet been 
negotiated. 
18 Agricultural goods covered by the Agreement are th ose referred to in Articl e 2 of the WTO Agreement 
on Agriculture (Article 15.2). WT/REG310/1 
 
- 20 - 
 
  3.53.  The Parties also agree to cooperate in the WTO agricultural negotiations on domestic 
support measures to achieve substantial and progressive reductions in trade distorting agricultural support (Article 17). 
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definitions 
4.1.  Chapter 9 contains provisions on investment in services, trade in services, and temporary 
entry of business persons.  
4.2.  The Parties reaffirm their commitments under the Agreement between the Government of the 
People's Republic of China and the Government of the Republic of Costa Rica on the Promotion and 
Protection of Investments, signed on 24 October 2007. 
4.3.  The Parties' definition of trade in services  mirrors that of the GATS and covers modes 1-4.  
Section B of Chapter 9 applies to measures adopted or maintained by a Party's central, regional or 
local governments and authorities, and non-govern mental bodies in the exercise of delegated 
powers that affect trade in services by services suppliers of the other Party (Article 91). A "service 
supplier of a Party" is defined as any person of that Party that supplies a service, including the 
production, distribution, marketing, sale an d delivery of such a service (Article 90).
19 
4.4.  Section B of Chapter 9 does not apply to: i) government procurement; ii) air services,20 
including domestic and international air transportation services, whether scheduled or 
non-scheduled, and related services in support of air services, other than aircraft repair and maintenance services, the selling and marketing of air transport services, and computer reservation system services; iii) subsidies or grants provided by a Party, including government-
supported loans, guarantees and insurance; iv) national maritime cabotage and internal 
waterways cabotage; v) financial services; and vi) services supplied in the exercise of governmental authority (Article 91).
21  
4.5.  Section B of Chapter 9 does not impose any obligation on a Party with respect to a natural 
person of the other Party seeking access to its employment market, or employed on a permanent 
basis in its territory, and does not confer any right on that natural person with respect to that 
access or employment. A Party is also not prevented from applying measures to regulate the 
temporary entry into, or stay in, its territory of natural persons of the other Party (Article 91). 
4.6.  The Parties agree to consult annually, or as  otherwise agreed, to review the implementation 
of the provisions on trade in services and to consider other matters of mutual interest affecting 
trade in services (Article 101). 
4.2  Denial of benefits 4.7.  A Party may deny the benefits of Section B of Chapter 9 to service suppliers of the other 
Party where the service is being supplied by a juridical person that is owned or controlled by 
persons of a non-Party and the juridical person has no substantive business operations in the territory of the other Party; or service suppliers of the other Party where the service is being 
supplied by a juridical person that is owned or co ntrolled by persons of the denying Party and the 
juridical person has no substantive business operations in the territory of the other Party (Article 99). Upon written request from the other Party, the denying Party shall inform in writing and consult with the other Party on the specific case of denial. 
                                               
19 Where the service is not supplied directly by a ju ridical person but through other forms of commercial 
presence such as a branch or a representative office , the service supplier (i.e. th e juridical person) shall, 
nonetheless, through such presence be accorded treatment provided for se rvice suppliers under the 
Agreement. Such treatment shall be extended to the pr esence through which the service is supplied and need 
not be extended to any other parts of the supplier loca ted outside the territory where the service is supplied. 
20 Including traffic rights. 
21 "A service supplied in the exercise of governmental authority" means any service which is supplied 
neither on a commercial basis, nor in compet ition with one or more service suppliers. WT/REG310/1 
 
- 21 - 
 
  4.3  General provisions on trade in services 
4.3.1  Market access 4.8.  Under Article 93, each Party shall accord to  services and service suppliers of the other Party 
treatment no less favourable than that provided for under the terms, limitations and conditions 
agreed in its Schedule of Specific Commitments in Annex 7 of the Agreement. Where a Party has 
undertaken a commitment on market access, it shall allow the movement of capital through cross-border trade (mode 1) if the cross-border mo vement of capital is an essential part of the 
service itself or commercial presence (mode 3). In sectors where market access commitments are 
undertaken, a Party shall not maintain or adopt any of the restrictive measures listed in Article 93.2, which mirrors Article XVI.2 of the GATS. 
4.9.  The Parties may negotiate commitments with respect to measures affecting trade in services 
not subject to scheduling under national treatment or market access, including those regarding 
qualifications, standards or licensing matters. Such commitments are to be inscribed in a Party's Schedule of Specific Commitments (Article 94). 
4.3.2  National and MFN treatment  
4.10.  With respect to the services sectors inscribed in each Party's Schedule of Specific 
Commitments, and subject to any conditions and qualifications set out therein, services and 
service suppliers of the other Party shall be accorded treatment no less favourable than that it 
accords to its own like services and service suppliers (Article 92). 
4.11.  There are no provisions on MFN treatment for trade in services. 4.3.3  Movement of natural persons 
4.12.  Provisions on the temporary entry of business persons are in Section C of Chapter 9. The 
Parties agree to grant temporary entry to business persons who comply with immigration measures applicable to temporary entry and othe r related measures, such as those relating to 
public health and safety and national security. No later than six months after the Agreement's 
entry into force, the Parties shall make available explanatory material regarding the requirements of temporary entry in such a manner as to enable business persons of the other Party to become 
acquainted with them, and to establish or maintain appropriate mechanisms to respond to 
inquiries from interested persons regarding its laws and regulations relating to the temporary entry of business persons.
22 
4.13.  The Parties establish a Working Group on Temporary Entry of Business Persons, comprising 
representatives of each Party as set out in Annex 8. The Group will meet at least once every three 
years, unless otherwise agreed by the Parties to consider any matter arising under Section C of Chapter 9.  
4.14.  Nothing in the section on temporary entr y of business persons shall be subject to the 
investor-state dispute settlement procedure established in the Agreement on the Promotion and Protection of Investments signed between the Parties. Nor do the Agreement's provisions on 
dispute settlement apply to this section except for Article 144 (Good Offices, Conciliation and 
Mediation) provided that the matter involves a pattern of practice and the business person has exhausted, in accordance with the applicable domestic laws and regulations, the available administrative remedies regarding the particular matter (Article 107).  
4.15.  Commitments by the Parties on the entry and temporary stay of natural persons under the 
Agreement are detailed in Table 4.1 
                                               
22 According to the Parties, explanatory material, regulations and mechanisms to respond to inquiries 
are available at the following websites:  http://www.migr acion.go.cr  and http://www.mps.gov.cn  . WT/REG310/1 
 
- 22 - 
 
  Table 4.1 Temporary entry for business persons:  categories and applicable length of stay  
 COSTA RICA CHINA 
Category Conditions Length 
of Stay Conditions Length of Stay 
Business 
visitors Business 
agents* One 
year. Sales representatives, investors or duly 
authorized representatives of investors, and goods sellers Up to a maximum of six 
months. 
Intra-
corporate 
transferees Intra-
corporate 
transferees of 
managers, 
executives 
and 
specialists* Up to 
two 
years . Managers, executives and specialists 
defined as senior employees of a 
corporation of Costa Rica that has 
established a representative office, 
branch or subsidiary in the territory of 
China, temporarily moving as intra-
corporate transferees. 
 
Managers, executives and specialists 
defined as senior employees of a 
corporation of Costa Rica, being engaged 
in the foreign invested enterprises in the 
territory of China for conducting 
business. 
 
 
Service salespersons not based in China 
and receiving no remuneration from a 
source located within China, engaged in 
activities related to representing a 
service supplier for the purpose of 
negotiation for the sale of services of 
that supplier where such sales are not 
directly made to th e general public and 
the salesperson is not engaged in 
supplying the service. Initial stay of up to 
three years.  
 
 
 
 
 
 
A long-term stay permit 
as stipulated in the 
terms of contracts 
concerned or initial stay 
of three years, 
whichever is shorter. 
 
 
90 days 
 
* Subject to numerical quotas and economic needs tests.   Source: Article 108 and Annex 7 of the Agreement.  
4.4  Liberalization commitments 
4.16.  Under the Agreement, commitments in trade in services are scheduled on the basis of a 
positive list.  
4.4.2  Costa Rica 
4.4.2.1  Horizontal Commitments 4.17.  Under the Agreement, Costa Rica has listed  14 horizontal restrictions (compared to one in 
its GATS Schedule). These include: branches, agencies or representative offices established in 
Costa Rica by a juridical person of China are not accorded the same treatment as subsidiaries and subsidiaries may be granted less favourable treatment if they do not engage in "substantive business operations" in Costa Rica; associations located abroad that want to act in Costa Rica and 
foreign juridical persons that have or want to open branches in Costa Rica are obliged to constitute 
and maintain a power of attorney for the branch's business; in case of a tie in the selection parameters for concession of public works contra cts and concessions of public works with public 
services contracts, Costa Rican tenderers will be awarded the contract over foreigners; restrictions 
on activities and concessions in the maritime-terrestrial zone; restrictions on the sale of products or services in Costa Rica by enterprises operating under a free zone regime; temporary entry of 
business persons under certain categories is su bject to numerical quotas and economic needs 
tests; investment in private capital in services reserved to the Costa Rican State is forbidden; ownership of hydrocarbons and radioactive mate rials, power derived from public waters, and 
wireless services is retained by the State (though concessions may be granted by the Legislative 
Assembly); national railroads, docks and airports remain under State control (though concessions WT/REG310/1 
 
- 23 - 
 
  may be granted by the Legislative Assembly); public services23 may be subject to a public 
monopoly or to exclusive rights (though concessions may be granted); professional services suppliers may be subject inter alia  to membership in the relevant professional association, 
nationality and residence requirements, social service evaluations, and in some cases reciprocity 
requirements. Costa Rica reserves the right to adopt or maintain any measure: that grants rights 
or preferences to social or economic groups under  disadvantage or to native groups; with respect 
to the provision of law enforcement and correctional services, and to certain social services 
established or maintained for a public purpose; and relating to land planning and development, 
including land zoning, land use and urban planning. Market access and national treatment limitations maintained at local government level are consolidated in the Schedule, but not listed. Finally, Costa Rica reserves senior management, boards of directors and other related positions 
within public institutions and public enterprises to Costa Rican nationals. 
4.4.2.2  Sector-specific commitments 4.18.  Compared to its GATS schedule, Costa Rica's sector-specific commitments are broader and 
deeper. For instance, communications services, construction and related engineering services, 
distribution, environmental services, recreational, cultural and sporting services, and transport services, uncommitted in the GATS, are partially  opened under the Agreement. In business 
services, educational services, and tourism and travel related services Costa Rica's commitments 
under the Agreement are improved compared to its GATS commitments.  
4.19.  Table 4.2 compares the degree of liberalizat ion by sector in the Agreement with that in 
Costa Rica's GATS schedule. In particular, it indicates whether sectoral commitments in the 
Agreement (except as indicated in the Agreement's horizontal reservations at the national level) 
are improved or the same compared to those in Costa Rica's GATS Schedule.  
Table 4.2 Costa Rica: Sector-specific liberal ization under the Agreement at national 
level, excluding mode 4
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as indicated 
in the GATS 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in the 
FTA horizontal reservations) 
in the FTA are: 
1. Business services  partial improved 
A. Professional Services  partial partial 
B. Computer and Related Services  partial full 
C. Research and Development Services  No commitments No commitments 
D. Real Estate Services  No commitments full 
E. Rental/Leasing Servic es without Operators  No commitments No commitments 
F. Other Business Services  No commitments partial 
2. Communication services  No commitments improved 
A. Postal services  No commitments No commitments 
B. Courier services No commitments full 
C. Telecommunication services  No commitments partial 
D. Audiovisual services No commitments No commitments 
E. Other  No commitments No commitments 
3. Construction & related engineering services  No commitments improved 
A. General construction work fo r buildings No commitments full 
B. General construction wo rk for civil engineering No commitments full 
C. Installation and assembly work No commitments full 
D. Building completion and finishing work No commitments full 
E. Other No commitments partial 
4. Distribution services  No commitments improved 
A. Commission agents' services No commitments partial 
B. Wholesale trade services  No commitments partial 
C. Retailing services  No commitments partial 
D. Franchising  No commitments partial 
E. Other No commitments partial 
5. Educational services  partial improved 
A. Primary education services                 Partial same 
                                               
23 The list of public services is  defined in Annex 7, page 2-3. WT/REG310/1 
 
- 24 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as indicated 
in the GATS 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in the 
FTA horizontal reservations) 
in the FTA are: 
B. Secondary education services                Partial same 
C. Higher education services                  Partial improved 
D. Adult education                       No commitments partial 
E. Other education services                  No commitments partial 
6. Environmental services  No commitments improved 
A. Sewage services                      No commitments partial 
B. Refuse disposal services                  No commitments partial 
C. Sanitation and similar services              No commitments partial 
D. Other No commitments partial 
7. Financial services partial No commitments 
A. All insurance and insurance- related services        No commitments No commitments 
B. Banking and other financial se rvices partial No commitments 
C. Other No commitments No commitments 
8. Health related and social services partial No commitments 
A. Hospital services partial No commitments 
B. Other Human Health Services                No commitments No commitments 
C. Social Services                       No commitments No commitments 
D. Other No commitments No commitments 
9. Tourism and travel related services  partial partial 
A. Hotels and restaurants (including ca tering)          partial same 
B. Travel agencies and tour operators services        partial improved 
C. Tourist guides services                  partial improved 
D. Other partial No commitments 
10. Recreational, cultural and sporting services  No commitments Improved 
A. Entertainment services  No commitments No commitments 
B. News agency services                    No commitments No commitments 
C. Libraries, archives, mu seums and other cultural 
services   No commitments No commitments 
D. Sporting and other recreational servic es          No commitments full 
E. Other  No commitments No commitments 
11. Transport services  No commitments improved 
A. Maritime Transport Services  No commitments partial 
B. Internal Waterways Transp ort  No commitments partial 
C. Air Transport Services  partial same 
D. Space Transport                       No commitments No commitments 
E. Rail Transport Services  No commitments partial 
F. Road Transport Services No commitments partial 
G. Pipeline Transport  No commitments No commitments 
H. Services auxiliary to all modes of transport  No commitments partial 
I. Other Transp ort Services  No commitments No commitments 
12. Other services not included elsewh ere  No commitments No commitments 
 
4.20.  In professional services, partially committe d in its GATS Schedule, Costa Rica has liberalized 
mode 2 of a number of services including legal, accounting, auditing and bookkeeping, taxation, 
architectural, engineering, integrated engin eering, urban planning and medical and dental 
services, though mode 3 remains unbound. In comp uter and related services, mode 3, unbound in 
its GATS Schedule, has been fully liberalized. Real estate services have been fully liberalized. Under other business services, uncommitted in the GATS, market research and public opinion 
polling, management consulting and related services, rental and leasing services relating to other 
machinery and equipment, packaging services, co nvention services, and maintenance and repair 
services have been fully liberalized. Other business services such as advertising, technical testing 
and analysis services, advisory and consulting services incidental to agriculture, hunting, forestry 
and fishing, services incidental to mining, related scientific and technical consulting services, rental and leasing services relating to personal and ho usehold goods, photographic services, translation 
and interpretation services, maintenance and repair services of office machinery and equipment 
have been liberalized for some modes. Research and development services remain uncommitted both under the Agreement and the GATS.  WT/REG310/1 
 
- 25 - 
 
  4.21.  Under communications services, uncommitted in its GATS Schedule, Costa Rica has 
liberalized courier services24; in telecommunications, all services consisting entirely or mainly of 
signal transportation through telecommunications networks have been liberalized for mode 2, while mode 3 remains subject to an economic needs test. For basic telephone services a special 
concession is required, while equity ceilings apply to enterprises that enter into joint ventures with 
the Costa Rican Electricity Institute and the Public Services Company of Heredia. Audiovisual services have not been liberalized in the Agreement.  
4.22.  Construction and related engineering services, uncommitted in the GATS, have been fully 
liberalized.
25 Distribution services, similarly uncommitted, are partially liberalized with restrictions 
remaining in some subsectors of commission agents' services, wholesale trade and non-food retailing services. Food retailing services is unbound for modes 1 and 3.  
4.23.  Education services, partially committed by Costa Rica under the GATS, have been fully 
liberalized for mode 2 in all subsectors, in the case of privately funded services only. Environmental services, uncommitted under GATS, are liberalized under modes 1 (for consulting 
services only) and 2 for all subsectors. Financial services, for which Costa Rica made partial 
commitments in banking services under the GA TS, are excluded from the Agreement's scope 
(Article 91.3(e)).  
4.24.  In health and social services, for which Costa Rica committed mode 2 for hospital and 
medical and dental services under the GATS, no commitments have been scheduled under the Agreement. In tourism and travel related services, for which Costa Rica has partial commitments in its GATS Schedule, mode 3 of food serving services is subject to certain requirements in its 
GATS Schedule
26 but unbound in the Agreement; for travel  agencies and tour operators services 
the foreign equity ceiling scheduled in the GATS  has been removed, but the number of travel 
agencies authorized to operate under the Agreemen t is subject to an economic needs test. Tourist 
guide services, restricted in Costa Rica's GATS Schedule to nationals, may be performed by 
nationals or residents under the Agreement. In its GATS Schedule, Costa Rica has scheduled leasing or rental services in private cars without operator, tourist boat rental and computer 
reservation services; there are no commitments for such subsectors under the Agreement.  
4.25.  Recreational, cultural and sporting services and transport services, uncommitted in Costa 
Rica's GATS Schedule, have been partially liberalized (in the case of transport services, mostly with regard to mode 2).  
4.4.3  China 
4.4.3.1  Horizontal Commitments 4.26.  Under the Agreement, China has listed a num ber of horizontal restrictions, most of which 
appear in its GATS Schedule. The additional horizontal restrictions refer to subsidies to domestic 
services suppliers in new commitments beyond China's current WTO commitments in sectors listed in the Agreement which are unbound, as are subsidies in any new sector and subsector scheduled 
in future services negotiations after the signature of the Agreement. 
4.4.3.2  Sector-specific commitments 4.27.  China's sector-specific commitments under the Agreement are very similar to its GATS 
commitments. For instance, in communication services, construction, distribution, educational, 
environmental, tourism, and transport services, commitments are the same. In health related and 
social services, and financial services no commitments have been made (the latter is subject to commitments in the GATS). Improvements have been made in three subsectors of business 
services, and in one subsector of recreational, cultural and sporting services. 
                                               
24 Except for those reserved to the State and its ente rprises in accordance with national legislation. 
25 Coverage of CPC 518 is limited only to the rental and leasing services of construction and/or 
demolition machines with operator which are owned an d used by foreign construc tion enterprises in their 
supply of services. 
26 Such as proving that earnings received or estimated from the sale of food amounts to at least 50% of 
total sales. WT/REG310/1 
 
- 26 - 
 
  4.28.  Table 4.3 compares the degree of liberalizat ion by sector in the Agreement with that in 
China's GATS schedule. In particular, it indicates whether sectoral commitments in the Agreement (except as indicated in the Agreement's horizontal reservations at the national level) are improved 
or the same compared to those in China's GATS Schedule.  
Table 4.3 China: Sector-specific liberalizatio n under the Agreement at national level, 
excluding mode 4
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments (except 
as indicated in the 
GATS horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in the 
FTA horizontal reservations) 
in the FTA are: 
1. Business services  partial improved 
A. Professional Services  partial same 
B. Computer and Related Services               partial improved 
C. Research and Development Services              No commitments No commitments 
D. Real Estate Services                     partial improved 
E. Rental/Leasing Serv ices without Operators         No commitments No commitments 
F. Other Business Servic es  partial improved 
2. Communication services  partial same 
A. Postal services                      No commitments same 
B. Courier services                      partial Same 
C. Telecommunication services  partial Same 
D. Audiovisual services partial Same 
E. Other  No commitments No commitments 
3. Construction & related engineering 
services  partial same 
A. General construction work for build ings           partial same 
B. General construction wo rk for civil engineering    partial same 
C. Installation and assembly work              partial same 
D. Building completion and finishing work           partial same 
E. Other                          partial same 
4. Distribution services  partial same 
A. Commission agen ts' services                 partial same 
B. Wholesale trade services  partial same 
C. Retailing services                                        partial same 
D. Franchising                                                 partial same 
E. Other partial same 
5. Educational services  partial same 
A. Primary education services                 partial same 
B. Secondary education services                partial same 
C. Higher education services                  partial same 
D. Adult education                       partial same 
E. Other education services                  partial same 
6. Environmental services  partial same 
A. Sewage services                      partial same 
B. Refuse disposal services                  partial same 
C. Sanitation and similar services              partial same 
D. Other partial same 
7. Financial services partial No commitments 
A. All insurance and in surance-related services       partial No commitments 
B. Banking and other financial se rvices partial No commitments 
C. Other No commitments No commitments 
8. Health related and social services No commitments No commitments 
A. Hospital services No commitments No commitments 
B. Other Human Health Services                No commitments No commitments 
C. Social Services                       No commitments No commitments 
D. Other No commitments No commitments 
9. Tourism and travel related services  partial same 
A. Hotels and restaurants (including catering)         partial same 
B. Travel agencies and tour operators services        partial same 
C. Tourist guides services                  No commitments No commitments 
D. Other No commitments No commitments 
10. Recreational, cultural and sporting 
services No commitments improved 
A. Entertainment services  No commitments No commitments 
B. News agency services                    No commitments No commitments WT/REG310/1 
 
- 27 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments (except 
as indicated in the 
GATS horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in the 
FTA horizontal reservations) 
in the FTA are: 
C. Libraries, archives, museums and other 
cultural services   No commitments No commitments 
D. Sporting and other recreational services           No commitments partial 
E. Other  No commitments No commitments 
11. Transport services  partial same 
A. Maritime Transport Services  Partial same 
B. Internal Waterways Transport  Partial same 
C. Air Transport Services  Partial same 
D. Space Transport                       No commitments No commitments 
E. Rail Transport Services  Partial Same 
F. Road Transport Services Partial Same 
G. Pipeline Transport  No commitments No commitments 
H. Services auxiliary to all mo des of transport  partial same 
I. Other Transp ort Services  No commitments No commitments 
12. Other services not included elsewh ere  No commitments No commitments 
 
4.29.  Commitments in professional services ar e the same under the Agreement and in China's 
GATS Schedule. In computer and related services, China permits wholly foreign-owned enterprises 
to provide software implementation services (limited to joint ventures with foreign majority ownership in the GATS). Research and developmen t services, and rental/leasing services without 
operators are uncommitted in the GATS and in the Agreement. In real estate services, wholly 
foreign-owned enterprises are permitted in mode 3 fo r real estate services involving own or leased 
property, and on a fee or contract basis.
27 In other business services, China has made 
commitments two subsectors that do not appear in its GATS Schedule: investigation services 
designed to secure information on the prospects an d performance of an organization's products in 
the market28; and services incidental to mining29. For translation and interpretation services, 
wholly foreign-owned enterprises are allowed (limited to joint ventures with foreign majority 
ownership under the GATS). 
4.30.  China's commitments on courier, telecomm unications and audiovisual services are the same 
under the Agreement as in the GATS. 
4.31.  In construction services, distribution services, educational services, environmental services, 
tourism and travel related services, and transport services China's commitments are the same 
under the Agreement as in the GATS. Financial services, for which China made partial commitments in insurance and banking servic es under the GATS, are excluded from the 
Agreement's scope (Article 91.3(e)). There is no reference in the Agreement to negotiate 
commitments in financial services at a later date.  
4.32.  Commitments in health related and social services have been made neither in China's GATS 
Schedule nor in the Agreement. Under recreational , cultural and sporting services, uncommitted in 
China's GATS Schedule, China has liberalized one subsector of sporting and other recreational services.
30 
4.5  Regulatory provisions  
4.5.1  Domestic regulation 
4.33.  Article 96 provides that, in sectors where specific commitments are undertaken, all 
measures of general application affecting trade in services shall be administered in a reasonable, 
                                               
27 In its GATS Schedule, wholly foreign-owned enterpri ses for high standard real estate projects are not 
permitted - under real estate services involving own or leased property. In the case of real estate services on a fee or contract basis, only joint ventures wi th foreign majority ownership are permitted. 
28 Only in the form of joint vent ures, with foreign majority ownership and dependent on an economic 
needs test. 
29 Only in the form of oil and gas exploitati on in co-operation with Chinese partners. 
30 Limited to CPC 96411, 96412, 96413, 96419 excluding golf. WT/REG310/1 
 
- 28 - 
 
  objective and impartial manner. Each Party shall maintain or institute, as soon as practicable, 
judicial, arbitral or administrative tribunals or  procedures for the prompt review of, and where 
justified, appropriate remedies for, administrative decisions affecting trade in services.  
4.34.  Where a Party requires authorization for the supply of a service on which a specific 
commitment has been made, its competent authorities shall, within a reasonable period of time 
after the submission of an application considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application and provide, upon request, 
information concerning the status of the applicatio n without undue delay. With a view to ensuring 
that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, each Party shall aim to ensure that such measures are based on objective and transparent criteria, are not more 
burdensome than necessary to ensure the quality of the service and, in the case of licensing 
procedures, are not in themselves a restriction on the supply of the service.  
4.35.  If the results of the negotiations relate d to Article VI:4 of GATS, or of any similar 
negotiations undertaken in other multilateral fora in which the Parties participate, enter into effect, 
Article 96 shall be amended, as appropriate, after consultations between the Parties, to include those results in the Agreement.  
4.5.2  Recognition 
4.36.  Article 97 states that a Party may recognize the education or experience obtained, 
requirements met, or licences or certifications granted in the other Party or a non-Party for the purposes of the fulfilment of its standards or criteria for the authorization, licensing or certification 
of service suppliers. Such recognition may be achieved through harmonization or otherwise and be 
based upon an agreement or arrangement with the other Party or non-Party concerned or may be accorded autonomously; adequate opportunity shall be  afforded to the other Pa rty, if interested, to 
negotiate its accession to such an agreement or arrangement or to negotiate comparable ones. 
Where a Party accords recognition autonomously, it shall afford adequate opportunity for the other Party to demonstrate that education, experience, licences or certifications obtained or 
requirements met in its territory should be recognized. A Party shall not accord recognition in a 
manner which would constitute a means of discrimination between countries in the application of its standards or criteria for the authorization, licensing or certification of services suppliers, or a disguised restriction on trade in services.  
4.37.  The Parties agree to encourage their relevant bodies to conduct future negotiations for 
developing mutually acceptable standards and criteria for licensing, temporary licensing and certification of professional services suppliers. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 5.1.  The Parties agree to maintain or establish appropriate mechanisms for responding to inquiries 
from interested persons of a Party regarding their laws and regulations relating to trade in 
services. At the time it adopts final laws and regulations relating to trade in services, upon 
request, it will take into consideration substantive comments received from interested persons of a Party with respect to the proposed laws and regula tions. To the extent possible, the Parties shall 
allow a reasonable period of time between publication of final laws and regulations of their 
effective date (Article 100).  
5.2.  Chapter 12 requires the Parties to publish or otherwise make publicly available their laws, 
regulations, procedures, and administrative rulings of general application, as well as their 
respective international trade agreements that may affect the Agreement's operation. The Parties shall notify each other of measures that might ma terially affect the operation of the Agreement or 
substantially affect their interests under the Agreement. The Parties agree to establish or maintain 
judicial or administrative tribunals or procedures for the prompt review and correction of final administrative actions regarding matters covered by  the Agreement. Each Party shall ensure that 
in any such tribunals or procedures, the parties to  the proceeding are provided with the right to a 
reasonable opportunity to support or defend their respective positions, and a decision based on the WT/REG310/1 
 
- 29 - 
 
  evidence and submissions of record or, where requ ired by domestic law, the record compiled by 
the administrative authority.  
5.2  Current payments and capital movements 5.3.  The Parties permit transfers and payments for current transactions relating to specific 
commitments under the Agreement to be made freely, and in a freely usable currency at the 
market rate of exchange prevailing on the date of transfer. However, a Party may prevent or delay 
a transfer or payment through the equitable, non- discriminatory and good faith application of its 
laws relating to: bankruptcy, insolvency or the protec tion of the rights of creditors; issuing, trading 
or dealing in securities, futures, options, or deri vatives; financial reporting or record keeping of 
transfers when necessary to assist law enforcement or financial regulatory authorities; criminal or p e n a l  o f f e n c e s ;  o r  e n s u r i n g  c o m p l i a n c e  w i t h  o r d e r s  o r  j u d g m e n t s  i n  j u d i c i a l  o r  a d m i n i s t r a t i v e  
proceedings (Article 98).  
5.3  Exceptions 5.4.  General exceptions to the Agreement are found in Article 159. Article XX of GATT and its 
interpretative notes are incorporated, mutatis mutandis , into the Agreement with respect to 
Chapters 3 (National Treatment and Market Access for Trade in Goods), 4 (Rules of Origin and Related Operational Procedures), 5 (Customs Procedures), 6 (Sanitary and Phytosanitary 
Measures), and 7 (Technical Barriers to Trade). The Parties understand that the measures referred 
to in Article XX(b) of the GATT 1994, as incorporated into the Agreement, include any measure necessary to protect human, animal, or plant life or health, and that Article XX(g) of the GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural 
resources. For the purposes of Chapter 9 (Investment, Trade in Services and Temporary Entry of 
Business Persons), Article XIV of the GATS (including its footnotes) is incorporated into and made part of the Agreement, mutatis mutandis . The Parties understand that the measures referred to in 
Article XIV(b) of the GATS, as incorporated into  the Agreement, include environmental measures 
necessary to protect human, animal, or plant life or health. 
5.5.  Security exceptions are permitted under Article 160. Neither Party is required under the 
Agreement to furnish or allow access to information, the disclosure of which it determines to be 
contrary to or which would prejudice its essential security interests. 
5.4  Accession and Withdrawal 5.6.  The Agreement does not contain provisions on accession by third parties. Pursuant to 
Article 168, either Party may terminate the Agreement through written notification to the other 
Party. The Agreement shall expire 180 days after the date of notification. 
5.5  Institutional framework 
5.7.  Under Chapter 13, the Parties have established several bodies for the administration of the 
Agreement.  
5.8.  The Free Trade Commission comprises ministerial level officials of the Parties, or their 
designees and shall meet at least once a year or at any time at request of either Party. Its 
functions include: to supervise the Agreement's implementation and evaluate its results; to 
oversee the further elaboration of the Agreement; to  seek to resolve disputes on the interpretation 
or application of the Agreement; to supervise the work of all committees and working groups 
established under the Agreement and recommend appropriate actions; to consider and make 
decisions on any other matter affecting the Agreement's operation; to establish the amount of remuneration and expenses that will be paid to panellists and experts in dispute settlement 
proceedings; and to consider and make decisions on any other matter that may affect the 
operation of the Agreement. The Commission may also establish and delegate responsibilities to committees and working groups; and modify the Ag reement's objectives such as through adding 
goods to the tariff elimination schedules or accelerating tariff elimination. The Commission shall 
act by consensus (Article 135). WT/REG310/1 
 
- 30 - 
 
  5.9.  The Agreement also establishes committees and working groups for: trade in goods; rules of 
origin; SPS matters; TBT matters; temporary entry of business persons; and co-operation. If needed, the Free Trade Commission may create additional committees.
31 Under Article 139, each 
Party shall designate a contact point to facilitate communications on any matter covered by the 
Agreement.  
5.6  Dispute settlement 5.10.  Chapter 14 regulates the settlement of disp utes between the Parties in relation to the 
interpretation or application of the Agreement, whenever a Party considers that a measure of the 
other Party is inconsistent with the obligations of the Agreement or that the other has failed to carry out its obligations under the Agreement (Article 141). The dispute settlement Chapter does not apply to proposed measures and/or non-violation complaints (nullification or impairment of a 
benefit in cases where there is no violation of th e Agreement's provisions). The Parties shall first 
endeavour to resolve any dispute through cooperation to find a mutually satisfactory solution (Article 140). Article 142 provides for a choice of forum to settle the dispute; once the forum has 
been selected, it shall be used to the exclusion of the others. 
5.11.  The dispute settlement mechanism of the Agreement provides for consultations and the 
establishment of a Panel. The mechanism is illustrated in Chart 5.1 below.
32 Good offices, 
conciliation or mediation may be requested at an y time by either Party. They may begin and be 
terminated at any time (Article 144). Article 157 specifies that neither Party has a right of action under its domestic law against the other Party on the grounds that a measure of the other Party is inconsistent with the Agreement's obligations. 
 
                                               
31 According to the Parties, no additional committees have been created. 
32 With respect to time periods, the shorte st period applies to perishable goods. WT/REG310/1 
 
- 31 - 
 
  Chart 5.1 Synopsis of the Agreement's dispute settlement provisions  
 
 
Source: Chapter 14 of the Agreement. 
 
5.7  Relationship with other agreements concluded by the Parties 
5.12.  The Parties uphold their existing rights and obligations under the WTO Agreement and any 
other multilateral or bilateral agreement to which they are party. In the event of any inconsistency 
between the Agreement and any other agreement, the Parties shall immediately consult with a view to finding a mutually satisfactory solution in accordance with customary rules of 
interpretation of public international law (Article 3). 
5.13.  Article 161 specifies that the Agreement does not apply to taxation measures and does not 
affect the Parties' rights and obligations under any tax convention. In the event of any 
inconsistency between the Agreement and any tax convention, the latter shall prevail to the extent 
of the inconsistency.
33 
                                               
33 Taxation measures covered by Article 161 do not include: i) customs duties; ii) an antidumping or 
countervailing duty applied pursuant to Article VI of  the GATT 1994, the WTO Agreement on Implementation of Request for consultations  
(Art. 143.3) 
10 days to respond 
Consultations 
(Art. 143) 
Establishment of 
Panel (Art. 145) 
 
Panel composition (Art.146)  
Functions of the Panel (Art. 147)  
Rules of Procedures (Art. 148)  
80/120 da ys  
Panel Report to 
Parties (Art. 151) 
 Referral to  
original Panel 
(Art. 154.2) 
45 days Disagreement on 
compensation 
Panel Report 
(Art. 154.2 )  Agreement on  
reasonable period of 
time (Art. 153.4) 
Publication  
(25 days) 
(Art.151.6) Negotiations on 
compensation 
(Art.155)  
Implementation 
(Art 153) No response within  
10 days; or 
No consultation within 
15/30 days (Art. 143) 
Request for 
clarifications  
(20 days) 
(Art.152) 30 days 
Reasonable period expires  
Disagreement on 
existence or consistency 
of the measure  
(Art. 154.2) Non-implementation within 
the reasonable  period 
30 days  
non-im plementation 
Suspension of benefits 
within 30 days from 
communication (Art. 155)  30 days  
Examination of the level of 
suspended benefits (Art. 155); 
Disagreement on the removal 
of non-conformity (Art. 156)  implementation  
Stop 
suspension 
(Art. 156)  WT/REG310/1 
 
- 32 - 
 
  5.14.  Table 5.1 shows the Parties' participation in other RTAs, notified and non-notified, in force 
as of November 2012.  
Table 5.1 China and Costa Rica: Participation in  other RTAs (notified and non-notified in 
force), as of 16 January 2013  
Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
CHINA 
Peru 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Singapore 01.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
New Zealand 01.10.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Pakistan 01.07.07 (G) 
10.10.09 (S) Goods & Services 2008 (G) 
2010 (S) GATT Art. XXIV & GATS Art. V 
Chile 01.10.06 (G) 
01.08.10 (S) Goods & Services 2007 (G) 
2010 (S) GATT Art. XXIV & GATS Art. V 
China-ASEAN 01.01.05 (G) 
01.07.07 (S) Goods & Services 2005 (G) 
2008 (S) Enabling Clause & GATS Art. V  
Macao, China 17.10.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Hong Kong, China 29.06.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
APTA - Acc. of China 01.01.02 Goods 2004 Enabling Clause 
The Cross-Straits ECFA 12.09.10 Goods & Services Not 
notified  
COSTA RICA 
Panama (Panama-CA) 23.11.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
CAFTA-DR 01.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Canada 01.11.02 Goods 2003 GATT Art. XXIV 
Chile (Chile-CA) 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Dominican Republic-CA 04.10.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico 01.01.95 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
Costa Rica-CARICOM 15.11.05 Goods & Services Not 
notified  
Trinidad and Tobago 15.11.05  Not 
notified  
Guyana 30.04.06  Not 
notified  
Barbados 01.08.06  Not 
notified  
Belize 10.03.11  Not 
notified  
Venezuela (AAP.A25TM N°26) 27.07.94 Goods Not 
notified  
                                                                                                                                               
Article VI of the GATT 1994 or the WTO Agreement on Su bsidies and Countervailing Measures; or iii) fee or 
other charge imposed consistently in  connection with importation commensurate with the cost of services 
rendered. Tax convention means a convention or other in ternational arrangement on taxation to avoid double 
taxation (Article 164.1). WT/REG310/1 
 
- 33 - 
 
  Source: WTO Secretariat. 
 ASEAN:   Association of Southeast Asian Nations 
APTA:  Asia Pacific Trade Agreement ECFA:  Economic Co-opera tion Framework Agreement 
CA:  Central America CAFTA-DR: Dominican Republic – Central America – United States Free Trade Agreement CACM:  Central American Common Market CARICOM:  Caribbean Community and Common Market 
 
5.8  Government procurement 
5.15.  The Agreement does not contain disciplines on government procurement.  
5.9  Intellectual property rights 
5.16.  Under Chapter 10 on intellectual property rights (IPRs), the Parties recognize the 
importance of IPRs in promoting economic and social development, particularly in the globalization of technological innovation, science and trade, as well as the transfer and dissemination of 
knowledge and technology to the mutual advantag e of technology producers and users, and agree 
to encourage the development of socio-economic we lfare and trade. The Parties also recognize the 
need to achieve a balance between right holders of intellectual property rights and the legitimate 
interests of users and society with regard to protected subject matter (Article 109). The Parties 
reaffirm their commitments under any existing international agreements on IPRs to which both are party, including the TRIPS Agreement. The Parties agree to establish and maintain transparent IPR 
regimes that provide certainty over the protecti on and enforcement of IPRs and to facilitate 
international trade through the dissemination of ideas, technology, science and creative works. 
They agree to prevent practices which constitute  abuse of IPRs by right holders, unreasonably 
restrain competition, or unreasonably impede  or limit technology transfer (Article 110). 
5.17.  The Parties recognize the contribution made  by genetic resources, traditional knowledge and 
folklore to scientific, cultural and economic development. In this respect, the Parties reaffirm the principles and provisions of the Convention on  Biological Diversity (CBD) of 5 June 1992, and 
encourage any effort to establish a mutually supp ortive relationship between the TRIPS Agreement 
and the CBD, subject to their international obligati ons and domestic laws. To this end, the Parties 
may establish appropriate measures to promote the conservation of biological diversity, share 
equitably benefits arising from the use of traditional knowledge, innovations and practices relevant 
to the conservation of biological diversity and the sustainable use of its components.  
5.18.  The Parties recognize the principles esta blished in the Doha Declaration on the TRIPS 
Agreement and Public Health of November 2001 and agree to contribute to the implementation of 
the Decision of August 2003 on the Implementation  of paragraph 6 of the Doha Declaration on the 
TRIPS Agreement and Public Health, as well as the Protocol amending the Trips Agreement, done at Geneva in December 2005. 
5.19.  The Parties recognize the importance of te chnology and knowledge transfer as a tool to 
promote innovation and creative works. Thus, they state that the protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and the 
transfer and dissemination of technology. Subject to domestic laws and regulations, the Parties 
may discuss incentives to promote and encourage technology transfer to the other Party (Article 113). 
5.20.  The Parties recognize each other's names listed in Annexes 9 and 10 as geographical 
indications (GIs),
34 within the meaning of Article 22.1 of  the TRIPS Agreement. They will be 
protected by each Party in their territory in accordance with their respective domestic laws and regulations and in a manner consistent with the TRIPS Agreement. The Parties may extend the 
                                               
34 China's list of geographical indications shall be in cluded in the Annex after the Free Trade Commission 
reaches a consensus to that effect (no list has been provid ed by China). Costa Rica's list is as follows: Banano 
de Costa Rica (banana of Costa Rica),  Café de Costa Rica (coffee of Cost a Rica), Guanacaste Madera (wood), 
Orosi, Tres Ríos, Turrialba, West Valley, Brun ca, Central Valley and Guanacaste (all coffee). WT/REG310/1 
 
- 34 - 
 
  protection under the Agreement to other GIs, fo llowing appropriate consultations and by mutual 
consent (Article 116).35 
5.21.  The Agreement requires any right holder that has initiated a process for the suspension by 
the customs authorities of the release of suspec ted counterfeit trademark or pirated copyrighted 
goods into free circulation, to provide adequate evidence that, under the relevant laws of the 
importing Party, there is prima facie  an infringement of the IPR and to supply sufficient 
information to make the suspected goods readily recognizable to the customs authorities. The 
competent authorities shall have the authority to require an applicant to provide a reasonable 
security or equivalent assurance sufficient to protect the defendant and the competent authorities and to prevent abuse. The information required shall not unreasonably deter recourse to these 
procedures. Where the competent authorities have made a determination that the goods are 
counterfeit or pirated, they shall inform the righ t holder, if requested, of the names and addresses 
of the consignor, importer, and consignee, as well as the quantity of the goods in question. The competent authorities shall be authorized to initiate border measures ex officio , without a formal 
complaint from the right holder, when there is reason to believe or suspect that goods being 
imported or exported are counterfeit or pirated (Article 114). 
5.22.  The Parties shall cooperate, on mutually agreed terms and subject to the availability of 
appropriate funds, on education and dissemination projects on the use of IPRs as a research and 
innovation tool. More specifically, the Parties shall exchange information on: conservation and sustainable use of biological biodiversity; prev ention of illegal access to genetic resources, 
traditional knowledge, innovation and practices; internal procedures regarding sharing equitable 
benefits arising from the use of genetic resources, traditional knowledge, innovations and 
practices; and other IPR issues. Furthermore, they agree to share experiences and coordination between the relevant customs administrations in the field of border measures and in the 
registration and promotion of geographical indi cations through the exchange of information and 
experiences on the technical mechanisms and registration procedures (Article 117).  
5.10  Cooperation 
5.23.  Chapter 11 contains provisions on cooperation in several areas including small and 
medium-sized enterprises; innovation, science and technology; export promotion and attraction of investment; culture, sports and recreation activities; agricultural co-operation; management of natural disasters; private dispute resolution (understood as alternative dispute resolution to 
include negotiation, mediation, conciliation, and arbitration); and competition.   
5.24.  Article 128 establishes the Committee on Cooperation, including representatives from each 
Party. Its functions include: to oversee the implementation of Chapter 11; to encourage the 
Parties to undertake co-operation activities; make recommendations on co-operation modalities; 
and review the operation of the Chapter.  
 
                                               
35 According to the Parties, no new GIs have been added to the list. WT/REG310/1 
 
- 35 - 
 
  ANNEX 1 
 
 1. Tables A1.1 (Costa Rica) and A1.2 (China) present the Parties' tariff elimination schedule 
by agricultural and non-agricultural products. In the case of Costa Rica, the share of the number of 
duty-free tariff lines went from 2.2% to 62.9%  upon the Agreement's entry into force and the 
overall average fell from 6.8% to 4.5%. For ag ricultural goods, China's exporters face in 
Costa Rica an average tariff rate of 9.5% instead 13.7%, and 3.6% instead of 5.6% for 
non-agricultural goods. By 2021, following ten year s of implementation, 88.5% of all tariff lines 
will be duty free, of which 90.8% for non-agricultural products and 74.4% for agricultural products. By 2025, these figures rise to 91%, 93.2% and 77.7%, respectively.  
Table A1.1 Costa Rica: Indicators of MFN ta riff rates and preferential rates for imports 
from China 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 6.8 6.9 2.2 13.7 13.7 0.0 5.6 5.8 2.5 
China 2011 4.5 12.1 62.9 9.5 19.7 51.9 3.6 10.4 64.8 
 2012 4.1 11.1 62.9 9.0 18.7 51.9 3.3 9.3 64.8 
 2013 3.7 10.1 62.9 8.6 17.8 51.9 2.9 8.3 64.8 
 2014 3.4 9.1 62.9 8.1 16.9 51.9 2.6 7.3 64.8 
 2015 3.0 9.1 67.0 7.7 18.3 58.1 2.2 7.1 68.4 
 2016 2.7 8.2 67.0 7.4 17.6 58.1 2.0 6.2 68.4 
 2017 2.4 7.4 67.0 7.1 16.9 58.1 1.7 5.3 68.4 
 2018 2.2 6.5 67.0 6.8 16.1 58.1 1.4 4.4 68.4 
 2019 1.9 5.7 67.0 6.5 15.4 58.1 1.1 3.5 68.4 
 2020 1.6 13.8 88.5 6.1 24.0 74.4 0.8 9.1 90.8 
 2021 1.6 13.7 88.5 6.1 23.9 74.4 0.8 8.9 90.8 
 2022 1.6 13.5 88.5 6.1 23.9 74.4 0.8 8.7 90.8 
 2023 1.5 13.4 88.5 6.1 23.8 74.4 0.8 8.5 90.8 
 2024 1.5 13.2 88.5 6.1 23.7 74.4 0.8 8.4 90.8 
 2025 1.5 16.8 91.0 6.0 27.1 77.7 0.8 11.1 93.2 
 
a WTO Definition. 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. At the MFN level, Ad-Valorem Equivalents (AVEs) were us ed for the calculation. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Costa Rica. 
 
2. In the case of China, the share of the number of duty-free tariff lines went from 9% to 
65.7% upon the Agreement's entry into force and the overall average fell from 9.7% to 4.8%. For 
agricultural goods, Costa Rica's exporters face in China an average tariff rate of 11.1% instead 15.2%, and 3.8% instead of 8.8% for non-agricultural goods. By 2021, following ten years of 
implementation, 95.8% of all tariff lines will be duty free, of which 97.3% for non-agricultural 
products and 86.7% for agricultural products. By 2025, these figures rise to 96.7%, 97.3% and 93.2%, respectively.  
 
 
  
 
  WT/REG310/1 
 
- 36 - 
 
  Table A1.2 China: Indicators of MFN tariff ra tes and preferential rates for imports from 
Costa Rica 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 9.7 10.7 9.0 15.2 16.4 7.5 8.8 9.7 9.2 
Costa 
Rica 2011 4.8 13.9 65.7 11.1 16.9 34.3 3.8 12.9 70.7 
 2012 3.8 11.0 65.7 9.1 13.9 34.3 2.9 10.0 70.7 
 2013 2.8 8.0 65.7 7.1 10.8 34.3 2.1 7.0 70.7 
 2014 1.7 5.1 65.7 5.1 7.8 34.3 1.2 4.1 70.7 
 2015 0.7 12.3 94.0 3.1 20.8 84.9 0.3 7.7 95.5 
 2016 0.7 11.8 94.0 3.0 20.2 84.9 0.3 7.2 95.5 
 2017 0.7 11.3 94.0 3.0 19.7 84.9 0.3 6.8 95.5 
 2018 0.6 10.8 94.0 2.9 19.1 84.9 0.3 6.4 95.5 
 2019 0.6 10.4 94.0 2.8 18.5 84.9 0.3 6.0 95.5 
 2020 0.6 14.1 95.8 2.7 20.4 86.7 0.2 9.1 97.3 
 2021 0.6 13.8 95.8 2.6 19.8 86.7 0.2 9.1 97.3 
 2022 0.6 13.6 95.8 2.6 19.4 86.7 0.2 9.1 97.3 
 2023 0.6 13.4 95.8 2.5 18.9 86.7 0.2 9.1 97.3 
 2024 0.6 13.2 95.8 2.4 18.3 86.7 0.2 9.1 97.3 
 2025 0.5 16.5 96.7 2.4 35.0 93.2 0.2 9.1 97.3 
 
a WTO Definition. 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by China.  
3. Table A1.3 shows market access opportunities  for China's top 25 exported goods in Costa 
Rica. These exports accounted for 47.9% of China's global exports during 2008-2010 and involved 69 tariff lines. Of these lines, 27 were already duty-free on a MFN basis and 15 were liberalized 
when the Agreement entered into force. Th e remaining lines are liberalized by 2020. 
 
Table A1.3 Costa Rica: Market access opport unities under the Agreement for China's top 
25 exports 
China's top export products in 2008, 2009, 2010  Access Conditions to Costa Rica's 
import markets 
MFN (2011)  Duty-
free in  
HS number and description of the product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines 
2011 
2020 Duty-
free 
Dutiable 
847130 Portable automatic data pr ocessing machines, weighing 
not more than 10 kg 8.7 0.0 1    
851712 Telephones for cellular networks or for other wireless 
networks, other than Line telephone sets with cordless 
handsets 4.8 0.0 1    
847330 Parts and accessories of the machines of heading 84.71  3.3 0.0 1    
851770 Parts of telephone sets, incl. telephones for cellular 
networks or other wireless networks 2.9 0.0 1    
901380 Liquid crystal devices not cons tituting articles provided for 
more specifically in other headings; other optical 
appliances & instr., n.e.s. in Ch.90 2.6 1.0  1 1  
851762 Machines for the reception, conversion and transmission or 
regeneration of voice, images or other data, including 
switching and routing apparatus 2.3 0.0 1    
890190 Vessels for the transport of goods & for the transport of 
both persons & goods (excl. of 8901.10-8901.30) 2.1 5.5  2 1 1  
854140 Photosensitive semiconductor devices, incl. photovoltaic 
cells whether/not assembled in modules/made up into 
panels; light emitting diodes 1.8 0.0 1    WT/REG310/1 
 
- 37 - 
 
  China's top export products in 2008, 2009, 2010  Access Conditions to Costa Rica's 
import markets 
MFN (2011)  Duty-
free in  
HS number and description of the product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines 
2011 
2020 Duty-
free 
Dutiable 
854231 Electronic integrated circuits, processors & controllers, 
whether not combined with memories, converters, logic 
circuits, amplifiers, clock & timing circuits,/other circuits 1.6 1.0 5 1 1  
852851 Other monitors, of a kind solely or principally used in an 
automatic data processing system of heading 84.71 1.4 0.0 1    
852872 Other colour reception apparatus for television, 
whether/not incorporating radio-broadcast 
receivers/sound/video recording/reproducing apparatus, 1.4 8.0  2 2  
847170 Storage units 1.4 0.0 1    
850440 Static converters 1.2  1.0  1 1  
271019 Petroleum oils and oils obtained from bituminous minerals 
(other than crude) and preparations not elsewhere 
specified  1.2 8.3 6 7 2 5 
852580 television cameras, digital cameras and video camera 
recorders 1.2 1.0  2 2  
852990 Other parts suitable for use solely/principally with the 
apparatus of headings 85.25 to 85.28., other than aerials 
& aerial reflectors of all kinds 1.2 8.0  2 1 1 
853400 Printed circuits 1.1  0.0 1    
852190 Video recording, repr. apparatus other than magnetic 
tape-type, whether not incorporating a video tuner 1.1 15.0  1 1  
640299 Other footwear with outer soles & uppers of 
rubber/plastics, not covering the ankle. 1.1 15.0  2  2  
950300 Tricycles, scooters, pedal cars and similar wheeled toys; 
dolls' carriages; dolls; other toys; reduced-size ("scale") 
models and similar recreational models, working or not; 
puzzles of all kinds. 1.0 13.7  18 2 16 
847150 processing units other than those of sub-heading  8471.41 
or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units 1.0
 0.0 1    
844331 machines which perform two or more of the functions of 
printing, copying or facsimile transmission, capable of 
connecting to an automatic data processing machine or to 
a network 1.0 0.0 1    
854232 Electronic integrated circuits, memories  0.9 1.0 5 1 1  
611030 Jerseys, pullovers, cardigans, waist-coats & similar 
articles, knitted or crocheted, of man-made fibres 0.9 15.0  1  1 
420212 Trunks, suit-cases, vanity-cases, executive-cases, brief-
cases, school satchels & similar containers, with outer 
surface of plastics or textile materials 0.8 15.0  1  1  
Total of above 47.9 10.2 27 42 15 27 
 
Note: Based on HS 2007 nomenclature.  Source:  WTO estimates based on data provided  by Costa Rica and UNSD, Comtrade database. 
 
4. Table A1.4 shows market access opportunities for Costa Rica's top 25 exported goods in China. These exports accounted for 63.5% of Costa Rica's global exports during 2008-2010 and 
involved 72 tariff lines. Of thes e lines, seven were already duty-free on a MFN basis and 45 were 
liberalized when the Agreement entered into force. At the end of the liberalization period in 2025, 
three lines (sanitary towels, palm oil and cane sugar) remain dutiable.  
 
  
 
   
 
  WT/REG310/1 
 
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  Table A1.4 China: Market access opportunities  under the Agreement for Costa Rica's top 
25 exports 
Costa Rica's top export products in 2008, 2009, 2010  Access Conditions to China's import markets 
MFN (2011) Duty-free in  
Remain dutiable HS number and description of the product  Share 
in 
global 
exports 
(%) Avg. 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines  
2011 
2015 
2020 
2025 Duty-free 
Dutiable 
847330 Parts and accessories of the machines 
of heading 84.71 8.9 0.0 2       
080300 Bananas, including plantains, 
fresh/dried 8.7 10.0  1    1  
080430 Pineapples, fresh/dried 7.9 12.0  1    1  
854231 Electronic integrated circuits, 
processors and controllers, whether or 
not combined with memories, 
converters, logic ci rcuits, amplifiers, 
clock & timing circuits  or other circuits 7.6 0.0 1       
901839 Catheters, cannulae & the like 3.9 4.0  1 1     
090111 Coffee, not roasted, not decaffeinated 3.8 8.0  1   1   
300490 Medicaments (excluding goods of 
heading 30.02, 30.05, 30.06 and 3004.10-3004.50) consisting of mixed and unmixed products for therapeutic and prophylactic uses 3.6 3.7  9 9     
210690 Food preparations, n.e.s. 3.1 19.5  4 1 3    
401110 New pneumatic tyres, of rubber, of a 
kind used on motor cars (incl. station wagons & racing cars) 1.5 10.0  1 1     
902190 Appliances which are worn, carried or 
implanted in the body, to compensate 
for a defect or disability (excl. of 
9021.10-9021.50) 1.4 4.0  1 1     
901890 Instruments & appliances used in 
medical, surgical or veterinary 
sciences, incl. other electro-medical 
apparatus and sight-testing instruments 1.4 4.0  9 9     
481840 Sanitary towels and tampons, napkins 
and napkin liners for babies and 
similar sanitary articles, of paper pulp, 
paper, cellulose wadding or webs of 
cellulose fibres 1.3 7.5  1     1 
151110 Palm oil, crude 1.1 9.0  1     1 
080719 Melons (excl. watermelons), fresh 1.0 12.0  3  2 1   
620711 Men's or boys' underpants and briefs 
(excl. knitted or crocheted), of cotton 0.9 14.0  1  1    
854449 Other electric conductors, for a 
voltage not > 1,000 V, not fitted with 
connectors 0.9 4.5 2 2 1 1    
271019 Petroleum oils and oils obtained from 
bituminous minerals (other than crude) and preparations not elsewhere specified or included 0.8 6.5  11 11     
701090 Carboys, bottles, flasks, jars, pots, 
phials and other containers, of glass, 
of a kind used for the conveyance or 
packing of goods; preserving jars of 
glass 0.8 14.0  4  4    
060491 Foliage, branches and other parts of 
plants, without flowers or flower buds, and grasses, mosses and lichens 0.8 10.0  1 1     
902139 Artificial parts of the body other than 
teeth, dental fittings & joints 0.7 4.0  1 1     WT/REG310/1 
 
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  Costa Rica's top export products in 2008, 2009, 2010  Access Conditions to China's import markets 
MFN (2011) Duty-free in  
Remain dutiable HS number and description of the product  Share 
in 
global 
exports 
(%) Avg. 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines  
2011 
2015 
2020 
2025 Duty-free 
Dutiable 
071410 Manioc (cassava) 0.7 8.3  3 3     
401693 Gaskets, washers & other seals of 
vulcanised rubber other than hard 
rubber 0.7 11.5  2 1 1    
170111 Cane sugar, raw, in solid form, not 
containing added flavouring/colouring matter 0.7 50.0  1     1 
200949 Pineapple juice (excl. of 2009.41), 
unfermented & not containing added 
spirit, whether/not containing added 
sugar/other sweetening matter 0.7 10.0  1  1    
060290 Live plants, n.e.s., incl. their roots; 
mushroom spawn 0.6 7.1 2 5 5     
Total of above 63.5 8.0 7 65 45 13 2 2 3 
 
Note: Based on HS 2007 nomenclature.  Source: WTO estimates based on data provided  by China, and UNSD, Comtrade database. 
 
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