RESTRICTED  
  
WT/TPR/S/286  
6 August 2013  
(13-4150)  Page: 1/151  
Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
COSTA RICA 
This report, prepared for the fourth Trade Policy Review of Costa Rica, has been drawn up by the 
WTO Secretariat on its own responsibility. The Se cretariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Costa Rica on its trade 
policies and practices.  Any technical questions arising from this report may be addressed to Ms Martha Lara 
(022 739 60 33) and Ms Katharine Waters (022 739 50 67). 
 Document WT/TPR/G/286 contains the policy statement submitted by Costa Rica. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Costa Rica. This report was drafted 
in Spanish. WT/TPR/S/286 • Costa Rica 
 
- 2 - 
 
  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
The economic environment................................................................................................. 8  
Trade and investment policy framework ............................................................................... 8  
Trade policies by measure .................................................................................................. 9  
Sectoral policies ............................................................................................................. . 11 
1   ECONOMIC ENVIRONMENT ........................................................................................ 13  
1.1   Overview ................................................................................................................. 13 
1.2   Macroeconomic trends ............................................................................................... 13 
1.2.1   Production  and employment .................................................................................... 13 
1.2.2   Structure of the economy ........................................................................................ 16 
1.2.3   Fiscal policy ......................................................................................................... . 17 
1.2.4   Monetary and exchange-rate policies ........................................................................ 19 
1.2.5   Balance of payments .............................................................................................. 21 
1.3   Trade and in vestment flows ....................................................................................... 22 
1.3.1   Fore ign trade ........................................................................................................ 22 
1.3.2   Mercha ndise trade ................................................................................................. 23 
1.3.2.1   Composition of merchand ise trade ......................................................................... 23 
1.3.2.2   Direction of merchandise trade .............................................................................. 24 
1.3.3   Trade in services ................................................................................................... 26 
1.3.4   Foreig n investment ................................................................................................ 26 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 28  
2.1   Introduction ............................................................................................................. 28 
2.2   Trade policy form ulation and ob jectives ....................................................................... 28 
2.3   International trade relations ....................................................................................... 30 
2.3.1   World Trade Organization ........................................................................................ 30 
2.3.2   Regional and bilatera l preferential agreements ........................................................... 32 
2.3.3   Developments during the period under review ............................................................ 32 
2.3.3.1   CACM ................................................................................................................  32 
2.3.3.2   Central America-United States-Dominican Republic Free Trade Agreement 
(CAFTA-D R) ....................................................................................................................  33 
2.3.3.3   Free Trade Agreement between Costa Rica and China ............................................... 34 
2.3.3.4   Free Trade Agreement between Central America and Panama: Bilateral Protocol 
between Costa Rica  and Panama ........................................................................................ 35 
2.3.4   Other pref erential regimes ...................................................................................... 35 
2.4   Foreign inve stment regime ........................................................................................ 36 
2.5   Business framework .................................................................................................. 37 
3   TRADE POLICIES  BY MEASURE .................................................................................. 38  
3.1   Overview ................................................................................................................. 38 
3.2   Measures a ffecting imports ........................................................................................ 40 WT/TPR/S/286 • Costa Rica 
 
- 3 - 
 
  3.2.1   Customs procedures ............................................................................................... 40 
3.2.1.1   Legal and in stitutional framework .......................................................................... 40 
3.2.1.2   Custom s procedures ............................................................................................ 41 
3.2.1.3   Trade facilitation measures ................................................................................... 42 
3.2.2   Custom s valuation ................................................................................................. 43 
3.2.3   Rules of origin .......................................................................................................  43 
3.2.4   Tariffs ............................................................................................................... ... 44 
3.2.4.1   Structure and levels ............................................................................................ 44 
3.2.4.2   Tari ff bindings .................................................................................................... 47 
3.2.4.3   Tariff preferences ................................................................................................ 47 
3.2.4.4   Tariff concessions ................................................................................................ 48 
3.2.4.5   Tariff quotas ....................................................................................................... 48 
3.2.5   Other charge s affecting imports ............................................................................... 49 
3.2.6   Import licensing, re strictions and prohibitions ............................................................ 50 
3.2.6.1   Prohibitions ........................................................................................................  50 
3.2.6.2   Licensing and restri ctions ..................................................................................... 50 
3.2.7   Anti-dumping, countervai ling and safegu ard measures ................................................ 51 
3.2.7.1   Anti-dumping and countervailing measures ............................................................. 51 
3.2.7.2   Safeguard measures ............................................................................................ 52 
3.2.8   Technical regu lations and standards ......................................................................... 53 
3.2.8.1   Legal and in stitutional framework .......................................................................... 53 
3.2.8.2   Development of technical regulati ons and conformity a ssessment procedures .............. 55 
3.2.8.2.1   National procedures .......................................................................................... 55 
3.2.8.2.2   Central Am erican procedures ............................................................................. 56 
3.2.8.3   Conformity assessment ........................................................................................ 56 
3.2.9   Sanitary and ph ytosanitary measures ....................................................................... 57 
3.2.9.1   Tr ansparen cy ..................................................................................................... 57 
3.2.9.2   Application .........................................................................................................  58 
3.3   Measures direct ly affectin g exports ............................................................................. 60 
3.3.1   Registration, docume ntation and expo rt licences ........................................................ 60 
3.3.2   Export charge s and minimum prices ......................................................................... 61 
3.3.3   Prohibitions and ot her export re strictio ns .................................................................. 61 
3.3.4   Export subsidies and other tax benefits ..................................................................... 62 
3.3.4.1   Subsidies ...........................................................................................................  62 
3.3.4.2   Free Zone Regime ............................................................................................... 63 
3.3.4.3   Inward Processing Regime .................................................................................... 66 
3.3.4.4   Other programmes .............................................................................................. 67 
3.3.5   Export financing,  insurance an d promotion ................................................................ 67 
3.4   Other measures affect ing production and trade ............................................................. 69 
3.4.1   Incorporation of comp anies and their tax regime ........................................................ 69 WT/TPR/S/286 • Costa Rica 
 
- 4 - 
 
  3.4.2   Competition poli cy and pric e cont rol ......................................................................... 70 
3.4.2.1   Competition policy .............................................................................................. 70 
3.4.2.2   Pr ice cont rol .......................................................................................................  73 
3.4.3   In centives ............................................................................................................  74 
3.4.3.1   Tax incentives .................................................................................................... 74 
3.4.3.2   Financial incentives ............................................................................................. 75 
3.4.4   State-trading enterprises, Stat e-owned enterprises and privatization............................. 76 
3.4.5   Governme nt procurement ....................................................................................... 78 
3.4.5.1   In troducti on ....................................................................................................... 78 
3.4.5.2   Legal framework ................................................................................................. 79 
3.4.6   Protection of intellectual property ............................................................................. 83 
3.4.6.1   In troducti on ....................................................................................................... 83 
3.4.6.2   Patents .............................................................................................................. 85 
3.4.6.3   New varieties of plants ......................................................................................... 86 
3.4.6.4   Trademarks ........................................................................................................ 87 
3.4.6.5   Geograph ical indications ...................................................................................... 87 
3.4.6.6   Copyright and related rights ................................................................................. 87 
3.4.6.7   Layout-designs of integrated  circuits ...................................................................... 88 
3.4.6.8   Undisclos ed information ....................................................................................... 88 
3.4.6.9   Enforcement ....................................................................................................... 89 
4   TRADE POLICE S BY SECT OR ...................................................................................... 90  
4.1   Overview ................................................................................................................. 90 
4.2   Agriculture ............................................................................................................. . 91 
4.2.1   General characteri stics ........................................................................................... 91 
4.2.2   Policy objectives and institutiona l framework ............................................................. 92 
4.2.3   Policy  instruments ................................................................................................. 93 
4.2.3.1   Tariff measures ................................................................................................... 93 
4.2.3.2   Export subsidies.................................................................................................. 94 
4.2.3.3   Dome stic support ................................................................................................ 94 
4.2.3.4   Subsidized inputs ................................................................................................ 97 
4.2.3.5   Marketing and prices ........................................................................................... 97 
4.2.3.6   Financing and insurance ....................................................................................... 99 
4.3   Manufacturi ng sect or .............................................................................................. 101  
4.4   Energy ..................................................................................................................  103 
4.4.1   Electrical energy .................................................................................................. 10 3 
4.4.2   Hydrocarbons ...................................................................................................... 106  
4.5   Services ................................................................................................................  107 
4.5.1   Main features and multilateral commitments ............................................................ 107  
4.5.2   Telecommunications ............................................................................................. 108  
4.5.2.1   Market characteri stics ........................................................................................ 108  WT/TPR/S/286 • Costa Rica 
 
- 5 - 
 
  4.5.2.2   Regulatory and institutional framework ................................................................ 110  
4.5.3   Financial services ................................................................................................. 113  
4.5.3.1   Overview ......................................................................................................... 11 3 
4.5.3.2   Banking and financial services ............................................................................. 114  
4.5.3.2.1   Mark et struct ure ............................................................................................ 114  
4.5.3.2.2   Legal framework ............................................................................................ 116  
4.5.3.3   In suranc e ........................................................................................................ 11 8 
4.5.3.3.1   Mark et struct ure ............................................................................................ 118  
4.5.3.3.2   Legal framework ............................................................................................ 120  
4.5.4   Transport ........................................................................................................... 1 23 
4.5.4.1   Overview ......................................................................................................... 12 3 
4.5.4.2   Maritime tr ansport and ports .............................................................................. 124  
4.5.4.3   Air transp ort and airp orts ................................................................................... 126  
4.5.5   Tourism .............................................................................................................. 128  
REFERENC ES ................................................................................................................ 132  
5   APPENDIX TABLES .................................................................................................. 135  
 
CHARTS 
 Chart 1.1 Exports and imports of good s by type of prod uct, 2007-2012 ................................... 24
 
Chart 1.2 Merchandise trade by trading partner, 2007 and 2012 ............................................. 25 
Chart 3.1 Frequency distribution  of MFN tariff  rates,  2013...................................................... 46 
Chart 4.1 Manufacturing production : regimes (value -added), 2012 ....................................... 102  
Chart 4.2 Manufacturing production : regimes (value -added), 2005 ....................................... 102  
Chart 4.3 Composition of credit granted by  the SFN to the priv ate sector , 2012 ...................... 115  
Chart 4.4 Modes of transport for exports in 2012 ................................................................ 123  
Chart 4.5 Origin of the visitors, 2007-2012 ........................................................................ 130  
 
TABLES 
 Table 1.1 Structure of GDP by expenditur e, 2007-2 012 ......................................................... 14
 
Table 1.2 Basic economic indicators, 2007-2012 ................................................................... 15 
Table 1.3 Financial accounts of the public sector, 2007-2012 .................................................. 17 
Table 1.4 Main monetary  indicators , 2007-2 012 ................................................................... 19 
Table 1.5 Balance of payments, 2007-2012  ......................................................................... 21 
Table 1.6 Trade in services, 2007-2012 ............................................................................... 26 
Table 1.7 Foreign investment position, 2007-2012 ................................................................ 27 
Table 2.1 Principal institutions (both public and private) involved in the formulation 
of trade and investment policies ......................................................................................... 29 
Table 2.2 Participation by Costa Rica in WTO dispute settlement; new cases, 
2007 to May 2013 ............................................................................................................ 31 
Table 2.3 Costa Rica's bilateral and region al agreements, situat ion at end May 2013 ................. 32 WT/TPR/S/286 • Costa Rica 
 
- 6 - 
 
  Table 2.4 Investment-related laws and agr eements, 2013 ..................................................... 36 
Table 3.1 Control by channel in the definitive im port regime .................................................. 42 
Table 3.2 Trade facilitation measures, 2007-2012 ................................................................. 43 
Table 3.3 Summary of the MFN tari ff, 2013  ......................................................................... 45 
Table 3.4 Structure of MFN tariffs, 2006 and 2013 ................................................................ 47 
Table 3.5 Summary analysis of Costa Rica's preferential  tariffs,  2013 ...................................... 48 
Table 3.6 Internal taxe s on imports, 2013 ........................................................................... 49 
Table 3.7 Import prohibitions, 2013 .................................................................................... 50 
Table 3.8 Requirements for th e import of ce rtain goods ......................................................... 50 
Table 3.9 Anti-dumping proced ures, January 2007 to May 2013 ............................................. 52 
Table 3.10 Authorities responsible for regulation, standardization, accreditation and 
certification in  Costa Rica .................................................................................................. 54 
Table 3.11 Export prohibit ions and rest rictions ..................................................................... 62 
Table 3.12 Investment requirements for be neficiaries under the Free Zone Regime ................... 64 
Table 3.13 Free Zone Regime: Income tax incentives for companies covered 
by subparagraph (f) of Law No. 7210 .................................................................................. 64 
Table 3.14 Statistics on the Free Zone Regi me 2006-2011 ..................................................... 65 
Table 3.15 Main taxes on companies ................................................................................... 70 
Table 3.16 COPROCOM. Cases resolved 2007-2012 ............................................................... 73 
Table 3.17 Tax exemptions for imports,  2007-2 012 .............................................................. 75 
Table 3.18 Principal financial incentiv es for production and investment .................................... 75 
Table 3.19 Principal autonomous institutions, Government-owned companies 
and State-tradin g compan ies ............................................................................................. 77 
Table 3.20 Contracts awarded to SMEs by the Central Gove rnment, 2007- 2012 ........................ 82 
Table 3.21 WIPO Treaties ra tified by Co sta Ri ca ................................................................... 84 
Table 4.1 Current Total Aggregate Measurement of Support, 2007-2012 .................................. 95 
Table 4.2 Rice: area sown, prod uction and yiel d, 2006-2 012 .................................................. 96 
Table 4.3 Lending of State and private banks, 2007-2011 .................................................... 100  
Table 4.4 Principal branches of activity according to value added by manufacturing 
production , 2011 ........................................................................................................... 10 3 
Table 4.5 Telecommunicati ons market, 2007-201 2 ............................................................. 109  
Table 4.6 Number of entities and compositio n of the assets of the SFN, 2007- 2012 ................. 114  
Table 4.7 Number of insurance ma rket participan ts, 2008-2 012............................................ 119  
Table 4.8 Direct insurance ma rket premiums , 2008-20 12 .................................................... 120  
Table 4.9 Main laws and regulations governing the insu rance market .................................... 121  
Table 4.10 Total cargo traffic, 2007- 2012 .......................................................................... 125  
Table 4.11 Bilateral air services agreemen ts and other instru ments in force ........................... 128  
Table 4.12 Visitors and income  from touris m, 2007-2012  .................................................... 129  
Table 4.13 Incentives for the tourism industry, 2013 ........................................................... 130  
 WT/TPR/S/286 • Costa Rica 
 
- 7 - 
 
  APPENDIX TABLES 
 Table A1. 1 Merchandise expo rts by produc t, 2007-2012  ..................................................... 135
 
Table A1. 2 Merchandise impo rts by produc t, 2007-2012  ..................................................... 137  
Table A1. 3 Merchandise exports by trading partner, 2007-2012 ........................................... 139  
Table A1. 4 Merchandise imports by trading partner, 2007-2012 ........................................... 140  
 
 
Table A2. 1 Notifications to the WTO, March 2007 to May 2013 ............................................ 141  
Table A2. 2 Main exceptions to national treatment in the field of investment, 2013 .................. 144  
 
 
Table A3. 1 Summary of Costa Rica 's preferential  tariffs , 2013 ............................................. 146  
Table A3. 2 Some tax incentives provided for in Law No. 7293 and its amendm ents ................ 148  
Table A3. 3 Procurement share by type of proced ure, 2007- 2011 ......................................... 150  
 
 
Table A4. 1 Costa Rica's in-quota imports, 2007-2012 ......................................................... 151  
 
 WT/TPR/S/286 • Costa Rica 
 
- 8 - 
 
  SUMMARY 
1. Since its last trade policy review in 2007, Costa Rica has continued to liberalize its foreign 
trade regime, chiefly through participation in pr eferential trade agreements, while at the same 
time maintaining a proactive policy of attracting investment based on the Free Zone Regime (RZF) 
and other incentive schemes. Thanks to this strategy, it has been able to diversify its production 
and export platform to cover higher technology products and services, and has facilitated the integration of the Costa Rican economy in a number of global value chains. 
2. The RZF has played a significant role in attracting foreign investment, boosting export 
performance and creating more and better jobs. However, linkages between domestic and export-oriented activities still need to be st rengthened. Reforms are also needed to increase 
competitiveness and improve the business climate. In particular, infrastructure needs 
to be improved, electricity tariffs and fuel pr ices reduced, and the gap between educational 
opportunities and market demand narrowed. On the macroeconomic front, fiscal consolidation is essential. The recent opening up to competition of various services subsectors that were previously 
State monopolies is a positive move towards increasing the economy's competitiveness 
and efficiency, as are the reforms introduced in trade-related areas such as the competition regimes, standardization, protection of inte llectual property and government procurement. 
The economic environment 
3. The Costa Rican economy grew at an annual av erage rate of 3.2% between 2007 and 2012, 
chiefly thanks to the strong performance of dome stic demand. At the same time, per capita GDP 
rose to US$9,665 in 2012. Costa Rica was able to cope with the effects of the global economic 
crisis of 2008-2009 by expanding public spending while maintaining financial stability. 
However, the country's fiscal position has deteriorated since then, and today, fiscal consolidation is one of the keys to its macroeconomic stability. Monetary policy has been directed towards 
consolidating the low inflation rates maintained  since 2009, while exchange-rate policy has been 
based on the exchange-rate band system. The Ce ntral Bank has intervened on the exchange 
market to defend the band floor in the wake of th e strong capital inflows over the past few years. 
4. The current account of the balance of payments showed a deficit throughout the period 
under review owing to the deterioration of the trade balance, which was offset by the surplus 
in the capital and financial account resulting from strong foreign investment flows. Diversification of Costa Rica's foreign trade continued, and today, services exports account for a third of foreign 
sales. The main goods exported are manufactures,  in particular micro-processors and medical 
equipment. Bananas continue to dominate agricultural exports, although other, non-traditional products have been gaining ground. Approximately 75% of Costa Rica's imports are manufactured 
goods. The Costa Rican economy is closely linked to that of the United States, 
which accounts for approximately 40% of trade in goods and foreign direct investment (FDI) flows to Costa Rica. The European Union, the countries of the Central American Common Market (CACM) 
jointly, Panama, Mexico and China are also important partners. Further diversification 
of Costa Rica's foreign trade markets would open up opportunities and improve sustainability. The fact that Costa Rica is a net recipient of FDI has contributed significantly to its economic growth and to growth in exports. 
Trade and investment policy framework 
5. Costa Rica has maintained an open trade and investment regime, which it considers 
essential to achieving its economic growth and development objectives. Its foreign trade policy 
is directed towards expanding its trade platform through stronger multilateral rules and new 
bilateral agreements, and by introducing the domestic reforms needed to be able to take full advantage of those agreements. 
6. As a founding Member of the WTO, Costa Rica participates actively both in the regular work 
of the Organization and in the negotiations under the Doha Development Round. It has also taken part in the negotiations to expand the coverage of the Information Technology Agreement (ITA). During the period under review, Costa Rica maintained a steady flow of WTO notifications, 
and brought a new case under the dispute settlement mechanism as complainant in relation 
to certain safeguard measures adopted by the Dominican Republic. WT/TPR/S/286 • Costa Rica 
 
- 9 - 
 
  7. Costa Rica is a member of the Central Amer ican Common Market (CACM) together with 
Nicaragua, Guatemala, Honduras and El Salvador. The CACM countries have harmonized some 93% of their common external tariff, strengthened Central American investment regulations and taken steps to facilitate trade among them, such as the simplification of customs 
and transit procedures, and the harmonization of technical regulations and sanitary 
and phytosanitary measures. 
8. One of the central pillars of Costa Rica's tr ade policy is the expansion of its network 
of regional and bilateral agreements, not only with its traditional trading partners in the Americas, 
but also with countries of Europe and Asia. New agreements to which Costa Rica is a party have entered into force since 2007: between Central America and Panama; between Central America, the United States and the Dominican Republic (CAFTA-DR); 
and between Costa Rica and China. Other agreements are either about to enter into force 
(Central America-Mexico, Costa Rica-Peru and Costa Rica-Singapore), going through the legislative process (Central America-European Union and Costa Rica-Colombia) or about to be signed 
(Costa Rica-European Free Trade Association). The agreements in force at the beginning of 2013 
covered some 68% of Costa Rica's exports and 76% of imports. 
9. Costa Rica has relatively few restrictions on foreign direct investment. They concern the 
energy, mining and fishing sectors as well as a number of services sectors: communications, 
advertising, transport, certain professional servic es, and certain recreational and sporting services. 
Since 2007, the insurance sector and certain telecommunications services have been liberalized. At the same time, a Supreme Court resolution lifted restrictions on foreign investment 
in Costa Rican airlines. Costa Rica is working on various projects to improve the business 
environment, including the streamlining, simplification and automation of procedures. 
Trade policies by measure 
10. Since its last review, Costa Rica has introduced measures to modernize its trade regime 
and facilitate trade. These include the computer ization of customs procedures, the reduction 
of formalities and documentation, the upgrading of  border posts, the launching of an authorized 
economic operator scheme, and amendments to its customs legislation. The tariff is the main trade 
policy instrument and all of the rates are ad valorem . The average applied MFN tariff remained 
unchanged during the review period, and stood at 6.9% in 2013. The average tariff for agricultural products (14%) is higher than for other products (5.5%). Costa Rica bound its entire tariff 
schedule, and the average bound rate (44.1%) is significantly higher than the applied rates, 
somewhat undermining the tariff regime's predictability. 
11. Almost all imports originating in the CACM countries enter Costa Rica duty free. In addition, 
Costa Rica grants tariff preferences to imports from the countries with which it has 
free trade agreements. 
12. Costa Rica applies domestic taxes in a non-discriminatory fashion to domestic and imported 
products with the exception of the Institute for Municipal Promotion and Support (IFAM) tax, 
which concerns only imported beer. The import permits applied to certain products, relate mostly to the protection of health, public security, and the environment. 
13. Costa Rica is not a frequent user of trade defence measures. Between 2007 and 2013, 
it applied only a couple of anti-dumping measures. It has harmonized its trade defence legislation 
with the relevant Central American regulations. 
14. Costa Rica has a sound legal and institutional framework for the development and 
application of technical regulations and sanitary and phytosanitary (SPS) measures, and has 
steadily been notifying these measures to the WTO.  It has made progress in harmonizing technical 
and SPS regulations with its CACM partners, and has reached agreements on the equivalence 
of SPS inspection systems with other trading partners. 
15. Certain exports (such as coffee, bulk sugar,  fish, molluscs and crustaceans) are subject 
to authorization for reasons of public health, environmental protection or quality assurance. The exportation of various species of wood logs is prohibited. A tax is applied to exports of coffee, 
live cattle and bananas. It might be worth reconsidering the rationale for these taxes to see WT/TPR/S/286 • Costa Rica 
 
- 10 - 
 
  whether their maintenance is justified. Until 2010, bananas were subject to a minimum export 
price for competition policy reasons. 
16. In 2010, Costa Rica amended its Law on the Free Zone Regime (RZF) in order to bring it into 
conformity with the WTO Agreement on Subsidies and Countervailing Measures before the end 
of the extension period granted for that purpose (31 December 2015). The main change was 
the elimination of export requirements fo r the companies benefiting from the RZF 
and of the restrictions on domestic sales. Cost a Rica is also working on reforming the Inward 
Processing Regime in order to meet its WTO commitments. 
17. Costa Rica maintains a number of other tax and financial incentive programmes to stimulate 
various productive and social activities. It would be worth assessing the impact of these programmes in order to rationalize the tax exemptio ns, particularly in view of the pressing need 
to consolidate public finances. 
18. The State continues to play a leading role in the economy through State enterprises 
operating in key sectors such as electricity, basic telephony, the administration of ports and 
railways, and the financial sector. A State enterprise (RECOPE) has a monopoly on the 
importation, refining and wholesale distribution of crude oil and its derivatives: it has been notified 
to the WTO as a State trading enterprise. Other State trading enterprises are expected to be 
notified in the near future. It might be worth evaluating the costs and tax burden of some of the 
services provided by State enterprises with a vi ew to minimizing their impact on the economy's 
competitiveness. 
19. In 2012, Costa Rica amended its legislation on competition policy so as to tighten control 
on anti-competitive practices. In particular, these reforms included the introduction of a prior 
notification obligation for mergers, increased investigative powers for the competition authority, and application of the regulations to providers of public services under concession that are not 
established by law. However, this does not include the State monopolies created by law. A number 
of sectoral regulations were also introduced to regulate competition in the markets supervised by the regulatory bodies of the financial and te lecommunications sectors. As of the middle of 2013, 
prices of regulated public utilities and rice were subjected to official control. 
20. Costa Rica is neither a party nor an observer to the WTO Plurilateral Agreement 
on Government Procurement. During the period under review, Costa Rica reformed its legal framework for government procurement, inter alia  to include changes in the types of procurement; 
to introduce framework agreement contracts and electronic auction; to automate procedures; 
and to stiffen the administrative penalties for acts of corruption. Changes were also made to the procurement regimes of State telecommunications and insurance companies in response to 
the recent opening up of these areas to competition. Costa Rica applies preferences for domestic 
products and small and medium enterprises when it comes to government procurement, subject to certain conditions. By law, the participation of foreign bidders is subject to reciprocity, 
but in practice, this condition is not applied. 
21. Since its last review, Costa Rica has introduced reforms aimed at modernizing its intellectual 
property system to accommodate technological progress and to meet the country's international commitments. Legislative reforms have covered practically all intellectual property rights as well as 
the enforcement regime. 2008 saw the enactment of the Law on the Protection of Plant Varieties, 
and in 2011, Costa Rica accepted the Protocol amending the TRIPS Agreement in respect of paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health. But in spite 
of the changes made, there would appear to be room for a more efficient enforcement regime, 
particularly as regards copyright. WT/TPR/S/286 • Costa Rica 
 
- 11 - 
 
  Sectoral policies 
22. In 2012, agriculture, forestry and fishing accounted for 5.7% of GDP and for 13.4% 
of employment, while generating 37.5% of goods exports. Although the average tariff protection 
level for the agricultural sector (WTO definition) is 14%, for some products (meat, dairy, potatoes, 
onions, sugar and rice) the tariffs are well above the average. Rice production also 
receives government support under a policy which maintains market prices at levels exceeding Costa Rica's WTO commitments, a policy which has not led to any increase in productivity. 
In May 2013, the Government issued a decree providing for the elimination of price fixing for rice 
as from March 2014. The marketing of some products, such as sugar and alcohol, is handled by State enterprises. 
23. The manufacturing industry contributed 15.4% to GDP and accounted for 11.3% 
of employment in 2012. At the same time, it accounted for 60% of goods exports. Manufacturing 
activities in the free zones continue to act as a magnet for FDI and play an important role in generating exports (more than 70% of expo rts of manufactures in 2012). However, the links 
between these zones and the rest of the economy remain fairly limited. Companies operating 
under the ordinary regime contribute 82% of manufacturing value-added; their products go chiefly to the domestic market, and in some cases, receive higher-than-average tariff protection. 
24. The State-owned Costa Rican Electricity Institute (ICE) controls most of the generation 
and distribution of electricity, and is exclusivel y responsible for transmission. The private sector 
is allowed to participate in the generation of electricity up to a limit of 30% of the national installed capacity. By law, the State has a legal monopoly on the importation, refining and 
wholesale distribution of hydrocarbons. Electricity tariffs and fuel prices are regulated, and the 
fact that they are among the highest in the region has an impact on the competitiveness of the Costa Rican economy. 
25. The services sector accounts for 62.7% of GDP and 67% of employment. Services exports 
have been extremely dynamic (in particular computer services and other business services), and this has led to a surplus in the trade balance in services. In fact, the services market 
regime is currently more open than the commitments adopted by Costa Rica under 
the General Agreement on Trade in Services (GATS), which are limited to a few sectors. Costa Rica accepted the Fifth Protocol of the GATS on financial services, but has not assumed any commitments in telecommunications. Although a number of services subsectors that were 
previously State monopolies were opened to competition during the review period, the State 
continues to be very present in certain services market segments. The recent opening up processes should be pursued and consolidated in order to ensure development in conditions 
of effective competition. 
26. With the end of the ICE State monopoly on mob ile telephony, Internet and private networks 
in 2009, the telecommunications sector has become highly dynamic. The opening up of the sector 
was accompanied by the introduction of a new legal and institutional framework, 
and the involvement of private operators has generated market competition and led to a more diversified supply of services and lower rates. 
27. The most significant change in the financial sector was the termination of the State 
monopoly of the National Insurance Institute (I NS), the enactment of new legislation and the 
creation of a regulatory authority for the sector. Although as a result, new participants entered the market and the total premium production increased, the INS still holds more than 90% of the 
industry's earnings. Foreign insurance companies may participate in the Costa Rican market by 
setting up as joint stock companies or through branch offices. There are no restrictions on foreign capital participation in insurance companies. Insurance contracts may be concluded with foreign 
insurance companies to cover risks that are expressly established in an international agreement 
between Costa Rica and the country of origin of the companies in question. 
28. The banking sector in Costa Rica continues to  be dominated by the State banks, which own 
approximately 65% of total banking assets. Foreign banks may establish a presence in Costa Rica 
through subsidiaries set up as joint stock companies, but not through branch offices. There are no 
limits on foreign capital in private banks incorporated in Costa Rica. Once established, the foreign banks are granted national treatment. However, there are still certain regulatory asymmetries WT/TPR/S/286 • Costa Rica 
 
- 12 - 
 
  between the private banks, domestic and foreign,  and the State banks - for instance the private 
banks must pay a "bank toll" to be able to receive current account deposits, and they have no deposit insurance. The State banks, for their part , are subject to government procurement rules. 
During the review period, a number of reforms we re introduced to discourage offshore banking 
operations and to improve the supervision of the banking sector. 
29. In the transport area, Costa Rica still faces problems relating to the quality of 
its ports and roads, which service 97% of its total export volume. In order to upgrade 
its infrastructure and improve efficiency, Costa Rica entrusted private companies with 
the construction, maintenance and operation of ports and airports, which by law must remain under State ownership. Cabotage services are restricted to vessels registered in Costa Rica. The air transport regime in Costa Rica is relatively open, and since 2007, 100% foreign-owned 
Costa Rican companies may provide air transport services for people, cargo and mail. During the 
period under review, Costa Rica concluded new b ilateral air transport agreements, some of them 
with countries outside of its traditional market, the Americas. The market for ground handling 
services is open to foreign investors, and there are no restrictions with respect to computer 
reservation systems, sale and marketing of air transport services or repair and maintenance 
of aircraft. 
30. The tourism sector, although somewhat affected by the global financial crisis, has recovered 
considerably since 2010. Revenue from tourism activities accounts for 14% of total exports 
of goods and services. The sector depends heavil y on tourists from the United States. During 
the review period, new laws were  introduced to promote rural community tourism, to regulate 
the certification of corporate social responsibility in the tourism industry, and to impose a fee on all 
passengers entering the country by air. A study commissioned by the Costa Rican Tourism Institute concluded that the effect of the fiscal cost of the different exemptions granted 
to the tourism industry was more than compensated by their beneficial impact on investment. 
 WT/TPR/S/286 • Costa Rica 
 
- 13 - 
 
  1  ECONOMIC ENVIRONMENT 
1.1  Overview 1.1.  The Costa Rican economy grew at an annua l average rate of 3.2% in real terms between 
2007 and 2012, chiefly thanks to th e buoyancy of domestic demand.
1 As a result, per capita GDP 
at current prices rose by 61% to reach a level of US$9,665 in 2012. Costa Rica was able to cope 
with the effects of the global economic crisis  of 2008-2009 by expanding public spending while 
maintaining financial stability and keeping inflation under control. Nonetheless, the country's public 
finances deteriorated during the period under review; and, despite efforts by the authorities 
to curb expenditure, the Central Government deficit widened to 4.4% of GDP in 2012, and the public debt rose to 35.3% of GDP, which is potentially unsustainable in the long run. The striking-down of a legislative initiative to implement a comprehensive fiscal reform in 2012 
complicated the Government's efforts to improve the tax administration. 
1.2.  Monetary policy has focused on consolidat ing the low inflation rates maintained since 2009 
and on strengthening control of the money suppl y by preventing excessive credit expansion. 
In terms of exchange-rate policy, the Central Bank has maintained its commitment 
to the parameters of the exchange-rate band th at has been in force since 2006, with a view 
to gradually migrating towards a floating exchange-rate system. Nonetheless, robust inflows 
of foreign capital in pursuit of interest-rate arbitr age, particularly in 2012, forced the Central Bank 
to intervene on the foreign exchange market to  defend the floor of the exchange-rate band; 
and this has fuelled a monetary expansion. Containing that excess money supply and restoring the public finance situation are the key challenges facing the country's macroeconomic stability. 
1.3.  On the external side, the current account  of the balance of payments showed a deficit 
throughout the period under review owing to the deterioration of the trade balance, despite the 
strong performance of service exports. This de ficit, which represented 5.2% of GDP in 2012, 
was more than offset by the surplus on the capital and financial accounts, fuelled by strong foreign 
capital inflows of both direct (FDI) and portfolio investment. Costa Rica's net international reserves stood at over US$6.8 billion in late 2012, thanks mainly to Central Bank interventions on the 
foreign exchange market and the issuance of a government bond on international capital markets. 
1.4.  The composition of Costa Rica's foreign trade continued to diversify during the period under 
review, with service exports, led by computer and business support services, accounting for one third of all foreign sales. Goods exports continue to be dominated by manufactured products 
(60% of the total), chiefly microprocessors and medical equipment. Bananas remain the main 
agricultural export, although other, non-traditional products have also been gaining ground. Approximately 75% of the country's imports are manufactured products, mainly machinery 
and transport material, chemical products and telecommunications equipment. 
While the United States remains Costa Rica's key trading partner, other important partners include the European Union, the countries of the Central American Common Market (CACM) as a whole, 
Panama and Mexico. China has also become significantly more important as an import source over 
the last few years. Costa Rica is a net FDI recipi ent; there was a sharp increase in FDI flows into 
the non-tourism services sector during the peri od under review. In 2012, the United States was 
the leading source of FDI received by Costa Rica , followed by Mexico, Spain, Venezuela, Italy 
and Colombia. 
1.2  Macroeconomic trends 1.2.1  Production and employment 
1.5.  The Costa Rican economy grew at an annua l average rate of 3.2% in real terms between 
2007 and 2012, albeit with large fluctuations. Considering the entire review period, growth was mainly driven by the expansion of domestic demand, both final household consumption and gross 
capital formation, while imports of goods and services outpaced exports in the same 
period (Table 1.1). 
                                               
1 If the growth recorded in 2007 with respect to 2006 is  included in the calculat ion, the average annual 
growth rate for the period is on the order of 4%. WT/TPR/S/286 • Costa Rica 
 
- 14 - 
 
  1.6.  The international economic crisis had a modest impact on the Costa Rican economy, 
causing a GDP growth slowdown in 2008 and a 1%  contraction in 2009 (Table 1.2). To mitigate 
the effects of the crisis, the authorities boosted public expenditure, mainly on infrastructure. They also raised wages and increased transfers for social programmes. This enabled the economy 
to stage a rapid recovery, and real GDP grew  by an average of 4.8% per year between 
2010 and 2012, while macroeconomic stability was preserved.
2 In 2012, GDP grew by 5.1% in real 
terms, fuelled mainly by the growth of exports, particularly manufactured goods, and by stronger 
investment. In 2013, however, domestic and external demand are both expected to weaken, 
and GDP is forecast to grow by 4%. 
Table 1.1 Structure of GDP by expenditure, 2007-2012 
 2007  2008  2009  2010a 2011a 2012a 
As a percentage of GDP at current prices  
Final consumption expenditure 80.1 82.2 83.1 82.1 83.3 82.9 
Final household consumption expenditure 66.8  67.8 66.4 64.5 65.3 65.1  
Final consumption expend iture of the general 
government 13.3 14.4 16.8 17.7 18.0 17.9 
Gross capital formation 24.7  27.6 16.3 20.6 21.6 21.2  
Gross fixed capital formation 21.8 23.6 22.1 19.8 19.8 20.2 
Changes in inventories 2.9  4.0 -5.8 0.8 1.8 1.0  
Exports of goods and services 48.7 45.4 42.3 38.2 37.4 37.7 
Exports of goods f.o.b. 35.8  32.2 30.5 26.7 25.7 25.7  
Exports of services 12.9 13.2 11.8 11.5 11.7 12.0 
Imports of goods and services 53.5  55.2 41.7 40.9 42.3 41.8  
Imports of goods f.o.b. 46.6 48.9 36.5 35.8 38.0 37.4 
Imports of services 6.9  6.3 5.2 5.2 4.3 4.4  
Net exports of goods and services -4.8 -9.8 0.6 -2.8 -4.9 -4.1 
Real annual growth (percentage, ba sed on GDP at constant 1991 prices)  
Final consumption expenditure 6.9 3.5 2.3 4.5 4.0 4.2 
Final household consumption expenditure 7.5  3.4 1.7 4.5 4.3 4.5  
Final consumption expend iture of the general 
government 2.3 4.4 6.7 4.7 1.5 1.7 
Gross capital formation -1.2  20.2 -34.7  33.4 13.0 4.8  
Gross fixed capital formation 18.1 11.0 -11.1  5.5 8.8 8.1 
Changes in inve ntories -74.4  180.0  -198.0  -141.3 79.6 -27.6  
Exports of goods and services 9.9 -2.0 -6.0 5.5 6.1 8.5 
Exports of goods f.o.b. 9.2  -4.4 -4.6 5.0 5.8 8.7  
Exports of services 12.7 6.9 -10.8  7.6 6.9 7.7 
Imports of goods and services 4.3  6.5 -18.9  16.5 9.5 7.0  
Imports of goods f.o.b. 3.7 8.6 -19.7  15.8 12.2 6.8 
Imports of services 8.1  -7.0 -12.5  21.5 -8.5 8.7  
a Preliminary figures. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica. 
1.7.  During the period under review, per capita GDP at current prices rose by 61.1%, to reach 
a level of US$9,665 in 2012 (Table 1.2); this is the highest per capita GDP in the Central American 
region and classifies Costa Rica as an upper-middle-income country. Despite the per capita income 
growth, however, the poverty rate, which had been reduced to 16.7% of the population in 2007, climbed back to 20.6% in 2012.
3 
1.8.  The unemployment rate, which was below 5% of the labour force in 2007 and 2008, 
rose from 2009 onwards to reach 7.8% in 2012 (Table 1.2), although the methodological changes 
in calculating the unemployment rate introduced in 2010 mean that the figures are not strictly 
comparable with those of previous years. The 15-24 year-old population group had the highest 
unemployment rate in 2012 at 23%. 
                                               
2 Costa Rica also entered into a high-access precautionary standby a rrangement with the International 
Monetary Fund (IMF), which also helped maintain macroeconomic and financial stability. 
3 The 2007 figures are not strictly comparable with those of 2012, owing to methodological changes. 
Information from the National Institute of  Statistics and Ce nsuses, viewed at: 
http://www.inec.go.cr/Web/Home/GeneradorPagina.aspx . WT/TPR/S/286 • Costa Rica 
 
- 15 - 
 
  Table 1.2 Basic economic indicators, 2007-2012 
 2007 2008  2009  2010a 2011a 2012a 
I. Gross domestic 
product (GDP)       
Current GDP (in colones 
(₡) million) 13,598,403 15,701,760  16,844,745  19,086,721  20,747,955 22,684,587  
Current GDP 
(US$ million) 26,322 29,838  29,383  36,298  41,031 45,107  
Real GDP, growth rate (%) 7.9 2.7 -1.0 5.0 4.4 5.1 
Per capita GDP (US$ at 
current prices) 5,997 6,703  6,516  7,954  8,892 9,665  
By branch of economic activity (percentage of current GDP)  
GDP at market prices 100.0 100.0  100.0  100.0  100.0 100.0  
Less: taxes on products 
and imports 
(net of subsidies) 10.7 10.6 8.9 8.8 9.2 9.1 
GDP at basic prices 89.3 89.4  91.1 91.2 90.8 90.9  
Agriculture, forestry and 
fishing 7.6 6.4 6.8 6.5 5.9 5.7 
Mining and quarrying 0.2 0.2  0.2 0.1 0.1 0.1  
Manufacturing industry 19.1 18.2 16.2 16.0 15.7 15.4 
Construction 5.1 5.5  5.8 5.3 5.0 5.1  
Electricity and water 1.7 1.7 2.7 2.4 2.2 2.2 
Services 55.6 57.3  59.4 60.8 61.9 62.4  
Commerce, restaurants 
and hotels 17.7 17.9 16.4 15.6 15.7 15.6 
Transport, storage and 
communications 9.0 9.1  8.5 8.9 9.0 9.2  
Financial services and 
insurance 5.7 6.0 6.5 6.3 6.3 6.4 
Real estate activities 2.9 2.8  2.9 2.8 2.8 2.8  
Other business services 4.8 5.1 5.8 6.4 6.8 7.2 
Public administration 3.5 3.7  4.2 4.5 4.6 4.6  
Community, social and 
personal services,  16.4 17.2 19.9 21.0 21.4 21.4 
Less: Financial 
intermediation services indirectly measured (FISIM) 4.3 4.5
 4.8 4.5 4.7 4.9  
By branch of economic activity (real growth  rate, based on GDP at constant 1991 prices) 
GDP at market prices 7.9 2.7  -1.0 5.0 4.4 5.1  
Less: taxes on products 
and imports (net of 
subsidies) 13.3 4.1 -4.7 5.6 6.5 5.3 
GDP at basic prices 7.4 2.6  -0.7 4.9 4.2 5.1  
Agriculture, forestry and 
fishing 5.6 -3.2 -2.8 6.7 1.1 3.5 
Mining and quarrying -1.5 -5.6  -14.2  -7.1 -3.2 5.3  
Manufacturing industry 7.0 -3.7 -3.9 4.0 4.2 6.3 
Construction 21.3 14.6  -3.0 -4.1 -3.8 5.7  
Electricity and water 2.3 -0.6 3.3 2.7 2.8 3.8 
Services 7.2 5.8  1.1 5.9 5.5 4.9  
Commerce, restaurants 
and hotels 6.6 3.4 -6.0 4.2 4.2 4.2 
Transport, storage and 
communications 9.8 7.6  3.0 6.9 7.7 5.9  
Financial services and 
insurance 11.8 8.6 5.0 1.5 4.9 7.5 
Real estate activities 4.6 5.0  2.4 3.5 3.4 3.7  
Other business services 11.6 12.1 9.4 14.8 12.1 9.6 
Public administration 1.6 4.7  5.2 3.5 0.9 -0.5  
Community, social and 
personal services,  3.8 4.4 5.1 4.4 2.7 2.8 
Less: Financial 
intermediation services indirectly measured (FISIM) 10.2 8.5
 6.1 0.4 5.6 7.7  
II. Other economic indicators (percentage of current GDP)  
Net national saving 
(% of GDP) 13.0 11.1  9.0 10.3 9.2 9.1  WT/TPR/S/286 • Costa Rica 
 
- 16 - 
 
   2007 2008  2009  2010a 2011a 2012a 
III. Employmentb  
Unemployment rate (%) 4.6 4.9  7.8 7.3 7.7 7.8  
Employed by branch of economic activity (percentage of employed)  
Agriculture, livestock and 
fishing 12.7 12.0  11.5 15.0 13.6 13.4  
Fishing 0.5 0.3 0.4 - - - 
Mining and quarrying 0.1 0.1  0.1 - - -  
Manufacturing industry 13.1 12.3 11.9 12.1 11.9 11.3 
Construction 7.9 7.8  6.6 5.5 6.0 6.3  
Electricity, gas and water 1.1 1.4 1.4 1.9 2.0 1.8 
Services 64.6 66.0  68.2 65.6 66.4 67.1  
Trade and repairs 19.0 19.3 20.0 18.3 18.2 17.6 
Hotels and restaurants 5.6 5.1  5.4 5.1 4.4 4.9  
Transport, storage and 
communications 6.5 7.3 7.6 6.3 6.3 7.1 
Financial establishments 2.6 2.7  2.5 2.6 2.6 2.6  
Real estate and business 
activities 6.3 7.0 6.7 6.7 7.5 8.7 
Public Administration 4.6 4.8  5.8 4.9 5.2 4.7  
Education 5.8 5.7 5.9 6.7 6.4 6.6 
Health and social welfare 3.3 3.3  3.7 3.4 3.4 3.3  
Community and personal 
services 3.8 4.1 3.9 3.7 4.3 4.4 
Households with 
domestic service 6.7 6.1  6.3 7.1 7.6 6.9  
Extraterritorial 
organizations 0.1 0.1 0.3 0.1 0.1 0.1 
Other unspecified 
activities 0.3 0.4  0.3 0.8 0.3 0.2  
a Preliminary figures. 
b In 2010 when the National Household Survey (ENAHO) replaced the Multipurpose Household Survey 
(EHPM), a number of methodologic al changes were made which mean that the absolute values 
reported from 2010 onwards are not comparable with those of earlier years. One of the main changes is that the working age population is now measured as persons of 15+ years of age, 
rather than 12 years and older,  as previously was the case. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica. 
1.2.2  Structure of the economy 
1.9.  The sectoral structure of the Costa Rican economy changed to some extent in the period 
under review. Services, which remain the leading se ctor overall, increased their share of (current) 
GDP, from 55.6% to 62.4% between 2007 and 2012 (Table 1.2), while the relative shares 
of the manufacturing industry and of agricultural, forestry and fishery activities shrank to 15.4% 
and 5.7% of GDP, respectively, in 2012. Within the services sector, the subsectors recording 
the largest GDP shares in 2012 were community, social and personal services (partly owing 
to the higher levels of social spending in 2009-2010); commerce, restaurants and hotels; 
transport, storage and communications; and business services. 
1.10.  Between 2007 and 2012, the most dynamic subsector of the economy was business services 
(including shared service centres, information technology centres and call centres), which posted 
real average growth of 11.6% per year. Other buoy ant subsectors included those recently opened 
up to private competition, such as transport, storage and communications, which grew by 6.2% in real terms between 2007 and 2012, and financia l services and insurance (5.5%). Growth in the 
first case, particularly in 2012, reflects strong er demand for cellphone and Internet services, 
as well as transport and freight services, and activities related to inbound tourism (aviation, travel agencies, car hire). In the second case, the buoyancy of the last two years is explained by income growth fuelled by the expansion of credit to the private sector and 
increased sales of insurance services. 
1.11.  The agriculture and manufacturing sectors were less vibrant during the review period, 
although manufacturing activity picked up in the last three years to grow by 6.3% in 2012 
(Table 1.2). This growth was mainly due to the ac tivity of firms participating under the free zone 
regime (RZF), particularly those producing microprocessors and parts for medical equipment. WT/TPR/S/286 • Costa Rica 
 
- 17 - 
 
  In 2012, there was also an increase in the output  of firms operating under the ordinary regime, 
driven by stronger demand, either external (dairy  products and palm oil) or domestic (inputs for 
construction and packaging of agricultural export products).4 
1.12.  In terms of employment by branch of economic activity, the services sector remains 
the most important, accounting for over two thir ds of all persons employed in 2012 (Table 1.2). 
Within that sector, the subsectors that generate most employment are trade and repairs; real estate and business activities; and transp ort, storage and communications. Agriculture, 
livestock and fishery activities provided 13.4 % of employment in 2012, while manufacturing 
industries accounted for 11.3% (compared to 13.2% and 13.1%, respectively, in 2007). 
1.2.3  Fiscal policy 1.13.  The Ministry of Finance is tasked with defi ning and implementing fiscal policy in Costa Rica. 
Over the last few years, the chief objective of fiscal policy has been to restore the health of the 
country's public finances, which deteriorated significantly during the review period. Nonetheless, despite efforts made to contain expe nditure and boost tax revenue, the fiscal deficit 
remains large and there has been a substantial increase in the debt/GDP ratio, which is a source 
of vulnerability and is potentially unsustainable in the long run. 
1.14.  The public accounts have posted deficits since 2009, owing to the continuous growth 
of public expenditure, particularly current expenses, while income has remained broadly stable 
(Table 1.3). In 2012, the Central Government recorded a financial deficit equivalent to 4.4% of GDP, resulting from total expenditure and income equivalent to 18.8% and 14.4% of GDP, respectively. The majority of expenditure consisted of current expenses, which grew 
by 10.5% in 2012, the main components being wages and salaries and current transfers to the 
public sector (mainly funding for social programmes and higher education programmes). 
1.15.  On the income side, tax revenues grew by 8.6% in 2012, to represent 13.3% of GDP. 
The key components were income and profits taxes and taxes on foreign purchases 
(tariffs and other import duties). Revenue from the latter dropped to 3.8% of GDP in the wake of the slower import growth in that year. 
Table 1.3 Financial accounts of  the public sector, 2007-2012 
(Percentage of current GDP)  
 2007  2008  2009  2010a 2011a 2012a 
Overall balance of the non-financial 
public sector (NFPS)b 1.6 0.6 -3.1 -4.9 -3.6 n.a.  
Central Government       
Total income 15.5  15.9 14.0 14.3 14.6 14.4  
Total current income 15.5 15.9 14.0 14.3 14.6 14.4 
Total tax revenue 14.9  15.3 13.4 13.0 13.3 13.3  
Customs 5.0 5.1 3.5 3.6 3.9 3.8 
Income and profits tax 3.9  4.4 4.1 3.9 4.0 3.9  
Domestic sales 2.8 2.8 2.7 2.6 2.5 2.6 
Consumption 0.1  0.1 0.1 0.1 0.1 0.1  
Other tax revenues 3.0 2.9 3.0 2.8 2.8 2.9 
Non-tax income 0.6  0.5 0.6 1.3 1.2 1.1  
Income from capital 0.0 0.0 0.0 0.0 0.0 0.0 
Total expenditure 14.9  15.7 17.4 19.5 18.7 18.8  
Total current expenditure 13.6 13.5 15.6 17.2 17.2 17.4 
Wages and salaries 5.2  5.5 6.6 7.1 7.3 7.3  
Expenditure on goods and services 0.5 0.6 0.6 0.6 0.7 0.6 
Current transfers 4.7  5.3 6.3 7.4 7.1 7.4  
Interest payments 3.1 2.2 2.1 2.1 2.2 2.1 
Total capital expenditure 1.3  1.8 1.8 2.4 1.5 1.5  
Investment in non-financial assets 0.3 0.4 0.5 0.3 0.3 0.2 
Capital transfers 1.0  1.4 1.3 2.0 1.1 1.2  
Bank capitalization 0.0 0.4 0.0 0.0 0.0 0.0 
Primary balance 3.7  2.4 -1.3 -3.1 -1.9 -2.3  
                                               
4 Central Bank of Costa Rica (BCCR) (2013). WT/TPR/S/286 • Costa Rica 
 
- 18 - 
 
   2007  2008  2009  2010a 2011a 2012a 
Current saving of the Central Government 1.9 2.4 -1.6 -2.9 -2.6 -3.0 
Financial balance of the Central 
Government 0.6 0.2 -3.4 -5.2 -4.1 -4.4  
Balance of the rest of the NFPSc 1.0 0.5 0.3 0.3 0.5 n.a. 
Total balance of the global public 
sectord 0.8 0.5 -3.9 -5.4 -4.2 n.a.  
Memorandum item:       
Total public debt of the Central Government 27.5  24.7 27.2 29.2 30.7 35.3  
Domestic debt 19.2 17.5 21.4 23.2 25.8 29.2 
External debt 8.3  7.2 5.8 6.0 4.9 6.1  
Total public debt of the rest of the NFPSc 4.2 5.0 6.6 6.6 7.5 7.4 
Domestic debt 0.3  0.4 1.4 2.2 2.8 2.9  
External debt 3.9 4.5 5.2 4.4 4.7 4.6 
Total public debt of the global public sectord 45.3  39.4 42.2 43.1 46.5 51.9  
Domestic debt 32.8 27.4 31.1 32.5 36.8 41.1 
External debt 12.5  12.0 11.1 10.6 9.7 10.8  
a Preliminary figures. b The non-financial public sector includes the Central Government and the rest of the NFPS. c The rest of the NFPS encompasses the decentralized bodies, non-business decentralized institutions, 
local governments, and non-financial public enterprises. Since 2012, data from the Costa Rican 
Electricity Institute (ICE) has not been published owing to the confidential status accorded to it 
by Law No. 8660. 
d The global public sector encompasses the NFPS plus the Central Bank of Costa Rica. n.a. Not available. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica. 
1.16.  The total public debt of the Central Government stood at 35.3% of GDP in late 2012 
(compared to 27.5% in 2007); and the total public debt of the global public sector (including the NFPS and the BCCC) represented 51.9% of GDP, its highest level since late 2005. 
During the review period, there was a change in the composition of the public debt, with the global 
public sector's domestic debt growing from  32.8% of GDP in 2007 to 41.1% in 2012, 
and the external component declining from 12.5% of GDP to 10.8%. 
1.17.  In 2012, an ambitious tax reform aimed at increasing revenues, which had been approved 
by Congress, was struck down by the Supreme Court on the grounds of procedural lapses. 
The measures proposed by the reform included expanding the tax base and turning the sales tax 
into a value added tax. In response to the over turning of the tax reform, the authorities have 
adopted specific measures to contain spending, boost revenue and upgrade the tax administration. 
These include imposing a freeze on new job creati on and the filling of vacancies in the public 
sector; restraining wage growth; rationalizing ex penditure on goods and services; and postponing 
non-priority public investment projects, among other things. The Government has also issued 
directives to cap the expenditure plans of mini stries and other public institutions subject 
to budgetary authority. The directive issued for 20 12 established that these public entities should 
not raise their current expenditure plans by more than 4% in relation to the 2011 level (excluding 
the education and security areas). 
1.18.  In 2012, the Legislative Assembly pa ssed the Fiscal Transparency Compliance Law, 
which aims to reduce tax evasion by expeditiou sly obtaining taxpayers' banking data and by 
exchanging tax data with banks in other countries; and the Law on Strengthening Tax 
Administration, which increased sanctions for taxpayers who default on their income-tax payment obligations. In April 2013, Costa Rica ratified the Convention on Mutual Administrative Assistance 
in Tax Matters, the multilateral agreement for fiscal cooperation and information exchange 
developed by the Organisation for Economic Co-operation and Development (OECD) and the 
Council of Europe, which has been open for signature since June 2011.
5 Costa Rica also has tax 
information exchange agreements with several countries.6 
                                               
5 Online information from the OECD viewed at: 
http://www.oecd.org/tax/costaricastrengthenstaxtransparency.htm . 
6 The list of countries can be viewed at: http://eoi-tax.org/jurisdictions/CR#agreements . WT/TPR/S/286 • Costa Rica 
 
- 19 - 
 
  1.19.  To finance the fiscal deficit and reduce the costs of doing so, the Government issued public 
debt bonds on the international market amo unting to US$2 billion between November 2012 
and April 2013, and expects to issue another US$2 billion over the next few years.7 
1.20.  The authorities recognize that the current fiscal imbalance is unsustainable in the long term 
unless appropriate steps are taken; and they are committed to strengthening the country's public 
finances.8 To that end, they are working on a new ta x reform project aimed at expanding the tax 
base, reducing exemptions and tax breaks, and increasing tax revenue. Once consensus has been 
reached on the draft law, it is expected to be submitted once again to Congress with the aim 
of gaining approval before a new government takes office in 2014. Achieving and maintaining 
the consolidation of the country's public finances, as well as boosting economic growth, are among the main challenges facing Costa Rica at the present time. 
1.2.4  Monetary and exchange-rate policies 
1.21.  Costa Rica succeeded in reducing inflation to historically low single-digit rates as from 2009, 
since when the monetary policy of the Central Bank of Costa Rica (BCCR) has focused on keeping 
inflation rates low, converging towards the rates prevailing in the country's main trading partners 
in the medium term. At the same time, the BC CR adopted measures to strengthen monetary 
control and prevent credit expansion to levels exceeding the economy's nominal growth. 
As regards exchange-rate policy, the BCCR has maintained its commitment towards 
the intervention exchange rates in the exchange-rate band established since 2006, while also 
attempting to gradually migrate to a more flexible floating exchange-rate system. Nonetheless, strong external capital inflows, particularly since the fourth quarter of 2012, 
have posed a challenge to monetary policy, and the BCCR has had to intervene actively on the 
foreign exchange market to defend the floor of th e exchange-rate band, which in turn has resulted 
in monetary expansion. 
1.22.  Since mid-2009, Costa Rica has managed to reduce and keep inflation in single figures 
(measured by the variation in the consumer price index – CPI) after almost three decades of two-digit rates (Table 1.4). In 2012, the CP I was 4.6%, within the inflation target range 
of 5% ± 1 percentage point set by the BCCR in the 2012-2013 macroeconomic programme. 
In 2012, regulated prices (which cover rice, fuels and various public services) rose by 9.9%, compared to just 3.2% inflation in unregulated prices.
9 
Table 1.4 Main monetary indicators, 2007-2012 
 2007  2008  2009  2010a 2011a 2012a 
Monetary aggregates (end of period)       
Monetary issuance ( ₡ billion )b 546 575 613 665 743 845 
M1 in the financial system ( ₡ billion ) 1,459  1,482  1,478  1,787 1,890 2,133  
M2 in the financial system ( ₡ billion ) 4,087  4,609  5,123  5,751 6,431 7,598  
M3 in the financial system ( ₡ billion ) 6,621  8,150  9,293  9,803 10,460 11,779  
Inflation (twelve-month variation, end of period)       
Consumer price index (CPI) 10.8  13.9 4.0 5.8 4.7 4.6  
Industrial producer price index (IPPI) including fuel 17.9 20.6 -1.0 4.1 8.1 3.6 
Industrial producer price index (IPPI) excluding fuel 14.6  23.5 -1.2 4.5 7.4 3.5  
Interest rates (period average)       
Average monetary policy rate 6.0  8.3 9.5 8.2 5.6 5.0  
Average interest rate on local currency loansc 17.3 16.7 21.6 19.8 18.1 19.7 
Average interest rate on  local currency depositsd 7.1  5.4 8.6 6.1 5.3 6.5  
Interest-rate spread, local currency 10.1 11.3 13.0 13.7 12.8 13.2 
Average interest rate  on loans, US$ 10.3  10.2 11.5 9.9 9.6 10.9  
Average interest rate on deposits, US$ 3.6 3.3 2.4 1.1 0.8 1.5 
Interest-rate spread, US$ 6.7  6.9 9.0 8.8 8.9 9.4  
                                               
7 Law No. 9070, published on 7 September 2012 authorizes the Government to issue up to US$4 billion 
on the international market over a ten-year period. 
8 IMF (2013). 
9 Online information from the BCCR. Viewed at: http://indicadoreseconómicos.bccr.fi.cr . WT/TPR/S/286 • Costa Rica 
 
- 20 - 
 
   2007  2008  2009  2010a 2011a 2012a 
Exchange rates       
Exchange rate (period average; ₡ per US$) 516.6  526.2  573.3  525.8 505.7 502.9  
Variation in the real effe ctive exchange rate with 
respect to the US$ (end of period, %)e -11.8  -12.5  8.8 -8.8 -2.8 -3.7 
Variation in the multilateral real effective exchange rate 
(end of period, %)e -10.7  -10.9  8.9 -10.7 -4.3 -3.0  
a Preliminary figures. 
b Includes banknotes and coins in circulation, issued by the Central Bank. c Corresponds to the weighted average of intere st rates notified by financial intermediaries 
to the Central Bank every Wednesday. The weights are the amounts of new loans made 
by each intermediary. 
d Corresponds to the weighted aver age of interest rates (at 1, 3 an d 6 months) notified by financial 
intermediaries to the Central Bank every Wednesda y. The weights are each intermediary's deposit 
balances. Income tax is deducted from yields at a rate of 8%. 
e A minus sign indicates an appreciation. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica 
and the IMF. 
1.23.  With the aim of keeping inflation at low levels, in June 2011, the BCCR embarked 
on a strategy for controlling the money supply which, among other things, involved reducing the monetary policy rate (TPM) to 5%, creating an  interest-rate corridor determined by the TPM, 
and initiating discretionary operations in the integrated liquidity market (MIL). In addition, to curb 
the supply of credit, in November 2011 the Centra l Bank extended the scope of the legal minimum 
reserve requirement, and progressively raised the corresponding rate to 15%.
10 Despite these 
measures, credit to the private sector gr ew by between 13% and 14% in 2011 and 2012, 
with a more accentuated growth of US dollar-denominated loans. 
1.24.  Interest rates on operations denominated in colones remained high throughout the period 
2007-2012, reaching a peak in 2009 (Table 1.4). In 2012, rates rose again, driven by the heavy 
financing requirements of the public sector and strong demand for credit by the private sector. Although rates eased somewhat in late 2012, they remained high.
11 The financial intermediation 
spread also remained at high levels throughout the review period (averaging 13.2% in 2012), 
which signals an opportunity to improve the efficiency of financial intermediation. 
1.25.  Costa Rica adopted an exchange-rate-band system in 2006, with a view to migrating 
gradually and in orderly fashion towards a floating exchange-rate system, which is an essential 
requirement for establishing an inflation-target ing regime. During the review period, the BCCR 
intervened regularly on the foreign-exchange market: firstly to defend the upper bound of the exchange-rate band between 2008 and 2009, and subsequently to defend the floor, 
making transactions of over US$4 billion (of which US$1,322 million in 2012). The heavy inflow 
of foreign capital motivated by interest-rate arbitrage, particularly in the latter months of 2012, exerted heavy pressure for an appreciation of the domestic currency, the colón, and forced the BCCR to intervene in the currency market, which in turn resulted in a monetary expansion that 
was partly sterilized with short-term instruments. If the heavy inflow of foreign exchange 
continues under the current exchange-rate regime, which provides little flexibility, the situation 
could endanger the recent achievements on inflation. 
1.26.  The BCCR considers that the challenge for monetary policy in 2013 is to mop up excess 
liquidity with medium- and long-term debt instruments, apply measures to discourage larger capital inflows from abroad, and prevent a credit expansion that would put financial stability 
at risk. In addition, to ensure that the adjust ment does not affect interest rates, the BCCR 
is considering adopting other policy instruments.
12 In January 2013, it sent a draft law 
to the Legislative Assembly, authorizing it to increase income tax on financial yields paid to persons who are not resident in Costa Rica (currently 8%), and to establish an unremunerated 
compulsory deposit of up to 25% of capital inflows that are invested in securities registered in the 
                                               
10 BCCR (2012a). 
11 The basic deposit rate ( tasa básica pasiva  – TBP), which is a benchmark widely used by financial 
entities to set credit rates to the private sector, rose sharply in 2012. This led to the BCCR to change the 
methodology for calculating the TBP, excluding instruments issued by th e Central Bank itself and by the 
Ministry of Finance, as well  as atypical values, to obtain a more stable indicator. 
12 BCCR (2012b). WT/TPR/S/286 • Costa Rica 
 
- 21 - 
 
  country. At the time of writing, the draft law was proceeding through the legislative process. 
Moreover, in early 2013, the BCCR set a 9% limit on the rate of growth of credit extended 
by banks between February and Octobe r 2013, and an annual limit of 12.2%. 
1.27.  The average nominal exchange rate of the colón against the dollar was ₡502.9 per US$1 
in 2012, compared to ₡516.6 in 2007, which means a 2.7% nominal appreciation of the domestic 
currency between these dates; between 2009 and 2012, however, the appreciation was on the order of 12.3%. For its part, the real effective exchange rate has appreciated by about 20% since 
2007, mainly owing to the large inflation differentials.
13 The strengthening of the colón has 
undermined the competitiveness of the national economy, with its impact being felt on exports of goods and services (particularly inbound tourism); and in the long run it could affect external stability. There have also been increases in business production costs (social charges, wages, 
inputs, etc.). The situation calls for measures to enhance productivity and thus regain 
competitiveness, as well as finding a lasting solution to the fiscal imbalance to underpin the country's long-term external stability.
14 
1.2.5  Balance of payments 
1.28.  Throughout the period under review, the current account maintained a deficit, which was 
equivalent to 5.2% of GDP in 2012 (Table 1.5). This was mainly caused by the negative trade gap, 
which, having narrowed in 2009, widened again as  from 2010. In some of the years analysed, 
the growth of the import bill is explained by the rise in international fuel prices. In 2012, 
the increased outgoings in respect of imports mainly reflected the purchase of other raw materials and capital goods by firms (both under the ordinary  regime and under special regimes), along with 
consumer goods. 
Table 1.5 Balance of payments, 2007-2012 
(US$ million) 
 2007  2008  2009  2010 2011a 2012a 
Current account -1,646  -2,787  -576  -1,281 -2,203 -2,341  
Goods -2,985  -5,013  -2,039  -3,440 -5,151 -5,309  
- Exports f.o.b. 9,299  9,555  8,838  9,516 10,383 11,442  
- Imports f.o.b. -12,285  -14,569  -10,877  -12,956 -15,534 -16,752  
Services 1,734  2,201  2,188  2,537 3,193 3,525  
- Transport -325 -312 -215 -359 -373 -459 
- Travel 1,393  1,689  1,448  1,575 1,747 1,969  
- Other services 667 824 955 1,321 1,819 2,015  
Income -865  -417 -1,084  -745 -567 -886  
- Employee remuneration 8 7 10 -7 0 -28 
- Investment income -873  -424 -1,093  -738 -567 -858  
Current transfers 470 442 359 366 323 329 
- General government 12  31 24 10 19 5  
- Other sectors 458 411 335 356 304 324 
Capital and financial account 2,581  2,487  707 1,986 2,556 4,384  
Capital account 21 7 58 54 22 38 
- Capital transfers 21  7 58 54 22 38  
- Purchase/sale of non-produced, 
non-financial assets 0 0 0 0 0 0 
Financial account 2,560  2,480  649 1,933 2,535 4,347  
- Direct investment 1,634  2,072  1,339  1,441 2,098 1,839  
-- Abroad -262  -6 -7 -25 -58 -426  
-- In the reporting economy 1,896  2,078  1,347  1,466 2,156 2,265  
- Portfolio investment 0  402 -286 373 263 2,112  
-- Equity securities -42 -12 -3 2 0 183 
-- Debt securities 42  413 -283 371 263 1,929  
                                               
13 IMF calculations suggest that the real effective exchange rate is moderately overvalued. IMF (2013). 
14 IMF (2013). WT/TPR/S/286 • Costa Rica 
 
- 22 - 
 
   2007  2008  2009  2010 2011a 2012a 
- Other investment 927 6 -404 119 173 395 
-- Commercial credit 52  12 -223 -298 -224 -278  
-- Loans 963 479 -776 613 605 756 
-- Currency and deposits -79  -607 380 -124 -135 -48  
-- Other assets and liabilities -9 122 215 -72 -73 -35 
Errors, omissions and 
unidentified capital flows 213 -48 129 -144 -221 67  
Variation in reserve assetsb -1,148  348 -260  -561 -132 -2,110  
Net international reserves of the 
Central Bank (US$ million) 4,114
 3,799  4,066  4,627 4,756 6,857  
In terms of months of imports of 
goods and services 3.5 2.8 4.0 3.8 3.3 4.4 
Memorandum item:       
Current account/GDP (percentage) -6.3 -9.3 -2.0 -3.5 -5.4 -5.2 
Capital and financial account/GDP 
(percentage) 9.8 8.3 2.4 5.5 6.2 9.7  
Total external debt 
(US$ million) 8,444  9,105  8,238  9,189 10,919 14,473  
Total external debt (% of GDP) 32.1  30.5 28.0 25.3 26.6 32.1  
a Preliminary figures. 
b A minus sign denotes an increase. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica. 
1.29.  The merchandise trade deficit was partly compensated by a continuous increase 
in the surplus on trade in services during the review period, which itself reflected a sharp increase in income from computer and information services (which grew annually at two-digit rates) 
and, to a lesser extent, other business services and tourism. The income account posted a deficit 
in the period 2007-2012, mainly reflecting profit repatriation by foreign firms operating in the country, while the current transfers account recorded a surplus, albeit dwindling, 
linked to the trend of inflows of family remittances. 
1.30.  The current account deficit was fully financed by the surplus on the capital and financial 
account, which grew throughout the review period (except in 2009). This surplus was the result of major FDI inflows, a higher level of external borrowing (both public and private) and substantial 
inflows of portfolio investment. This trend was pa rticularly notable in 2012, when external capital 
flows represented 9.7% of GDP. In that year, the Government also issued a US$1 billion bond on the international capital markets. 
1.31.  External capital flows, in conjunction with foreign-exchange purchases by the BCCR, 
generated a very large increase in the country's  net international reserves (NIRs), despite the 
persistent current-account deficit. In late 2012, the NIRs reached a level of US$6,857 million, 
equivalent to 4.4 months' imports of goods and services. 
1.32.   During the period under review, the external debt grew significantly in absolute terms, 
to stand at US$14,473 million in 2012 (compared to US$8,444 million in 2007). As a proportion of GDP, the external debt trended down betw een 2007 and 2010, but picked up again in the 
ensuing years to reach a level of 32.1% of GDP in 2012 (Table 1.5). This increase reflects 
the Government's strategy to reduce financing cost s by replacing domestic debt by external debt. 
The latter represented 85% of goods and services exports in 2012.
15 
1.3  Trade and investment flows 
1.3.1  Foreign trade 1.33.  Costa Rica's foreign trade in goods and services (exports plus imports) declined 
from 102% of GDP in 2007 to 79.5% in 2012 (Table 1.1), partly as a result of the appreciation 
of the colón. In the 2011 world trade rankings, Costa Rica was placed 90
th as a merchandise 
                                               
15 BCCR (2013). WT/TPR/S/286 • Costa Rica 
 
- 23 - 
 
  exporter, and 83rd as an importer; and in the case of services it was ranked 68th and 110th 
respectively.16 During the review period, its foreign tr ade continued to diversify, as services, 
led by information technology, gained a larger share of the export basket. Between 2007 and 2012, exports of services grew from 27.6% of Costa Rica's total export value to 32.7%.
17 
1.3.2  Merchandise trade 
1.3.2.1  Composition of merchandise trade 1.34.  Appendix Tables A1.1 to A1.4, prepared on the basis of the United Nations COMTRADE 
database, show the composition and direction of Costa Rica's merchandise trade, including data 
concerning the free zones. Costa Rica's foreign trade continued to grow in the review period (except in 2009, in the wake of the global crisis ), but more slowly than in the period covered 
by the previous review (2001-2005). COMTRADE data show that goods exports grew by 27.1% 
between 2007 and 2012, compared to 51.6% in the period 2001-2005. Imports also grew more 
slowly: by 37.7% between 2007 and 2012, compared to 46.3% between 2001 and 2005.
18 
In 2012, merchandise exports amounted to US$11,343 million, while imports totalled 
US$17,572 million. 
1.35.  Manufactured products (classified accordin g to SITC Rev.3) continue to dominate goods 
exports, although their share in the total droppe d slightly from 62.5% in 2007 to 60.5% in 2012 
(Table A1.1 and Chart 1.1). In contrast, the share of agricultural products grew to 37.5% 
of foreign sales in 2012. The leading manufactured exports are electronic goods, followed by medical instruments, chemical products (including medicines) and other semi-manufactures (including tyres, paper articles and rubber). Th e performance of manufactured exports is closely 
related to the sales of integrated electronic circuits and computer parts, as well as medical 
instruments and devices, produced by firms located in the free zones. These products alone accounted for one third of all exports in 2012. Among agricultural goods, bananas are the main 
individual export category, although other, non-tr aditional products such as pineapple, palm oil 
and prepared foods saw their shares grow during  the review period. Agricultural exports also 
include coffee, melons, yucca, flowers and foliage. 
1.36.  Manufactured products accounted for 73.9% of Costa Rica's total imports in 2012, a share 
similar to that recorded in 2007 (Table A1.2 an d Chart 1.1). Within the category, the leading 
imports include machinery and transport material, chemical products, and telecommunications machinery and equipment (integrated circuits). Imports of products from the extractive industries 
account for 15% of the total and correspond esse ntially to fuels, the value of which grew 
by 50% between 2007 and 2012, mainly owing to the rise in international oil prices. 
Agricultural products represent 10.8% of the impo rt bill and consist mainly of food products. 
                                               
16 The data exclude intra-European Union trad e. WTO Trade Profiles, viewed online at: 
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Country=CR&Language=F . 
17 Calculated with balance-of-payments data. 
18 The data used to calculate the 2001-2005 figures were obtained from WTO (2007). WT/TPR/S/286 • Costa Rica 
 
- 24 - 
 
  Chart 1.1 Exports and imports of goods by type of product, 2007-2012 
0%10%20%30%40%50%60%70%80%90%100%
2007 2008 2009 2010 2011 2012Exports Imports
0%10%20%30%40%50%60%70%80%90%100%
2007 2008 2009 2010 2011 2012
Manufactures
Products of the extractive industries/minerals OtherAgricultural products
 
Source: WTO Secretariat estimates based on information obtained from the UNSD COMTRADE database 
and the Costa Rican authorities for 2012. 
1.3.2.2  Direction of merchandise trade 
1.37.  During the review period, the United States consolidated its position as Costa Rica's leading 
export market, receiving about 40% of the country's goods exports in 2012 (Table A1.3 
and Chart 1.2). The share of exports to the United  States started to rise in 2010, a year after 
the Central America-United States-Dominican Re public Free Trade Agreement (CAFTA-DR) entered 
into force. The member countries of the CACM jointly absorbed 14% of Costa Rican exports 
in 2012, slightly above the share recorded in 2007; and the shares of other countries in the 
region, such as Panama and Mexico, increased during the same period. Exports to Europe also grew relatively, to account for over 18% of the country's total exports in 2012, the leading 
destinations being the Netherlands, Belgium, the United Kingdom, Italy and Germany. In Asia, 
the main export markets are Hong Kong, China; Malaysia and the People's Republic of China, although the latter's share of Costa Rican expo rts dropped sharply during the review period.
19 
1.38.  The United States is also the leading so urce country for Costa Rican imports, providing 
about 50% of the country's foreign goods purchases in 2012, compared to 38% in 2007 
(Table A1.4 and Chart 1.2). Another important supplier on the American continent is Mexico (6.6% of total imports in 2012). The CACM countries slightly increased their joint participation 
as an import source during the review period (from 4% to 5%). Imports originating in Asia 
accounted for 16% of the total, led by China, whose share grew to 8.2% in 2012, whereas Japan's share declined. The countries of the European Union, led by Germany and Spain, 
supplied 7% of Costa Rican imports in 2012, compared to 11% in 2007. 
                                               
19 This was due to a change in the production line of high-technology companies which resulted in a 
reduction in exports to the Chinese market. WT/TPR/S/286 • Costa Rica 
 
- 25 - 
 
  Chart 1.2 Merchandise trade by trading partner, 2007 and 2012 
2007 2012
(a)    Exports
Total: US$8,928 million
(b)    Im ports 
Total: US$12,758 m illion Total: US$17,572 m illionTotal: US$11,343 m illionPanama
3.5%Other
0.3%
United States
36.6%
EU (27)
18.2%
Other 
America
8.9%EU (27)
15.5%
Mexico
5.8%China
9.4%Other Asia
12.5%
AmericaUnited 
States
39.2%
Other America
9.5%China
2.9%
Other Europe
0.3%Other Asia
10.0%Other
0.8%
Asia
AmericaAsia
United 
States
38.4%
Other 
America
20.4%EU (27)
11.1%Other Europe
1.0%Japan
5.7%
China
5.9%Other 
Asia
6.5%Other
1.2%
United 
States
49.8%
Mexico
6.6%Other 
America
11.7%EU (27)
7.0%Other Europe
1.0%China
8.2%Other 
Asia
4.6%Other
2.9%
America AmericaEuropeEuropeAsiaAsiaCACM
13.3%
Japan
3.2%EuropeEuropeOther 
Europe
0.1%
CACM
14.0%Panama
5.1%
CACM
4.0%
CACM
5.0%
 
 
 
CACM: El Salvador, Guatemala,  Honduras and Nicaragua. 
Source: UNSD COMTRADE database and information provided by the Costa Rican authorities for 2012. WT/TPR/S/286 • Costa Rica 
 
- 26 - 
 
  1.3.3  Trade in services 
1.39.  Costa Rica's trade in services maintained a surplus throughout the review period, 
amounting to US$3,525 million in 2012 (Table 1.6). The leading export categories were travel (inbound tourism), followed by computer and information services and other business services. 
The rapid growth of the last two categories reflects  the diversification of Costa Rica's export basket 
towards a larger share of services that are in tensive in skilled labour. On the import side, 
transport and travel were the leading categories.  
Table 1.6 Trade in services, 2007-2012 
(US$ million) 
 2007  2008  2009  2010 2011a 2012a 
Services 1,734  2,201  2,188  2,537 3,193 3,525  
Credits (exports) 3,552  4,083  3,593  4,320 4,973 5,560  
- Transport 317  371 289 308 367 419  
- Travel 2,026  2,283  1,815  1,999 2,152 2,425  
- Communication services 46  39 45 41 29 25  
- Construction services 0 0 0 0 0 0 
- Insurance 0  0 0 0 0 0  
- Financial services 12 14 16 26 29 33 
- Computer and information services 500  683 758 1,217 1,549 1,831  
- Royalties and licence fees 0 1 1 8 4 4 
- Other business services 620  662 642 690 818 794  
- Personal, cultural and recreational services 0 0 0 0 0 0 
- Government serv ices n.i.e. 32  30 26 32 26 27  
Debits (imports) -1,818  -1,882  -1,405  -1,783 -1,780 -2,035  
- Transport -642  -683 -504 -666 -740 -878  
- Travel -634 -593 -367 -424 -405 -456 
- Communication services -92  -110 -100 -99 -85 -91  
- Construction services 0 0 0 0 0 0 
- Insurance -117  -149 -119 -131 -141 -146  
- Financial services -14 -12 -10 -18 -21 -32 
- Computer and inform ation services -15  -6 -12 -22 -30 -28  
- Royalties and licence fees -53 -62 -65 -64 -59 -82 
- Other business services -248  -263 -223 -352 -282 -314  
- Personal, cultural and recreational services 0 0 -2 -3 -7 -3 
- Government serv ices n.i.e. -4  -4 -4 -4 -9 -6  
a Preliminary figures. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica. 
1.3.4  Foreign investment 
1.40.  Costa Rica is a net recipient of foreign direct investment. Between 2007 and 2012, 
its FDI stock grew by 112.6%, to reach a level of US$18,713 million (41.5% of GDP) - a relatively 
large amount considering the size of the economy (Table 1.7). During the same period, FDI inflows 
into the country continued to grow (except in 2009-2010 as a result of the global financial crisis) and averaged around US$2 billion per year, compar ed to average of US$670 million in the period 
2001-2005. In 2012, Costa Rica received FDI flow s totalling US$2,265 million, equivalent to 5% 
of GDP. Direct investment by Costa Rica abroad remains modest, although it has increased: its FDI stock abroad totalled US$1,570 million in 2012. 
1.41.  The sustained growth of FDI flows into Costa Rica reflects the authorities' efforts to create 
a favourable climate for investment and exploitation of the country's comparative advantages. The main attractors of FDI flows into Costa Rica include tax incentives, offered mainly under 
the special regimes (free zones), the availability of skilled labour and the country's political 
and economic stability. In addition, Costa Rica's participation in the Central American integration process, its membership of several free trade agreements and the entry into force of CAFTA-DR (as of 2009) have given a dditional momentum to FDI inflows. WT/TPR/S/286 • Costa Rica 
 
- 27 - 
 
  Table 1.7 Foreign investment position, 2007-2012 
(US$ million) 
 2007  2008  2009  2010 2011a 2012a 
Direct investment in Costa Rica 8,803  10,878  12,386  14,066 16,201 18,713  
Direct investment abroad 525 531 545 649 1,106 1,570  
Portfolio investment in Costa Rica 1,157  922 1,010  1,187 1,293 3,102  
Portfolio investment abroad 1,488  951 1,496  1,352 1,148 990 
a Preliminary figures. 
Source: Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica. 
1.42.  During the period under review, there was a change in the sectoral composition 
of FDI flows, mainly in favour of the service in dustry. Traditionally, the sector absorbing most 
FDI has been manufacturing, particularly high-technology segments such as electronic components 
and medical equipment produced in the free zones. Nonetheless, over the last couple of years, 
the manufacturing sector's share in total FDI fl ows fell steeply to a level of 25.4% in 2012, 
compared to 36.3% in 2007. Tourism, which had also been an important FDI target, has seen 
its share decline as a result of weaker external demand since 2010, and it only received 6.2% 
of total FDI inflows in 2012.20 Flows into the agribusiness sector and real estate activity also 
faltered during the review period (except in 2012 in the case of the real estate sector). In contrast, 
there has been a sharp increase in FDI in the services sector (excluding tourism), which, 
having absorbed just 3% of flows in 2007, received 40.2% in 2012. This growth was mainly due to the large-scale investment undertaken in telecommunications activities (thanks to the liberalization of the cellphone market), as well as accounting, finance and engineering services, 
and also in energy and public works services.
21 
1.43.  In terms of the different activity regime s, over the period 2007-2012, 37% of FDI flows 
were channelled into firms operating under the ordinary (definitive) regime, 29% into firms under 
the RFZ, and 11% into tourism.22 FDI in firms operating under the RFZ reached an all-time record 
amount of US$791 million (54% of total FDI) in 2010; nonetheless, these firms have received less investment over the last two years, and their share declined to 23.6% of total FDI in 2012, 
compared to the 48% absorbed by firms operatin g under the definitive regime. On this point, 
the authorities stated that Costa Rica is facing fierce competition globally to attract FDI; and that its challenges include raising competitiveness an d significantly improving the business climate, 
particularly in relation to electricity tariffs and infrastructure, and narrowing the gap between 
educational opportunities and market demand. 
1.44.  By origin, the United States remains the main source of FDI flows into Costa Rica, 
contributing 42.6% of the total in 2012; it was followed by Mexico, whose share increased 
from 3.7% in 2007 to 15.8% in 2012; Spain with 13.4%; Venezuela, which provided 6.3%; 
Italy 5.2%; and Colombia 4.8%.
23 
 
                                               
20 Calculated by the WTO Secretariat on the basis of BCCR data. Online information viewed at: 
http://indicadoreseconomicos.bccr.fi.cr/indicadoresec onomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&Cod
Cuadro=%202184 . 
21 BCCR (2013). 
22 Calculated by the WTO Secretariat on the basis of BCCR data. Online information viewed at: 
http://indicadoreseconomicos.bccr.fi.cr/indicadoresec onomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&Cod
Cuadro=%202183 . 
23 BCCR data viewed at: 
http://indicadoreseconomicos.bccr.fi.cr/indicadoresec onomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&Cod
Cuadro=%202185 . WT/TPR/S/286 • Costa Rica 
 
- 28 - 
 
  2  TRADE AND INVESTMENT REGIME 
2.1  Introduction 2.1.  Costa Rica's external trade policy is based on the premise that economic growth is crucial 
for development and that more globalized countries  grow more quickly. Costa Rica has accordingly 
focused on liberalizing trade through multilateral, regional and bilateral agreements; making 
improvements to the business environment by way of institutional and infrastructure reforms; and encouraging foreign direct investment, the diversification of exports, and the integration 
of Costa Rican products into global value chains. Costa Rica is an active Member of the WTO both 
in its regular work and in the Doha Round negotiations, and has maintained a steady flow of notifications to the WTO. Costa Rica has never been involved as a defendant in the dispute settlement mechanism; by contrast it has brought five cases as a complainant, including one new 
case during the period under review. 
2.2.  Since 2007, Costa Rica has taken measures to consolidate and expand its bilateral 
and regional trade relations. Costa Rica is a member of the Central American Common 
Market (CACM); the most important developm ents within the CACM are the signature 
of two Protocols to strengthen the Treaty on  Investment and Trade in Services (TICS) 
and the signature (and ratification by Cost a Rica in 2009) of the Framework Agreement 
Establishing the Central American Customs Union. The Free Trade Agreement (FTA) between 
Central America and Panama, and the Bilateral Protocol between Costa Rica and Panama entered into force for Costa Rica in 2008; the FTA between Central America, the United States and the Dominican Republic (CAFTA-DR) came into effect for Costa Rica in 2009. In terms 
of bilateral agreements, the FTA between Costa Rica and China entered into force in 2011. 
Costa Rica continues to develop its trade links with other countries on the American continent, and in Asia and Europe. 
2.3.  Overall, Costa Rica has an open foreign di rect investment regime although there are a few 
restrictions in areas such as audiovisual services, power generation, traditional basic telephony, fisheries, mining, certain professional services, and transportation. Costa Rica has recently 
liberalized its investment regime by opening ce llphone, Internet and private network services 
and insurance to private investment, as part of its commitments under CAFTA-DR. It has also introduced reforms to the free zone regime to meet its WTO commitments. 
2.2  Trade policy formulation and objectives 
2.4.  During the period under review there were no changes to the principal institutions involved 
in trade and investment policy formulation. The Ministry of Foreign Trade (COMEX) defines and directs external trade and foreign investment policy. COMEX coordinates trade policy 
implementation with various entities, in particular the Foreign Trade Promotion Agency 
(PROCOMER) and the Costa Rican Coalition for Development Initiatives (CINDE), which act as executive organs of COMEX in promoting exports and attracting foreign direct investment, 
respectively. The Interinstitutional Commission on the Implementation of Trade Agreements 
and the Advisory Council on Foreign Trade play an important role in interinstitutional coordination and civil society participation (Table 2.1). COMEX has recently strengthened its links to other agencies in priority spheres, especi ally the Ministry of Science, Technology and 
Telecommunications (MICITT), to promote greater consistency between investment and innovation 
policies, enhance the development of skills in pr iority areas and promote linkages between local 
and multinational businesses.
1  
                                               
1 COMEX online information. Viewed at: http://www.comex.go.cr/politica_inversion/index.aspx . WT/TPR/S/286 • Costa Rica 
 
- 29 - 
 
  Table 2.1 Principal institutions (both public  and private) involved in the formulation 
of trade and investment policies 
Institution  Responsibilities  
Ministry of Foreign Trade 
(COMEX) This Ministry is responsibl e for directing negotiations on trade and investment. 
It participates in the formulation of  tariff policy; represents the country 
at international trade forums; lays down  regulatory mechanisms for exports; 
determines (in consultation with other ministries) the commercial retaliation 
available under the international agreements signed by Costa Rica; lays down policies concerning exports and investme nt; grants free-zone status and export 
contracts, and determines eligibility for the temporary ad mission or inward 
processing procedure; and directs an d coordinates export - and investment-
related plans, strategies and official programmes. 
Foreign Trade Promotion 
Agency (PROCOMER) Non-State public entity. It is responsi ble for promoting Cost a Rican exportables 
abroad, administering the free zone re gime and promoting supply linkages 
between local and multinational businesses. Its activities include market 
and potential customer identification ; and designing trai ning programmes 
for SMEs and supplying them with the to ols they need for internationalization 
and streamlining import and export procedures. 
Costa Rican Coalition for 
Development Initiatives 
(CINDE) Private organization that seeks to foster the conditions necessary to attract 
domestic and foreign investment and to establish investment programmes, 
including the monitoring and analysis of  businesses and markets, the promotion 
of Costa Rica as a destinat ion for investment, and the pr ovision of direct services 
to investors. 
Advisory Council 
on Foreign Trade The Council advises on external trade and foreign investment and is a forum 
for dialogue with the representatives of  the different sectors of the national 
economy. The Advisory Council is chai red by the Minister of Foreign Trade 
and includes among its members the Ministers of the Economy, Industry 
and Trade; Agriculture and Livestock;  and Foreign Affairs and Worship. 
Additionally its members include various private associations and representatives 
of industry, SMEs and consumer groups. It meets every two weeks. 
Interinstitutional 
Commission on the 
Implementation of Trade Agreements The body through which COMEX coordinates with various governmental 
institutions, namely the Registration and Co ntrols Directorate (Ministry of Health), 
the Unfair Practices Office and the Regulatory Improvement and Technical Regulation Directorate (both Ministry of the Economy, In dustry and Trade), 
the Directorate-General of Customs (Ministry of Finance), and the Animal Health Directorate and the State Phytosanitary Service (Ministry of Agriculture and Livestock). The meetings are forums fo r coordinating posi tions and collating 
information on matters linked to the a pplication of trade agreements in each 
of the areas in question. 
Source: COMEX; WTO (2007). 
2.5.  COMEX is the entity responsible for negotiating bilateral and multilateral trade 
and investment arrangements and for concluding treaties and agreements in these areas. It holds public consultations as part of the process to develop the national negotiating position for trade 
agreements; although these consultations are no t provided for in law, they are held for 
the purposes of transparency and technical enhancement of the country's position. International treaties and agreements must be put before the Legislative Assembly, which may approve 
or reject them but may not amend them. The in ternational treaties and agreements approved 
by the Legislative Assembly have primacy over laws from the time of their entry into force. The Constitution takes precedence over all laws and international agreements. The Minister of Foreign Trade is empowered to amend tariffs by executive decree as a member of the Council 
of Economic Integration Ministers of the Central American Economic Integration Subsystem. 
2.6.  Costa Rica's external trade policy is based on  the premise that economic growth is crucial for 
development and that more globalized countries grow more quickly. Costa Rica has accordingly 
prioritized the establishment of trade relations in conformity with the disciplines and rules laid 
down by the WTO and in FTAs. 
2.7.  The national foreign trade agenda is ba sed on the three pillars of the trade platform 
(the trade policy framework). The first pillar cons ists in consolidating, expanding and streamlining 
the platform through multilateral, regional and bilateral agreements in the aim of driving economic and social development through economic liberalization; improving terms of access to other markets for Costa Rican products; establishing a stable legal framework to promote and develop WT/TPR/S/286 • Costa Rica 
 
- 30 - 
 
  investment; increasing and promoting competition through improvements in productivity 
and competitiveness of goods and services; and offering greater choice to domestic consumers. 
2.8.  Under the second pillar, which consists in making the operation of the trade platform 
as effective as possible, COMEX has been pioneering a plan to improve participation 
by the institutions involved in administering trade agreements, and is working on various projects 
to modernize border posts and refine electronic systems so that all export- and import-related 
procedures, authorizations and payments can be automated (Chapter 3, section 3.2.1.2). 
2.9.  The third pillar, which consists in im proving the use of the foreign trade platform, 
seeks firstly to expand the platform's benefi ts and potential, and secondly to improve 
competitiveness. The tasks undertaken under the first of those objectives deal with export promotion, diversification programmes, attracting FDI, increasing Costa Rica's participation in 
global value chains, and increasing the number of exporting businesses. The second objective 
incorporates reforms aimed at improving the business climate, renovating airports and sea ports (Chapter 4, section 4.5.4), enhancing and ha rmonizing education programmes, opening up 
the telecommunications and insurance sectors to private-sector providers, introducing measures 
to double broadband coverage (Chapter 4, sectio ns 4.5.2 and 4.5.3) and amending the free zone 
regime to align it with the WTO rules (Chapter 3, section 3.3.4.2). 
2.10.  These foreign trade policy priorities are se t out in the National Development Plan 2011-2014 
(PND)
2, which seeks, inter alia , to extend, consolidate and streamline the existing trade platform 
in the aim of prompting the negotiation of  new trade agreements, and consolidating 
and optimizing the implementation of existing tr ade agreements while making better use of them 
(section 2.3.2 below). Exports of goods at the end of the period (2014) are expected to rise 
to US$12 billion per year and exports of services to amount to US$5 billion per year. To accompany trade liberalization and market penetration efforts, the PND provides for promotion 
of foreign direct investment such that the amount of FDI attracted during the current 
administration's term of office would total US$9 billion, half of which would go to the production sector and the remainder to investment in infrastructure, energy and telecommunications. 
2.3  International trade relations 
2.3.1  World Trade Organization 2.11.  Costa Rica is an original Member of the WTO and grants, as a minimum, 
most-favoured-nation (MFN) treatment to all its trading partners. Costa Rica participates 
in the WTO Information Technology Agreement (ITA) and took part in the negotiations on financial 
services, accepting the Fifth Protocol to the General Agreement on Trade in Services (GATS). Costa Rica was not involved in the negotiations on telecommunications, nor is it a party 
to or observer in any plurilateral agreement. It is an active Member of the WTO, 
both in the Organization's ordinary work and in the Doha Development Round. Costa Rica has submitted an initial offer in the negotiations on services
3, and according to the authorities is willing 
to contribute to the negotiations with a substantial revised offer. 
2.12.  Costa Rica has been actively involved in th e Doha Development Round. It is of the view that 
an early harvest can be achieved in priority ar eas such as trade facilitation, and that new, 
more effective means of moving forward, including the plurilateral route, can be explored 
on services-related matters for example, with the aim of incorporating the outcome 
of the negotiations into the multilateral trading system in the future. Costa Rica proposes in-depth agricultural reform so that agricultural products receive treatment similar to that afforded 
to non-agricultural products; it has also sought to secure implementation of the mandate 
                                               
2 The PND is a frame of reference for public sect or planning and management that contributes to 
monitoring, feedback, evaluation and accountability in the sphere of institutional management. The PND lays 
down the strategic lines of government  action to promote the country's development over the four-year period 
concerned. It is divided into four management componen ts: (a) social welfare; (b) public security and freedom 
from social unrest; (c) environment and regional planning ; and (d) competitiveness an d innovation (for further 
details, see online information from the Ministry of  Planning and Economic Policy (MIDEPLAN), viewed 
at:http://www.mideplan.go.cr/index.php/es/el-plan-nacional-de-desarrollo/114-pnd-2011-2014/822-plan-
nacional-de-desarrollo ). It should be noted that the plan's target s are updated regularly in line with foreign 
trade developments and specific requirements. 
3 WTO document TN/S/O/CRI of 21 April 2004. WT/TPR/S/286 • Costa Rica 
 
- 31 - 
 
  for tropical and alternative products in its capacity as coordinator of the group of Members who 
take a proactive position on this issue. In the negotiations on non-agricultural products, Costa Rica supports greater market access with clearer rules. It also supports the commitment to clarify and improve the WTO rules, especially in  relation to anti-dumping; and to strengthen 
the role of the Dispute Settlement Understanding. Additionally, Costa Rica is a participant 
in the negotiations to increase the coverage of the ITA. 
2.13.  Costa Rica has maintained a steady flow of notifications to the WTO. At the time of writing, 
the only pending notifications concerned the Unders tanding on the Interpretation of Article XVII 
of the GATT 1994 (Article XVII:4(a) (State trading)) and the Costa Rica-CARICOM Free Trade Agreement. During the period under review Cost a Rica did not notify any new, or any changes 
to existing, laws, regulations or administrative guidelines which significantly affect trade 
in services covered by its specific commitme nts (Article III.3 of the GATS) (Table A2.1). 
2.14.  Since 1995 Costa Rica has brought five cases under the WTO dispute settlement 
mechanism, including one new case during the period under review (related to safeguard 
measures adopted by the Dominican Republic). Costa Rica has never been a defendant under 
the mechanism and has participated as a third party in 15 cases (including six cases since 2007) (Table 2.2). In December 2009 the Geneva Agreement on Trade in Bananas, one of the lengthiest 
disputes in the history of the GATT and the WTO,  was concluded. It was signed by Costa Rica, 
the EU and other Latin American countries in May 2010 and entered into force in March 2011. 
Table 2.2 Participation by Costa Rica in WTO dispute settlement; new cases, 
2007 to May 2013  
Dispute Brought by/ 
against Request for 
consultations Panel established  Appeal/ 
implementation Document  
series 
Complaints by Costa Rica 
Safeguard 
measures 
on imports 
of polypropylene 
bags and tubular 
fabric  Costa Rica/ 
Dominican Republic 15 October 2010 7 February 2011 
(Panel report 
circulated: 
31 January 2012) - DS415 
Complaints against Costa Rica 
None      
Participation by Costa Rica as a third party 
Safeguard 
measures 
on imports 
of polypropylene 
bags and tubular 
fabric 
(three cases) Guatemala, 
Honduras, 
El Salvador/ 
Dominican Republic 15 October 2010  
18 October 2010  
19 October 2010  7 February 2011 - DS416, 
DS417, 
DS418. 
Tariff Treatment 
of Certain Information Technology Products European 
Communities/ Chinese Taipei 12 January 2008
 23 September 2008 - DS377 
Tariff Treatment 
of Certain 
Information 
Technology 
Products European 
Communities/ 
Japan 28 May 2008 23 September 2008 - DS376 
Tariff Treatment 
of Certain 
Information Technology Products European 
Communities/ 
United States 28 May 2008 23 September 2008 - DS375 
Source: WTO Secretariat. WT/TPR/S/286 • Costa Rica 
 
- 32 - 
 
  2.3.2  Regional and bilateral preferential agreements 
2.15.  At end May 2013, Costa Rica had free trade agreements (FTAs) in force with 15 trading 
partners. The agreements cover around 68% of Costa Rica's trade in exports and 76% of its trade in imports. Costa Rica is a member of the CACM together with El Salvador, Guatemala, Honduras, 
and Nicaragua.
4 As a member of the CACM, Costa Rica is a signatory to various regional 
agreements. It also has bilateral agreements in force with eight countries. Costa Rica continues 
to develop its trade links with other countries on the American continent and in Asia and Europe. 
Indeed, agreements with Peru, Mexico and Singapore will enter into force in the coming months 
(June 2013 for Peru, July 2013 for Mexico and Singapore) (Table 2.3). The entry into effect of the FTAs for which legislative approval and/or entry into force is pending will bring the number of the country's trading partners to 57 and the volume of trade covered to over 80%. 
Table 2.3 Costa Rica's bilateral and region al agreements, situation at end May 2013  
Agreement  Situation at end May 2013  
(for Costa Rica)  
Regional agreements   
CACM Entered into force in 1963. 
FTA between Central America and the 
Dominican Republic Entered into force in 2002. 
FTA between Central America and Chile Entered into force in 2002. 
FTA between Central America and Panama Entered into force in 2008. 
FTA between Central America, the Dominican Republic 
and the United States (CAFTA-DR) Entered into force in 2009. 
FTA between Central America and Mexico Approved by the Legislative Assembly in March 2013. 
Entry into force envisaged for July 2013. This agreement 
will replace the bilateral agreement between Costa Rica 
and Mexico. 
FTA between Central Americ a and the European Union Pending legislative approval. 
Bilateral agreements   
FTA between Costa Rica and Mexico Entered into force in 1995. 
FTA between Costa Rica and Canada  Entered into force in 2002. 
FTA between Costa Rica and the Caribbean Community  Entered into force in 2005. 
FTA between Costa Rica and China Entered into force in 2011. 
FTA between Costa Rica and Singapore Approved by the Legislative Assembly in March 2013. 
Entry into force envisaged for July 2013. 
FTA between Costa Rica and Peru Approved by the Legislative Assembly in April 2013. 
Entry into force envisaged for June 2013. 
FTA between Costa Rica and Colombia Signed in May 2013. 
FTA between Costa Rica and the European Free Trade Association Negotiation concluded. Signature pending. 
Source: COMEX 
2.16.  The principal features of the agreements that entered into force prior to 2007 are described 
in Costa Rica's last trade policy review.5 This section relates only to the agreements that have 
entered into force since that date and the latest changes under the CACM framework. 
2.3.3  Developments during the period under review 
2.3.3.1  CACM 
2.17.  The CACM has a common external tariff , the Central American Import Tariff (ACI), 
comprising 6,951 eight-digit headings. The CACM member countries continued to harmonize 
the ACI tariff headings during the period under review. At May 2013 the tariffs for 93.4% 
of the headings had been harmonized. The remaining 6.6%, for which harmonization is pending, mainly concern vehicles (2.3%), agricultural products (2.7%) and industrial products (1.6%).
6 
The fifth amendment to the Harmonized Commodity Description and Coding System was approved 
                                               
4 The CACM has a number of regional regulations,  including the Central American Uniform Customs 
Code, the Convention on the Central American Tariff and Customs Regime, together with Central American 
regulations on customs valuation, rules of origin, unfair business practices, safeguard measures, standardization, and sanitary and phytosanitary measures. 
5 WTO document WT/TPR/S/180/Rev.1 of 2 August 2007. 
6 Changes to the ACI are made by the Council of Mi nisters for Central American Economic Integration 
(COMIECO). WT/TPR/S/286 • Costa Rica 
 
- 33 - 
 
  in 2011 and entered into force on 1 January 2012.7 In 2010 the CACM members implemented 
an automated Central American Tariff (AIC) system, which contains all taxes and tariff reductions applicable to products enteri ng the CACM. The system also includes 
the non-tariff measures applicable to such products, for example technical regulations 
and sanitary and phytosanitary measures.
8 
2.18.  The Central American countries have also adopted a number of provisions in the customs 
sphere to facilitate trade. These include initiatives to simplify goods transit within the region 
and reduce customs controls through use of evaluation and risk assessment systems 
and electronic data transfer, among others. Further progress has also been made in the harmonization of customs procedures (Chapter 3). 
2.19.  In February 2007 the CACM members signed the Protocol to the Treaty on Investment 
and Trade in Services (TICS), which incorporates  a number of amendments into the TICS (2002). 
A further Protocol adding a chapter on electronic  trade to the TICS was signed in 2011; it seeks 
to promote and facilitate trade in digital products such as computer programs, text, video 
and images. The TICS and the Protocols thereto aim, inter alia , to establish a legal framework 
that promotes an expansion of trade in services and investment in conformity with the instruments for Central American integration and the General Agreement on Trade in Services (GATS). 
The TICS contains rules that guarantee national treatment and MFN treatment to investors 
and suppliers of services except in the areas li sted in each country's annexes to the Treaty. 
The TICS also ensures that transfers relating to a covered investment can be made freely and without delay; it protects investors from expropriation or nationalization and ensures access 
to arbitration mechanisms for the settlement of disputes. The TICS contains various rules 
on financial services and telecommunications, although these do not apply in Costa Rica. It further provides that licensing requirements must not constitute barriers to trade and contains rules 
on the harmonization of professional serv ices. At February 2013 neither the Treaty 
nor its Protocols had been ratified by Costa Rica; rather, they existed as draft laws. 
2.20.  The Framework Agreement Establishing the Central American Customs Union was signed 
in December 2007. The Agreement, which was ratified by Costa Rica in 2009, envisages 
three stages in the customs union process: institutional strengthening; trade facilitation; and regulatory convergence.
9 Where regulatory convergence and trade facilitation are concerned, 
harmonized technical regulations have been negoti ated and brought into force for various sectors 
(foodstuffs, medicaments and agricultural inputs), making it possible to hold a health 
register of products for the region and to apply sanitary and phytosanitary measures. Additionally, new Central American Regulations on the Application of Sanitary and Phytosanitary 
Measures and Procedures came into force and the Convention on Mutual Assistance and Technical 
Cooperation among Central American Tax and Customs Administrations was approved (Law No. 8880 of 15 December 2010). 
2.21.  In 2012, 5% and 14% of all Costa Rica's imports and exports of goods respectively were 
with fellow CACM member countries. 
2.3.3.2  Central America-United States-D ominican Republic Free Trade Agreement 
(CAFTA-DR) 
2.22.  The CAFTA-DR entered into force in Costa Rica in January 2009. It was signed by the Parties 
in August 2004. During the period under review, Costa Rica promulgated or amended various laws and regulations to implement its commitments under CAFTA-DR in relation to intellectual property, 
the opening up of the insurance and telecommunica tions markets, protection of representatives 
of foreign businesses, corruption and illicit enrichment, and labour and environmental matters. 
2.23.  CAFTA-DR exists alongside the FTA between Costa Rica and the Dominican Republic with 
the result that commercial operators are free to choose the instrument under which they will 
conduct their operations. The same applies to CAFTA-DR and the CACM. 
                                               
7 Resolution No. 263-2011 COMIECO LX of 27 July 2011. 
8 Secretariat for Central American Economic Integration (SIECA) online information. Viewed at: 
http://www.aic.sieca.int/public/Default.aspx . 
9 Law approving the Framework Agreement Establ ishing the Central American Customs Union. 
Online information viewed at: http://www.nacion.com . WT/TPR/S/286 • Costa Rica 
 
- 34 - 
 
  2.24.  In conformity with CAFTA-DR, the method of tariff liberalization used by Costa Rica 
(and its Central American partners) for the Dominican Republic, on the one hand, is different from that used for the other member States (including the United States), on the other. Costa Rica provides immediate duty-free access to all pr oducts imported from the Dominican Republic, 
with few exceptions.
10 The Costa Rican schedule of reductions for the other member States 
(including the United States) covers a period of 20 years, ending in 2025.11 At the end of 
that period, 99.92% of Costa Rica's tariff lines w ill be tariff-free for imports of products from 
the United States and the other Central American countries. Restrictions on imports and exports 
are prohibited, but Costa Rica may continue to apply the exemptions listed in the Agreement.12 
Subsidies for exports of agricultural products are prohibited. A special safeguard mechanism can be triggered for certain agricultural products if imports are greater than a set level. 
2.25.  CAFTA-DR contains rules on government procurement and commitments to open the market 
to participation by foreign businesses above certain thresholds. There are rules to protect investors and afford national treatment to investors and service providers from the 
other Parties (subject to lists on non-conforming measures for each country). The provisions 
on intellectual property require the Parties to ratify various international agreements within certain time-limits. The provisions on the environment commit the Parties to ensuring that their laws 
and policies provide for high levels of environmental protection. Additionally, the Parties must 
ensure that labour standards are consistent with internationally recognized labour rights and that labour rights are duly regulated and in force in practice. 
2.26.  In 2012, 55% of all Costa Rica's imports and 55% of all its exports were with 
fellow CAFTA-DR countries. 
2.3.3.3  Free Trade Agreement between Costa Rica and China 2.27.  In April 2010 Costa Rica signed an FTA with China; it entered into force on 1 August 2011. 
The agreement was notified by the Parties in  February 2012. The WTO Secretariat prepared 
a factual presentation on this FTA.
13 
2.28.  In conformity with the FTA, liberalization of trade in goods is to be completed over 
a transition period beginning in 2012 and ending in January 2026. In 2011, 2.2% of Costa Rica's 
tariff lines were duty free for imports from China. At the end of the implementation period, 91% of Costa Rica's tariff lines will be duty free. The 591 tariff lines remaining dutiable at the end of implementation period fall into 14 Harmonized  System (HS) Sections, with the average final 
tariff on dutiable items ranging from 8% to 38.9%. Under the FTA, the Parties may apply 
a bilateral safeguard during  the transition period. 
2.29.  The FTA contains provisions on trade in services, and commitments in that regard 
are scheduled on the basis of a positive list. As noted in the WTO factual presentation, Costa Rica's 
sector-specific commitments are broader and deeper than those contained in its GATS schedule. For instance, distribution, environmental, recreational, cultural and sporting services, 
and transport services, for which Costa Rica did not assume any commitments under the GATS, 
are partially liberalized under the agreement with China. 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. 
2.30.  The FTA does not contain any rules on subsidies, state aid or government procurement. 
                                               
10 Pursuant to Annex 3.3.6 of CAFTA-DR, each  Party (the Central American countries and 
the Dominican Republic) may assess a duty of up to 15% on  specific fats and oils classified under certain tariff 
headings (between HS 1507 and HS 1517). Tariffs on fuels (HS 2710) are to be phased out over a 15-year period. Furthermore, certain products are excluded from liberalization: chicken, powdered milk, onions, garlic, 
beans, coffee, rice, wheat flour, sugar, beer, alcohol and tobacco. 
11 The liberalization schedule is se t out in Annex 3.3 to CAFTA-DR. 
12 Costa Rica may maintain export taxes on banana s, coffee and meat (Annex  3.11) and the following 
measures: (a) controls on the import of crude oil, its fu els, derivatives, asphalt, an d gasoline; (b) controls on 
the export of wood in logs and boards from forests, hy drocarbons and coffee; (c) co ntrols on the import and 
export of ethanol and crude rums; and (d) controls  to establish a minimum export price for bananas 
(Annex 3.2). 
13 WTO document WT/REG310/1 of 16 January 2013. WT/TPR/S/286 • Costa Rica 
 
- 35 - 
 
  2.31.  In 2012, China was Costa Rica's eighth largest export market, accounting for 2.9% of its 
total exports, and its third largest source of import s, absorbing 8.2% of Costa Rica's total imports. 
Most of Costa Rica's imports from China consist in machinery and transport equipment (30% in 2012) and textiles, clothing and clothing accessories (12%). Most of China's imports 
from Costa Rica are office machines and telecommunications equipment (over 95% in 2012). 
2.3.3.4  Free Trade Agreement between Centra l America and Panama: Bilateral Protocol 
between Costa Rica and Panama 
2.32.  In August 2007, Costa Rica signed a Bilateral Protocol with Panama resulting 
in the entry into force of the Free Trade Agreement between Central America and Panama (signed by the respective governments in 2002).
14 The Protocol entered into force in 2008 
and has been notified to the WTO Secretariat.15 The Protocol was discussed in the WTO Committee 
on Regional Trade Agreements in March 2011 in the light of a factual presentation prepared by 
the WTO.16 
2.33.  In conformity with the Protocol, tariff liberalization began in 2009 and will 
continue until 2025.17 At the end of this period, 98.2% of Costa Rica's tariff lines will be duty free. 
The 109 tariff lines remaining dutiable at the en d of the implementation period include pork and 
poultry meat, eggs, potatoes, onions, coffee and co ffee extracts, rice, animal and vegetable fats 
and oils, sugar, motor cars and vehicles, trucks and motorcycles. Tariff quotas are used for some 
products subject to liberalization as a temporary instrument during the gradual phasing-out of the relevant tariff. Some bilateral safeguard measures may be applied during the transition period. 
2.34.  The agreement also covers services and in vestment. The principles of national treatment 
and MFN treatment, alongside other provisions, are of general application unless 
non-conforming measures have been listed (in Annexes) as exceptions to the general rules. 
As explained in the WTO factual presentation, Costa Rica's commitments under the agreement 
go significantly beyond its commitments under the GATS.
18 There are other rules to promote 
and protect investment, and provisions on transfers, expropriation and indemnification, and dispute settlement. 
2.35.   The agreement contains rules and commitments on government procurement 
and cooperation in the area of competition to establish mechanisms to facilitate and promote the development of competition policies and ensure the application of rules governing free competition. 
2.36.  In 2012, Panama was Costa Rica's third largest export market, absorbing 5.1% of its total 
exports, and its seventh largest source of imports, with 2.2% of Costa Rica's total imports. Costa Rica's imports from Panama mostly consist in fuels (26.2%), pharmaceuticals and 
toiletries (14.7%). In 2012, Panama's chief imports from Costa Rica were pharmaceuticals (14%) 
and food preparations (8%). 
2.3.4  Other preferential regimes 
2.37.  Costa Rica enjoys tariff preferences un der the Generalized Systems of Preferences (GSP) 
of Australia, Canada, Japan, Norway, New Zealand,  Switzerland, Turkey and the European Union.
19 
                                               
14 The Free Trade Agreement between Central America and Panama contains the regulatory text 
governing trade in goods and services between Panama  and each of the five Central American member 
countries. The entry into force of th e regulatory framework is subject to the conclusion of Bilateral Protocols 
between Panama and each of the other countries. As of the end of 2009, the FTA had entered into force for all the Parties. 
15 WTO documents WT/REG264/N/1 and S/C/N/490 of 17 April 2009. 
16 WTO document WT/REG264/1 of 7 January 2011. 
17 For further information on the tariff liberaliz ation schedule established in the Protocol, 
see WTO document WT /REG264/1 of 7 January 2011, Box III.1. 
18 For further information see WTO document WT/REG264/1 of 7 January 2011, section IV.D. 
19 For further information see the WTO database on  preferential trade agreements, available at: 
http://ptadb.wto.org . WT/TPR/S/286 • Costa Rica 
 
- 36 - 
 
  2.4  Foreign investment regime 
2.38.  As noted above, COMEX is responsible for framing investment policy and CINDE 
is responsible for its implementation. According to the authorities, the policy to attract investment is currently focused on companies in the life sciences, cutting-edge manufacturing and services. 
During the period under review, Costa Rica libera lized its investment regime by opening cellphone, 
Internet and private network services and insurance to private investment (Chapter 4, sections 4.5.2 and 4.5.3.3) and introduced reforms to the free zone regime aimed at meeting 
Costa Rica's WTO commitments (Chapter 3, section 3.3). 
2.39.  Costa Rica does not have a special legal regime for foreign investment. However, national 
treatment for foreign businesses is provided under the principle of non-discrimination enshrined in the Constitution (Article 19). Exceptions to national treatment are laid down in law. 
2.40.  Costa Rica confers guarantees and protection upon foreign investment under various free 
trade agreements and has bilateral agreements on the reciprocal promotion and protection of investments with 13 trading partners (Table 2.4). 
Table 2.4 Investment-related laws and agreements, 2013  
Investment-related laws and agreements  
National legislation 
Political Constitution  Article 45 lays down the regulatory frame work governing expropriation. For reasons 
of public necessit y, the Legislative Assembly may, by a two- thirds majority, impose  corporate interest 
limitations on ownership. 
Law on Expropriations (Law No.7495 of 8 June 1995) establishes the principles for determining 
the compensation payable by the State, on a "fair price" basis. 
Free trade agreements containi ng provisions on investments 
Agreements in force: Canada, CAFTA-DR, CARICOM, Dominican Repu blic, Panama, Mexico, China and Chile. 
Agreements awaiting entry into force: Singapore, Peru and the FTA between Central America and Mexicoa. 
Agreements awaiting legislative approval : Association Agreement between Central America 
and the European Union; Colombia; and the European Free Trade Association. 
Bilateral agreements on investment 
Agreements in force  (date of entry into force) : Germany (1998), Argentina (2001), Canada (1999), 
Chile (2000), Chinese Taipei (2004), Republic of Korea (2002), Spain (1999), France (1999), 
Netherlands (2001), Paraguay (2001), Czech Republic (2001), Switzerland (2002) and Venezuela (2001). 
Agreements awaiting entry into force: Qatar. 
Signed agreements awaiting legislative approval: China. 
Participation in international arbitration conventions/bodies 
Signatory to the United Nations Convention on the Re cognition and Enforcement of  Foreign Arbitral Awards 
(New York Convention) and member of ICSID. 
Other  
Member of the World Bank's Multilateral Investment Guarantee Agency (MIGA). 
a These agreements will enter into force in June  2013 (Peru) and July 2013 (Singapore and Mexico). 
Source: COMEX ( http://www.comex.go.cr ). 
2.41.  Costa Rica applies horizontal exceptions to national treatment including limitations 
on activities in the maritime land zone20, restrictions on ownership of land in border areas21, 
requirements relating to the establishment of subsidiaries, and limitations in relation to public works concession contracts (including public works concessions with public services). 
2.42.   Additionally there are sectoral exceptions  to national treatment in the following sectors: 
communication services; advertising services; mining and energy; transport; fisheries; certain professional services; certain recreational  and sporting services; and financial services 
(Table A2.2). There are also exceptions to national treatment relating to the operation of State 
enterprises in certain areas, including the financial sector, the distribution of crude oil 
                                               
20 A concession is required to conduct any type of activity. No such concession is granted, inter alia , 
to (a) foreigners who have not been resident in the country for at least five years, (b) businesses domiciled 
abroad, (c) businesses established in the country by foreigners, and (d) businesses in which over 50% 
of shares or other forms of capital investment are foreign-owned (Law No. 6043/1977). 
21 Foreigners may not acquire land in a 2,000 m st rip along the borders with Nicaragua and Panama, 
but permanent residents may be leaseholders. For legal pe rsons, if over 50% of the capital is foreign-owned, 
the shareholders must be permanent residents (Law No. 2825/1961 and Regulation No. 10/2008). WT/TPR/S/286 • Costa Rica 
 
- 37 - 
 
  and its derivatives, and the production and mark eting of ethanol. The Political Constitution 
establishes State dominion over: waters in the pu blic domain; coal seams, sources and deposits 
of oil and other hydrocarbons, and deposits of radioactive minerals in the national territory; wireless services; and national railways, docks and airports.
22 
2.5  Business framework 
2.43.  The legal forms of companies permitted in Costa Rica and the principal taxes on companies 
are described in Chapter 3, section 3.4.1. 
2.44.  External assessments of the Costa Rican business environment differ according 
to the specific aspect under consideration. For example, in 2012 Costa Rica was ranked 43rd 
out of 132 economies by the World Economic Forum in its Enabling Trade Index. The report notes 
that Costa Rica is an example of best practices in market access thanks to moderate tariffs 
and a relatively simple tariff structure. Likewise, Costa Rica's customs administration is well rated 
for its simplicity. On the other hand, the assessment of Costa Rica's transport and communications infrastructure is less favourable: the quality of roads and ports needs to be improved, 
and information and communications technology (ICT) is still not widely available or used.
23 
2.45.  Costa Rica ranked 57th out of the 144 countries included in the World Economic Forum 
Global Competitiveness Report (2012-2013). The report notes that Costa Rica has one 
of the highest innovation potentials in the region thanks to a high-quality educational system, 
its technological preparedness, technology transfer driven by the inflow of foreign direct investment and the improvements it has made in security. Notwithstanding these strengths, the report identifies the need to improve transport infrastructure and procedures to start 
a business, among others.
24 
2.46.  According to the World Bank's global ease of doing business index, in 2013 Costa Rica 
ranked 110th out of 185 economies studied. Costa Rica is well placed in terms of the availability 
of electricity, property registration and cross-border trade. It is ranked less highly for investor 
protection. The World Bank notes various reforms recently implemented by Costa Rica to improve the business environment, including the adoption of a risk-based approach for granting sanitary 
approvals for business start-ups, the establishment of online approval systems for the construction 
permit conferral process, and the introduction of  an electronic payments system to facilitate 
payment of municipal taxes.
25 
2.47.  Furthermore, the State has identified and prioritized a Strategy for Regulatory Improvement 
and Streamlined Procedures in the aim, firstly, of reducing the procedures that most impede 
production activities and, secondly, improving the business climate.26 At end May 2013, 
26 of the 41 procedures that most affect the production sector, spread across five government 
bodies, had been simplified; other bodies were drawing up their own plans for regulatory 
improvements. Various projects were launched to digitalize and automate priority procedures, 
chiefly those relating to the formalization of companies and business start-ups 
(including "CrearEmpresa" and the Exporters' Regi stration System). In 2011, Costa Rica enacted 
the Law Approving Accession to the Convention  Abolishing the Requirement of Legalisation 
for Foreign Public Documents (Law No. 8923), which provides for the replacement and simplification of the complex bureaucratic procedures for the legalization of foreign 
documents in 102 countries. 
 
                                               
22 Political Constitution, Article 121(14). 
23 WEF (2012b). 
24 WEF (2012a). 
25 World Bank (2013a). 
26 The strategy was set out in Presidential Directive 002-MP-MEIC of 23 June 2010. WT/TPR/S/286 • Costa Rica 
 
- 38 - 
 
  3  TRADE POLICIES BY MEASURE 
3.1  Overview 3.1.  During the period under review, Costa Rica continued to take measures to update its trade 
regime and facilitate procedures for the import, export and transit of goods. These measures 
include the use of computerized systems for various elements of customs procedures, fewer 
formalities and documents required, the introducti on of improvements at border posts and the 
launching of an authorized economic operat or (OEA) scheme for exports. Simultaneously, 
measures have been taken to reinforce tax administration at the Customs. In 2008, amendments 
were made to the customs legislation in order to establish that the determination of customs value had to be governed by the provisions in the WTO Customs Valuation Agreement. It is still mandatory to employ the services of a customs broker for all imports, with a few exceptions. 
3.2.  Tariffs are the main trade policy tool and all customs duties are ad valorem . Costa Rica's 
simple average MFN tariff did not change during the review period, remaining at 6.9% in 2013 . 
The average tariff on agricultural products (14%) is higher than on other products (5.5%). 
Costa Rica bound all its tariffs in the WTO at rates ranging from zero to 233%. 
3.3.  Almost all imports from countries belongin g to the Central American Common Market (CACM) 
enter Costa Rica duty free. Moreover, under the free trade agreements it has signed, Costa Rica 
grants tariff preferences to imports from Canada , Chile, China, the Dominican Republic, Mexico, 
Panama, the United States, and four CARICOM countries. 
3.4.  Costa Rica applies internal taxes in a non-discriminatory fashion to domestic and imported 
products, with the exception of the Institute for Municipal Promotion and Support (IFAM) tax, 
which concerns imported beer but not local beer . During the period under review, a tax that 
was imposed at higher rates on carbonated soft drinks produced in Costa Rica by holders of concessions for international brands and on imported soft drinks was abolished. Costa Rica 
does not have any trade-related import licences, although permits or authorization are 
required to import certain goods, mostly relating to protection of health and public security and the environment. 
3.5.  Costa Rica is not a frequent user of trade defence measures. Between 2007 and 2013, it only 
applied a couple of anti-dumping measures and the two countervailing duties previously in force expired in 2009. During the period under review Costa Rica amended its trade defence legislation in order to incorporate the amendments to the relevant Central American regulations. 
3.6.  Costa Rica has a sound legal and institutional framework for the development and application 
of technical regulations and has steadily been no tifying these measures to the WTO. Since 2007, 
it has adopted 125 technical regulations, the ma jority of which concerned products such as 
pesticides, fuel, medicines, textiles, cosmetics and foodstuffs. Many of these regulations were 
issued in connection with the Central American integration process. Costa Rica continues to reinforce its infrastructure and institutional capacity to apply sanitary and phytosanitary (SPS) 
measures, with a view to facilitating trade while at the same time protecting the country from 
pests and diseases. Efforts have been made to promote participation by the private sector in the development of SPS measures and agreement has been reached with trading partners in North America on the equivalence of inspection systems, while progress has been made on 
harmonizing SPS measures and procedures at the Central American level. 
3.7.  The export of some products requires an authorization for reasons of public health, 
environmental protection, quality assurance, or for statistical purposes. The products requiring an 
authorization include coffee, sugar in bulk, textile and clothing products, and fish, molluscs and 
crustaceans. The export of various species of wood  logs is prohibited. Costa Rica imposes a tax on 
exports of coffee, live cattle and bananas. There was a minimum export price for bananas 
until 2010 for competition policy reasons. 
3.8.  Costa Rica notified the WTO that some aspects of the Free Zone Regime (RZF) and 
the Inward Processing Regime constituted export subsidies and, in 2007, it was given an extension of the time-limit for eliminating these subsidies until 31 December 2015. In order to comply with 
this commitment and provide legal certainty for investment, Costa Rica revised the RZF Law WT/TPR/S/286 • Costa Rica 
 
- 39 - 
 
  in 2010. The main change was the elimination of ex port requirements for the companies benefiting 
from the RZF and of the restrictions on domestic  sales. Other changes included the introduction 
of differentiated tax incentives in order to attract companies to less developed zones, as well as large-scale investment; the introduction of tax credits for training staff; and provisions 
on strengthening production chains and developing local suppliers. The RZF has facilitated 
integration of Costa Rica's economy into global chains. During the period under review, exports 
from the RZF accounted for over half of exports of goods, with diversification towards higher 
value-added and high-tech products. At the same time, exports of services from free zones 
recorded strong growth (141%), while the total number of jobs created by companies in the RZF 
rose by 32% between 2007 and 2011. As regards the Inward Processing Regime, the authorities have indicated that they are working on its reform in order to meet Costa Rica's 
WTO commitments. 
3.9.  Costa Rica maintains a number of other tax and financial incentive programmes that are not 
export-related in order to boost various production and social activities. In connection with the 
internal discussions on tax reform, studies have been conducted to determine the effects of such 
programmes and projects have been put forward to encourage more transparency and streamline 
tax exemptions; during the period under review , however, there were no fundamental changes 
in this regard. It would be worth following up the efforts made to streamline tax exemptions, 
particularly in view of the pressing need to consolidate public finances. 
3.10.  The State continues to play a leading role in Costa Rica's economy through various 
State-owned companies and other government institutions operating in key sectors of the 
economy such as electricity, postal services, telecommunications, the administration of ports and 
railways, and the financial sector. The Refinado ra Costarricense de Petróleo S.A. (RECOPE) 
administers the State's legal monopoly on the import, refining and wholesale distribution of crude 
oil and its derivatives, and has been notified  to the WTO as a State-trading enterprise. 
The authorities have declared their intention to notify four other State-trading enterprises in the near future. 
3.11.  In 2012, Costa Rica amended its competition legislation so as to tighten control 
of anti-competitive practices. The amendments include a prior notification obligation for any mergers, application of the regulations to providers of public services under concessions that are not established by law, the definition of new monopolist practices, consideration 
of the pro-competitive effects when examining the legality of any conduct, and increased 
investigative powers for the competition authority. During the review period, sectoral laws were also enacted amending the rules on competit ion in markets regulated by the supervisory 
authorities in the financial and telecommunications sectors. In mid-2013, rice and regulated public 
utilities were subject to official price control. In May 2013, Costa Rica announced that, as of 1 March 2014, the price of rice would no longer be controlled. 
3.12.  Government procurement absorbs an average of around 15% of GDP. Costa Rica is neither 
a party nor an observer to the WTO's Plurilat eral Agreement on Government Procurement. 
During the period under review, Costa Rica amended its legal framework for government 
procurement. The amendments included replacin g bidding conditional upon registration and 
restricted bidding by an abbreviated bidding procedure; more efficient bidding procedures 
requiring prequalification; the introduction of framework agreement contracts and electronic auction; automated procurement procedures; and stiffer administrative penalties for acts 
of corruption. Changes were also made to the procurement regimes of the Costa Rican Electricity 
Institute (ICE) and the National Insurance Institut e (INS) in response to the recent opening up 
of these areas to competition. Costa Rica applies preferences for domestic products in government 
procurement procedures, subject to certain conditions, in order to encourage participation in 
procurement by small and medium-sized enterprise s (SMEs). Participation by foreign bidders is 
subject to reciprocity, although the authorities have indicated that in practice this restriction is not applied and any foreigner may take part in procurement. 
3.13.  Since 2007, Costa Rica has introduced reforms aimed at modernizing its intellectual 
property system to accommodate technological progress and to meet the country's international commitments. Legislative reforms have covered practically all intellectual property rights (IPRs), 
as well as the enforcement regime. The Law on the Protection of New Varieties of Plants was 
enacted in 2008 and its implementing regulations in 2009. In 2011, Costa Rica accepted the Protocol amending the TRIPS Agreement in respect of paragraph 6 of the Doha Declaration on WT/TPR/S/286 • Costa Rica 
 
- 40 - 
 
  the TRIPS Agreement and Public Health. Despite the changes made, there would appear to be 
room for a more efficient enforcement regime, particularly as regards copyright. 
3.2  Measures affecting imports 3.2.1  Customs procedures 
3.2.1.1  Legal and institutional framework 
3.14.  In Costa Rica, the legal framework for customs procedures is based on the Central American 
Uniform Customs Code III (CAUCA III), the General Customs Law and the respective implementing 
regulations.
1 
3.15.  CAUCA III sets out the basic customs le gislation to be applied by CACM members. 
In April 2008, the CACM countries agreed on amendments to CAUCA (CAUCA IV) and these were approved by Costa Rica's Legislative Assemb ly and ratified by the Executive in 2010.
2 This Code is, 
however, not yet in effect in Costa Rica as the re levant implementing regulations still have to be 
adopted.3 CAUCA IV and its implementing regulations (RECAUCA) introduce amendments to the 
previous legislation in order to streamline cu stoms procedures, for example, through the use 
of electronic, informatics and information and communications technology media for conducting 
customs operations. It also provides that the services of customs brokers are no longer mandatory for certain trade formalities, so importers and exporters may appoint special in-house customs 
agents to carry out the acts and formalities specified in the customs regulations. 
3.16.  The General Customs Law was amended in 2012 in order to improve tax management. 
The amendment gave supervisory officials within  the Tax Authority the possibility of taking 
preventive measures; it introduced the use of e-seals for the transport of goods under customs 
control and allowed payment of self-assessed penalties.
4 The regulations implementing 
the General Customs Law were amended during the review period. The amendments introduced provisions on the application of CA UCA III, determined the organizational structure 
of the National Customs Service (SNA) and defined the responsibilities and functions 
of the Directorate-General of Customs (DGA).
5 They also imposed a requirement to forward the 
cargo manifest for outgoing exports and specified the supporting documents which the declarant 
must keep.6 
3.17.  The SNA has sole responsibility for custom s matters, ensures the proper collection of taxes 
and acts as facilitator and controller of international trade in goods. It is composed of the Directorate, the Central Management Division, the Central Support Division and the 
Operations Division. The DGA is part of the Directorate of the SNA. The SNA is empowered to issue 
resolutions in advance under the various bilateral agreements signed by Costa Rica. These mainly concern matters of classification and origin (some agreements also include valuation and other 
aspects) and are binding on the Customs. 
3.18.  The National Customs Tribunal is the body to which requests for review of final acts 
by the Customs may be made. This must be done within 15 working days following the 
notification. The Customs must issue its decision on the request for review within two months of its 
receipt. If the request is rejected in whole or in part, the Customs initiates the appeal procedure, for which the National Customs Tribunal may order the submission of evidence. Once the 
                                               
1 General Customs Law No. 7557 of 20 October 1995 (amended by Law No. 8373 of 18 August 2003 
and Law No. 8458 of 21 September 2005). CAUCA III was approved by Law No. 8360 of 24 June 2003. Its 
implementing regulations (RECAUCA) were established by Executive Decree No. 31536 of 24 November 2003. 
2 Law No. 8881 of 6 December 2010 and Executive Decree No. 36346 of 6 December 2010. 
3 The Law on Comprehensive Amendment of the Central American Uniform Customs Code. 
(Law No. 8881) and the Protocol of Amendment contai ned in Resolution No. 248-2009 of 4 November 2010 will 
come into force simultaneously with their respective implementing regulations, but in May 2013 these had not yet been adopted. 
4 The Law on Strengthening Tax Administration (Law No. 9069 of 10 September 2012) amends 
Article 242 of the General Customs Law with regard to "customs tax violations". 
5 Amendment to the regulations implementing the General Customs Law, Executive Decree No. 34475 
of 4 April 2008. 
6 Amendments and additions to the regulations im plementing the General Customs Law in respect 
of export, Executive Decree No. 34564 of 14 May 2008. WT/TPR/S/286 • Costa Rica 
 
- 41 - 
 
  preliminary enquiries have been completed, the DGA has 15 working days to rule on the review. 
Official data show that, for the period January 2011 to December 2012, 474 appeals were lodged, including appeals against customs valuation (31% of the total), rules of origin (7%), tariff classification (8%), penalties (fines and suspension) (12%) and other areas such as re-import, 
customs warehouses, missing or extra documents, inter alia (40%).
7 
3.19.  In 2010, Costa Rica approved the Conv ention for Mutual Assistance and Technical 
Cooperation among Central American Tax and Customs Administrations, which determines the 
provisions and mechanisms under which these administrations may provide assistance and 
cooperate in relation to management, control and tax collection. The Convention also establishes 
the legal requirements for obtaining and providing information and documentation relating to the identity of taxpayers and of business, financial or industrial transactions.
8 Costa Rica is a member 
of the World Customs Organization, but did not sign the International Convention on 
the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention). 
3.2.1.2  Customs procedures 
3.20.  Regular importers have to register with the DGA's National Customs Valuation and 
Inspection Authority (ONVVA), which gives them a registration number.9 Importers of alcoholic 
beverages must also be registered with the Tax Registry of Importers, Manufacturers 
and Distributors of Alcoholic Beverages.10 Any importer, whether or not a regular importer, 
must be registered in the Declarants Database of the Information Technology for Customs Control Scheme (TICA). The TICA is the digital platform used by the SNA since 2005 to speed up customs procedures, exercise tighter control and enhance transparency. The scheme has led to the gradual 
elimination of formalities requiring hard copies and allows real-time electronic payment. 
3.21.  The services of customs brokers still have to  be used for all imports, except in some special 
cases.
11 Only natural persons who are Costa Rican citizens or citizens of another Central American 
country may act as customs brokers in Costa Rica. 
3.22.  Use of the TICA is mandatory for commercial imports, which account for some 98% of total 
imports.12 Customs brokers must submit their clients' import declarations by Internet, through the 
TICA, together with any other documents required , for example, import permits, phytosanitary 
certificates and certificates of origin. The declaration must contain a self-assessed determination of the duties payable and these are deducted from a bank account provided by the customs 
broker, using the TICA (through the National Elec tronic Payments Scheme). The customs broker is 
subsequently notified through the TICA that  the declaration has been approved. In 2012, 
it took 11 hours to approve customs import declarations. 
3.23.  Import permits (in most cases) have to be  obtained through the single window for foreign 
trade. In 2011, a project to upgrade this system  was launched (VUCE 2.0) in order to shorten the 
time and lower the cost for users by computerizing 100% of import/export procedures, interconnection among all institutions involved in regulating trade and available 24 hours a day, 
365 days a year. 
                                               
7 Information provided by the Ministry of Finance. 
8 Law No. 8880 of 1 November 2010. 
9 General Customs Law, Article 246. Regular importers must be registered in accordance with the 
guidelines and procedures specified in Resolution No. DGA-232-2009 of 18 September 2009. 
10 Law No. 8707 of 3 February 2009. The guidelines and the procedure for taxpayers engaged in these 
activities are laid down in Resolution No. DGA-232-2009 of 18 September 2009. 
11 Use of the services of customs brokers is optional under the RZF, for exports,  in-bond storage, ships' 
stores and outward processing, and fo r luggage, emergency supplies, samples of no commercial value, urgent 
or express courier packages, postal packages, duty-fre e shops, non-commercial im ports, parcels for family 
members, industrial or commercial home deliveries and imports by the State or its institutions (General Customs Law, Article 37). 
12 In the following cases, the customs tax payable is determined by the customs authority and 
declarations are processed automati cally: (a) imports by travellers other than luggage; (b) emergency 
supplies; (c) non-commercial postal packages; (d) small non-commercial packages; (e) samples of no 
commercial value; (f) temporary import  of motor vehicles not for profit; (g) temporary imports for commercial 
transport units; (h) packages that ar e urgent because of their nature or  respond to a duly justified need. WT/TPR/S/286 • Costa Rica 
 
- 42 - 
 
  3.24.  The selection of goods subject to immediat e verification and, where applicable, control of 
the documents and/or physical inspection is based on selective or random criteria according to what is specified in the various laws.
13 The risk management methodology uses a set of technical 
variables to identify and classify risks. On the ba sis of its results, the goods are assigned to the 
green, amber or red channel. For the period 2010-2012, the percentages assigned and the 
average time taken for clearance are shown in Table 3.1. In 2012, Costa Rica carried out 94 post-customs clearance audits.
14 
Table 3.1 Control by channel in the definitive import regime 
Channel Type of verification Average time for 
clearance (hours) % of imports, 2011 
Green No control required n.a. 87% 
Amber Verification of documents 47 0.5% 
Red Verification of documents 
and physical inspection  54 12.5% 
n.a. Not available. 
Source: Information provided by  the Costa Rican authorities. 
3.25.  Costa Rica has no restrictions regarding the port of entry and does not employ preshipment 
inspection services. The authorities have indicated that it is expected that the OEA scheme, 
which currently only applies to exporters, will be expanded to include importers in 2014. 
3.2.1.3  Trade facilitation measures 3.26.  Since 2007, Costa Rica has adopted a series of measures intended to facilitate import, 
export and transit procedures for goods; Table 3.2 summarizes the principal measures. Costa Rica 
is working on a programme to upgrade inland border posts. The purpose of this initiative is to 
improve the infrastructure and upgrade the equipmen t at Costa Rica's four major border crossings, 
as well as to make controls exercised by the national authorities at these posts more effective. 
The construction work is expected to begin in the first half of 2014. 
3.27.  In 2011, the Customs Facilitation Programme for Reliable Trade in Costa Rica (PROFAC) was 
initiated. This is a voluntary programme for certification as an OEA to encourage businesses 
to incorporate high levels of security in their commercial transactions, receiving in exchange 
a number of advantages such as streamlined and facilitated customs procedures and operations and fewer physical and documentary inspections, inter alia .
15 The programme commenced with 
exporters and it is hoped to extend it to importers and carriers in 2014 and to the remainder of the 
logistics chain subsequently.  
                                               
13 Law on Approval of the Second Protocol of Amendment to the Central American Uniform Customs 
Code (CAUCA) (Article 59), General Customs Law (Article 93), the regulations implementing the General 
Customs Law (Article 245) and the Regulation on Se lection Criteria for Persons, Goods and Customs 
Procedures Subject to Control and Inspection (Executive Decree No. 34549 of 24 March 2008). 
14 These were conducted in accordance with the Regu lation on Selection Criteria for Persons, Goods 
and Customs Procedures Subject to Cont rol and Inspection, the guidelines laid down in the Annual Inspection 
Plan and according to the operational capacity of the inspection bodies. 
15 The criteria for certification as an OEA, the obligations and the advantages are set out 
in Executive Decree No. 36461 of 17 January 2011. Online information, viewed at: http://historico.gaceta.go.cr/pub/2011/03/18/COMP_18_03_2011.html#_Toc288125287 . WT/TPR/S/286 • Costa Rica 
 
- 43 - 
 
  Table 3.2 Trade facilitation measures, 2007-2012 
Date Measure 
Since 2007 Continued application of the TICA to th e internal customs transit (2007), definitive 
export (2008-2009), Free Zone (2010) and Inward Processing (2011) regimes. 
2010 Fewer formalities and documents required for trade among CACM members under the Protocol 
to the General Treaty on Central American Economic Integration and the Framework Agreement 
Establishing the Central American Customs Union. 
2011 Upgrading of Costa Rica's main border post (Peñas Blancas) involving: (a) introduction of 
a system of windows for rapid clearance of 100% of the freight vehicles leaving Costa Rica (transport units must forward the documents required prior to arriving at the window), 
and (b) investment of US$4 million in upgrading the infrastructure at this border post.  
2011 Streamlined procedure for the International Land Transport Regime, involving use of a computer 
system to manage the International Transit of Goods (TIM). This tool allows the single transit 
declaration to be submitted electronically from in side the country so as to speed up the passage 
of goods through land borders and exchange information with Panama and other Central 
American countries.  
2011 Creation of an Origin Unit to group the issuance of certificates of origin into a single office.  
2011 Initiation of the project to upgrade the single window for foreign trade.  
2012 Creation of a mechanism for electronic payment of the fumigation services provided by 
the National Animal Health Service so as to do away with cash payments at all points of entry 
into Costa Rica.  
2012 Launching of the OEA scheme for th e export regime through PROFAC.  
Source: Information provided by  the Costa Rican authorities. 
3.2.2  Customs valuation 
3.28.  The DGA's ONVVA is responsible for matters relating to the customs valuation of goods. 
It verifies, controls, investigates and collects information used to determine the customs value correctly. In addition, it identifies a series of products as "sensitive", depending on the outcome 
of post-customs valuation controls, their effect on domestic production and industry, and an 
assessment of their impact on tax collection. Regular importers must be registered with the ONVVA and provide the customs authority with price lists, catalogues of imported goods and 
any information needed to determine the correct customs value. 
3.29.  Law No. 8013 of 18 August 2008 provides that determination of the customs value 
of imports, whether or not exempt from customs duty or other taxes, shall be governed by the 
provisions of Article VII of the WTO General Agreement on Tariffs and Trade 1994 and by 
the Central American Regulations on Customs Valuation of Goods and the General Customs Law. 
3.30.  Costa Rica notified the WTO of the entry into force of Decree No. 365820-H 
on 26 July 2011, which regulates the application of customs reference values.
16 These regulations 
set out the criteria for determining reference values to guide customs control of goods which, upon 
import, prove to have abnormally low prices. The reference values are approved by the DGA and apply the "reasonable doubt" criterion in respect of the value declared. The sectors to which the 
new reference values scheme applies include textil es, agricultural goods, spirits, vehicles and 
household electrical appliances. 
3.31.  According to the authorities, over the period January 2011 to September 2012, 
approximately 98% of imports entered on the basi s of the transaction value. The remaining 2% 
concerned imports of motor vehicles, which are not subject to tariffs and therefore customs 
valuation does not apply. 
3.2.3  Rules of origin 
3.32.  Costa Rica has notified the WTO that it does not have any non-preferential rules of origin.
17 
3.33.  Costa Rica applies preferential rules of origin as a member of the CACM, and also under 
other free trade agreements in force (Chapter 2). 
                                               
16 WTO document G/VAL/N/1/CRI/2 of 14 July 2011. 
17 WTO document G/RO/N/1 of 9 May 1995. WT/TPR/S/286 • Costa Rica 
 
- 44 - 
 
  3.34.  In addition to laying down general rules on determining origin, all Costa Rica's preferential 
trade agreements contain special rules. Goods that have not been wholly obtained or produced in 
the territory of one of the signatory countries must meet certain substantial transformation criteria, usually based on the principle of a change in tariff classification. Preferential rules of origin 
also lay down regional content criteria, which are either applied separately or together with the 
change in tariff classification criterion. Preferen tial tariff treatment requires the submission of a 
certificate of origin, except in the case of the CACM. 
3.35.  With regard to those free trade agreements which came into force during the review period, 
detailed descriptions of the rules of origin regime s can be found in the WTO's factual presentations 
of the FTA between Central America and Panama (Bilateral Protocol with Costa Rica) and the FTA between China and Costa Rica.
18 CAFTA-DR (like the other more recent FTAs such as those with 
Panama, Peru and China) includes de minimis criteria that allow goods to be considered as 
originating if the value of the non-originating inputs does not exceed 10% of the total value, although these provisions are not the same for textile and agricultural products. Some products 
are subject to special rules of origin. It should also be pointed out that CAFTA-DR allows 
cumulation of origin with Mexico for certain textile products used to produce clothing of HS Chapter 62. Likewise, the new agreement between Mexico and Central American countries, 
which had not yet come into force for Costa Rica at the time of writing this report, allows 
cumulation of origin with the United States for certain textile products used to produce clothing. 
3.2.4  Tariffs 3.2.4.1  Structure and levels 
3.36.  Costa Rica, as a minimum, grants most-favoured-nation (MFN) treatment to all its trading 
partners. 
3.37.  Costa Rica's tariff has two components: cu stoms duty on imports and an additional duty 
of 1% applied under the Emergency Law (Law No. 6946 of 12 January 1984) on all imports, 
with a few exceptions.
19 
3.38.  Costa Rica decides on its own tariff policy within the framework and guidelines laid down in 
the CACM. Its tariff is covered by the Conventi on on the Central American Tariff and Customs 
Regime, which contains the Central American Import Tariff (ACI) (in Annex A thereto). For the official classification of goods, the ACI uses the Central American Tariff System (SAC), which is based on the Harmonized Commodity Description  and Coding System (HS). The Council of 
Ministers of Economic Integration (COMIECO) of the Central American Economic Integration 
Subsystem (SIECA) has responsibility for amending  the ACI. The Fifth Amendment to the HS was 
incorporated into the SAC as of 1 January 2012 by means of Resolution COMIECO No. 263-2011 
of 27 July 2011.
20 
3.39.  In early 2013, Costa Rica's tariff had 10,065 ten-digit lines, with rates ranging from zero 
to 151%. All customs duties on imports are ad valorem and are applied on the c.i.f. value of the 
goods. Costa Rica's average arithmetic tariff did not change during the period under review, 
remaining at 6.9% in 2013. The average tariff on agricultural products (according to the WTO definition) was 14% and 5.5% for the other products (Table 3.3). 
                                               
18 WTO documents WT/REG264/1 of 7 January 2011 and WT/REG310/1 of 16 January 2013. 
19 These include: imports covered by free trade ag reements; goods listed in the WTO Agreement on 
Information Technology; and goods im ported by: (a) companies under the Export Processing Zones Regime; 
(b) self-managing, savings and loan and services cooperat ive associations and labour unions; (c) public higher 
education institutions; and (d) import s of medical and surgical equipment, medicines and raw materials for 
manufacturing in Costa Rica. 
20 Published in Costa Rica through Executive Decree No. 36800 of 4 October 2011. WT/TPR/S/286 • Costa Rica 
 
- 45 - 
 
  Table 3.3 Summary of the MFN tariff, 2013 
Description MFN Average 
bound 
tariffa 
(%)     
No. of 
lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
Total 10,065  6.9 0 - 151 1.4 45.1 
HS 01-24 1,866 14.3 0 - 151 1.2 46.5 
HS 25-97 8,199 5.2 0 - 15 1.1 44.8 
By WTO category      
Agricultural products 1,634 14.0 1 - 151 1.3 45.9 
 - Animals and animal products 217 28.8 1 - 151 1.3 71.1 
 - Dairy products 42 53.1 1 - 66 0.4 86.3 
 - Fruit, vegetables and garden produce 504 13.0 1 - 46 0.6 42.6 
 - Coffee and tea 47 12.9 1 - 15 0.3 47.0 
 - Cereals and cereal preparations 186 10.1 1 - 66 1.0 41.6 
 - Oilseeds, fats and oils and their products  142 6.5 1 - 15 0.8 28.2 
 - Sugar and confectionery 36 17.4 1 - 46 0.9 46.0 
 - Beverages, alcoholic beverages and 
tobacco 176 13.7 1 - 41 0.4 47.2 
 - Cotton 5 1.0 1 - 1 0.0 46.0 
 - Other agricultural  products n.e.s. 279 5.0 1 - 15 1.0 38.5 
Non-agricultural products (including 
petroleum) 8,431 5.5 0 - 46 1.0 44.9 
 - Non-agricultural products (excluding 
petroleum) 8,385 5.5 0 - 46 1.0 45.0 
 - - Fish and fish products 351 12.0 1 - 46 0.4 47.3 
 - - Mineral and metal products 1,349 4.8 0 - 15 1.1 44.1 
 - - Chemicals and photographic products 2,004 3.0 0 - 15 1.3 44.3 
 - - Wood, wood pulp, paper and furniture 598 7.4 0 - 15 0.7 45.6 
 - - Textiles 840 8.6 0 - 15 0.5 46.2 
 - - Clothing 251 14.8 1 - 15 0.1 46.0 
 - - Leather, rubber, footwear and travel 
articles 271 8.2 1 - 15 0.6 45.0 
 - - Non-electrical machinery 814 2.5 0 - 15 1.6 40.6 
 - - Electrical machinery 498 3.1 0 - 15 1.6 35.5 
 - - Transport equipment 770 4.3 0 - 15 1.2 68.2 
 - - Non-agricultural products n.e.s. 639 7.3 0 - 15 0.9 40.9 
 - Petroleum 46 4.7 0 - 15 1.0 38.1 
By ISIC sectorb      
Agriculture and fishing 698 9.6 0 - 66 1.0 38.7 
Mining 135 2.9 0 - 15 1.2 46.0 
Manufacturing 9,230 6.7 0 - 151 1.4 45.5 
By HS chapter      
 01 Live animals and animal products 541 19.1 1 - 151 1.3 57.8 
 02 Plant products 689 10.3 1 - 46 0.8 37.7 
 03 Fats and oils 90 9.0 1 - 15 0.6 41.8 
 04 Food preparations, etc. 546 15.6 1 - 151 1.0 48.6 
 05 Mineral products 241 3.5 0 - 15 1.1 44.6 
 06 Products of the chemical and related 
industries 1,801 2.5 0 - 15 1.4 45.0 
 07 Plastics and rubber 456 6.0 0 - 15 0.8 42.6 
 08 Hides and skins 131 9.1 1 - 15 0.6 37.9 
 09 Wood and articles of wood 207 9.4 0 - 15 0.4 39.5 
 10 Wood pulp, paper, etc. 360 6.1 1 - 15 0.8 48.5 
 11 Textiles and textile articles 1,056 9.9 0 - 15 0.5 46.0 
 12 Footwear, hats and other headgear 92 12.7 0 - 15 0.3 52.6 
 13 Articles of stone 235 7.6 0 - 15 0.8 43.4 WT/TPR/S/286 • Costa Rica 
 
- 46 - 
 
  Description MFN Average 
bound 
tariffa 
(%)     
No. of 
lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
 14 Precious stones, etc. 58 8.0 1 - 15 0.7 45.6 
 15 Base metals and articles of base metal 856 4.3 1 - 15 1.1 43.7 
 16 Machinery and mechanical appliances 1,370 2.9 0 - 15 1.6 38.4 
 17 Transport equipment 788 4.2 0 - 15 1.3 67.4 
 18 Precision instruments 286 4.0 0 - 15 1.3 38.5 
 19 Arms and ammunition 28 15.0 15 - 15 0.0 46.0 
 20 Miscellaneous manufactured articles 223 11.2 0 - 15 0.5 43.7 
 21 Works of art, etc. 11 8.2 6 - 10 0.2 46.0 
By stage of processing      
First stage of processing 1,235 8.5 0 - 66 1.0 41.2 
Semi-processed products 3,125 4.4 0 - 46 1.1 44.4 
Fully processe d products 5,705 7.9 0 - 151 1.4 46.3 
a The bindings are in the HS2002 classification and the rates applied in HS2012; consequently, 
there may be differences between the number of lines included in the analysis. 
b ISIC (Rev.2), excluding electricity (one line). 
Source: WTO Secretariat estimates, based on data provided by the authorities. 
3.40.  The vast majority of the tariff headings are to be found in the zero to 15% range 
(Chart 3.1). The most highly protected products include: poultry meat and edible offal 
(rates of 36% 41% and 151%); sausages and other preparations of meat (36%, 41% and 151%); 
meat of swine and some of its byproducts (36% and 46%); dairy products (36%, 51% and 66%); onions and shallots (36% and 46%); potatoes (41% and 46%); sugar and molasses (46%); 
rice (36%); and beans (21% and 31%). 
Chart 3.1 Frequency distribution of MFN tariff rates, 2013 
(2.8%)(47.7% )
(25.3%)
(22.7%)
(1.5%)
0500 1,0001,5002,0002,5003,0003,5004,0004,5005,0005,500
Duty-free >0-5 >5-10 >10-15 >15Number of lines
 
 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
 
3.41.  During the review period, the only major change to Costa Rica's tariff structure was an 
increase in the number of tariff lines as a re sult of amendments to the HS (Table 3.4). WT/TPR/S/286 • Costa Rica 
 
- 47 - 
 
  Table 3.4 Structure of MFN tariffs, 2006 and 2013 
(Percentage) 
 2006 
(HS02) 2013 
(HS12) 
Total number of lines 8,840 10,065 
Non-ad valorem  tariffs (% of all tariff lines) 0.0 0.0 
Tariff quotas (% of all tariff lines)a 1.0 (0.4) 1.5 (0.5) 
Duty-free tariff lines (% of all tariff lines) 2.7 2.8 
Average of lines exceeding zero (%) 7.1 7.1 
Arithmetic average 6.9 6.9 
Agricultural products 14.2 14.0 
Non-agricultural products (including petroleum) 5.6 5.5 
Agriculture, hunting and fishing (ISIC 1) 9.2 9.6 
Mining (ISIC 2) 3.2 2.9 
Manufacturing (ISIC 3) 6.8 6.7 
Raw materials 7.6 8.4 
Semi-processed products 4.4 4.4 
Processed products 8.2 7.9 
Domestic tariff "peaks" (% of all tariff lines)b 1.4 1.5 
International tariff "peaks" (% of all tariff lines)c 1.4 1.5 
Overall standard deviation of applied rates 9.5 9.6 
"Nuisance" rates applied (% of all tariff lines)d 48.9 47.7 
Bound tariff lines (% of all tariff lines) 100.0 100.0 
a The first figure includes MFN and preferential quot as. The figure in brackets only takes into account 
MFN quotas. 
b Domestic tariff peaks are defined as rates ex ceeding three times the overall simple average 
of applied rates. 
c International tariff peaks are defined as rates above 15%. d "Nuisance" rates exceed zero but are 2% or less. 
 
Source: WTO Secretariat estimates, based on data provided by the authorities. 
 
3.2.4.2  Tariff bindings 
3.42.  Cost Rica bound 100% of its tariffs in the WTO, at rates ranging from zero to 233%. 
The average final bound rates are: 45.1% for all products, 45.9% for agricultural products, 
and 44.9% for non-agricultural products (Table 3.3). 
3.43.  The WTO Secretariat identified one heading (HS 0405.2000.90, other dairy spreads) whose 
applied rate is 66%, above the bound rate of 45%. The authorities have indicated that this is the 
result of an error when preparing the notificati on of the Second Amendment (HS96) and that the 
line in question came from heading 0405.0090, whose final binding was 94.7%. The authorities intend to correct this mistake at the WTO. 
3.2.4.3  Tariff preferences 
3.44.  Table 3.5 contains a summary analysis of Costa Rica's preferential tariffs at the beginning 
of 2013; a more detailed breakdown is given in Appendix Table A3.1. The transitional period for the full liberalization of tariffs agreed under the free trade agreements with Chile, Canada, 
CAFTA-DR and the Central America-Panama agreement has not yet ended; for the other FTAs 
in force, the transitional period has ended.
 WT/TPR/S/286 • Costa Rica 
 
- 48 - 
 
  Table 3.5 Summary analysis of Cost a Rica's preferential tariffs, 2013 
(Percentage) 
 Total Agricultural products 
(WTO definition) Non-agricultural 
products 
(WTO definition) 
 Averagea Duty-free 
lines Averagea Duty-free 
lines Averagea Duty-free 
lines 
MFN 6.9 2.8 14.0 0.0 5.5 3.4 
CACM       
Guatemala, Honduras, 
Nicaragua 0.0 99.8 0.3 98.8 0.0 100.0 
El Salvadorb 0.1 99.8 0.3 98.5 0.0 100.0 
CARICOMc       
Barbados 1.1 93.0 4.8 77.9 0.4 96.0 
Belize 1.0 93.6 4.0 81.3 0.4 96.0 
Guyana 1.1 93.1 4.4 78.7 0.4 95.9 
Trinidad and Tobago 1.0 93.4 4.3 79.9 0.4 96.0 
CAFTA-DR       
United States 1.3 75.4 4.9 49.3 0.6 80.4 
Dominican Republic 0.8 96.3 4.4 82.8 0.1 98.9 
Bilateral FTAs       
Canada 1.3 81.0 6.3 48.7 0.4 87.3 
Chile 1.1 94.6 6.0 74.9 0.1 98.5 
China 3.9 62.2 8.8 45.8 2.9 65.4 
Mexico 0.8 97.7 4.8 86.7 0.0 99.8 
Panamad 0.9 89.0 3.7 82.3 0.4 90.3 
Dominican Republic 0.5 97.8 2.9 88.6 0.0 99.5 
a Calculations made using the lower of the MFN and preferential rates. 
b In the case of El Salvador, there are five addition al lines that are not duty free, which explains the 
differences in the figures compared  to the other CACM countries. 
c In force in 2013 between Costa Rica and Trinidad  and Tobago, Barbados, Belize and Guyana only. 
d Bilateral Protocol between Costa Rica and Panama within the framework of the Central 
America-Panama Free Trade Agreement. 
Source: WTO Secretariat, based on data pr ovided by the Costa Rican authorities. 
3.2.4.4  Tariff concessions 
3.45.  The General Customs Law provides for the following customs regimes that allow tariff 
concessions: Free Zones; Inward Processing; and Drawback (Section 3.3.4), as well as the regimes for re-import in the same state, re-exp ort, temporary export for outward processing, 
and temporary import or export.
21 Between 2007 and 2012, the value of customs duty exemptions 
for imports ranged from ₡8.4 billion to ₡17.2 billion annually.22 
3.2.4.5  Tariff quotas 
3.46.  Costa Rica applies tariff quotas in accordance with the minimum access opportunities 
commitment in the WTO Agreement on Agriculture (Chapter 4.2.3.1). It also applies tariff quotas for some agricultural products under the prefer ential agreements signed with Canada, China, 
the United States, the Dominican Republic and Panama. 
                                               
21 The regimes for re-import in the same state, re -export, temporary export for outward processing, 
and temporary import and export did not change during the review period and thei r distinctive features are 
described in the previous report on Costa Rica (WTO document WTO/TPR/S/180/Rev.1 of 2 August 2007). 
22 The figures were provided by the Directorate-General of Finance and include the exemptions given 
in connection with international agreements and missions, private activities and government institutions. WT/TPR/S/286 • Costa Rica 
 
- 49 - 
 
  3.2.5  Other charges affecting imports 
3.47.  The following internal taxes are imposed in Costa Rica: (i) the general sales tax (IGV)23; 
(ii) the selective consumption tax (ISC)24; (iii) the tax for the Rural Development Institute 
(INDER)25; (iv) the tax for IFAM26; (v) the special tax on beverages and soap27; (vi) the single tax 
on fuel28; and (vii) the tax on tobacco products29 (Table 3.6). These taxes are imposed 
indiscriminately on both domestic and imported products, except the IFAM on beer, which only applies to imported products.
 
Table 3.6 Internal taxes on imports, 2013 
Tax Taxable items Tax rate 
IGV Value added on the sale of 
goods and the supply of certain services  13% (except for household elec tric power, which is 5%) 
Goods exempt pursuant to Decree No. 37132-H: inputs; oils and fats; sugar; beef; pork; chicken meat; sausages; fish; crustaceans and molluscs; fruit; garden prod uce; legumes and tubers; bread 
and cereals; food products; arti cles of clothing and footwear; 
articles for home and household use; miscellaneous goods and goods required for teaching. 
Goods exempt pursuant to Law No. 6828: retreads and tyres for 
agricultural machinery; veterina ry products; some agricultural 
inputs; medicines; kerosene; dies el fuel for fishing other than 
recreational fishing; books; musical compositions; drawings and paintings created in Costa Rica; coffins; household consumption of electric power not exceeding 25 kW/h; and exports of goods and the re-import 
of Costa Rican goods within three years following their export.  
ISC Goods such as beer, wine, 
spirits, cigarettes, paints, 
varnishes, electronic 
appliances, vehicles and 
motor bicycles, inter alia.  Ranges from 5% to 95%, depending on the goods. 
Domestic goods exported and re-imported within three years 
following their export, are exempt from the ISC, as well as basic 
household necessities, school uniforms, some agricultural inputs, 
fishing, the pharmaceutical in dustry, medicines and medical 
equipment. 
INDER tax Alcoholic beverages, beer, 
carbonated beverages, carbonated soft drinks and cigarettes 2.5% on the price of cigarettes, 
8% of the value of alcoholic beverages (except wine and beer), ₡5,725 per 250 ml. unit of carbonated beverages and between 
₡0.1 and ₡0.4 per ml. of alcohol for wine and beer. 
IFAM tax Spirits and beer 10% on the selling price of domestic spirits (except for Costa Rican 
beer) and 10% of the total cost of importing beer and spirits. 
A tax of ₡0.22332 per ml. of pure alcohol is also payable 
on Costa Rican and foreign beer. 
Special tax 
on beverages and soap  Alcoholic beverages, 
non-alcoholic beverages in containers (except for milk and beverages for therapeutic 
or medical use) and toilet 
soap  Ranges from ₡2.90 to ₡4.03 per unit of measurement for beer 
and spirits. Ranges from ₡5.72 to ₡16.52 per 250 ml. for non-alcoholic 
beverages. 
₡2.08 per g. of soap. 
Single tax 
on fuel Fuel Ranges from ₡20.75 to ₡221.75 per litre depending on the type 
of fuel. 
Tax on 
tobacco products Raw or unprocessed tobacco, 
cheroots/cigars, cigarettes and tobacco substitutes  ₡20 per cheroot, cigarette or ci gar, of tobacco, and their 
byproducts. 
Source: WTO Secretariat, based on informatio n provided by the Costa Rican authorities. 
                                               
23 General Sales Tax Law No. 6826 of 8 November 1982. Decree No. 37073-H of 17 April 2012, 
amended by Decree No. 37132-H of 17 May 2012, specifies the list of goods that are basic household necessities for tax purposes and the essential goods for teaching that are exempt from the IGV. 
24 Law on Tax Reform and the Harmonization of Selective Consumption Taxes, No. 4961 
of 11 March 1972. 
25 Law creating the Agrarian Development Institute No. 6735 of 29 March 1982. 
26 Law on the Sale of Spirits No. 10 of 7 October 1936 and the Law creating the Agrarian Stamp Duty 
and the Tax on the Consumption of Cigarettes and Beverages No. 5792 of 1 September 1975. 
27 Law on the Tax on Cigarettes and Spirits for the Social Protection Plan No. 7972 of 22 December 1999 
and Law on Tax Simplification and Efficiency No. 8114 of 9 July 2001. 
28 Law on Tax Simplification and Efficiency No. 8114 of 9 July 2001. 
29 General Law on the Control of Tobacco and its Harmful Effects on Health, No. 9028 of 26 March 2012. WT/TPR/S/286 • Costa Rica 
 
- 50 - 
 
  3.2.6  Import licensing, restrictions and prohibitions 
3.2.6.1  Prohibitions 3.48.  Costa Rica bans the import of a limited number of products (Table 3.7) for reasons of 
security and protection of public health and the environment. There have been no changes to the 
products banned since the previous review of Costa Rica, except for the ban imposed on the 
import of the chemical substance pentachlorophenol (PCP), its sodium salts (Na-PCP) and products containing this raw material. Costa Rica does not impose any prohibitions on imports from specific 
countries. 
Table 3.7 Import prohibitions, 2013 
Description HS Chapters affected 
Arms and ammunition, explosives and other 
related materials Chapter 36; heading 87.10; heading 89.06; and 
Chapter 93 
Worn under-garments and footwear Ex Chapter 64 and ex heading 63.09 
Used tyres Heading 40.12 
Chemical substances Heading 25.24; heading 25.30; heading 27.10; 
Chapter 28; Chapter 29; heading 30.06; heading 31.02; 
Chapter 38 and heading 59.09 
Mini jellies containing the food additive known as konjac fluor INS 425  Ex heading 17.04 
Source: Information provided by  the Costa Rican authorities. 
3.2.6.2  Licensing and restrictions 
3.49.  As mentioned in the previous report, Costa Rica abolished import licensing for trade 
purposes in 1994 when the Law on implementation  of the Uruguay Round Agreements came into 
f o r c e .  R e q u i r e m e n t s  h a v e  t o  b e  m e t ,  h o w e v e r ,  for the import of certain goods, for example, 
permits or authorizations which, in practice, are tantamount to licences. For most of these, 
the requirements relate to sanitary and phytosanit ary protection (section 3.2.8), protection of the 
environment and species, public health and public security measures (Table 3.8). Costa Rica also 
has a tariff quota scheme for some agricultural products and this has been notified to the WTO's 
Import Licensing Committee.30 Costa Rica has explained that these quotas are not administered 
by means of import licences but are allocated according to a market mechanism that involves an administrative procedure (Chapter 4, section 4.2). 
Table 3.8 Requirements for the import of certain goods 
Requirement Authorizing institution HS Chapters 
affected Justification 
Submission of a form and other 
documents for refrigerant gases  Directorate for Management of 
the Quality of the Environment (MAE)  29, 30, 38, 39, 84 Environmental 
protection 
Registration certificate for 
preservatives to be used to 
treat wood Services Platform 
(Ministry of Health) 38 Protection of public 
health and 
environmental 
protection 
Permit for the import (or export) of drugs and narcotics and customs seals Services Platform 
(Ministry of Health) 13, 14, 29 Protection of human 
health 
Authorization for customs 
clearance of toxic and 
hazardous substances  Services Platform 
(Ministry of Health)  25-29, 32-34, 36, 
38, 68, 78, 81, 84, 
85, 90 Environmental 
protection  
Authorization for the import (or export) of raw materials, basic elements for medicines and cosmetics; medicines, cosmetics and medical equipment Department of Drugs and 
Narcotics, Control and Registration (Ministry of Health) 12, 13, 19, 29, 30, 
33, 34, 38, 40, 48, 56, 90, 96 Protection of public 
health 
                                               
30 WTO documents G/LIC/N/2/CRI/2 of 20 October 2010, G/LIC/N/3/CRI/7 of 14 October 2010 
and G/LIC/N/3/CRI/6 of 9 October 2009. WT/TPR/S/286 • Costa Rica 
 
- 51 - 
 
  Requirement Authorizing institution HS Chapters 
affected Justification 
Authorization for the import 
(or export) of precursors 
and chemical substances, 
including customs seals Unit for the Control and 
Inspection of Precursors 
(Office of the President) 12, 22, 27-29, 38 Protection of public 
health 
Permit for the import of 
explosives Directorate for the Control 
of Arms and Explosives (Ministry of Public Security) 25, 28, 31, 32, 36, 
76 Public security 
Authorization for customs 
clearance of used clothing 
and footwear Department for the Control 
of Arthropods and Vermin 
(Ministry of Health) 63 Protection of public 
health 
Permit for the import of arms  Department for the Control 
of Arms and Explosives (Ministry of Public Security) 87, 93 Public security 
Permit for the import 
of ammunition Department for the Control 
of Arms and Explosives 
(Ministry of Public Security) 93 Public security 
Import (or export) authorization 
from the National Chemical Weapons Authority Technical Secretariat (National 
Chemical Weapons Authority) 28, 29 and 30 Public security 
Authorization for the import 
(or export) of fish, molluscs 
and crustaceans, live or in any 
living state; sharks and their 
byproducts, tuna, swordfish and 
sailfish in any form, 
authorization for the transit 
of sharks and their byproducts 
in any form Costa Rican Fisheries 
and Aquaculture Institute  03 Environmental 
protection 
Convention on International 
Trade in Endangered Species of Wild Fauna and Flora (CITES) import (or export) permit Senior Directorate, Conservation 
Area Schemes (MAE) 01, 03, 06, 44 Protection 
of species 
Authorization for the import 
of hazardous waste from the 
national authority appointed 
under the Basel Convention Services Platform 
(Ministry of Health) 26, 78, 81, 85 Environmental 
protection 
Source: WTO (2007) and information provided by the Costa Rican authorities. 
3.2.7  Anti-dumping, counterva iling and safeguard measures 
3.2.7.1  Anti-dumping and countervailing measures 3.50.  In Costa Rica, the legal framework for applying anti-dumping (AD) and countervailing 
measures is the WTO Anti-Dumping Agreement and the WTO Agreement on Subsidies 
and Countervailing Measures. The Central American Regulations on Unfair Business Practices set out the procedural aspects of both agreements . These Regulations were amended in 2007 and 
approved by Costa Rica by means of Execut ive Decree No. 33809-COMEX-MEIC of 8 May 2007.
31 
Costa Rica notified these changes to the WTO in 2008 and they were examined by the Committee on Anti-Dumping Practices that year.
32 
3.51.  The main changes introduced in 2007 enable duly accredited interested parties access 
to non-confidential information (confidential information is restricted to the party that has provided it and to the investigating authority). The means of notification ( inter alia, fax, e-mail) 
are determined and there is provision for the domest ic industry's withdrawal from the proceedings. 
There are also provisions obliging interested parties submitting confidential information to attach 
                                               
31 In 2008, Costa Rica notified to the WTO Executive Decree No. 33809-COMEX-MEIC by means of which 
the new text of the Central American Regulations on Unfair Business Practices (WTO document G/ADP/N/1/CRI/3 and G/SCM/N/1/CRI/3 of 22 January 2008) was approved, repealing the former Regulations contained in Decree No. 248-MEIC and notified to the WTO in November 2002. 
32 The United States, the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu and Chile 
submitted questions to Costa Rica on its legislation (WTO documents G/ADP/Q1/CRI/7 of 9 April 2008, 
G/ADP/Q1/CRI/8 of 10 April 2008 and G/ADP/Q1/CRI/9 of 10 April 2008, respectively). Costa Rica replied to the questions (WTO documents G/ADP/Q1/CRI/10, G/ADP/Q1/CRI/11 and G/ADP/Q1/CRI/12 of 17 June 2008). WT/TPR/S/286 • Costa Rica 
 
- 52 - 
 
  a non-confidential summary thereof or to explain the reasons why this information cannot be 
summarized. Articles have been added to enable the investigating authority to conduct inspection visits during the investigation procedure and allowing the complainant to withdraw from the investigation at any time. The new Regulations eliminate an article that allowed conciliation 
councils to be convened during an investigation with the aim of reaching a direct settlement and 
another on the review of compliance with the undertakings made. At the end of May 2013, work was going on to develop national regulations to govern the procedure for extension following 
the exhaustion of rights. 
3.52.  The Trade Protection Directorate in the Ministry of the Economy, Industry and Trade (MEIC) 
is responsible for initiating administrative procedures relating to dumping or subsidization, for conducting the investigation and recommending to MEIC's Minister the imposition of border 
measures.
33 Between 2007 and 2013, Costa Rica applied two AD measures: one on paint from 
the United States and the other on inputs for production from Chile. In 2009, two investigations were initiated into canned tuna, but they were rejected in 2010 (Table 3.9). In March 2013, 
only one AD measure was in effect. 
3.53.  As far as countervailing measures are concerned, at the end of December 2009, Costa Rica 
notified the WTO that the only countervailing measures it had applied, namely, on imports of palm 
olein and margarine for puff pastry from Colombia, had ended in May 2009 when the measure 
expired without review.
34 Since then, Costa Rica has notified the WTO that it has not adopted any 
countervailing measure.35 
Table 3.9 Anti-dumping procedures, January 2007 to May 2013  
Country Product Situation 
United States  
 Water-based latex 
paint, entering Costa Rica under SAC tariff line 3209.90.10.00  13.09.2005: initiation of the investigation 
24.04.2006: provisional duty applied for 6 months (dumping margin of 516%) 31.01.2007: definitive duty applied for 4 years (dumping margin of 516%)
 
23.11.2010: initiation of the investigation (sunset review) 21.11.2011: decision on renewal of application of the measure 01.02.2012: application of definitive duty (dumping margin of 516%). MRP: variable duty up to US$10.52/gallon
a 
Chile Printed flexible 
metallized 
polypropylene 
packaging which, 
in accordance with 
the SAC, enter 
Costa Rica under 
tariff heading 
3920.20.21.00  09.01.2006: initiation of the investigation 
24.11.2006: provisional duty applied for 4 months (dumping margin 
of 10.56%)  
02.07.2007: positive final determination. Application of definitive AD duty 
(dumping margin of 13.17%) for a period  of 5 years as of the entry into 
force of the provisional measure 
17.01.2012: termination of the AD measure 
El Salvador Canned tuna 
(1604.14.90.10) 12.06.2009: initiation of the investigation 
21.10.2010: the AD investigation was dismissed at the request of the domestic industry 
Brazil Canned tuna 
(1604.14.90.10) 12.06.2009: initiation of the investigation 
21.10.2010: the AD investigation was dismissed at the request of the 
domestic industry 
a MRP: Preferential residual meas ure. For the exporting firm, an ad valorem AD duty of 516% was 
established. In order not to distort trade more than necessary, a variable AD duty was imposed in the form of the MRP for all other imports at f.o.b. prices below US$10.52/gallon, which was the normal value determined. 
Source: Costa Rica's notifications to the Committee on Anti-Dumping Practices. 
3.2.7.2  Safeguard measures 
3.54.  The legal framework for initiating safeguards investigations and imposing safeguard 
measures in Costa Rica is Executive Decree No. 33810-COMEX-MEIC of 12 June 2007. By means 
                                               
33 In 2010, the Unfair Business Practices and Safegu ard Measures Department in the MEIC changed its 
name and became the Trade Protection Directorate, but its role and responsi bilities did not change. 
34 WTO document G/SCM/N/203/CRI of 10 March 2010. 
35 WTO document G/SCM/N/250/Add.1 of 10 April 2013 (ref ers to the most recent notification period at 
the time of writing this report: July to December 2012). WT/TPR/S/286 • Costa Rica 
 
- 53 - 
 
  of this Decree, Costa Rica approved the amen dments to the Central American Regulations 
on Safeguard Measures signed by the CACM me mbers in April 2007. Costa Rica notified these 
changes to the WTO in 2008 and they were ex amined by the Committee on Safeguards the 
same year.36 
3.55.  The following were the major changes introduced by the revised Central American 
Regulations: (a) when the investigating authority takes action ex officio, the domestic industry concerned has to account for at least 25% of total domestic production of the products 
in question; (b) the period to be subject to investigation is three years, although the investigating 
authority may lengthen or shorten this period and must indicate the relevant period in the decision on initiating an investigation; (c) new articles have been introduced to allow duly accredited parties access to non-confidential information (confidential information is restricted to the party 
that has provided it and to the investigating authority), together with provisions obliging interested 
parties submitting confidential information to attach a non-confidential summary thereof or to explain the reasons why this information cannot be summarized. There are also new articles 
enabling the investigating authority to carry out inspection visits during the investigation 
procedure, either in the country in question or in others, subject to agreement by the companies. 
Lastly, a new provision allows the complainant to withdraw from the investigation at any time; 
if this is the case, the investigating authority may only continue the investigation if, within 30 days 
of the notification, the domestic producers which expressly support its continuation account for at least 25% of the domestic industry. 
3.56.  Costa Rica has never applied a definitive safeguard measure. During the review period, 
it notified the initiation of an investigat ion (May 2012) into imports of pounded rice.
37 
The investigation concluded in November 2012 without the imposition of safeguard measures as it was determined that imports had not increased in "such …. quantities" and there was no threat 
of injury to the domestic pounded rice industry. 
3.57.  There are provisions on bilateral safeguard measures in all the free trade agreements in 
force signed by Costa Rica, except for the CARICOM Treaty. The purpose of these measures is to 
prevent or remedy any serious injury resulting from  the liberalization envisaged in the respective 
agreements during the transitional period. In most  cases, these measures include the possibility of 
suspending the future reduction of any tariff or increasing it to a level that does not exceed 
the MFN rate prevailing when the agreement came into force. Costa Rica did not apply any 
bilateral safeguard measures during the period under review. 
3.2.8  Technical regulations and standards 3.2.8.1  Legal and institutional framework 
3.58.   The National Quality System (SNC), established by Law No. 8279 of 21 May 2002, is the 
structural framework for development-related activities and for assessing quality. Its aims include facilitating compliance with international commitments on conformity assessment and helping to 
raise the competitiveness of Costa Rican companies.
38 The Law determines the authorities 
responsible for regulation, standardization, accreditation and metrology, although these authorities are also governed by their own regulations (Table 3.10). There have been no major changes to the Law or to the authorities responsible for these activities since 2007. 
3.59.  The enquiry point for technical barriers to trade in the Technical Secretariat of the Technical 
Regulation Body (attached to the MEIC) acts as Costa Rica's national enquiry point for the purposes of the WTO Agreement on Technical Barriers to Trade (TBT).
39 The Directorate-General 
of Foreign Trade in COMEX is still in charge of TBT notification procedures. 
                                               
36 The United States and Chile submitted questions to Costa Rica on its legislation (WTO documents 
G/SG/Q1/CRI/4 of 9 April 2008, G/SG/Q1/CRI/3 of 9 April 2008 and G/SG/Q1/CRI/7 of 18 September 2008). Costa Rica replied to the questions in WTO documents G/SG/Q1/CRI/6 of 17 June 2008; G/SG/Q1/CRI/5 of 17 June 2009; and G/SG/Q1/CRI/8 of 15 October 2008). 
37 WTO document G/SG/N/6/CRI/2 of 31 May 2012. 
38 Law No. 8279 was notified to the WTO in docu ment G/TBT/2/Add.51/Suppl.1 of 10 March 2003. 
39 Online information from the WTO, viewed at: 
http://tbtims.wto.org/web/pages/settings/country/Selection.aspx . WT/TPR/S/286 • Costa Rica 
 
- 54 - 
 
  Table 3.10 Authorities responsible for regula tion, standardization, accreditation and 
certification in Costa Rica 
Authority Form and composition Responsibilities and legal basis 
National Quality 
Council (CONAC) Council chaired by the MEIC and 
composed of Ministers whose 
portfolios give them competence to determine technical regulations, and representatives of various business and sectoral associations. Determine the general outline for the SNC in 
conformity with recognized international practices 
and national needs. Regulations of the National Quality Council, Executive Decree No. 31820 of 29 April 2004. 
CONAC Technical 
Committee Technical committee composed 
of the heads of LACOMET, ECA, ORT 
and ENN. Coordinate with other scientific and technical 
organizations in the area of metrology and take part 
in activities to verify compliance with technical 
regulations in areas within its competence. 
Regulations of the National Quality Council, 
Executive Decree No. 31820 of 29 April 2004. 
Technical 
Regulation Body (ORT) Interministerial commission whose 
Technical Secretariat is attached to the MEIC and is exercised jointly with the enquiry point for technical barriers to trade.  Recommend the adoption, updating or repeal of 
technical regulations issued by the Executive and determine technical criteria for preliminary drafts to be implemented by  the Executive. 
Regulations of the Technical Regulation Body, Executive Decree No. 32068 of 19 May 2004.  
Costa Rican 
Metrology 
Laboratory 
(LACOMET) National reference laboratory for 
metrology. Highly decentralized 
body attached to the MEIC. Act as the technical authority. Coordinate with other 
scientific and technical organizations in the area of 
metrology. Keep the national prototype standards 
and ensure their regular comparison with higher 
level prototypes. Verify compliance with technical 
regulations in areas within its competence. 
Implementing regulations for Chapter III of Law 
No. 8279 on the National Quality System. Creation 
of the Costa Rican Metrology Laboratory, Executive 
Decree No. 31819 of 30 April 2004.  
Costa Rican Accreditation Authority (ECA) Public non-governmental authority. Conduc t accreditation procedures in respect of 
testing and calibration la boratories, inspection 
and control agencies, and certification agencies. Promote the conclusion of mutual recognition agreements and other understandings. Regulations on the Internal Structure and Operations of the Costa Rican Accreditation Authority, Executive Decree No. 33963 of 31 July 2007.  
National 
Standardization 
Authority (ENN) Private body appointed by the 
Executive upon recommendation 
by CONAC. Initiate and direct the preparation of the standards 
needed for Costa Rica's social and economic 
development, including the adoption of international 
standards. Promote participation in international 
organizations. Disseminat e proper application of 
standards in industrial and business activities 
The Costa Rican Technical Standards Institute 
(INTECO) was recognized as the National 
Standardization Authority for the period 2012-2017. 
Executive Decree No. 37302 of 23 August 2012.  
Source: WTO Secretariat, based on informatio n provided by the Costa Rican authorities. 
3.60.  In order to move forward with updating the national regulatory framework and to comply 
with the WTO's provisions, for a number of ye ars the Regulatory Improvement and Technical 
Regulation Directorate Regulatory Improvem ent and Technical Regulation Directorate, 
with the participation of the governing (regulatory) authorities and the private sector, has been drawing up national plans for technical regulations for four-year periods. For the period 2011-2014, the National Technical Regulati ons Plan focuses on meeting the regulation 
needs of the non-food industrial sector (inclu ding the metalworking, plastics, paints, glass, 
electricity and building industries). WT/TPR/S/286 • Costa Rica 
 
- 55 - 
 
  3.2.8.2   Development of technical regula tions and conformity assessment procedures 
3.2.8.2.1  National procedures 3.61.  The 2004 implementing regulations for the ORT (especially Annex I, which contains the 
guidelines for drawing up technical regulations) set out the procedures to be followed for preparing 
and approving technical regulations and conformi ty assessment procedures. The regulations on 
drawing up national technical regulations, adopte d in 2010, lay down the official format to be 
followed for technical regulations, which includes the distinctive features of any related process or 
processes and production methods.
40 
3.62.  Proposed technical regulations are developed by the government authorities interested in 
regulating an activity and must be put before the ORT's Technical Secretariat for examination and subsequent forwarding to the ORT. These auth orities consist mainly (but not exclusively) 
of the MEIC, the Ministry of Science, Technolo gy and Telecommunications (MICITT), the Ministry 
of Agriculture and Livestock (MAG), the Ministry of Health, the Ministry of the Environment and Energy (MINAE), the Ministry of Public Works and Transport (MOPT), and the Ministry 
of Foreign Trade (COMEX). Private institutions may participate in developing proposals in 
coordination with the governing bodies as this  is a formal working procedure; there are no 
restrictions on participation by foreign private institutions. 
3.63.  If the proposed technical regulation necessi tates the adoption of an international standard 
in full, the procedure moves directly to the national public consultation stage; if this is not the case, the proposal is forwarded to a technical committee, which has to examine it prior to the consultation. 
3.64.  Comments on the proposal must be submitted within ten working days of notification of the 
national public consultation in the Official Journal ( La Gaceta ) and in a national newspaper. If there 
are no comments, the proposal is forwarded for international public consultation 
by notifying the WTO. If comments are received  in the course of the public consultation, 
the ORT's Technical Secretariat transmits these to a technical committee for examination and responds to those that are duly substantiated; the time-limit for replies is eight working days 
as of the day following the end of the public consultation (if necessary, this time-limit may be 
extended for a further eight working days). 
3.65.  The WTO is then notified and a period of 60 days is given to allow trading partners to send 
in their comments. The comments received are forwarded to a technical committee for 
examination and reply. The authorities have indicated that, if the proposal is based on an 
international reference standard, Costa Rica also notifies it to the WTO for the sake of transparency vis-à-vis  its trading partners. Once this stage has been completed, the document 
goes to the Executive for signature and is published in the Official Journal. 
3.66.  The authorities have explained that, when  a technical regulation determines measures 
intended to facilitate trade, it may become applicable as soon as it has been published 
in the Official Journal. In other cases, when a reasonable period of time is required to allow 
interested sectors to adapt to the measures prov ided in the regulation, a period of at least 
six months from publication is given. 
3.67.  The procedure for abolishing or amending  technical regulations and conformity assessment 
procedures is the same as that for issuing draft technical regulations: there has to be an internal 
consultation process with the sectors concerned, notice of a national public consultation and notification to the WTO for the sake of transparency. 
3.68.  As at May 2013, 184 technical regulations were in force (including Central American 
technical regulations (RTCA)), of which one is a general conformity assessment procedure covering 
the non-food sector. Since 2007, Costa Rica has repealed 70 technical regulations 
and adopted 125; these concerned products such as pesticides, fuel, medicines, textiles, 
                                               
40 Executive Decree No. 36214 of 13 August 2010. The rules on preparing and presenting national 
standards (Executive Decree No. 19029-MEIC of 7 June 1989) were repealed. WT/TPR/S/286 • Costa Rica 
 
- 56 - 
 
  cosmetics, meat, dairy produce, garden produce, flour, oil, grains and fruit, inter alia . Costa Rica 
notified 81 technical regulations to the WTO between January 2007 and May 2013.41 
3.69.  Technical regulations and conformity  assessment procedures obey the principle 
of non-discrimination and apply to both  Costa Rican and imported products. 
3.70.  According to the authoritie s, of all the technical regulations in force, some 55% concern the 
food sector and are totally or partly based on international standards ( Codex Alimentarius , 
World Organisation for Animal Health (OIE) or the International Plant Protection Convention). 
Regulations for the non-food sector are based on ISO's international standards or those of other 
international standardization bodies, as provided in the WTO TBT Agreement. 
3.71.  The authorities have indicated that Costa Rica accepts as equivalent foreign technical 
regulations or conformity assessment procedures, as required by the provisions in the 
TBT Agreement. In July 2011, Costa Rica notified the WTO of the procedure for determining 
equivalence between systems for the health regist ration of biomedical equipment and material, 
whereby the Ministry of Health recognized the system for the registration and inspection 
of medical devices established by the United States Food and Drug Administration.42 In April 2013, 
Costa Rica and Canada agreed on a procedure for mutual recognition of the system for accrediting agencies certifying organic products. 
3.2.8.2.2  Central American procedures 
3.72.  Executive Decree No. 33222 of 5 July 2006 issued Resolution No. 162-2006 
(COMIECO-XXXVI), which amends the RTCA and pr ovides a procedure for preparing, adopting 
and approving Central American technical regu lations and conformity assessment procedures.
43 
3.73.  To prepare or revise any technical regulation or conformity assessment procedure, 
CACM members must submit the respective applicat ion to the Directors of Integration, who decide 
on its relevance. If it is acceptable, it is forwarded to the Coordinators of the Technical Registration 
Group and the competent working subgroup, which examines comments from the various 
countries and transmits its conclusions to higher authorities if no consensus can be reached, exhausting the technical discussion stage. When  there is consensus among members, the draft 
technical regulation or conformity assessment procedure is notified to the WTO and a period 
of 60 calendar days is given for comments as of the date on which the notification is published by the WTO.
44 Consultation at the internal level depends on each member's domestic legislation; 
the comments received during the internal consultation process are examined until the period for 
consultation in the WTO expires. The draft te chnical regulation or conformity assessment 
procedure prepared by the working subgroup goes  to the COMIECO for approval and, finally, 
each member publishes the approved text and incorporates it into its domestic legislation. 
In Costa Rica's case, RTCAs are published and incorporated into its domestic legislation by means 
of an Executive Decree published in the Official Journal. As at May 2013, 50 RTCAs were in force, 
of which 30 had been approved since 2007.45 
3.2.8.3  Conformity assessment 
3.74.  The Costa Rican Accreditation Authority (E CA) has accredited 113 assessment institutions, 
of which 85 are laboratories, 23 inspection agencies  and five certification agencies. The accredited 
laboratories include Costa Rican and foreign testing and calibration laboratories, both public and 
private. The accredited certification agencies are either Costa Rican or foreign and certify products 
and systems. 
                                               
41 WTO documents G/TBT/N/CRI/60 of 17 January 2007 to G/TBT/N/CRI/140 of 8 May 2013. 
42 WTO document G/TBT/N/CRI/71/Add.2 of 6 July 2011. 
43 Resolution No. 162-2006 (COMIECO-XXXVI) replaces Annex 2 to Resolution No. 149-2005 
(COMIECO-XXX) of 30 September 2005. 
44 Prior to expiry of the 60-day period, a third country may request that the period for public 
consultation be extended for a maximum of 30 calendar days. 
45 Information provided by th e Costa Rican authorities. WT/TPR/S/286 • Costa Rica 
 
- 57 - 
 
  3.75.  According to the authorities, roughly 90%  of the product certification systems of the 
accredited certification agencies involve testing as a mechanism for determining the conformity of a product. Most of the inspection procedures are based on specifications laid down by regulatory governing institutions and in the provisions in the international reference standards. 
3.76.  The Costa Rican Metrology Laboratory (LACOMET) is responsible for the initial and periodic 
inspection of regulated equipment. The inspection process may apply to all cases or to a sample, depending on what is set down in the international standard or the reference technical regulation 
used to draw up the regulation. 
3.77.  In some cases, the cost of LACOMET's inspection has to be paid by the interested party; 
in other cases, the costs are borne by the State.  The cost of the conformity assessment services 
provided by the ECA is authorized by its Gove rning Board and varies depending on the scope 
of the assessment. 
3.78.  Costa Rica is a member of Inter-American Accreditation Cooperation (IAAC) (since 2002), 
the Central American Forum for Accreditation (FOCA) (since 2006), International Laboratory 
Accreditation Cooperation (ILAC) (since 2007), and the International Accreditation Forum (IAF) 
(since 2008). It is also an observer at European Co-operation for Accreditation (since 2007) and the GLOBALGAP scheme for the accreditation of certification agencies (since 2012). During the 
review period, Costa Rica signed several multilat eral recognition agreements within these forums 
in order to build up its conformity assessment infrastructure and thus improve the country's trade platform. 
3.2.9  Sanitary and phytosanitary measures 
3.2.9.1  Transparency 
3.79.  The principal laws on sanitary and phytosanitary matters in Costa Rica are the Law 
on Phytosanitary Protection No. 7664 (1997); the General Law on Animal Health No. 8495 (2006) 
and the General Law on Health No. 5395 (1973). 
3.80.  In Costa Rica, the MAG is responsible for matters relating to sanitary and phytosanitary 
(SPS) measures, through the State Phytosanitary Service (SFE), which is in charge of the sanitary 
protection of all products of plant origin, including biotechnology organisms or products for 
agricultural use, and the National Animal Heal th Service (SENASA), which has responsibility for 
matters relating to animal health, veterinary public health and the environment. The Directorate for Regulation of Products of Sanitary Interest in the Ministry of Health's Directorate-General 
of Health ensure the safety of processed food s and other products subject to registration. 
3.81.  The SPS enquiry and notification centre ha s been designated as the enquiry point and the 
national notification authority for the WTO SPS Agreement.
46 
3.82.  There were a number of institutional chan ges during the review period. In 2011, the SFE 
was reorganized and its functions transferred to several regional operational units to ensure greater efficiency in informing all users in Costa Rica about the SFE's services. At the same time, 
the Standards and Regulations Department was set up to provide the regulatory framework for 
the SFE and enable it to adjust to national and international phytosanitary and sanitary requirements.
47 In 2008, the National Advisory Commission of the MAG and the SFE (CONAFI) was 
created in order to receive the views and advice of private and academic circles concerning 
phytosanitary policy.48 In 2009, a technical commission on pr eventing and combating citrus fruit 
pests was established.49 
                                               
46 WTO document G/SPS/NNA/8 of 19 April 2013. 
47 Regulations governing the organizational st ructure of the State Phytosanitary Service, 
Executive Decree No. 36801-MAG of 20 September 2011 (notified to the WTO in document G/SPS/N/CRI/115 of 16 November 2011) and Amendments thereto, Executive Decree No. 37351-MAG of 6 July 2012. 
48 Regulations on the Creation and Operation of the Minister's National Advisory Commission 
and the SFE, Executive Decree No. 35775 of 4 February 2010. 
49 Executive Decree No. 35462 of 17 July 2009. WT/TPR/S/286 • Costa Rica 
 
- 58 - 
 
  3.83.  The institutional changes concerning SENASA include the creation in 2008 of the 
National Animal Health Advisory Council (CON ASA), which is an advisory, coordination and 
evaluation arm of SENASA intended to foster participation by the private livestock sector.50 
SENASA's organizational structure was modified and modernized in 2011 to provide better support 
for Costa Rica's integration in international trade. The changes include an increase in human 
resources, more financial resources for infrastructure and equipment, an extension of its scope, particularly in relation to public health, and improvements to the systems for complaints and 
coordination with various stakeholders in the private sector.
51 
3.84.  Costa Rica introduced a national food safety policy in 2010 in order to meet its international 
trade commitments, provide support for research and innovation, and promote mechanisms for self-assessment of food safety. The Ministry of  Health, SENASA, SFE, the National Production 
Council and the Fisheries and Aquaculture Institute are involved in the regulatory framework 
aimed at achieving the policy's objectives.
52 
3.85.  Costa Rica is a member of the Codex Alimentarius Commission and the World Organisation 
for Animal Health, and is a contracting party to the International Plant Protection Convention. 
3.86.  In March 2013, Panama posed some questions in the WTO Committee on Sanitary 
and Phytosanitary Measures concerning the maximum limit applied by Costa Rica for veterinary 
medicine residues, to which Costa Rica replied.53 
3.87.  In 2010, Costa Rica reached an agreement with Canada on the equivalence of inspection 
systems for Canadian beef and pig meat under which SENASA accepts pig meat produced in establishments inspected by the Canadian authorities.
54 Since 2008, there have been 
agreements with the United States under which SENASA accepts pig and poultry meat and beef 
and their byproducts, imported from the United St ates and produced in establishments inspected 
by the United States Government.55 No SPS-related equivalence agreements have been signed 
within the CACM. 
3.2.9.2  Application 3.88.  Costa Rica's sanitary and phytosanitary measures may be in the form of laws, decrees 
or guidelines issued by institutions with special responsibility for the relevant topic. 
3.89.  Risk analyses are conducted by the SFE, SENASA and the Ministry of Health. The private 
sector, the MAG (through the SFE or SENASA), and the Ministry of Health may request the 
initiation of a risk analysis procedure. 
3.90.  Requests for conducting risks analyses concerning products of animal origin are sent 
to the Epidemiology Unit by the Animal Quaranti ne Directorate or SENASA's Directorate-General. 
The Epidemiology Unit has ten working days to decide whether a risk analysis is required. 
If the request for the risk analysis is accepted, the Epidemiology Unit gives a period of 15 working 
days to those potentially affected by the risk in which to send in their comments. The time required to perform a risk analysis depends on fa ctors such as the type of goods analysed, their 
origin and the kind of analysis to be conducted. Pursuant to Resolution No. 23 of 27 July 2009, 
which lays down the rules and procedures for conducting risk analyses in SENASA, the Epidemiology Unit has up to 18 calendar months in which to substantiate a risk analysis and up to 24 calendar months in the case of quantitative risk analysis. The cost of the analysis is paid 
by the person requesting it or, sometimes, by the Government. Over the period 2007 to 2012, 
SENASA carried out 12 risk analyses called for by sanitary requirements. In February 2010, 
SENASA started to accept for review the risk anal yses conducted by the competent authority in the 
exporting country, conducted by universities or persons with recognized competence in the field 
and endorsed by the competent authority. 
                                               
50 Executive Decree No. 34148-MAG of 2 January 2008. 
51 Executive Decree No. 36571-MAG of 23 May 2011. 
52 Executive Decree No. 35960-S-MAG-MEIC-COMEX of 7 April 2010. 
53 WTO document G/SPS/N/R/70 of 8 May 2013. 
54 Resolution 24-A of 24 August 2010. 
55 Resolution 5 of 8 February 2008, Resolution 6 of 8 February 2008 and Resolution 11 of 23 April 2008. WT/TPR/S/286 • Costa Rica 
 
- 59 - 
 
  3.91.  The SFE undertakes pest risk analysis (PRA) in accordance with pest risk analysis 
procedure NR-ARP-PO-01, which has been in effect since July 2012. This procedure is based on international standards such as the FAO's ISPM No. 2, ISPM No. 11 and ISPM No. 32. If a product does not meet the established phytosanitary requirements, the importer has to use the customs 
clearance authorization form (FAD) of the Foreig n Trade Promotion Agency (PROCOMER) in order 
to make a request for a PRA to the Pest Risk Analysis Unit. The analysis may be conducted by identifying a phytosanitary risk pathway, if the product has never been imported before 
or comes from a new origin; by identifying the pest, if an infestation or outbreak is discovered in 
the imported product; or by examining phytosanitar y policies. The cost of the analysis is met by 
the applicant and, sometimes, by the Government. Over the period 2007 to 2012, the SFE carried out 61 ARP procedures, of which 51 led to the application of phytosanitary requirements. 
3.92.  The Ministry of Health does not have special risk analysis procedures, which explains why it 
did not conduct any such analyses during the review period; it bases itself on a risk prioritization mechanism to develop its annual plans for control and monitoring of products at the point of sale. 
3.93.  Costa Rica notified 87 sanitary and phytosanitary measures to the WTO from 2007 to the 
end of May 2013; 76 of these were regular notifications and 11 emergency notifications. 
3.94.  Costa Rica applies the Central American Regulations on Sanitary and Phytosanitary 
Measures and Procedures which, among other things, promote the gradual harmonization 
of sanitary and phytosanitary measures and procedures in intraregional trade, with an emphasis on using the standards of the competent international organizations.
56 Measures on food additives, 
microbiological criteria, registration of foodstuffs, registration of pesticides, veterinary medicines 
and animal feed have been harmonized, togeth er with general regulations on transparency, 
monitoring, inspection, approval and certification procedures, inter alia, established 
in the Central American Regulations on Sanitary and Phytosanitary Measures and Procedures. 
3.95.  Each Central American country's competent authorities take part in the negotiations on 
harmonization. The topics to be negotiated are prioritized in accordance with a half-yearly action plan approved by COMIECO. For example, for the first half of 2013, work focused on harmonizing 
the RTCA for dairy products, amending the RTCA on microbiological criteria and other regulations 
on the registration of pesticides. The approval process at the national level takes the form of an Executive Decree signed by the competent authorities. 
3.96.  During the period under review, COMIECO adopted provisions on technical regulations for 
foodstuffs, beverages and veterinary medicines and related products.
57 Procedures for authorizing 
international and regional transit of agricultural shipments and goods58 and for recognizing 
sanitary registration of processed foods and beverages59 were also approved. In 2007, 
COMIECO increased to 515 the number of products and byproducts of plant origin exempt from 
import authorizations and phytosanitary export certificates.60 These products may only be required 
to undergo random inspection at points of entry into the CACM when physical inspection is 
necessary to ascertain their nature. 
3.97.   The SFE authorizes the entry of products of plant origin. The authorization comprises 
review of the documentation and physical inspection, which may lead to a laboratory analysis. The SFE has to issue its decision within eight work ing days of the date of receiving the request for 
authorization. Executive Decree No. 36999-MAG of 25 January 2012 established the register 
of importers of products of plant origin and transport units and warehouses as a means of tracing imported agricultural products. As a result of the adoption of this measure, importers intending to 
distribute or market such products are required to  be enrolled in the SFE's Register of Importers. 
The introduction of this register makes it possi ble to systematize the marketing of agricultural 
                                               
56 Resolution No. 37-99 (COMIECO-XIII) of 17 September 1999, amended by Resolution No. 87-2002 
(COMIECO-XXIII) of 23 August 2002 and Re solution No. 271-2011 (COMIECO-LXI). 
57 The texts of the technical regulations may be viewed at the following COMEX link: 
http://www.comex.go.cr/tratados/vigentes/centroamerica_tlc/resoluciones_comieco.aspx . 
58 Resolution No. 219-2007 (COMIECO-XLVII) of 11 December 2007 
and Executive Decree No. 34384-COMEX-MAG of 9 January 2008, published in Official Journal  No. 57 
of 24 March 2008. 
59 Resolution No. 269-2011 (COMIECO-LXI) of 2 December 2011. 
60 Resolution No. 175-2006 (COMIECO-XXXVIII) of 5 October 2006. WT/TPR/S/286 • Costa Rica 
 
- 60 - 
 
  products within Costa Rica, their traceability and the application of a specific SPS measure 
to each case. 
3.98.  Importers of foodstuffs must obtain an authorization from the Ministry of Health's 
Directorate for Regulation of Products of Sanitary Interest for each shipment (through the single 
window) and must register the imported products with the Ministry's Sanitary Register 
of Foodstuffs.61 
3.99.  In 2006, registration was introduced for importers of animals, products and byproducts 
of animal origin, fresh or frozen, not processed or minimally processed, intended for human 
consumption and/or industrial use.62 SENASA verifies these products and gives approval for their 
customs clearance at the point of entry; the same procedure applies to veterinary medicines and related products, and chemical, biological or related substances used as raw materials for the 
manufacture of veterinary medicines. 
3.100.  The MAG's Unit for the Registration of Agricultural Chemicals and Equipment for their 
Application is in charge of checking and giving phytosanitary approval at the point of entry 
for chemical, biological or related substances and equipment for their application in agriculture, 
for customs clearance purposes. 
3.101.  As regards trade facilitation, the Costa Ri can authorities draw attention to the progress 
made such as approval of two in-bond warehouses for inspecting refrigerated cargo 
at Puerto Limón, the creation of a single window for the registration of agricultural pesticides, adjuvants and related substances
63, and the SFE's creation of four new pesticide laboratories 
at the border to speed up the analysis of imported products. These laboratories will act 
as preliminary diagnostic laboratories. In addition, the authorities have highlighted the efforts 
made by SENASA and the SFE to en hance the quality of the informat ion on their websites and to 
improve transparency. 
3.102.  The cost of testing and inspection by the MAG (through the SFE and SENASA) 
and the Ministry of Health when goods are import ed has to be paid by the interested party. 
The rates for inspection services are laid down in Executive Decrees.64 
3.103.  As the Costa Rican authorities have confirme d, the country has no provisions on the import 
of products derived from animals treated with hormones. 
3.104.  So far there is no legislation requiring a pproval for the import of biotechnology products 
for food consumption and their import is subject to the same procedures as any other agricultural 
product. The Ministry of Health is, however, developing regulations on authorization to use 
genetically modified live organisms intended for direct human consumption. Costa Rica allows the reproduction of genetically modified cotton seeds and soya bean seeds, under controlled 
conditions, for subsequent shipment to the country of origin. 
3.3  Measures directly affecting exports 3.3.1  Registration, documentation and export licences 
3.105.  All exporters must be registered with PROCOMER and, where applicable, with another 
competent authority, for example, the MAG or the Ministry of Health. PROCOMER manages the single window for foreign trade (VUCE), which centralizes all export formalities; this system is being upgraded with the aim of computerizing all import or export procedures, authorizations 
and payments so that they can be processed on line at any time (24 hours a day, 365 days 
a year).
65 Registration with PROCOMER can be completed electronically or at one of the VUCE 
offices and is valid for the various authorities involved in export procedures. Firms operating under 
                                               
61 General Law on Health No. 5395 of 30 October 1973 and Regulations on Notification of Raw Materials, 
Sanitary Registration, Import, Cu stoms Clearance and Monitoring of Foodstuffs, Executive Decree 
No. 31595 of 2 December 2003. 
62 Executive Decree No. 33102 of 12 July 2006. 
63 Executive Decree No. 36549-MAG-S-MEIC-MINAET of 28 April 2011. 
64 SENASA's rates are fixed in Executiv e Decree No. 37661-MAG of 2 May 2013. 
65 The VUCE 2.0 project is expected to start operating in December 2013. WT/TPR/S/286 • Costa Rica 
 
- 61 - 
 
  the RZF must apply to PROCOMER's special regi mes management office for admission to the 
Regime and be given the status of customs service auxiliary by the Directorate-General of Customs. 
3.106.  The following commercial and export documents are required: the single customs 
declaration (DUA), the commercial invoice, the transport document (consignment note for land 
transport, air waybill or bill of lading for goods leaving by sea), and the Central American Single Customs Form (FAUCA), which is only required for exports of goods of Central American origin for 
export to countries belonging to the CACM. Depending on the case, export permits and/or 
certificates of origin may be required. As a general rule, certificates of origin are processed by PROCOMER or can be downloaded from COMEX's website. Exports covered by some regimes or preferential trade agreements
66, however, require verified certificates of origin, which are issued 
by PROCOMER's Origin Unit, set up in June 2011. Some products have to be inspected by MAG 
or another competent institution before being given an export authorization. 
3.3.2  Export charges and minimum prices 
3.107.  There is an export tax on exports of coff ee, live cattle and bananas, irrespective of their 
destination. For coffee, the exporter has to pay a 1.5% tax on the f.o.b. value of each 46 kg unit 
of green coffee or its equivalent.67 The Coffee Institute of Costa Rica uses the proceeds to maintain 
the quality of production, for research, promotio n, diversification and sustainable development 
of the coffee-growing industry, and to meet administrative costs. A tax of US$2.00/head is payable for live cattle
68 and is transferred to the Livestock Promotion Corporation. 
3.108.  A tax of US$1.00 per box of 40 lbs. net weight (18.14 kg) has to be paid on the export 
of bananas.69 Pursuant to Executive Decree No. 24981-0, since 1 January 2003 US$0.04 of this tax 
goes directly to the collecting authority and US$0.96 is included in the export price of bananas. 
3.109.  The Government reserves the possibility of setting a minimum price for the export 
of bananas in order to remedy the imbalances caused when the market is not one of free 
competition.70 The last time that a minimum pric e was fixed for exports was through 
Decree No. 35825-MEIC-MAG-COMEX, published on 18 March 2010. The price was US$7.69 
per box of 18.14 kg net weight of top quality fr uit for export. Currently, the export price for 
bananas is set by the market. 
3.3.3  Prohibitions and other export restrictions 3.110.  Export prohibitions and restrictions mainly apply for reasons of public security, 
protection of the national heritage, public health, environmental protection and for statistical 
control purposes (Table 3.11). Costa Rica also controls the export of certain products in accordance with the commitments made under the Convention on International Trade 
in Endangered Species of Wild Fauna and Flora (CITES); the Basel Convention on the Control 
of Transboundary Movements of Hazardous Wastes and their Elimination; and the Montreal Protocol on Ozone-Depleting Substances. 
3.111.  There have been no changes regarding good s subject to any type of export control since 
the previous review and the relevant regulations remain basically the same, except in a couple of cases.
71 Products whose export requires a permit issued by the competent authority include 
coffee (roasted, ground or in beans); sugar in bulk; textile and clothing products; fish, 
molluscs and crustaceans; arms and ammunition; and controlled and psychotropic substances. 
                                               
66 The General Systems of Preferences of the European Union, Australia, Canada, Japan 
and the Russian Federation, the Partial Scope Agreement with the Bolivarian Republic of Venezuela and the Free Trade Agreements with CARICOM an d with the People's Republic of China. 
67 Law No. 2762 of 21 June 1961 and amendments thereto. 
68 Law No. 6247 of 2 May 1978 and amendments thereto. 
69 Law No. 5515 of 19 April 1974 and amendments thereto. 
70 The legal basis for setting a minimum price for the export of bananas is Article 5 of the Law 
on the Promotion of Competition and Effective Protection of the Consumer (Law No. 7472 of 1994). 
71 Executive Decree No. 37354 of 10 October 2012 on banning shark finning and the import 
of shark fins; Executive Decree No. 36366 of 2 November 2010 containing provisions on the sale of arms 
and explosives; and Executive Decree No. 35761 of 2 February 2010 on the inspection of narcotics 
and precursors. The other regulations on export controls are available for consultation from the WTO (2007). WT/TPR/S/286 • Costa Rica 
 
- 62 - 
 
  Costa Rica bans the export of human organs, coins, archaeological items; and wood of various 
species in the form of logs or squared timber. 
Table 3.11 Export prohibitions and restrictions 
Product Measure Grounds 
Live fish, molluscs and 
crustaceans; sharks and their by-products; tuna; swordfish and sailfish in any form  Permit/Ban 
(Costa Rican Fisheries and Aquaculture Institute) Environmental protection 
Coffee (roasted, in beans 
or ground) Permit 
(Coffee Institute of Costa Rica) Quality control 
Textiles and clothing Permit 
(National Association of Textile Industry Exporters) Administration of export quotas 
Sugar in bulk Permit 
(Agro-Industrial Sugar Cane 
League) Registration and statistical 
monitoring of the production 
and export of sugar 
Coins (only Costa Rican) Ban 
(Central Bank of Costa Rica) Protection of money 
Human organs Ban 
(Ministry of Health) Public health 
Plasma and blood Only authorized for research 
purposes (Ministry of Health) Public health 
Original archaeological items Permit/Ban 
(National Museum) Protection of the cultural heritage 
Arms, ammunition and explosives Permit 
(Ministry of Public Security) Public security 
Seeds Permit 
(National Seeds Office) Registration and monitoring of the 
export of seeds  
Dogs and cats (mascots) Perm it (SENASA) Public health 
Species of wild fauna and flora Permit from the MINAE, National 
Conservation Areas Scheme  Protection of wild species 
Controlled substances such as 
precursors, essential chemical substances, and machinery and accessories used for producing narcotics and psychotropic substances in tablet or capsule form  Permit from the unit for the control 
and inspection of precursors in the Costa Rican Drugs Institute (ICD) in the Office of the President Narcotics control 
Logs and roughly squared timber 
from forests  Ban Environmental protection 
Source: WTO Secretariat, based on  information provided by COMEX. 
3.3.4  Export subsidies and other tax benefits 
3.3.4.1  Subsidies 3.112.  In July 2006, Costa Rica requested the WTO for an extension of the time-limit for 
eliminating the export subsidies given under the Free Zone and Inward Processing Regimes.
72 
In July 2007, the WTO General Council decided to extend the maximum time-limit for eliminating the export subsidies until 31 December 2015. Accordingly, Members established a procedure for 
the extension approved. Among other aspects, this  procedure requires that an action plan for 
eliminating the export subsidies be submitted and th at each beneficiary firm be notified that the 
subsidies will cease to be granted and those al ready existing will expire at the end of 2015.
73 
3.113.  In June 2010, Costa Rica notified the WTO of its action plan for eliminating the export 
subsidies.74 The principal measure was the adoption of Law No. 8794 of 12 January 2010 
(amendment to the Law on the Free Zone Regime, No. 7210 of 23 November 1990), which came into force on 22 January 2010, and its implementing regulations. 
                                               
72 WTO documents G/SCM/W/537 of 23 June 2006 and G/SCM/W/537/Add.1 of 24 July 2006. 
73 WTO document WT/L/691 of 31 July 2007. 
74 WTO document G/SCM/N/211/CRI of 12 July 2010. WT/TPR/S/286 • Costa Rica 
 
- 63 - 
 
  3.3.4.2  Free Zone Regime 
3.114.  The RZF is one of the major tools for the promotion of Costa Rica's industry and exports. 
Its legal basis is Law No. 7210 of 23 November 1990, amended by Law No. 8794 of 12 January 2010, and Decrees No. 36000 -COMEX-H of 28 April 2010 and No. 36725 
of 26 July 2011, which amended the implem enting regulations for the Free Zone Law 
(Decree No. 34739-H-COMEX of 29 August 2008).
75 
3.115.  The objectives of Law No. 8794 are to modernize the RZF in order to respond more 
effectively to the needs of the private sector, provide legal certainty for foreign investors and 
comply with Costa Rica's WTO commitments. Two of the main changes introduced by this Law were the changes in the eligibility criteria for companies admitted to the RZF, decoupling the benefits from export performance, and ending the restrictions on domestic sales. Other important 
changes were the introduction of differentiated ta x incentives to encourage businesses to set up in 
less developed areas and to attract large-scale investment; the introduction of tax credits for staff training; and provisions to reinforce production chains and develop local suppliers. 
3.116.  The aim of the RZF is to foster Costa Rica 's social and economic development by attracting 
foreign investment, encouraging domestic investment and promoting exports.
76 A  s e r i e s  o f  t a x  
incentives is accordingly given to companies which make new investments and meet the criteria 
and obligations laid down in the Regime. 
3.117.  One of the original requirements for be longing to the RZF was to export at least 75% 
of the total sales of goods or 50% for companies providing services. In order to comply with the WTO's provisions, Law No. 8794 nevertheless introduces a new category of processing 
companies which may belong to the RZF, irrespective of whether or not they export, provided that 
they meet certain requirements. This new category has been incorporated into subparagraph (f) of Article 17 of the amended text of Law No. 7210. 
3.118.  With the amendment, companies which qualify for at least one of the following categories 
may now take advantage of the RZF: (a) export-processing firms
77; (b) trading companies; 
(c) service industries; (cc) companies managing free zone parks; (d) companies engaged 
in scientific research with a view to raising the technological level of the country's industry 
or agro-industry and foreign trade; (e) companies operating shipyards or dry or floating docks; and (f) processing companies which produce, proce ss or assemble goods, irrespective of whether 
or not they export.
78 
3.119.  Local suppliers which manufacture and sell at least 40% of their output to other companies 
operating under the RZF may also be admitted to the Regime. Companies engaged in mining, exploration or exploitation of hydrocarbons, generating electric power (unless for own 
consumption) or producing arms are not eligible for the RZF. 
3.120.  Companies seeking admission to the RZF must meet certain minimum investment 
requirements and be classified as companies in a sector strategic for Costa Rica's development 
or be established outside the Expanded Greater Metropolitan Area (GAMA). 
3.121.  The minimum amount of investment required varies depending on the company's location, 
either within or outside an industrial park and outside or within the GAMA (Table 3.12). Law No. 8794 reduces the minimum amount of initial investment in areas outside the GAMA with 
the aim of encouraging companies covered by the RZF to set up in relatively less developed areas. 
Companies which invest a minimum of US$10 million in depreciable fixed assets and which recruit at least 100 employees may be admitted to the RZF irrespective of their location. 
                                               
75 Other pertinent instruments are the General Customs Law (No. 7557 of 20 October 1995 
and the amendments thereto) and its implementing regulations (Decree No. 25270-H of 28 June 1996 and the amendments thereto). 
76 Law No. 7210 of 23 November 1990. 
77 Companies operating under category (a) may only take advantage of exemptions inconsistent 
with the Agreement on Subsidies and Countervailing Measures until the latest extension given to Costa Rica 
and approved by the WTO General Council expires, i.e. 31 December 2015. 
78 Article 17 of the amended text of Law No. 7210. WT/TPR/S/286 • Costa Rica 
 
- 64 - 
 
  3.122.  Manufacturing companies wishing to operate within the GAMA must meet one of the 
following requirements in order to be classified in a strategic sector: (i) the project employs at 
least 200 workers; (ii) the project is related to one of the following industries: advanced electronics; advanced manufacturing; advanced electronic components,; medical devices, 
equipment, implants and materials; highly sp ecialized packing or containers; automobiles; 
aerospace and aeronautics; pharmaceuticals and biotechnology; renewable energy sources; automation; flexible manufacturing systems and advanced materials; (iii) at least 0.5% of the 
company's sales are assigned to the R&D costs of its local operations; or (iv) the company has one 
of the following certifications: ISO 14001 (14004)  or equivalent, or LEED or equivalent.
79 
Table 3.12 Investment requirements for be neficiaries under the Free Zone Regime 
 Site Initial investment 
Minimum amounts of investment 
(in new fixed assets) Within the GAMA Within an industrial park: US$150,000 
Outside an industrial  park: US$2 million 
Outside the GAMA Within an industrial park: US$100,000 
Outside an industrial park: US$500,000 
Source: WTO Secretariat, based on Law No. 7210, amended by Law No. 8794. 
3.123.  The tax incentives available to Costa Rican and foreign companies under the RZF include: 
total or partial exemption from income tax80; total exemption from customs duty on imports and 
exports of intermediate goods, raw material s and inputs; machinery and equipment; total 
exemption from sales and consumption taxes and taxes on capital and net assets; total exemption 
for ten years from payment of land tax, the real estate transfer tax and municipal or business taxes; total exemption from withholding tax on remittances abroad (for example, fees, royalties 
and interest). 
3.124.  Companies operating under subparagraph (f) of Article 17 of the amended text 
of Law No. 7210 are given total (time-bound) or partial reduction from income tax (which is 30%). The reductions vary depending on the location of  the company, the amount of investment and the 
sector of activity (Table 3.13). Prior to the amendment of Law No. 7210, there was total 
exemption from income tax for a specified period (eight or 12 years), followed by a 50% reduction 
according to the terms and conditions laid down by law.
81 The exemptions were given 
automatically to all companies admitted to the RZF and continue to apply to all categories other 
than category (f). 
3.125.  In addition, companies covered by subparagraph (f) have the right to credit against 
income tax for re-investment of profits and costs incurred in training staff in Costa Rica and local suppliers not covered by the RZF. The tax credit may be up to 10% of tax payable by the company. 
Table 3.13 Free Zone Regime: Income tax incentives for companies covered 
by subparagraph (f) of Law No. 7210 
 
 Site Income tax Length of the 
incentivea 
Differentiated tax incentives Within the GAMA 6% 8 years 
15% 4 years  
Outside the GAMA 0% 6 years  
5% 6 years  
15% 6 years  
Megaprojects 
Within the GAMA: US$10 million 
and 100 employees 
Outside the GAMA: US$100,000 
and 100 employees Strategic sector within the GAMA  0% 8 years  
15% 4 years  
Any sector outside the GAMA 0% 12 years  
15% 6 years  
a This time-limit may be renewed if there is substantial re-investment or a new project. 
Source: WTO Secretariat, based on Law No. 7210, amended by Law No. 8794. 
                                               
79 Information provided by th e Costa Rican authorities. 
80 Total exemption from income tax may be renewed after the initial period if the company makes 
substantial new investment or develops a new project. 
81 Article 20(g) of the Law on the Free Zone Regime. WT/TPR/S/286 • Costa Rica 
 
- 65 - 
 
  3.126.  As beneficiary companies under the RZF classi fied in category (f) are not subject to export 
performance, they may place 100% of their good s on the domestic market, in which case they 
must pay all the taxes and complete all the customs formalities applicable to imports. Tariffs are only paid on the inputs used to produce the goods. 
3.127.  Export processing firms admitted to the original RZF may request a transfer to the new 
category under subparagraph (f) of Article 17 of Law No. 7210 provided that they meet the 
requirements laid down. If they do not transfer, they keep the exemptions they enjoy until expiry 
of the time-limit specified in their respective agreement granting regime status, or until the latest 
extension for Costa Rica approved by the WTO General Council expires, i.e. 31 December 2015. 
3.128.  The Costa Rican authorities have informed the WTO that, as the subsidy under the RZF 
involves exemptions from a number of different taxes and consular fees which vary according to 
the level of compliance with the specified requirements, the comprehensive information needed to 
estimate the amount of the subsidy is not available.
82 For the purposes of this review, the 
authorities have stated that, based on a study by PROCOMER, the tax exemptions under the RZF 
calculated for a specific group of taxes amounted to US$265 million in 2007, US$307 million 
in 2008, US$244 million in 2009 and US$363 million in 2010.83 
3.129.  The RZF has had a noticeable impact on Costa Rica's economy, particularly in export 
performance and job creation, and continues to attract new investment (Table 3.14). According to 
information in PROCOMER's study Balance de las Zonas Francas  (Balance of the free zones) 
covering the period 2006-2010, a total of 256 firms were operating under the RZF in 2010, of which 47% were in the services sector. Other activities that played an important role were the 
electrical and electronics industry (14%), and precision instruments and medical equipment 
(9%).
84 At the end of 2012, the number of firms admi tted to the RZF was 308, of which 219 were 
in industrial parks and 54 outside them.85 
Table 3.14 Statistics on the Free Zone Regime 2006-2011 
 2006 2007 2008 2009 2010 2011 
Number of firms 221 254 259 246 256 293 
Jobs 45,201 49,969 52,788 52,344 58,012 65,915 
Average wages (US$) 650.0 740.3 841.8 884.0 1,028.9 1,183.0 
Exports of goods 
(US$ million) 4,314.5 5,067.5 4,983.2 4,701.2 4,932.9 5,367.7 
Exports of services 
(US$ million) 651.9 812.5 960.0 1,088.6 1,326.8 1,959.8 
National spending on goods and services 
(US$ million) 481.6 596.4 645.6 932.5 1,079.9 n.a. 
Benefit to the country (US$ million) 1,073.8 1,485.5 1,797.7 1,955.6 2,864.7 n.a. 
Exemptions (US$ million) 272.2 265.3 306.8 244.3 363.1 n.a. 
Net benefit to the country 
(US$ million) 801.6 1,220.2 1,490.9 1,711.3 2,501.6 n.a. 
n.a. Not available. 
Source: WTO Secretariat, based on data from PROCOMER (2011), Balance de las Zonas Francas: beneficio 
neto del régimen para Costa Rica 2006-2010. 
3.130.  Throughout the review period, exports of goods from free zones accounted for over half 
of Costa Rica's total annual exports of goods. The volume of exports of goods by firms under the 
regime rose to US$5,984 million in 2012, which represents 53% of total exports of goods. The leading markets for products exported by  RZF firms in 2012 were North America (52%) 
and Asia (21%).
86 PROCOMER's Balance, using the classification by intensity of use of production 
factors of the Organisation for Economic Co-operation and Development (OECD), shows that 
                                               
82 WTO document G/SCM/N/243/CRI of 4 July 2012. 
83 This calculation included exemptions from income tax, tariffs, the tax under Law No. 6946, the sales 
tax and the RZF's administrative costs. 
84 PROCOMER (2011). 
85 Information provided by PROCOMER. 
86 Information from PROCOMER. Viewed at: http://servicios.procomer.go.cr/estadisticas/inicio.aspx . WT/TPR/S/286 • Costa Rica 
 
- 66 - 
 
  in 2010 exports by RZF firms were highly sophisticated and high-technology oriented goods 
as 75% of the value exported corresponded to rese arch-intensive goods or differentiated products. 
3.131.  Exports of services from free zo nes grew by 141% between 2007 and 2011, 
from US$812.5 million to around  US$1,959.8 million. At the same time, the free zones' share 
of Costa Rica's total exports of services rose from 22% to over one third. 
3.132.  Jobs in RZF companies increased by 32% between 2007 and 2011, boosted mostly 
by services companies and those manufacturing precision instruments and medical equipment. 
In 2011, RZF firms generated around 65,900 jobs.87 The average monthly wages per free zone 
employee rose from US$650 in 2006 to US$1,029 in 2010 (the period covered by PROCOMER's study), a figure equivalent to 1.6 times the average wage in Costa Rica's private sector.
88 
3.133.  PROCOMER's study shows that the RZF has led to the creation of production chains. 
In 2010, for example, RZF firms bought goods and services in Costa Rica amounting 
to US$1,080 million, i.e. an increase of 16% in comparison with 2009. According to this study, the "net benefit to the country" generated by RZF firms grew by 33% annually over 
the period 2006-2010.
89 In 2010, growth was 46% as a result of higher wages and aggregate 
investment. The study estimates that in 2010 free zones benefited the Costa Rican economy in the amount of US$7.9 for each US dollar exempt. 
3.134.  Another study on the performance of in-bond ( maquila ) exports and free zones in a group 
of Latin American countries, drawn up by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), highli ghts the positive experience of Costa Rica in 
integrating global chains of value (electronics, medical, automotive and aeronautical industries and 
inputs for the cinema and television industry).
90 The study indicates that the strategy adopted 
by Costa Rica to diversify its export pattern towards products and activities with higher 
value-added and know-how content shows how the coordination of government policies can lead to 
significant changes in the export pattern over a relatively short period of time. Nonetheless, 
data in the same document indicate that the value added to exports locally remains fairly low, accounting for 26.1% of total exports from free zones in 2011 (the average for Central American 
countries is 26.3%). The authorities have said that they are working on building an input/product 
matrix in order to estimate this type  of data using a sounder methodology. 
3.135.  According to data from PROCOMER, local purchases of products and services by RZF firms 
accounted for 31% of all purchases by such firms in 2011. Imports of goods by RZF companies 
amounted to US$3,820 million in 2011, in other words, around 24% of total imports of goods.
91 
Costa Rica must continue to encourage and train local suppliers so that they can efficiently meet the demand for inputs required by RZF companies.  
3.3.4.3  Inward Processing Regime 
3.136.  The Inward Processing Regime allows goods to enter national customs territory with 
suspension of import duties and subject to a guarantee deposit. The goods covered by this 
regime
92 must be re-exported within the time-limits laid down in the relevant regulations, 
after undergoing processing, repair, reconstruction, installation or assembly, or being incorporated in sub-assemblies, machinery, transport equipment in general or appliances with a higher degree of technological or functional complexity, or being used for other similar purposes. The goods must 
be re-exported within a non-renewable period of one year, with the exception of machinery 
and accessories, which may remain for an inde finitely renewable peri od of five years. 
                                               
87 WTO document G/SCM/N/243/CRI of 4 July 2012. 
88 PROCOMER (2011). 
89 The estimate of the benefit to the country comprises variables such as wages, social charges and 
other benefits, national spending on  buying goods and services, changes in aggregate investment, income tax 
paid and fees paid to PROCOMER. To  calculate the net benefit to the country, exemptions from income tax, 
tariffs and sales tax are deduct ed from the estimated benefit. 
90 ECLAC (2012). See also Sánchez Ancochea (2011). 
91 Information provided by th e Costa Rican authorities. 
92 Raw materials; goods to be used for administra tive or operational activities, real estate for 
training/security/feeding staff; commercial, industrial or scientific samples; labels, containers and packing 
materials; machinery, equipment, accessories , spare parts, moulds, models or patterns. WT/TPR/S/286 • Costa Rica 
 
- 67 - 
 
  3.137.  The purpose of the Regime is to promote production, employment and foreign and 
domestic investment so as to increase exports and domestic consumption. Its legal bases are the General Customs Law No. 7557 of 20 October 1995, Chapter VI (Processing Regimes) and amendments thereto; the regulations implementing the General Customs Law, Chapter XIII 
(Inward Processing Regime), established by Executive Decree No. 25270-H of 28 June 1996 and 
amendments thereto; and the Regulations on  the Inward Processing Regime contained 
in Executive Decree No. 34165-H-COMEX of 4 Dece mber 2007. During the review period, these 
Regulations were the subject of four amendments to simplify and streamline formalities, lay down 
time-limits for reply by the Administration and define the scope of competence of institutions involved in this regime.
93 
3.138.  The Inward Processing Regime operates in two ways: (i) the 100% re-export mode; 
and (ii) the re-export and local sale mode. Companies operating under the local sale mode have to 
pay all the taxes applicable to definitive impo rt of the goods. When machinery and equipment 
covered by the regime enter national territory, companies also have to pay the share of taxes 
corresponding to the percentage of sales in the domestic market compared to their total sales. 
3.139.  Costa Rica requested the WTO for a transitional period in order to eliminate certain 
aspects of the Inward Processing Regime.94 The Regime's benefits are, therefore, 
subject to the extensions granted by the WT O for the elimination of export subsidies. 
As shown in WTO document G/SCM/N/211/CRI of 12 July 2010, Costa Rica has notified all the programme's beneficiaries that no more export subsidies will be granted after the end of the 2015 calendar year. 
3.140.  According to data furnished by the authorities, in 2011 78 companies were operating under 
the Inward Processing Regime, employing 14,423 wo rkers. Although the number of jobs in these 
companies increased between 2007 and 2011, the va lue of their exports fell by 60% over the 
same period, reflecting the trade trends in the textiles and clothing sector, which is the principal 
user of this regime. In 2011, exports under the regime amounted to US$186 million, corresponding to 1.8% of total exports of go ods. The main export destinations for were 
the United States (35%), Panama (13%) and Nicaragua (10%). 
3.141.  In July 2012, Costa Rica notified the WT O that some of the legislative and regulatory 
changes required in order to reform the Inward Processing Regime were still being addressed, mostly the changes needed to eliminate ex emption from import duty on machinery 
and equipment. 
3.3.4.4  Other programmes 3.142.  The Drawback Regime allows the refund of the amounts actually paid to or deposited with 
the Treasury as tax on the definitive import of inputs, containers or packaging incorporated into 
export products, provided that export occurs within  12 months as of the date of import of these 
goods. The legal bases for this regime are Articles 190 et seq.  of the General Customs Law 
(Law No. 7557 of 20 October 1995) and its implem enting regulations (Executive Decree No. 34740 
of 29 August 2008). The Costa Rican authorities do not have data on the amounts refunded under this regime. 
3.143.  At the end of 1999, Costa Rica notified the WTO of the termination of Tax Credit 
Certificates (CAT).
95 In late 2012, the authorities were dealing with the pending applications for 
tax credits for export submitted in 1999. 
3.3.5  Export financing, insurance and promotion 
3.144.  There are no government credit programmes aimed specifically at the export sector. 
Financial institutions give credit by branch of activity (industry, trade, agriculture, services), 
                                               
93 Amended by Executive Decrees No. 34738 of 29 August 2008, No. 35423 of 7 August 2009, 
No. 36514 of 6 January 2011 and No. 36726 of 26 July 2011. The texts were annexed to Costa Rica's notification, WTO document G/SCM/N/243/CRI of 4 July 2012. 
94 The exemptions from import charges and direct and indirect taxes cove red by the provisions 
in paragraphs (e), (g), (h) or (i) of Annex I to the Agreement on Subsidies and Countervailing Measures. 
95 WTO document G/SCM/N/60/CRI of 21 July 2000. WT/TPR/S/286 • Costa Rica 
 
- 68 - 
 
  irrespective of the destination of the company's sales. Some commercial banks offer pre-export 
and export credit to cover production, industrializ ation, the purchase of raw materials or finished 
products, packaging costs, transport, storage and accounts receivable. 
3.145.  There is no official credit insurance prog ramme for exports. The INS is the sole institution 
providing export credit insurance services, as well as freight insurance.96 Basic export credit 
insurance (in United States dollars) guarantees th e exporter reimbursement of a percentage of any 
losses it may suffer as a result of total or partial non-payment of a credit given to a buyer abroad, 
provided that failure to pay is the result of th e purchaser's bankruptcy and/or long-outstanding 
arrears six months after the term of the credit or its extension has expired. Additional cover is for 
political risks and force majeure. Export credit insurance is in two forms: global or individual. Global insurance is for one year and covers all export credits with a term of up to 180 days given 
to clients by the exporter. The individual policy in sures any specific or occasional export sale that 
is not part of normal business activities, for a term of credit of up to one year.
97 
3.146.  Freight insurance for imports/exports offered by the INS covers losses caused by damage 
to the products during shipment, loading and unloading or storage before they reach their 
destination. The insurance may be taken out in United States dollars or in colones and in the form of a closed policy (covers one transport operatio n only) or an open policy (covers all transport 
by the insured party during the term of the insu rance). There are various types of risk cover, 
including specific cover for perishable and/or refrigerated goods. According to what the interested party decides, the amount insured may cover: the cost of the products; cost and freight; cost and freight plus 10%; or cost, insurance and freight (c.i.f.).
98 
3.147.  PROCOMER is the government institution with responsibility for promoting Costa Rica's 
exports.99 The following are some of its strategic aims: to act as the strategic point of reference for 
the internationalization of current and potential exporters; to diversify and increase Costa Rica's 
export basket; to raise the SMEs' share of the country's exports; and to increase and diversify 
production chains. 
3.148.  The services PROCOMER provides to exporters can be grouped into three major categories: 
trade promotion, trade intelligence and facilitation of procedures. Its main promotion programmes 
include the preparation of individual business plan s, support for the organization of trade missions 
for exporters and trade missions for buyers, and assistance for participation in international fairs. PROCOMER also offers services for the evaluation of Costa Rican suppliers in order to set up 
high value-added chains for export between multin ationals and local producers. In the area of 
trade intelligence, PROCOMER provides services in connection with market surveys, market profiles 
and logistics, generation and monitoring of export statistics and advice on legal matters, logistics 
and special regimes. In addition, it offers several training programmes for Costa Rican exporters, 
including the "Creando Exportadores" (creation of export enterprises) programme and "Conociendo el Mercado" (know the market) seminars.
100 With regard to facilitation of 
procedures, PROCOMER acts as the single window for export formalities and permits, registration 
of exporters and certificates of origin, inter alia.  
3.149.  According to the information furnished by the authorities, the cost of PROCOMER's trade 
promotion activities (including those of its trade offices abroad) has risen in recent years, 
from US$3.9 million in 2007 to US$4.7 million in 2012. PROCOMER's services are financed partly 
by the Government and partly by exporters and im porters, through the fees paid for each customs 
declaration and use of the RZF in the case of companies operating under this regime. 
                                               
96 Freight insurance is also offered by the pr ivate company ASSA Compañia de Seguros S.A. 
97 For further details, see online informatio n from the INS at: http://portal.ins-cr.com. 
98 For further details, see online  information from the INS at: 
http://portal.ins-cr.com/portal.ins-cr.com/Empresa s/SegurosCo/SegCarga/Seguro+de+Carga+Importaci%C3
%B3n+y+Exportaci%C3%B3n . 
99 PROCOMER was created by Law No. 7638 of 1996. 
100 For further details, see online  information from PROCOMER at: 
http://www.procomer.com/contenido/servicios-2.html . WT/TPR/S/286 • Costa Rica 
 
- 69 - 
 
  3.4  Other measures affecting production and trade 
3.4.1  Incorporation of companies and their tax regime 3.150.  Pursuant to the Commercial Code
101, there are four types of commercial company 
in Costa Rica: general partnerships, limited part nerships, limited liability companies and public 
limited companies.102 Most investors opt for public limited companies, which must be composed 
of at least two persons, who may be Costa Rican or foreign, natural or legal persons. The act of incorporation must be registered in the National Register, with payment of the fees for obtaining 
an identification number or legal card.
103 Once the legal card has been obtained, the company 
must be registered as a taxpayer with the Directorate-General of Taxation, have its accounts and legal ledgers certified, register as an employer with the Costa Rican Social Security Fund and take out a policy against occupational risks with the INS. It must also obtain a sanitary permit to 
operate from the Ministry of Health and a municipal licence or business permit. Other types 
of registration may be required dependin g on the company's sphere of activity.
104 
3.151.  According to the World Bank's Doing Business 2013 report, the procedure for starting up 
a business in Costa Rica involves 12 steps and takes an average of 60 days, at a cost of 11.4% 
of per capita income. This report also shows that, in 2013, Costa Rica was 128th 
out of 185 economies as regards procedures for starting up a business.105 
3.152.  Foreign companies may set up affiliates, subsidiaries or agencies in Costa Rica. The same 
steps as those mentioned above have to be followed in order to establish an affiliate as a public limited company. Foreign companies wishing to set up a subsidiary in Costa Rica must appoint and maintain a general agent in Costa Rica to carry on the subsidiary's business. Subsidiaries must be 
entered in the National Register and submit a resolution by the shareholders' assembly, duly 
authenticated by the Costa Rican consul in the country where the foreign company is domiciled.
106 
The subsidiary and the agent are subject to Costa Ri ca's laws and courts for the purpose of all acts 
or contracts concluded or to be carried out in Costa Rica. Foreign companies which transfer their 
head office to Costa Rica are subject to the legislation of their country of domicile, but Costa Rica's public order legislation applies and they must pay the taxes applicable to the activities carried out 
in Costa Rica. 
3.153.  There have been no major changes to the company tax regime since 2007. Table 3.15 
summarizes the principal taxes and contributions applicable to companies. Income tax applies on the basis of the principle of territoriality and is only imposed on revenue of Costa Rican source 
(income generated by services provided, locally-held shares or investment in Costa Rica). 
Capital gains earned from the transfer of movabl e or immovable property are not subject to this 
tax, unless they come from the company's regular activities or from depreciable assets. Payment 
of remittances abroad for any income of Costa Rican source is subject to a withholding tax at rates 
that vary depending on the type of income. Payment of remittances for technical, financial or other advice is also subject to the withholding tax.
107 Other taxes imposed on business activities are the 
property tax, the tax on the transfer of proper ty, the municipal business permit tax and social 
security contributions. During the review peri od, a new company tax was introduced, namely the 
tax on legal persons (Law No. 9024 of 23 December 2011 and amendments thereto). 
                                               
101 Law No. 3284 of 30 April 1964 and amendments thereto. 
102 MEIC (2002). 
103 The time required for registration in the Nati onal Register is estimated to be 15 to 30 days. 
104 Companies engaged in the distributi on/sale/import of foodstuffs, products of animal or plant origin, 
medicines and cosmetics must be enrolled in the respective registers. 
105 World Bank (2013b). 
106 Consular authentication is not required if the foreign company is domiciled in a country that has 
signed the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents 
(Apostille Convention), which came into force for Costa Rica on 14 December 2011. 
107 Title IV of Law No. 7092 of 21 April 1988 and amendments thereto. WT/TPR/S/286 • Costa Rica 
 
- 70 - 
 
  Table 3.15 Main taxes on companies 
Tax Statutory tax rate  Tax base 
Income tax 30%, 
SMEs: 20% and 10% 
depending on gross income Total net income. 
Withholding tax on dividendsa 15% 
 
 
5% - Dividends paid to shareholders who are natural 
persons whether or not domiciled in Costa Rica; 
and to legal persons not domiciled in Costa Rica. 
- Dividends paid out in respect of shares registered 
on a recognized stock exchange. 
Withholding tax on interest 
paid 15% 
8% - Interest paid to persons domiciled or not 
domiciled. 
- If the securities are registered on a recognized 
stock exchange, in the case of bills of exchange or bankers' acceptances and income generated by repurchasing or reselling transactions.
b 
Withholding tax on 
remittances abroad for 
royalties and technical advice  25% Payment for technical advice, use of patents, 
furnishing of formulas , trademarks, franchises 
and royalties. 
Property tax 0.25% Registered value of the property. 
Property transfer tax 1.5% Transfer or registered value, whichever is higher. 
Social security contributions 26.17%  Gross salary 
Municipal business permit tax Determined by each 
local authority Sales 
Law on the Education and 
Culture Stampc ₡750 to ₡9,000  Depending on net capital 
Tax on legal persons 50% and 25% if 
dormant Base salary 
Operating and dormant companies 
a Not applicable if the dividends are paid by means of registered shares or are paid to another 
company domiciled in Costa Rica. 
b Not applicable to payment of interest and financial charges to first-tier financial institutions, or to 
payment of suppliers abroad for goods imported, leas ing of capital goods or loans for industrial or 
agricultural activities. 
c Applies to any trading company or subsidiary of a foreign company registered  in the business section 
of the Public Property Register. 
Sources: WTO Secretariat, with information from the Ministry of Finance, viewed at: 
http://dgt.hacienda.go.cr . 
3.4.2  Competition policy and price control 
3.4.2.1  Competition policy 
3.154.  Costa Rica's Political Constitution prohibits monopolies and any act, even if has its origin in 
law, which threatens or restricts freedom of tr ade. Action by the State intended to prevent 
monopolist trends or practices is based on the Law on the Promotion of Competition and Effective 
Protection of the Consumer (Law No. 7472 of  20 December 1994) and amendments thereto, 
especially Law No. 9072 of 4 September 2012, an d the regulations implementing Law No. 7472 
(Executive Decree No. 36234 of 30 September 2010).108 In addition, the General Public 
Administration Law (Law No. 6227 of 2 May 1978), the Code of Procedure for Administrative 
Disputes (Law No. 8508 of 28 April 2006), the Civil Code of Procedure (Law No. 7130 of 16 August 1989) and the relevant provisions in the sectoral laws on telecommunications and 
insurance also apply (Chapter 4). 
3.155.  The authority responsible for supervisin g and promoting competition and the free market 
mechanism is the Commission for the Promotion of Competition (COPROCOM), created in 1995 
                                               
108 Executive Decree No. 36234-MEIC repealed Decree No. 25234-MEIC of 25 January 1996. WT/TPR/S/286 • Costa Rica 
 
- 71 - 
 
  by Law No. 7472 as a highly decentralized collegiate body attached to the MEIC.109 
It is empowered to investigate, either automatically or following a complaint, anti-competitive practices and other impediments to the smooth functioning of the market, to impose the penalties applicable, to express views on legislation and regulations, and to promote a competition 
mind-set. COPROCOM's final resolutions are indepe ndent of the MEIC and may only be contested 
before the court hearing administrative disputes and the Constitutional Chamber of the Supreme Court of Justice through an amparo appeal for the protection of fundamental rights, as applicable. 
3.156.  Law No. 9072, in force since 5 October 2012, introduced important modifications 
to Law No. 7472 with the aim, inter alia, of exercising tighter control over anti-competitive 
practices.
110 One particular modification is the introduction of prior notification of mergers 
to COPROCOM (previously control was ex post ). Another important change is extension of the 
scope of the rules to include providers of pu blic services under concessions that are not 
established by law, for example, gas distributors and airlines. New monopolist practices are defined, together with the criteria for examining the legality or illegality of any act, including its 
pro-competition effects, and COPROCOM has been given greater investigative powers such as the 
authority to inspect or search premises with authorization from a judge and to reach agreements for the early conclusion of investigations. The am endments do not, however, include a clemency 
programme for the investigation of anti-competitive practices. 
3.157.  During the review period, sectoral laws amending competition legislation were also 
enacted. The General Insurance Law of 2008 amended Law No. 7472 by introducing prior 
notification of mergers in markets regulated by financial sector supervisory authorities (insurance, 
financial institutions, securities and pension managers). The supervisory authorities are in charge 
of authorizing mergers in their respective sector s, although the monitoring of anti-competitive 
practices by regulated bodies is the responsi bility of COPROCOM. In addition, the General 
Telecommunications Law, in force since 2008, created the General Supervisory Authority for 
Telecommunications (SUTEL), which is responsible for supervising and promoting competition in the telecommunications sector, with powers to investigate practices and authorize mergers, 
subject to non-binding prior consultation of COPROCOM. 
3.158.  The basic objective of Law No. 7472 is to  promote and protect competition and the free 
m a r k e t  m e c h a n i s m ,  a s  w e l l  a s  t h e  r i g h t s  o f  c o n s u m e r s .  F o l l o w i n g  t h e  m o d i f i c a t i o n  i n t r o d u c e d  by Law No. 9072, the competition regulations apply to all economic agents operating in Costa Rica 
"… with the exception of providers of public services under concessions established by law, 
those who carry out acts duly authorized by special laws and monopolies of the State …". The legislation enacted in 2008 ended the State's monopoly of mobile telephony, the Internet 
and private networks, and insurance services (Chapt er 4). The State still has a monopoly of fixed 
telephony, distribution and sale of electricity, distribution of fuel and water, and distillation 
and sale of alcohol for domestic consumption. 
3.159.  Law No. 7472 prohibits public or private monopolies and monopolist practices which 
impede or restrict competition or competitors' access to the market, or which encourage their withdrawal from the market. The Law draws a distinction between absolute and relative monopolist practices. Absolute monopolist practices mean acts or agreements between competing 
economic agents for the purpose of introducing horizontal restrictions on competition; 
such practices are automatically deemed null and void ( per se rule) and punishable.
111 
Relative monopolist practices mean acts or ag reements with the aim or effect of undue 
displacement of other agents in the market, significantly impeding their access or granting 
exclusive advantages to certain persons. These practices are deemed violations if it is proved that the person allegedly responsible has substantial powe r in the relevant market and that the practice 
concerns the goods or services corresponding or related to the market in question.
112 
                                               
109 Highly decentralized means full technical independence from the MEIC. The Commission is composed 
of five standing members and five al ternates, appointed by the Executive for four years following a proposal 
by the Minister of the Economy, Industry and Trade. 
110 MEIC, press communiqué, " Reformas promoverán mayor competencia en el mercado ", San José, 
30 August 2012. Online information, viewed at: http://www.meic.go.cr . 
111 Under Article 11 of Law No. 7472, price-fixing agreements, agreements on limiting supplies, 
agreements on dividing up markets and coordinati on or agreement in public bidding procedures 
are monopolist practices. 
112 Article 12 of Law No. 7472 defines relative monopolist practices. These include: exclusive distribution 
according to the client, area or time; imposition of  prices or other terms; tie-in or tied sales; WT/TPR/S/286 • Costa Rica 
 
- 72 - 
 
  The amendments introduced by Law No. 9072 of 2012 include among absolute monopolist 
practices agreements between competitors with a view to "refusing to buy or sell goods or services" and identify new relative monopolist practices such as refusal to trade, price discrimination, unjustified increase in costs for competitors, obligation to use a trademark on a 
product/service, and the introduction of payment te rms other than those habitually used in trade. 
3.160.   The regulations did not previously require prior notification of mergers. Law No. 9072 
introduced the obligation to notify COPROCOM prior to any merger so that it may authorize it, 
impose conditions or refuse it. This requirement came into force on 5 April 2013. Prior notification 
is only required for mergers whose transaction value exceeds certain thresholds
113, 
without prejudice to notification of any merger by  an interested party. Furthermore, COPROCOM is 
empowered to investigate automatically, impose the penalties applicable, order total or partial 
demerger, or lay down other conditions, in cases where the required notification has not been 
given. The amendments include provisions on the procedure to be followed by interested parties 
when submitting a request for authorization. Merg ers are examined on the basis of an assessment 
of substantial power in the market concerned, as is the case for relative monopolist practices. 
3.161.  The amendments to Law No. 9072 also clarify the examination criteria to be followed 
by COPROCOM when deciding on the legality or illegality of any conduct, including 
its pro-competition effects (an assessment that was not specifically defined in Law No. 7472). 
This Law also gives the Commission greater investigative powers, such as the authority to inspect or search premises with authorization from a judge, and allows the possibility of early termination of investigations in certain circumstances. 
3.162.  Article 28 of Law No. 7472 (amended by Law No. 9072) lays down the penalties for 
violations, which may include suspending, remedying or eliminating the violating practice, partial or total demerger, or the payment of a fine. The maximum fine for each type of violation is 
expressed in minimum wage terms. If the violation is repeated or if it is particularly serious, 
COPROCOM may impose a single fine of up to 10% of the offender's annual sales in the course of its normal activity during the tax year prior to notification of the Commission's final ruling 
in the proceedings. 
3.163.  During the review period, COPROCOM held numerous consultations, issued opinions on the 
laws in force and on draft amendments, and conducted investigations into anti-competitive practices (Table 3.16). The investigations conducted between 2007 and 2012 led to administrative 
proceedings and the imposition of a penalty on the company concerned in the following cases: 
a manufacturer, owing to tied sales of reinforcin g rods; three electrification firms, for denying 
access to installations essential for supplying cable TV; seven pension fund managers, for 
agreement on fixing the commission to be paid by contributors for managing the funds; four public 
car parks in a shopping area, for agreeing on rates; a manufacturer of household electrical appliances, for a prohibited merger; and three telecommunications equipment firms, for 
coordinating abstention from a public bidding pr ocedure for the 3G system. Some of these cases 
went to appeal before the courts, which up held COPROCOM's decisions. In addition, 
two institutions received penalties for refusal to furnish information, pleading banking secrecy.
114 
3.164.  COPROCOM carried out surveys of compet ition in various sectors of importance for 
consumers or for Costa Rica's economic developm ent. At the national level, these covered the 
markets for rice, beans, sugar, pig meat, seeds, liquefied petroleum gas, medicines, cement and 
marking of roads; and at the Central American level, fertilizer, medicines, airlines and 
telecommunications. In early 2013, COPROCOM was dealing with cases of companies which 
refused to furnish the information requested in relation to architectural paints, beef and pig meat, 
                                                                                                                                               
exclusivity agreements; vertical boycott; knock-do wn prices; deliberate ac ts causing competitors 
to withdraw from the market. 
113 Mergers must be notified when: (a) the total am ount of the production assets of the agents 
concerned and their parent companies exceeds 30,000 minimum wages; or (b) the amount of total income 
generated in Costa Rica during the most recent tax year for all the ag ents involved exceeds 30,000 minimum 
wages. Article 16 bis of Law No. 7472, amended by Law No. 9072. 
114 Information provided by COPROCOM. WT/TPR/S/286 • Costa Rica 
 
- 73 - 
 
  inter alia.  Since it was set up, COPROCOM has also been involved in the dissemination 
and promotion of a competition mind-set and coordination with other institutions.115 
Table 3.16 COPROCOM. Cases resolved 2007-2012 
Subject 2007 2008 2009 2010 2011 2012 
Consultationsa 11 11 9 16 15 - 
Complaints 10 11 9 8 7 16 
Ex officio investigations 5 4 2 3 2 0 
UTAb consultations 49 43 21 14 51 51 
Licences 6 1 2 0 0 0 
Opinions 7 1 9 2 1 27 
Price fixing 0 0 0 0 0 0 
Mergers 2 0 0 0 0 0 
Preliminary proceedingsc 0 0 1 2 0 0 
TOTAL 90 71 53 45 76 94 
a As of 2012, consultations and opinions have been counted together. 
b COPROCOM's Technical Support Unit. c These proceedings are initiated against natural or legal persons refusing to provide the information 
requested by COPROCOM. 
Source: WTO Secretariat, based on information provided by COPROCOM. 
3.165.  Provisions on competition policy can be found in some of the trade agreements signed 
by Costa Rica. The agreements with Canada , CARICOM, Chile, Panama, Peru, Singapore 
and the European Union include provisions on c ooperation and provide for a mechanism to enable 
the exchange of information. Furthermore, COPROCOM has signed cooperation agreements with 
the competition agencies of Chile, Switzerland, El Salvador, Panama, Honduras, Nicaragua 
and Mexico, and in early 2013 a similar agreement with Spain was being renewed. 
3.4.2.2  Price control 
3.166.  Under Law No. 7472, the Government is empowered to regulate the price of goods 
and services, but only in exceptional circumstances and on a temporary basis, in the event of abnormal market conditions such as cases of force majeure, shortages, or a monopolistic or oligopolistic situation in the production or sale of goods or services. This Law does not, however, 
apply to providers of public services under conc essions established by law or to State monopolies 
(section 3.4.2.1). 
3.167.  The procedure for establishing a price control measure in a monopolistic or oligopolistic 
situation has to be initiated by the highest author ity of the entity whose goods or services are to 
be made subject to price control. This authority must seek COPROCOM's opinion on the advisability of the measure and this must be given within 15 working days. COPROCOM's opinion is not binding 
on the entity concerned, but if the authority chooses not to take it into account, it has to do so by 
means of a duly substantiated resolution. 
3.168.  According to Article 5 of Law No. 7472, price control can only be imposed by Executive 
Decree, which must order expiry of the measure when the reasons for its application no longer 
exist. Price control has to be reviewed at least once every six months or whenever requested by 
an interested party. When determining prices, the measure's potential impact on supplies must be taken into account. 
3.169.  Pursuant to Law No. 7472, Costa Rica has regulated both the producer purchase price 
for rice and its selling price to consumers.
116 Likewise, until 2010, Costa Rica imposed a minimum 
price for the export of bananas, i.e. the price pa id to the domestic producer by exporting firms 
(Chapter 4.2). Regulated public services are also subject to price controls. 
                                               
115 UNCTAD (2004). 
116 In May 2013, Costa Rica announced that it would eliminate price fixing for rice as of 1 March 2014. 
Executive Decree No. 37699-MEIC of 15 May 2013. WT/TPR/S/286 • Costa Rica 
 
- 74 - 
 
  3.170.  The Public Services Regulatory Authorit y (ARESEP) fixes prices and rates for regulated 
public services, pursuant to Law No. 7593 (amended by Law No. 8660 of 8 August 2008). These services include: the supply of electric power; some telecommunications services; drinking water, aqueducts and sewage services; the supply of hydrocarbons (including the margins 
for transporters and sellers of fuel); irrigation and drainage services; public passenger transport 
(except by air); shipping and aerial services in ports; rail transport of freight; and the postal 
service (letters weighing not more than 2 kg).  ARESEP determines rates on the basis of the 
principle of service at cost, which includes economic efficiency, social equity, environmental 
sustainability and resource conservation criteria.
117 The prevailing rates for each of the regulated 
services may be viewed on ARESEP's website.118 
3.4.3  Incentives 
3.4.3.1  Tax incentives 
3.171.  In Costa Rica, numerous laws and decrees grant tax and financial incentives to boost 
various production and social activities. Tax incentives consist of partial or total exemption from 
tax on imports or purchases of goods or services in the domestic market by persons and private 
and State-owned companies. There are also several income tax exemption regimes for natural and legal persons. 
3.172.  The Law regulating current exemptions , derogations and exceptions (Law No. 7293 
of 31 March 1992 and amendments thereto) gove rns exemptions and tax benefits given for 
domestic production and the import of several products pursuant to various laws (Table A3.2). In order to boost development of the agricultural sector, the implementing regulations for Article 5 
of Law No. 7293 of 14 August 2008 (No. 34706-MAG-H-MEIC) lay down the procedure for 
exemption from any form of tax on the import of machinery, equipment or inputs for agriculture and fishing (with the exception of recreational fishing), and also exempt ion from any tax other 
than tariffs on raw materials for the manufacture of inputs for agriculture and for packing bananas. 
Other products given various tax exemptions include medical equipment, medicines and inputs for their manufacture, some veterinary products, basic household necessities, buses for public 
transport of persons and automatic data processing  machines and their units. There have not been 
any fundamental changes to the exemptions covered by Law No. 7293 since Costa Rica's previous review. 
3.173.  In addition to the exemptions covered by Law No. 7293, Costa Rica grants tax incentives 
to promote production and investment in various economic sectors, including tourism, 
hydrocarbons exploration and exploitation, and reforestation, together with tax exemptions 
for several State bodies, local authorities, and autonomous and cooperative institutions. During the 
review period, the Law to promote the develo pment and use of renewable energy sources 
(3 May 2010) was enacted and provides for exemption from import duty and other taxes for specified equipment and materials that enco urage the use of renewable energy. Moreover, 
Law No. 9024 of 23 December 2011 exempts SMEs  registered as such with the MEIC from 
payment of corporation tax. Costa Rica also grants tax incentives to firms admitted to the RZF and the Inward Processing Regime, and through the drawback system (section 3.3.4 above). 
3.174.  In 2012, tax exemptions given for imports amounted to ₡64,813.5 million 
(around US$127.5 million), of which 65% consisted of exemptions from the general sales tax, 
26.5% exemptions from tariffs, and the remainder exemptions from other import taxes (Table 3.17).
119 Machinery and inputs for agriculture and medical equipment were the main 
beneficiaries, following the same trend as in previous years. Other leading beneficiaries were 
infrastructure projects (electric power) and raw materials for manufacturing inputs for growing and packing bananas. As far as income tax is concerned, in 2011, the Central Government forewent 
                                               
117 Online information from ARESEP. Viewed at: http://www.aresep.go.cr . 
118 Idem.  
119 Information provided by the Directorate-General of Finance using TICA-DGA System data. WT/TPR/S/286 • Costa Rica 
 
- 75 - 
 
  income amounting to ₡131,826 million (US$257.5 million) as a result of exemptions given to firms 
in free zones and to cooperative and solidarity associations.120 
Table 3.17 Tax exemptions for imports, 2007-2012 
(₡ million) 
Tax exemption 2007 2008  2009  2010  2011 2012 
Import duty 
(DAI) 8,363.1 14,864.7 15,628.3 9,706.1 11,891.3 17,164.6 
General sales 
tax (IGV) 39,847.3 61,133.5 58,626.2 34,827.9 35,370.5 42,072.5 
Selective 
consumption 
tax  6,818.9 8,571.0 5,620.1 3,100.0 2,308.0 1,489.7 
Tax provided 
by Law 
No. 6946 5,417.5 8,674.7 6,756.9 3,995.8 4,053.7 4,086.7 
TOTAL 60,446.8 93,243.9  86,631.5  51,629.8  53,623.5 64,813.5  
Source: WTO Secretariat with information provided by  the Directorate-General of Finance, Costa Rican 
Ministry of Finance. 
3.175.  A recent study by the National University  and the Directorate-General of Finance made the 
first systematic estimate of the tax cost to Costa Rica, including not only exemptions for imports 
but also all other types of tax exemption. It found that the tax cost for Costa Rica amounted to 5.8% of GDP in 2010; an IMF study estimated the tax cost to be around 4.6%. These findings 
lend support to the arguments heard in debates on tax reform in Costa Rica in past years in favour 
of streamlining tax exemptions so as to achieve greater transparency, eliminate distortions and stabilize public finance.
 
3.4.3.2  Financial incentives  
3.176.   There are various official programmes offering financing and guarantees on favourable 
terms specifically for micro, small and medium-sized enterprises (MSMEs) which do not have access to the services of commercial banks. Th e programmes operate through trusts and funds, 
and financing is given through institutions such as Banco Popular y de Desarrollo Comunal 
(a non-State public bank) and Banco Nacional de Costa Rica (a State bank). Table 3.18 gives details of the principal financial incentive programmes. 
Table 3.18 Principal financial incentiv es for production and investment 
National Programme to Support Micro-Enterprises (PRONAMYPE) 
Coverage: Trade, industry, services, agriculture (except coff ee and palm hearts), poultry breeding, livestock 
breeding, aquaculture, pig breeding, and flower growing. 
Beneficiaries: Micro-entrepreneurs with scarce economic resour ces, disabled persons, adults, women heads 
of household and young people. 
Amount financed: The maximum loan per natural person is ₡5,000,000. 
Terms/benefits: Flexible terms for interest rate s (10% annual fixed rate in colones), security (mortgages, 
pledges and trust guarantees) and time-limits (up to 96 months).  
Implementing agency and pertinent authority: The programme operates as a trust. Banco Popular 
y de Desarrollo Comunal  is the fiduciary, the Ministry of Labour and Social Security is the settlor and the end 
beneficiaries are the trustees.  
Amounts disbursed: From 2006 to 2011, loans amounting to ₡8,625 million were granted. 
Programme to Support Small and Me dium-Sized Enterprises (PROPYME)  
Coverage: Technological development and innovation projects to improve the management 
and competitiveness of companies. 
Beneficiaries: Small and medium-sized ente rprises or groups (SMEs). 
Amount financed: Up to 80% of the cost of the project; the fund s available each year vary depending on the 
MICITT's budget. 
Terms/benefits: Non-repayable funds for up to 80% of the cost of the project.  
Implementing agency and pertinent authority: MICITT. 
Amounts disbursed: From 2006 to 2012, loans amounting to ₡1,446.4 million were granted.  
                                               
120 A solidarity association is an  organization of employees whos e aim is economic and social 
improvement through savings from and loans to an d by their members. Data provided by the 
Directorate-General of Taxation. WT/TPR/S/286 • Costa Rica 
 
- 76 - 
 
  Development Fund for Micro, Small and Medium-Sized Enterprises (FODEMIPYME)  
Coverage: Loans and guarantees for development projects or transfer of technology, technical training, 
technical innovation, technological change  and development of human potential.  
Beneficiaries: MSMEs. 
Amount financed: Up to US$150,000. 
Terms/benefits of loans: Term of up to 120 months, the interest rate combines the basic rate with the 
client's risk margin; the basic rate is 10.50%.  
Terms/benefits of guarantees: Up to 75% of the guarantee for the amount of the loan; the maximum 
amount of the guarantee per beneficiary is ₡87.4 million. 
Implementing agency and pertinent authority: Banco Popular y de Desarrollo Comunal. Law on 
Strengthening SMEs and Law on the Development Banking System (No. 8634 of 2008). 
Amounts disbursed: Between 2006 and February 2013, operations amounting to ₡14,292 million were 
guaranteed and ₡9,179 million were lent. 
National Development Trust Fund (FINADE)  
Coverage: Loan guarantees for technically and economically  viable projects in the trade, agricultural, 
industrial and services sectors.  
Beneficiaries: MSMEs with no access to commercial banks.  
Terms/benefits: Guarantees for a maximum of 75% of the loan ; the remainder must be covered by other 
guarantees approved by Banco Nacional de Costa Rica. 
Implementing agency and pertinent authority: Secretariat of the Development Banking System and 
agencies operating the system. Law on the Development Banking System (No. 8634 of 2008). 
Amounts disbursed: From 2008 to 2012, operations amounting to ₡2,806.3 million were approved.  
Raising the productivity and competitiveness of small industrial producers  
Coverage: Financing for the construction, rehabilitation or ex tension of industrial plan ts, purchase and renewal 
of machinery and equipment, and purchase  of inventories and working capital.  
Beneficiaries: Small industrial firms with experience, capacity to pay, good credit rating and an investment 
plan.  
Terms/benefits: Loans at a competitive rate of interest (12.75%, October 2012) and a term of up 
to 180 months; maximum amount of financing of ₡65 million per project. 
Implementing agency and pertinent authority: The Development Banking System provides the resources 
(₡7 billion) and Banco Nacional de Costa Rica grants the financing. 
Source: WTO Secretariat, with information provided by the Costa Rican authorities. 
3.177.  During the period under review, Costa Rica enacted the Law on the Development Banking 
System (SBD (Law No. 8634 of 23 April 2008), crea ting a mechanism to finance and encourage 
technically and economically viable production projects, mainly by micro- and small enterprises. 
The SBD is composed of all public sector financial intermediaries and private financial intermediaries approved by the General Supervisory Authority for Financial Entities (SUGEF). 
Law No. 8634 also set up the National Development Trust Fund (FINADE), which offers financing 
and loan guarantees to MSMEs. By Decemb er 2012, the SBD had granted an amount 
of ₡51,793.6 million through 13 financial operators in  the public and private sectors, mainly 
channelled to the trade, services and agricultural  sectors and, to a lesser extent, to industry.
121 
3.4.4  State-trading enterprises, Stat e-owned enterprises and privatization 
3.178.  Costa Rica has notified RECOPE as a State-trading enterprise under Article XVII 
of the GATT 1994.122 RECOPE manages the State's legal monopoly of the import, refining and 
wholesale distribution of crude oil, petroleum-based fuel, asphalt and naphtha, in order to 
guarantee their supply to the Costa Rican market.123 In 2012, RECOPE imported hydrocarbons 
amounting to US$2,176 million (18 million barrels).124 
3.179.  The Costa Rican authorities indicated in co nnection with this review  that four other firms 
conforming more closely to Article XVII of the GATT 1994 would shortly be notified. 
3.180.  The State still plays a leading role in Costa Rica's economy. Government spending 
accounts for around 17% of GDP and the public sector as a whole employs 14% of the labour 
                                               
121 Information provided by th e Costa Rican authorities. 
122 WTO document G/STR/N/8/CRI of 5 November 2003. 
123 Law No. 7356 of 6 September 1993 declared the import, refining and wholesale distribution 
of crude oil and its by-products to be  a State monopoly in order to meet  national demand and gave RECOPE 
responsibility for managing it. 
124 Information provided by RECOPE's Department  of Communications and Public Relations. 
See also online information at: http://www.recope.go.cr/comercio_internacional/estadisticas_comerciointernacional.htm . WT/TPR/S/286 • Costa Rica 
 
- 77 - 
 
  force.125 There are around 24 Government-owned companies126 and over 30 autonomous 
institutions127, operating in key sectors of the economy such as electricity, postal services, 
telecommunications, port and railway administration and, mainly, the financial sector (Table 3.19). 
3.181.  Costa Rica has not privatized any public structures, institutions, agencies or companies 
since 2007. Nevertheless, mobile telephone and Internet services and private networks, as well 
as insurance, have been opened up to competition from private firms as part of Costa Rica's commitments under CAFTA-DR (Chapter 4, section 4.5). Public works concessions have also been 
granted, for example, the rehabilitation of Juan Santamaría airport, the motorway to Caldera 
and the construction, operation and maintenance of the container terminal at Puerto Moín. 
Table 3.19 Principal autonomous institut ions, Government-owned companies and 
State-trading companies 
Name Sector State' share 
Autonomous institutions 
Banco Crédito Agrícola de Cartago 
(BCAC) Banking 100% 
Banco de Costa Rica (BCR) Banking 100% 
Banco Nacional de Costa Rica (BNCR) Banking 100% 
Caja Costarricense de Seguro Social 
(CCSS) Health 100% 
Instituto Costarricense de Electricidad 
(ICE) Telecommunications 
Electricity 100% 
Instituto Costarricense de Ferrocarriles 
(INCOFER) Rail transport 100% 
Instituto Costarricense de Pesca y 
Acuicultura (INCOPESCA) Fisheries 100% 
Instituto Costarricense de Puertos del 
Pacífico (INCOP) Port transport 100% 
Instituto Nacional de Seguros (INS) Insurance 100% 
Junta de Administración Portuaria y de 
Desarrollo Económico de la Vertiente 
Atlántica (JAPDEVA) Port transport 100% 
Government-owned companies 
Banco Internacional de Costa Rica S.A. 
(BICSA) Banking 100% 
Banco de Costa Rica. Corredora de 
Seguros S.A Insurance 100% 
Banco de Costa Rica. Planes de Pensión 
S.A. Pensions 100% 
Banco de Costa Rica. Sociedad 
Administradora de Fondos de Inversión 
S.A. Finance 100% 
Banco de Costa Rica. Valores Puesto de 
Bolsa S.A. Finance 100% 
Banco Nacional Corredora de Seguros S.A  Insurance 100% 
Banco Nacional Sociedad Administradora 
de Fondos de Inversión S.A. Finance 100% 
Banco Nacional Valores S.A. Finance 100% 
Banco Popular Operadora de Pensiones 
Complementarias S.A. Finance 100% 
Bancrédito Sociedad Agencia de Seguros 
S.A. Insurance 100% 
BN Vital Operadora de Pensiones 
Complementarias S.A. Finance 100% 
                                               
125 Information provided by th e Costa Rican authorities. 
126 The list of Government-owned companies can be fo und on the website of the Ministry of National 
Planning and Economic Policy (MIDEPLAN). Viewed at: http://documentos.mideplan.go.cr/alfresco/d/d/w orkspace/SpacesStore/652c76cd-d831-46d7-bb9f-00d31902
e85e/Sector-Publico-por-Naturaleza-Mayo-2011.pdf . 
127 Autonomous institutions are admi nistratively independent and their directors are responsible for their 
management. The list of these institutions is available on MIDEPLAN's website at: 
http://documentos.mideplan.go.cr/alfresco/d/d/w orkspace/SpacesStore/652c76cd-d831-46d7-bb9f-00d31902
e85e/Sector-Publico-por-Naturaleza-Mayo-2011.pdf . WT/TPR/S/286 • Costa Rica 
 
- 78 - 
 
  Name Sector State' share 
Compañía Nacional de Fuerza y Luz S. A. 
(CNFL) Electricity 100% 
Correos de Costa Rica S.A. Postal services 100% 
INS Sociedad Administradora de Fondos 
de Inversión S.A. Finance 100% 
INS Valores S.A. Finance 100% 
INS Operadora de Pensiones 
Complementarias 
S. A. Finance 100% 
Operadora de Pensiones 
Complementarias y de Capitalización 
Laboral de la Caja Costarricense de Seguro Social, S.A. Finance 100% 
Popular Valores, Puesto de Bolsa S. A. Finance 100% 
Radiográfica Costarricense. S.A. (RACSA)  Telecommunications 100% 
Sociedad Administradora de Fondos de 
Inversión del Banco Popular y de 
Desarrollo Comunal S.A. Finance 100% 
Banco Popular y de Desarrollo Comunal Banking ** 
Banco Hipotecario de la Vivienda Banking 100% 
Corporación Bananera Nacional Agriculture * 
Corporación Arrocera Nacional Rice * 
State-trading enterprises 
Refinadora Costarri cense de Petróleo 
(RECOPE) Hydrocarbons 100% 
Fábrica Nacional de Licores (FANAL) Agro-industry 
Alcoholic beverages 100% 
Corporación Ganadera (CORFOGA) Agro-industry 
Beef cattle * 
Instituto del Café de Costa Rica (ICAFE) Agro-industry 
Coffee * 
Liga Agrícola Industrial de la Caña de 
Azúcar (LAICA) Agro-industry 
Sugar * 
* Has a Governing Board composed of representative s of the Government and the production sector. 
In the case of the National Banana Corporatio n, the State banking sector also participates. 
** A non-State institution under public law. Source: COMEX, based on data from MIDEPLAN. 
3.4.5  Government procurement 
3.4.5.1  Introduction 3.182.  Government procurement accounts on average for around 30% of the Government's 
budget and 15% of GDP.
128 In 2011, public sector institutions registered in the Integrated 
Procurement System (SIAC) (over 300 Central Government agencies, autonomous institutions, State-owned companies and local authorities) awarded 82,365 contracts for the purchase 
of goods, services or public works for a total of ₡2,981,898.2 million (aroun d US$5,964 million), 
corresponding to 14.4% of GDP for that year. A ccording to preliminary figures, between January 
and mid-September 2012, 45,547 contracts were awarded for a total of ₡615,248 million.
129 
3.183.  The principal procuring agencies are the au tonomous institutions (for example, the ICE, 
the Costa Rican Social Security Fund, the INS and the State banks) and Government-owned companies (for example, the National Powe r and Light Company and RECOPE). In 2011, 
the ten largest procuring agencies accounted for 84% of the total value of procurement.
130 
Some 24% of the contracts during this period  were awarded by the Central Government – 
the National Concessions Council being the largest commissioning agency. 
                                               
128 Ministry of Finance, Director ate-General of Goods Administrati on and Government Procurement 
(2010). 
129 Online information from the Office of the Co mptroller General of the Republic. Viewed at: 
http://cgrw01.cgr.go.cr/apex/f?p=307:2:1164901501859271::NO . 
130 Information provided by the Office of the Comptroller General of the Republic. WT/TPR/S/286 • Costa Rica 
 
- 79 - 
 
  3.184.  Direct award of contracts is still the most common procedure. In 2011, direct procurement 
by the public sector amounted to ₡960,279.6 million (US$2,803 milli on), corresponding to 47% 
of the total value of contracts awarded that  year; in 2007, this percentage was 46.5%. 
Contracts awarded through a national competitive bidding procedure accounted on average 
for 12.5% of the total value of procurement over  the period 2007-2011, while contracts awarded 
through an international competitive bidding procedure accounted on average for 13.9% of the total over the same period (Table A3.3). 
3.185.  Costa Rica has not signed the WTO Plurilateral Agreement on Government Procurement 
and is not an observer. The authorities have indicated in connection with this review that they are reviewing the possibility of becoming an observer to this Agreement. 
3.4.5.2  Legal framework 
3.186.  The legal framework for government procurement in Costa Rica consists mainly 
of the Government Procurement Law (Law No . 7494 of 8 June 1995) and its implementing 
regulations (Executive Decree No. 33411-H of 27 September 2006 and amendments thereto), 
and the Law on Financial Administration and Government Budgets (Law No. 8131 
of 16 October 2001). Law No. 8511 of 4 July 2006 and Law No. 8701 of 13 January 2009 
introduced important changes to procuremen t legislation during the review period.
131 
3.187.  The Directorate-General of Goods Administration and Government Procurement (DGBCA) 
in the Ministry of Finance is the supervisory body for government procurement by the Central 
Administration, which comprises 19 ministries and 54 dependent government authorities. The Subcentral Administration and other procurement authorities have no institution that acts 
as a supervisory body; as the oversight authority for public finance, however, the Office 
of the Comptroller General of the Republic (CGR ) supervises government procurement and issues 
general guidelines for government administration as a whole; it also hears complaints and appeals 
depending on the amount of the procurement and the budget of the contracting agency. 
3.188.   There are currently two electronic systems for government procurement procedures, 
which operate independently. One is the network procurement system ("CompraRed"), 
created in 2005 and administered by the DGBCA. Its use is mandatory for Central Government 
agencies, even though it may also be used by  other government authorities which so wish. 
The other is the online procurement system (" Mer-Link"), which started to operate in mid-2010 
and is managed by the Digital Government Technical Secretariat. Use of Mer-Link is voluntary for 
government authorities that are not required to use CompraRed. Both systems allow government 
procurement procedures to be conducted on line and keep their own registers of suppliers, which 
any interested party can access electronically. In March 2013, Costa Rica's Government issued a 
directive to evaluate the two systems with a view to combining them into a single platform 
(Mer-Link) in 2014 and reinforcing oversight by the DGBCA at the national level.
132 
3.189.  Law No. 7494 governs procurement by Central Government agencies, autonomous 
institutions, Government-owned companies, non-State public agencies and local authorities, 
as well as any procurement financed wholly or partly by public funds. The Law does not apply to non-State public agencies over 50% of whose financing comes from their own resources, Government-owned companies the majority of whos e registered capital belongs to individuals, 
and activities subject by law to a special pr ocurement regime, which include hydrocarbons 
exploration and exploitation
133 and the purchase of medicines by the Costa Rican Social Security 
Fund. Since the opening up of telecommunications and insurance, the ICE and the INS have been 
subject to a special procurement regime (see below). 
3.190.  The following are some of the principal amendments introduced by Law No. 8511, in force 
since January 2007: combining the bidding by registration and selective bidding forms 
of procurement into an abbreviated bidding proced ure; development of a prequalified contracting 
procedure; the introduction of framework agreement contracts, procurement by demand contracts, 
                                               
131 The list of legal instruments relating to gove rnment procurement can be viewed on the website 
of the Office of the Prosecutor -General of the Republic at: http://cgrw01.cgr.go.cr . 
132 Directive No. 044-MH-MICITT of 19 March 2013. 
133 These are governed by the regulations on the bi dding system for the conclusion of hydrocarbons 
exploration and expoitation contracts (Decree No. 25785-0 of 22 January 1997). WT/TPR/S/286 • Costa Rica 
 
- 80 - 
 
  auctions and electronic bidding; the possibility  of using electronic media throughout the 
procurement process; the obligation on agencies to draw up a timetable for procurement showing 
tasks and responsibilities for implementation; the establishment of conditions for engaging in new 
procurement with the same supplier; the opportun ity for the procuring agency to decide whether 
or not a participation guarantee is required; and the introduction of administrative penalties for 
acts of corruption. Law No. 8511 also empowers the CGR's Office to authorize exceptions to competitive bidding in the following cases: extremely complex procurement that can only be 
carried out by a limited number of suppliers or cont ractors; in the case of technological equipment, 
when the agency decides to purchase more products from the same contractor for reasons of standardization or compatibility with equipment already bought; and other special cases when it is proved that this is the only way of guaranteeing the public interest. 
3.191.  Law No. 8701, in force since 30 April 2009, introduced further amendments 
to Law No. 7494 concerning the scope of sanctions and their statute of limitations, the possibility of renegotiating the price offered (provided that this has been specified in the tender 
announcement), the requirement to take into account offers by suppliers not invited to take part in 
the abbreviated bidding procedure and dire ct award of contracts for small amounts.
134 
3.192.  As part of the process of opening up the telecommunications sector, Law No. 8660 
of 8 August 2008 and Executive Decree No. 35148-MINAET of 24 February 2009 created a special 
procurement regime for the ICE so that it now operates under competitive conditions and needs more flexible and rapid procedures. The Government Procurement Law applies to the ICE on a supplementary basis, in addition to the instru ments mentioned above. The ICE uses the regular 
competitive bidding and abbreviated bidding procedur es, but with higher economic thresholds than 
the other government agencies. It may also make use of a series of exceptions to the regular procedures in addition to those provided in the Public Administration Law. Likewise, the appeal 
provisions for the ICE are different (see below). Pursuant to Law No. 8660, ICE companies are 
private enterprises/bodies incorporated as pub lic limited companies and, consequently, their 
activities are governed by private law.
135 Procurement of goods and services for these companies 
is subject to separate regulations approved by th e ICE. Similarly, amendments to the government 
procurement regime applicable to the INS were  introduced following the opening up of the 
insurance market, allowing the INS not to use the regular procedures for specified goods and services needed for its operations so as to expedite the procedure.
136 
3.193.  The legislation in force provides for three government procurement procedures: 
competitive bidding, abbreviated bidding and direct procurement. The procedure to be followed is 
determined according to the authorized budget of the purchasing agency (there are ten levels), 
the amount of the contract, and the type of purchase.137 These agencies may also use the 
prequalified contract or reverse auction procedures or bidding with financing. 
3.194.  In competitive bidding procedures, notifi cation of the tender and amendments thereto 
must be published in the Official Journal .138 If deemed to be in the public interest or because it has 
been so agreed with the international public institution financing the procurement, the procuring agency may, in addition to the customary notification, issue an invitation to participate by publishing a notice in foreign newspapers or by means of a communication to accredited trade 
delegations in Costa Rica. According to the legislation, participation by foreign bidders is subject to 
reciprocity. Nevertheless, the authorities have indicated that this provision is not applied in practice inasmuch as, following the case law established by the Constitutional Chamber 
of the Supreme Court of Justice, it is in the procuring administration's interests to obtain the best 
possible goods and services, irrespective  of the nationality of the supplier. 
                                               
134 Law No. 8701 introduces amendments to Articles 2, 45, 99 and 100 of Law No. 7494. 
135 The following are ICE companies: Radiográfica Co starricense S.A., Compañía  Nacional de Fuerza y 
Luz S.A., Compañía Radiográfica Internacional Costarricens e S.A. and others establishe d or bought by the ICE. 
136 The exceptions include: procurement of technological equipment and informatics systems; 
procurement of reinsurance; trusts; insurance or financial intermediation  services; INS services provided 
by third parties; purchase and leasing of proper ty; advertising contracts and training services. 
137 The thresholds applicable for determining the pr ocurement procedure in 2012 can be viewed on the 
website of the Office of the Comptr oller-General of the Republic at: 
http://documentos.cgr.go.cr/content/dav/ jaguar/documentos/contratacion/docs/ 
R-DC_16_2012_LIMITES_CA.pdf . 
138 The criteria for competitive bidding procedures are laid down in Article 42 of Law No. 7494. WT/TPR/S/286 • Costa Rica 
 
- 81 - 
 
  3.195.  In an abbreviated bidding procedure, the procuring agency has to invite a minimum 
of five suppliers of the good or service, accred ited in the relevant register. The agency must 
examine all competing bids, including bids from suppliers that were not invited, unless there is a register of prequalified suppliers, in which case only those companies which have prequalified 
before the bids are opened may participate.
139 
3.196.  A contract may be awarded directly in the following cases: agreements with other States 
or with institutions subject to international public law; contracts between agencies under public 
law; procurement which, because of its nature or circumstances, cannot be the subject of a public 
competition or the procedure is not appropriate (f or example, in the case of a single bidder, 
qualified reasons of security, extreme urgency); sm all quantities (in which case the agency must 
issue an invitation to bid to at least three suppliers and select the best offer); procurement using 
petty cash; procurement for the construction, installa tion or supply of offices or services abroad; 
and where there are sufficient reasons of public interest, subject to authorization by the CGR. 
3.197.  Each procuring agency keeps a register of suppliers (this is a general register not a 
register of prequalified suppliers) and, at least once a year, publishes a notice in the Official 
Journal inviting suppliers to register. Suppliers may, however, seek registration at any time.140 
It is not necessary to be listed in a register in order to make a bid. 
3.198.  Pursuant to the implementing regula tions for Law No. 7494, the tender announcement 
must set out the minimum quality criteria and the factors to be taken into account when comparing bids, the importance of each factor and the method to be followed for assessing and 
evaluating the bids in respect of each factor. The best bid is selected in accordance with the terms 
previously laid down in the tender announcement.  For competitive bidding procedures, notice of 
award of the contract must be published in the O fficial Journal and electronically; the ICE is the 
only body authorized by law to publish the notice solely by electronic means. Participating 
suppliers are informed of the award through the medium for receiving notifications indicated in 
their bid. The full resolution is available to the public in the administrative dossier. For abbreviated 
bidding procedures and direct procurement, the de cision on awarding the contract is transmitted 
directly to the bidders and does not have to be published. 
3.199.  Law No. 7494 provides for administrative and judicial appeals against acts by procuring 
agencies in the course of procurement procedures. An objection to the tender announcement may be lodged with the CGR in the case of competitive bidding procedures and, for other procedures, it 
is lodged with the procuring agency. Appeals or requests for annulment of the award of a contract 
may be made, depending on its amount and the budget of the procuring agency. In the special 
case of the ICE, an appeal against the award of a contract may only be made in the case of a 
competitive bidding procedure; for other procedures, a request for annulment may be made 
irrespective of the amount of the contract.
141 The CGR's final resolution exhausts administrative 
channels and may be contested before the Higher Court for Administrative Disputes; no further 
appeal may be made against the latter's ruling. In 2011, there were 456 objections to the tender 
announcement and 410 appeals against the award of  a contract, of which 17% resulted in the 
award being cancelled.142 This is a fairly high figure, albeit lower than that for 2008 (25%). 
3.200.  Costa Rica gives preference to the domestic industry in government procurement 
procedures. On the basis of Law No. 7017 of 16 December 1985 and Decree No. 32448 
of 28 April 2005, the Central Government, autonomous and semi-autonomous institutions and local authorities or any other official agency must give preference to products manufactured by the 
domestic industry in all their procurement, provided that quality is comparable, supplies are 
adequate and the price the same or lower than that of imported products. In order to compare prices between domestic and foreign goods, customs duty and any other import costs have to be 
added to the price of the foreign good, even wh en the procuring agency is exempt from these 
                                               
139 The criteria for abbreviated bidding procedur es are laid down in Article 45 of the Law. 
140 Decree No. 25113 of 24 April 1996 regulates the procedures to be followed by natural or legal 
persons for registra tion as suppliers. 
141 ICE companies apply the appeals regime in Law No. 7494 in the same way as other 
procuring agencies. 
142 Office of the Comptroller-General of the Republic (2012). WT/TPR/S/286 • Costa Rica 
 
- 82 - 
 
  costs.143 The authorities have indicated that this provision only applies for the purposes 
of comparison and does not imply an obligation to award a specific number of contracts. No statistics are available on use of these national  preferences, but the authorities have indicated 
that they are little used. Foreign goods covered by trade agreements signed by Costa Rica which 
include a chapter on government procurement are governed by these agreements. 
3.201.  Pursuant to Law No. 8262 of 2 May 2002 and Decree No. 333.305 of 13 June 2006, 
Costa Rica has a special programme to promote the participation of SMEs in government 
procurement of goods and services. Under th is programme, in government procurement 
procedures where the bidders offer equivalent or comparable quality, supplies and price
144, 
the procuring agency awards the contract to the national SME and, where there are more than two SMEs, follows the criteria laid down by the MEIC. If security has to be posted, this may 
be covered by the Special Fund for the Deve lopment of Micro, Small and Medium-Sized 
Enterprises, provided that the bidding SME meets th e Fund's criteria. There are no statistics on the 
level of utilization of preferences afforded by th is programme. It can be seen, however, that the 
amount of government procurement awarded to SMEs by the Central Government over the 
period 2007 to 2012 remained stable at an av erage of 16% of the total number of annual 
procedures (Table 3.20). 
3.202.  Procurement of public works through concessions is governed by the General Law 
on the Concession of Public Works involving Public Services (Law No. 7762 of 14 April 1998, 
amended by Law No. 8643 of 30 June 2008) and it s implementing regulations (Decree No. 27089 
of 12 June 1998 and Decree No. 31836 of 10 June 2004). It is the responsibility 
of the National Concessions Council, created by Law No. 7762, to approve or modify the 
announcement of tenders for concessions, and to award and sign the concession contract, together with the Executive. 
Table 3.20 Contracts awarded to SMEs  by the Central Government, 2007-2012 
Year Number of procurement 
procedures Number of contracts 
awarded to SMEs Percentage 
2007 8,778 1,412 16.09% 
2008 9,319 1,404 15.07% 
2009 10,564 1,892 17.91% 
2010 11,467 2,169 18.92% 
2011 13,018 2,035 15.63% 
2012 10,255 1,492 14.55% 
Source: Directorate-General of Goods Administration and Government Procurement,  Ministry of Finance. 
3.203.  In 2009, the Government evaluated the na tional government procurement system with 
methodological support from the OECD and other international organizations. Among the main 
problems identified were the high level of compartmentalization and the lack of standardization 
in the system (mostly because each procuring agency follows its own internal regulations), extremely high use of direct procurement (w ith very high thresholds), a wide variety 
of regulations, the absence of a regulatory body at  the national level, and the lack of an overall 
auditing system. According to this evaluation, the fragmentation and other weaknesses identified 
are an obstacle to transparency, prevent the genera tion of consolidated information on the process 
as a whole, raise operational costs, lower efficiency , and increase the risk of errors and corruption. 
3.204.  To deal with these problems, the Government drew up a Strategic Plan for 
the Modernization of Government Procurement, published in January 2010.
145 Since the Plan was 
published, progress has been made in the follo wing areas of CompraRed: standardization of 
documents for the various stages of the government procurement process; coordination with 
budgetary procedures which, as of 2011, can be carried out through the on-line procurement system; better use of the State's procuremen t capacity and economies of scale through 
                                               
143 Decree No. 32448 determines a formula for calculating the equivalent price of the foreign goods to 
be compared with the price offered by Costa Rican suppliers: Peq = P c.i.f. (1+ % of import costs + import 
tariffs, import taxes + tax under Law No. 6946). 
144 The formula for comparing prices between do mestic and foreign goods is: Peq = P c.i.f. 
(1+ % of import costs + % of import tariffs + tax under Law No. 6946). 
145 Ministry of Finance, Director ate-General of Goods Administrati on and Government Procurement 
(2010). WT/TPR/S/286 • Costa Rica 
 
- 83 - 
 
  consolidated procurement mechanisms such as framework agreements; promotion of competition 
and incorporation of sustainable criteria into  procurement procedures; and improvements in 
informatics (for example, digital certificates  and signatures) and in the management and 
transparency of information concerning government procurement. 
3.205.  The FTAs Costa Rica has signed with Chile, Mexico, Panama and CAFTA-DR contain 
chapters on government procurement which grant national treatment for goods, services and suppliers from the States Parties. The FTAs with Singapore and Peru and the Association 
Agreement between Central America and the European Union also contain chapters on government 
procurement. 
3.4.6  Protection of intellectual property 3.4.6.1  Introduction 
3.206.  In April 2012, the Costa Rican Government launched the "National Intellectual Property 
Strategy (ENPI)" under the impetus of the Ministry of Justice. The ENPI recognizes that growth and 
development are closely linked to innovation and creativity and that intellectual property activities 
have growing economic value for companies.
146 
3.207.  According to the 2012 Global Innovation Index, Costa Rica ranks 60th out of 141 countries, 
third in the Latin American and Caribbean region and first in Central America.147 WIPO statistics 
show that there is a growing, albeit modest, increase in the number of applications for IPRs 
and their registration in Costa Rica. Over the period 2010-2011, for example, there was 
a significant rise in the number of applications for trademarks (20%) and for industrial designs 
(50%). The increase in the number of applications for trademarks and in the number 
of trademarks registered concerns both Costa Rican residents and non-residents, while the vast 
majority of applications for registration of industrial designs come from non-residents. As regards patents, the applications filed by residents rose over the period 2010-2011, whereas 
the number of applications filed within the PCT framework by non-residents with national input 
remained stable. During the period 1997-2011, patent applications by field of technology could be broken down as follows: food technology ( 10.3%), construction (8.5%), mechanics (8.7%), 
medical technology (7.0%), other specialized machinery (6.1%), pharmaceuticals (6.3%), 
furniture and toys (5.9%), handling (5.2%), basic materials chemistry (4.9%), digital communications (4.2%) and miscellaneous (32.9%).
148 
3.208.  In Costa Rica, IPRs are guaranteed by th e Political Constitution and are protected by a 
broad legislative framework that includes national and international provisions. Pursuant to 
Costa Rica's Political Constitution, international treaties approved by the Legislative Assembly take precedence over domestic legislation.
149 Since its review in 2007, Costa Rica has made some 
important amendments in order to update its in tellectual property system and so adapt it to 
technological progress and meet its international commitments. The legislative amendments covered almost all IPRs, as well as the provisions governing their enforcement. 
3.209.  The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) has 
had force of law in Costa Rica since 1 January 1995.
150 Costa Rica's legislation was reviewed 
                                               
146 The ENPI was developed under the supervision of the Inter-institutional Coordination Commission 
for the Protection of Intellectual Property (CIPPI) in the context of an agreement adopted on 2 December 2010 at the First Central American Ministerial Conference  on Government Policies an d Intellectual Property, 
held in Guatemala. MICITT (2012). 
147 To calculate the global innovation index, indicato rs such as institutions, infrastructure, creative 
outcome and results in the form of know-how and technology are taken into account. Joint publication by WIPO and the global business school INSEAD. Viewed at: http://www.wipo.int/export /sites/www/econ_stat/en/eco nomics/gii/pdf/rankings.pdf . 
148 The statistics do not contain data  for the period 2008-2009. WIPO online information, viewed at: 
http://www.wipo.int/ipstats/es/statistics/country_profile/countries/cr.html . 
149 Review of Costa Rica's legislation by the TRIPS Council in June 2001. WTO document IP/Q/CRI/1 
of 18 January 2002. 
150 Costa Rica ratified the TRIPS Agreement by means of Law No. 7475 of 20 December 1994. WT/TPR/S/286 • Costa Rica 
 
- 84 - 
 
  by the TRIPS Council in 2001; Costa Rica replie d to the questions posed and to the checklist 
of issues on enforcement.151 
3.210.  Costa Rica is party to many of the conv entions administered by the World Intellectual 
Property Organization (WIPO) (Table 3.21), including some which contain provisions with a 
broader scope than those in the TRIPS Agreement,  for example the so-called "Internet treaties" 
(WCT and WPPT) and the Trademark Law Treaty (TLT). As regards treaties on registration or international applications, Costa Rica is a contracting party to the Patent Cooperation Treaty (PCT) 
and the Lisbon Agreement (appellations of origin). In 2008, it acceded to the Budapest Treaty on 
the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. In 2012, it signed the Beijing Treaty  on Audiovisual Performance and in 2009 acceded 
to the International Convention for the Protection of New Varieties of Plants (UPOV Convention, 
1991 Act). 
 Table 3.21 WIPO Treaties ratified by Costa Rica
152 
Treaty Subject 
(non-exhaustive description) Date of signature, 
accession, ratification or 
entry into force 
Paris Convention, 1883 Industrial property (patents, trademarks, 
utility models, indust rial designs, trade 
names, geographical indications and appellations of origin, unfair competition, enforcement, etc.)  Accession: 
31 October 1995 
Patent Cooperation Treaty 
(PCT), 1970 International patent applications Accession: 
3 August 1999 
Budapest Treaty, 1977 International recognition of the deposit 
of microorganisms for the purposes 
of patent procedure  Accession: 
30 September 2008 
Trademark Law Treaty (TLT), 1994 Trademarks (streamlining and 
harmonization of certain aspects 
of the registration procedure)  Ratification: 
17 July 2008 
Entry into force: 
17 October 2008  
Singapore Treaty, 2006 Trademarks (harmonization of 
administrative procedures for registration; broader scope than the TLT; 
technical communication media, etc.)  Signed: 
28 March 2006  
Lisbon Agreement, 1958 International registration of appellations 
of origin  Accession: 
30 July 1997 
Berne Convention, 1886  Copyright (literary and artistic works, etc.) Accession: 
10 June 1978 
Rome Convention, 1961 Related rights (performers, producers 
of phonograms, broadcasting 
organizations) Accession: 
9 September 1971 
Phonograms Convention, 1971 Protection of producers of phonograms 
against unauthorized duplication of their 
phonograms Accession: 
17 June 1982 
Brussels Convention, 1974 Distribution of programme-carrying 
signals transmitted by satellite  Accession 
25 June 1999 
Copyright Treaty (WCT), 1996 Copyright (extension of the scope of the 
Berne Convention) Ratification 
23 May 2000 
Entry into force: 
6 March 2002  
                                               
151 WTO documents IP/Q/CRI/1, IP/Q2/CRI/1, IP/Q/3/CRI/1, IP/Q/4/CRI/1 of 18 January 2002 
and IP/N/6/CRI/1 of 20 March 2001. 
152 The list of treaties administered by WIPO follows  the order in which the re port covers the various 
categories of intellectual property. The three convention s whose substantive provisions have been incorporated 
in the TRIPS Agreement are: the Paris Convention  (Stockholm Act of 1967), the Berne Convention 
(Paris Act of 1971) and the Rome Convention. The UPOV Convention (new plant varieties) is administered 
by the International Union for the Protection of New Varieties of Plants. For a more detailed description 
of the WIPO treaties and other intellectual property treaties, see Costa Rica's profile on WIPO's website: 
http://www.wipo.int/members/en/details.jsp?country_id=40 . WT/TPR/S/286 • Costa Rica 
 
- 85 - 
 
  Treaty Subject 
(non-exhaustive description) Date of signature, 
accession, ratification or 
entry into force 
Performances and Phonograms 
Treaty (WPTT), 1996 Related rights (performers and producers 
of phonograms) Ratification 
23 May 2000 
Entry into force: 
20 May 2002  
Beijing Treaty, 2012 Related rights 
(audiovisual performances) Signed: 
26 June 2012 
Source: WTO Secretariat, based on info rmation viewed on WIPO's website. 
3.211.  Costa Rica has also signed several bilateral or plurilateral treaties that include provisions 
on intellectual property. For example, Chapter 15 of CAFTA-DR, which came into force 
for Costa Rica on 1 January 2009, contains such provisions. The Association Agreement between Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua 
and Panama) and the European Union, signed on 29 June 2012 and in the process of being 
approved by Costa Rica's Legislative Assembly, has a section on intellectual property (Title VI). In addition, Costa Rica has concluded trade agreements containing intellectual property provisions 
with a number of countries, including Canada, Chile, China, Mexico, Panama and Peru. 
Under the Guatemala Protocol, Costa Rica and its Central American partners undertook to harmonize their intellectual and industrial property legislation.
 
3.212.  At the institutional level, the Registry of Industrial Property and the Registry of Copyright 
and Related Rights are responsible for administering the respective IPRs. Although both of these 
are part of the National Registry of the Ministry  of Justice, each one operates independently. 
T h e  R e g i s t r y  o f  I n d u s t r i a l  P r o p e r t y  i s  i n  c h a r g e  o f  t h e  r e g i s t r a t i o n  o f  b r e e d s  o f  c a t t l e ,  p a t e n t s ,  
industrial designs, utility models, trade names, tr ademarks, advertising slogans or signs, and other 
distinctive signs. The Registry of Copyright and Re lated Rights is responsible for registering literary 
and artistic works and other acts or contracts relating to copyright or related rights such as 
the dissemination of these rights.153 Appeals for administrative review of their decisions may be 
made to the Registries and, if they declare the appeal inadmissible, an appeal may be made to the Administrative Registry Tribunal (TRA).
154 
3.213.  Costa Rica notified its contact points in accordance with Article 69 of the TRIPS 
Agreement: the Ministry of Foreign Trade (Directorate-General of Foreign Trade); the Registry 
of Industrial Property; the Registry of Copyright and Related Rights; and the DGA.155 
3.4.6.2  Patents 
3.214.  The patent system is governed by Law No. 6867 (Law on Patents, Industrial Designs 
and Utility Models) of 25 April 1983 and amendments thereto. Pursuant to this Law, the granting 
of a patent involves the obligation to work it in Costa Rica, in a permanent and stable manner, 
within three years of it being granted, or four years from the date of the patent application. 
The term of a patent is 20 years as of the date  of filing the application with the Registry 
of Industrial Property or, in the case of patents processed under the PCT, as of the date of filing 
the international application. 
3.215.  In order to comply with its international commitments, Costa Rica introduced amendments 
to its patent legislation by means of La w No. 8632 of 28 March 2008 and Law No. 8686 
of 21 November 2008. The principal amendments incl ude: modification of the provisions on term 
of protection in order to prevent delays in gr anting patents or other permits for the marketing 
of products. Accordingly, the Law provides that, if the Registry of Indu strial Property delays 
granting a patent for over five years (as of the date of filing the application) or over three years 
(as of the request for substantive examination of the invention), the holder may seek 
compensation in respect of the term of the patent. For pharmaceuticals, if the Ministry of Health 
                                               
153 The websites for these Registries are: http://www.rnpdigital.com/prop iedad_industrial/index.htm  
and http://www.rnpdigital.com/derechos_autor/index.htm . 
154 The TRA was created under the Law on Procedures  for the Enforcement of Intellectual Property 
Rights, No. 8039 of 12 October 2000. The TRA's website is: http://www.tra.go.cr . 
155 Online information, viewed at: 
http://www.wto.org/english/tratop_e/trips_e/art69_contacts/trips_contact_cri.pdf . WT/TPR/S/286 • Costa Rica 
 
- 86 - 
 
  delays granting approval of sanitary registration for over three years, the patent holder has the 
right to seek compensation from the Registry of  Industrial Property with regard to the term 
of the patent. 
3.216.  Law No. 6867 (as amended) provides for various cases of use without the holder's 
consent, for example, compulsory licences for dependent patents, compulsory licences for failure 
to work or insufficient working, for anti-competitive practices or "public utility licences" (i.e. for exploitation by a Government authority or  by third parties authorized by the Government 
in cases of extreme urgency, for reasons of publ ic interest, emergencies or national security).
156 
As regards compulsory licences for failure to work or insufficient working, the Law provides that "domestic production and lawful import shall be considered forms of working". During the 
period 2007-2012, there were no requests for compulsory licences and none were granted. 
The principle of international exha ustion of rights is covered by Article 16.2(d) of Law No. 6867. 
3.217.  The Law on Biodiversity (Law No. 7788 of  30 April 1998) sets out the rules for access to 
biodiversity's genetic material and biochemicals. Law No. 8632 of 28 March 2008 introduced some 
amendments to this Law, including: a new de finition of "microorganism" and the exclusion 
of "microorganisms found in nature" from patent protection. Furthermore, Law No. 8686 of 21 November 2008 amended the Law on Biodiv ersity, giving protection "… in the form, 
inter alia , of patents, business secrets, plant breeders' rights, sui generis community intellectual 
rights, copyright, farmers' rights" and establishing a list of exclusions from patent protection.
157 
The Law on Biodiversity's provisions on licensing were also amended, specifying that if a national emergency is declared, the State may issue a compulsory licence for a patent that involves 
elements of national biodiversity, for the common benefit.
158 
3.218.  On 8 December 2011, Costa Rica deposited the instrument of acceptance 
of the Protocol amending the TRIPS Agreement in respect of the system provided in paragraph 6 
of the Doha Declaration on the TRIPS Agreement and Public Health.159 
3.4.6.3  New varieties of plants 3.219.  In 2008, the Law on the Protection of New Varieties of Plants (Law No. 8631 
of 6 March 2008) was enacted and its implementi ng regulations (Executive Decree No. 35677-MAG 
of 19 November 2009) were issued one year later. In 2009, Costa Rica acceded to the International Convention for the Protection of New Varieties of Plants (UPOV Convention, 1991 Act). Law No. 8631 contains provisions on protection, procedures and enforcement 
(precautionary measures, border measures, balance between protection of the right holder 
and third parties, etc.) and applies to varieties of all plant genera and species. Protection does not, however, extend to wild plants that form part of Costa Rica's biodiversity and have not been 
improved by persons. The term of the breeder' s right is 20 years and 25 years for perennials, 
as of the date of granting the right. The Law provides for the exceptions allowed by the UPOV Convention, namely, the plant breed er's exemption and the farmer's privilege. 
The regime for exhaustion of rights is international, with the exceptions allowed by UPOV.
160 
3.220.  The competent body for processing and granting plant breeders' certification 
is the National Seeds Office (OFINASE), attached to the MAG. OFINASE administers the Registry of Protected Varieties.
161 The protection given by registration does not imply an authorization for 
commercial exploitation of the variety, to whic h the requirements laid down in the relevant 
                                               
156 Law No. 6867 (as amended), Articles 18, 19 and 20. 
157 Law on Biodiversity No. 7788 (as amended), Article 78. 
158 Ibid., Article 81. 
159 For the Protocol and related documents, see WTO document WT/L/641 of 8 December 2005, online 
information viewed at: http://www.wto.org/spanish/ tratop_s/trips_s/wtl641_s.htm ; for the updated list of 
acceptances of the Protocol, see online information at: 
http://www.wto.org/spanish/tratop_s/trips_s/amendment_s.htm . 
160 Pursuant to Article 21 of Law No. 8631, a breeder's  right is exhausted "when the material of the 
protected variety has been marketed by the right holder or  with his consent, unless it is for production of new 
seeds or for export that allows reproduction or propagat ion, or to a country that does not protect varieties of 
the plant genus or species to which the variety belo ngs, unless the material exported is intended for 
consumption". 
161 Online information from OFINASE, viewed at: http://www.ofinase.go.cr . WT/TPR/S/286 • Costa Rica 
 
- 87 - 
 
  regulations apply (Registry of Commercial Varietie s). Between the creation of the Registry in 2009 
and mid-2013, four protected varieties had been registered. 
3.4.6.4  Trademarks 3.221.  Costa Rica protects individual, collective and certification marks. The Law on Trademarks 
and Other Distinctive Signs (Law No. 7978 of 6 January 2000) was amended in 2008 
by Law No. 8632 of 28 March 2008. The amendments include the possibility of registering sound 
or three-dimensional marks and protecting well -known marks, as provided in Article 16 
of the TRIPS Agreement. The Law on Trademar ks and Other Distinctive Signs enshrines the 
principle of international exhaustion of trademark rights.
162 
3.222.  The Law on the Creation of the Office for Livestock Marks (No. 2247 of 7 August 1958) was 
amended by Law No. 8799 of 17 April 2010 in order to empower the Office to determine the 
procedures that allow the registered mark to be  related to the establishments where the animals 
are kept, establish the identification systems and set the fees for the registration of livestock 
marks. The regulations implementing the La w (Decree No. 36471-JP of 16 November 2010) 
were issued for this purpose. The Office is attached to the Registry of Industrial Property. 
The mark or brand lasts for 15 years as of the date of registration and may be renewed indefinitely for 15-year periods. 
3.4.6.5   Geographical indications 
3.223.  Title VIII of Law No. 7978 (2000) protects national or foreign geographical indications 
and appellations of origin for all types of produc t. The Registry of Industrial Property is the 
competent authority and keeps a register of geog raphical indications and appellations of origin. 
Law No. 8632 of 28 March 2008 amended a number of the provisions of Law No. 7978 in this 
respect. The amendments include a new definition of a geographical indication and various aspects 
concerning the registration of appellations of or igin and geographical indications, including the 
question of coexistence, under certain conditions, of homonymous appellations of origin and 
geographical indications. The implementing re gulations for the provisions on geographical 
indications and appellations of origin co ntained in Law No. 7978 (Decree No. 33743 
of 14 March 2007) set out the criteria for differentiating between homonymous indications 
or appellations.
163 Costa Rica is a contracting party to WIPO's Lisbon Agreement (registration 
of appellations of origin). 
3.224.  The geographical indication "Banano de Costa Rica" was registered with Costa Rica's 
Registry of Industrial Property in 2010 and forwarded to WIPO's International Office (Secretariat) 
in 2011 for registration under the Lisbon Agreement system.164 The geographical indication 
"Café de Costa Rica" was registered with the same  Registry in 2011 and the appellation of origin 
"Queso Turrialba" (Turrialba Cheese) in 2012. The geographical indications "Banano de Costa Rica" 
and "Café de Costa Rica" appear in the list of applications for registration as geographical indications in connection with the Association Agreement between Central America 
and the European Union. 
3.4.6.6  Copyright and related rights 3.225.  Law No. 6683 of 1982 on Copyright and Related Rights was amended in 2000, 2008 
and 2010. Costa Rica has been a contracting party to the Berne Convention since 1978, the Rome 
Convention since 1971, and the Phonograms Convention since 1982. 
                                               
162 Article 27 of Law No. 7978. The provision specifies that a right is exhausted "provided that such 
products and containers or packagin g in immediate contact with them have not undergone any modification, 
alteration or deterioration and do not cause prejud ice to the right holder or successor in title". 
163 Article 23.3 of the TRIPS Agreement deals with  the coexistence of homonymous geographical 
indications for wine. 
164 The appellation "Banano de Costa Rica" is No. 202307 in the National Registry and No. 900 in 
the Lisbon Agreement Registry, dated 1 August 2011. Online information, viewed at: 
http://www.wipo.int/export/sites/www/lisbon/en/docs/bulletin_2012_40.pdf . Costa Rica notified the WTO 
of Law No. 8063 on use of the appellation "  Banano de Costa Rica " in WTO document IP/N/1/CRI/3 
of 6 November 2002. WT/TPR/S/286 • Costa Rica 
 
- 88 - 
 
  3.226.  Pursuant to Law No. 6683 and amendments thereto, the term of protection for copyright 
is 70 years after the death of the author, if the author is a natural person. Performers and producers of phonograms (natural persons) en joy protection throughout their lifetimes and, 
after their deaths, their successors in title are given protection for 70 years. The rights 
of broadcasting organizations also have a term of 70 years, calculated as of the end of the 
calendar year in which the broadcast was transmitted.
165 It should be noted that the various 
exceptions to exclusive rights allowed do not include (i.e. do not permit) retransmission 
of television signals (whether by land line, cable or satellite) on the Internet without the consent 
of the right holder to the content of the signal and the signal itself.166 Costa Rica's legislation 
provides for protection of the moral rights of authors and performers. Article 16 of the Law on Copyright and Related Rights provides for the pr inciple of international exhaustion of copyright. 
3.227.  Law No. 8686 of 21 November 2008 made a number of amendments, including changes to 
the Law on Procedures for Enforcement of Intellectual Property Rights (Law No. 8039 of October 2000), some of which are particularly relevant to copyright. For example, the Law 
introduces measures for the seizure and destruction of goods following a criminal conviction and 
empowers the judicial authorities to order the su bmission of information and evidence under the 
control of the adverse party. More recent ly, the amendment introduced by Law No. 8834 
of 3 May 2010 reinforced the provisions in the Law on Procedures for Enforcement, 
notably Article 52 (communicating or making availa ble to the public phonograms, performances or 
broadcasts without permission), providing for hi gher fines and longer terms of imprisonment 
(section 3.4.6.9 below). 
3.228.  Decree No. 36014-MP-COMEX-J of 3 May 2010 amended the implementing regulations for 
the Law on Copyright and Related Rights. This Decree sets out Costa Rica's reservations to the WPPT Treaty and the Rome Convention to the effect that free traditional, non-interactive, 
broadcasts are exempt from the obligation to remunerate related rights holders for use of their 
works as this is considered to be a service in the public interest, covered by honoured custom. More specifically, the Decree states with regard to performers and broadcasting organizations that 
the right to authorize or prohibit use and the ensuing right to payment apply when a phonogram 
(or its duplication) has been published for commercial purposes and is used directly for broadcasting or public communication in premises open to the public, as these two activities are 
conducted in exchange for an economic benefit. 
3.229.  Mention should also be made of the Regu lations on limitation of the liability of service 
suppliers for infringement of copyright or re lated rights (Executive Decree No. 36880=COMEX-JP 
of 18 October 2011), issued in order to comply with the CAFTA-DR provisions. The Regulations 
apply to service suppliers which voluntarily abide by them and collaborate with holders 
of copyright and related rights to discourage the un authorized storage or transmission of materials 
protected by such rights. Suppliers of connection or temporary storage services or network 
or reference services do not have to pay financial compensation if they meet certain conditions, 
for example, when they have not selected the content of the broadcast or initiated the chain of transmission of material protected by copyright or related rights. 
3.4.6.7  Layout-designs of integrated circuits 
3.230.  This subject is governed by the Law on the Protection of Layout-Designs of Integrated 
Circuits (Law No. 7961 of 17 December 1999). Pursuant to this Law, compulsory licences may be granted under the same conditions as those applicable to patents (Law No. 6867 (as amended)). 
No requests have been made for compulsory licenc es under this Law and none have been granted. 
The Law provides for the international exhaustion of rights. There have been no changes to this 
Law since the previous review in 2007. 
3.4.6.8  Undisclosed information 
3.231.  The Law on Undisclosed Information (Law No. 7975 of 2000) and its implementing 
regulations (Executive Decree No. 34927-J-COMEX-S-MAG of 28 November 2008) contain provisions protecting business and industrial secrets and test data on pharmaceuticals 
                                               
165 For further details, notably the method of ca lculation, see Articles 58 and 87 of Law No. 6883, 
amended in 2008. 
166 Article 73 bis of Law No. 6683 (as amended). WT/TPR/S/286 • Costa Rica 
 
- 89 - 
 
  and agricultural chemicals. Law No. 8686 of 21 November 2008 amended this Law as regards 
the protection of data supplied for approval of the marketing of pharmaceuticals or agricultural 
chemicals. The implementing regulations for the Law allow protection for five years as of the first registration of a new pharmaceutical product in Costa Rica against any unfair 
commercial use of the test data submitted to the competent authority in charge of sanitary 
registration. For agricultural chemicals, protection is ten years as of the first registration of the new agricultural chemical.
167 
3.4.6.9  Enforcement 
3.232.  During the review period, Costa Rica introduced important amendments to the 
Law on Procedures for Enforcement of Intellectual Property Rights (Law No. 8039 of 12 October 2000). The amendments were introduced by Law No. 8656 of 18 July 2008, 
Law No. 8686 of 21 November 2008 and Law No. 8834 of 3 May 2010. The Interinstitutional 
Coordination Commission for the Protection of Intellectual Property was created in 2009 with the task of monitoring and applying policies for enfo rcement of IPRs. The Commission operates within 
the Ministry of Justice and also includes the Mini stries of Foreign Trade; Security; and Science, 
Technology and Telecommunications, together with  the DGA, the Judicial Academy, the Judicial 
Investigation Body, the Registry of Copyright an d Related Rights, the Registry of Industrial 
Property and the State Prosecution Office. Costa Rica intends to create a special office to prosecute 
intellectual property offences. 
3.233.  Infringement of an IPR established by Costa Rica's legislation or in international 
conventions in force may give rise to administrati ve proceedings before the Registry of Industrial 
Property or the Registry of Copyright and Related Rights, and to the judicial proceedings provided 
in the Law on enforcement. The authority for appeals against administrative decisions adopted by one or other of the Registries is the Registries  Administrative Tribunal, attached to the Ministry 
of Justice. 
3.234.  The aim of the 2008 amendments was to adapt the Law on Procedures for Enforcement 
of Intellectual Property Rights to technologi cal progress and to comply with international 
commitments. The revision or adoption of important provisions such as those on precautionary 
measures in general and border measures are worthy of note. As far as civil proceedings are concerned, provisions on precautionary measures, civil measures, compensation for the other party, evidence controlled by the adverse party, criteria for determining damages and prejudice, 
predetermined compensation, and seizure and destruct ion of products as a result of a civil court 
ruling were amended or adopted. Likewise, the am endments covered matters relating to criminal 
proceedings, precautionary measures, criminal offences, penalties for offences concerning 
trademarks (including the counterfeiting or fraudulent use of geographical indications 
or appellations of origin), penalties for infringing copyright or related rights, and seizure and destruction of goods as a result of a crim inal conviction. The 2010 amendments further 
strengthened the rules on enforcement, particular ly by imposing higher fines and longer terms 
of imprisonment for the offences of communicating or making available to the public phonograms or performances or broadcasts without the consent of the owner of the copyright.
168 
3.235.  Despite the legislative amendments and e fforts made by the Costa Rican authorities to 
reinforce the protection of IPRs, according to in formation received, there are still concerns about 
the efficacy of the enforcement regime, especi ally as regards copyright and related rights. 
Problems such as physical and digital piracy of co pyright, ineffective judicial proceedings, the lack 
of financial resources devoted to combating piracy, and the scarcity of experts in IPR enforcement 
are among the challenges faced by Costa Rica's intellectual property system. 
 
                                               
167 Articles 15 and 16 of Regulation No. 34927-J-COMEX-S-MAG of 28 November 2008. 
168 Article 52 of Law No. 8039, as amended by Law No. 8834 of 3 May 2010. WT/TPR/S/286 • Costa Rica 
 
- 90 - 
 
  4  TRADE POLICES BY SECTOR 
4.1  Overview 4.1.  Between 2007 and 2012, the agriculture, fo restry and fishing sector recorded an average 
annual rate of growth that was lower than the rate of growth of GDP and its relative share of total 
production decreased. In 2012, the sector account ed for 5.7% of GDP and 13.4% of employment. 
On average, over the period 2007-2012, it genera ted just over one third of total goods exports. 
Although the average level of tariff protection for the agricultural sector (WTO definition) is 14%, 
for some products for domestic consumption (meat, dairy products, potatoes, onions, sugar and 
rice) the tariffs are well above the average. Moreover, rice production receives government support under a policy which maintains market prices at levels exceeding Costa Rica's WTO commitments under the Aggregate Measuremen t of Support and which has not led to any 
increase in productivity. In May 2013, the Government issued a decree providing for 
the elimination of price controls for rice as from March 2014. The marketing of some agro-industrial products, such as sugar and alcohol, is handled by State enterprises or institutions. 
4.2.  Although manufacturing industry grew at  an annual rate of 1.3% between 2007 and 2012, 
in 2012 its shares of GDP and employment fell to 15.4% and 11.3%, respectively. Nevertheless, the sector remains important in terms of its contribution to exports and as a magnet 
for FDI. The contribution of the free zone ente rprises to manufacturing value-added declined 
during the period under review, but these enterprise s continue to account for more than two thirds 
of exports of manufactured products. For their part, the ordinary-regime (non-free zone) enterprises were more dynamic and accounted for 82% of manufacturing value-added in 2012. 
The main goods manufactured and exported by the free zones are electronic products and medical 
devices, while the main products manufactured by ordinary-regime enterprises are foodstuffs, 
beverages and tobacco and plastic products intended primarily for domestic consumption. 
The import tariffs on some of these products are relatively high. 
4.3.   In the electricity sector, the State-owned Costa Rican Electricity Institute (ICE) generates 
three quarters of the electricity, is exclusively responsible for transmission and controls most of 
the distribution. Faced with an increasing demand for electrical energy, the Government 
has adopted measures to encourage private-sector participation in electricity generation up to a limit of 30% of national installed capacity. El ectricity tariffs are regulated and have increased 
in recent years, due largely to the high cost of fuel for thermal generation, resorted to for 
climatic reasons, and to the financing of new in vestment. By law, the importation, refining and 
wholesale distribution of hydrocarbons is a State monopoly administered by the State-owned Costa Rican Petroleum Refinery. Hydrocarbon prices are also regulated and are among the 
highest in Central America, mainly due to the tax burden they carry. These prices, together 
with high electricity tariffs, are eroding the competitiveness of Costa Rican industry. 
4.4.  In 2012, the services sector accounted for 62.4% of GDP and 67% of total employment. 
Altogether, the sector grew in real terms at an average annual rate of 4.6% between 2007 
and 2012, greater than the rate of growth of to tal GDP. Services exports have been extremely 
dynamic (particularly computer services and othe r business services), growing on average at an 
annual rate of 9.4% between 2007 and 2012, which made it possible to maintain a surplus in the 
balance of trade in services throughout the period under review. In fact, the services market 
regime is currently more open than the commitments adopted by Costa Rica under the General Agreement on Trade in Services (GATS), which are limited to a few sectors. Costa Rica 
accepted the Fifth Protocol to the GATS on financial services, but has not assumed any 
commitments in telecommunications. Although a number of services subsectors that were previously State monopolies were opened to competition during the review period, the State 
continues to maintain a substantial presence in the services market, where it is now competing 
with private sector businesses. 
4.5.  Following the end of the State monopoly on mobile telephony, the Internet and private 
networks the telecommunications sector became  very active during the review period. 
The opening up of the sector in 2009 was accomp anied by the introduction of a new legal and 
institutional framework which included the creation of a supervising ministry in addition to a telecommunications sector regulator. The involvement of private operators has generated 
market competition and led to a more diversified supply of telecommunications services WT/TPR/S/286 • Costa Rica 
 
- 91 - 
 
  and lower rates. Liberalization has also had positive effects on service penetration (especially in 
mobile telephony), investment and employment in the telecommunications sector. 
4.6.  The financial services sector stood up well to global financial crisis. Since 2007, it has 
undergone major changes such as offshore banking reform, the creation of the Development 
Banking System and the opening up of the insu rance market. The Costa Rican banking sector 
continues to be dominated by the State banks, which at the end of 2012 held about 65% of total 
banking assets. Foreign banks may establish a presence in Costa Rica through subsidiaries set up 
as joint stock companies, but not through branch offices; there are no limits on foreign capital in 
private banks incorporated in Costa Rica. Once established, foreign banks are granted national treatment. However, there are still certain regu latory asymmetries between the private banks, 
domestic and foreign, and the State banks. Fo r instance, private banks must meet the cost 
of a "bank toll" to be able to take current account deposits and have no deposit insurance. For 
their part, the State banks are subject to government procurement rules. 
4.7.  The insurance industry underwent a fundam ental change with the enactment in 2008 of new 
legislation which terminated the State monopoly of the National Insurance Institute (INS) and 
created a regulatory authority for the sector. Private insurance companies entered the market 
in 2010 and by the end of 2012 it had grown consider ably in terms of participants and the amount 
of direct premiums, although the INS was still holding more than 90% of the industry's total 
earnings. Foreign insurance enterprises may participate in Costa Rica's insurance market by setting up as joint stock companies or through branch offices. There are no restrictions on the foreign capital participation in insurance companies established in Costa Rica. 
Insurance contracts may be concluded with a foreign insurance company to cover risks expressly 
established in an international treaty between Costa Rica and the country of origin of the company in question. 
4.8.  The transport infrastructure in Costa Rica still faces problems, mainly relating to the quality 
of its ports and roads, which service 97% of its export volume. During the review period, the Government granted private companies a number of concessions to build, maintain and 
operate ports, which led to greater efficiency. Costa Rica does not have a merchant fleet of its own 
and maintains an open international maritime transport regime. Cabotage services are restricted to vessels registered in Costa Rica. Improving the port and road infrastructure remains a major challenge that must be met in order to ma ke Costa Rica's foreign trade more competitive. 
4.9.  Costa Rica maintains a relatively open air transport regime. Since 2007, 100% foreign-owned 
Costa Rican companies have been able to obtain operating certificates to provide domestic and international air transport services for passengers, cargo and mail. Costa Rica is continuing its 
policy of granting the private sector concessions to operate and maintain its main airports, 
which by law must remain under State control. At the same time, Costa Rica is strengthening its international air transport links by concluding new bilateral agreements, some of them with 
countries outside of its traditional market of the Americas. The market for ground handling 
services is open to foreign investors, and there are no restrictions with respect to computer reservation systems, the sale and marketing of air transport services or aircraft repair and maintenance. 
4.10.  Although somewhat affected by the global financial crisis, Costa Rica's tourism sector has 
recovered considerably since 2010. Revenue from tourism activities accounts, on average, for 14.15% of total exports of goods and services. The sector depends heavily on tourists from 
the United States. Despite the fact that earnings from tourism have been increasing since 2008, 
the sector's percentage contribution to GDP has fallen. Costa Rica offers various kinds of incentives for tourism-related activities. 
4.2  Agriculture 
4.2.1  General characteristics 4.11.  Between 2007 and 2012, the agriculture, forestry and fishing sector as a whole had 
an average annual growth rate of 1.0%; however, its relative share of current GDP fell from 7.6% 
to 5.7% (Chapter 1, Table 1.2). WT/TPR/S/286 • Costa Rica 
 
- 92 - 
 
  4.12.  In terms of its contribution to agricult ural value-added (at constant prices), the most 
important product during the period 2008-2012 was pineapples, which on average generated 27.9% of sector value-added in those years, fo llowed by bananas (13.6%), milk (9.6%), coffee 
(5.1%), beef cattle (4.8%) and melons (4.1%).
1 On average, crop products accounted for 74.9% 
of the value of agricultural sector production during this period, while livestock products accounted 
for 19.5%. Between 2008 and 2011, crop production increased in volume by 5.8%; basic grain production increased by 31%, with beans recording the greatest growth (102%); fruit grew 
by 14.7% and roots and tubers by 76%. For thei r part, agro-industrial crops (coffee and sugar 
cane, among others) and vegetables suffered a fall in production volume.
2 
4.13.  Agricultural exports accounted on average for 34.2% of total goods exports during the 
period 2007-2012. The most dynamic products were palm oil, whose export value increased 
by 90.5% between 2007 and 2012, food prepar ations (70.8%), unroasted coffee (61.4%), 
fresh or dried fruit (51.2%) and bananas (18.7% ). The products whose export value decreased 
between 2007 and 2012 include orange juice, compotes, fruit jellies and jams, bovine meat 
and some types of fish. In 2012, the main export products were fruit, fresh or dried, bananas, 
unroasted coffee, food preparations and palm oil an d its fractions, which altogether represented an 
export value of US$2,656.2 million.3 
4.14.  Data from the National Household Survey  (ENAHO) and the Multipurpose Household Survey 
(EHPM) of the National Institute of Statistics and Censuses (INEC) show that the number of persons employed in agriculture, including li vestock, and fishing activities increased by 10% 
between 2007 and 2012.
4 In 2012, these activities employed 13% of the total working population. 
4.2.2  Policy objectives and institutional framework 
4.15.  The "State Policy for the Costa Rican Agri-food and Rural Development Sector 2010-2021" 
establishes the objectives of sectoral policy and the measures for its implementation.5 The general 
objective is to improve the living conditions of those involved in agricultural production activities. 
The policy is based on four pillars: competitiveness; innovation and technological development; rural land management and family agriculture; and climate change and agro-environmental 
management. The measures to improve competitiveness include making maximum use of the 
opportunities for market entry and expansion derived from the trade negotiations, increased investment in infrastructure to support production, regulatory improvements, simplification of administrative procedures, and the availability of credit and guarantees appropriate for 
agricultural activities. In the short and medium term the policy is being implemented by means 
of the Sectoral Agricultural Development Plan 2011-2014.
6 
4.16.  During the period under review, numerous laws and decrees concerning various aspects 
of agricultural activity were enacted. They incl ude, in particular, the Law on the Development, 
Promotion and Fostering of Organic Farming (Law  No. 8591 of 28 June 2007) and its implementing 
regulations7, which govern and promote the development of organic farming activities by means 
of fiscal and financial incentives aimed at micro, small and medium-sized organic farmers. 
The incentives include exemptions from tariffs and other levies on imports of equipment, machinery, inputs and work vehicles, income tax and the tax on the sale of organic products. The objective of the Law for Strengthening the Comprehensive Food Marketing Programme 
(Law No. 8663 of 10 September 2008) is to transfer funds from this programme to 
the development of markets and infrastructure in certain regions of the country. The Law on Supporting and Strengthening the Ag ricultural Sector (Law No. 8835 of 10 May 2010) 
cancels part of the debt owed by small farm ers to the Farming and Livestock Protection 
                                               
1 Preliminary data for 2011 and estimates for 2012. Executive Secretariat for Sectoral Agricultural 
Planning/SEPSA (2012b) and SEPSA (2012a). 
2 Executive Secretariat for Sectoral Agricultural Planning/SEPSA (2012b). At the time of writing, 
disaggregated information concerning the production volume for 2012 was not available. 
3 The information given in this paragraph come s from the United Nations COMTRADE Database. 
4 BCCR online data, viewed at: 
http://www.bccr.fi.cr/indicadores_ec onomicos_/Produccion_empleo.html.  
5 Executive Decree No. 36764-MAG of 27 July 2011. 
6 The Sectoral Agricultural Development Plan 2011-2014 can be viewed at: 
http://www.mag.go.cr/bibliotecavirtual/a00303.pdf . 
7 Executive Decree No. 35242-MAG-H-MEIC of 18 November 2008, amended by Decree No. 36472-MAG 
of February 2011. WT/TPR/S/286 • Costa Rica 
 
- 93 - 
 
  and Development Trust (FIDAGRO) and the Productive Restructuring Trust.8 Executive Decree 
No. 36158-MAG (24 February 2011) extended the co verage of crop insurance to specific 
geographical areas and agricultural species. Am ong other things, the implementing regulations 
for the Law on the Protection of New Varieties of Plants (Chapter 3), the implementing regulations 
for the Law on Fishing and Aquaculture (Decree No. 36782-MAG) and various decrees relating 
to the minimum producer price and maximum selling prices for rice (section 4.2.3.2 below) were also published. 
4.17.  The Ministry of Agriculture and Livestock (MAG) is the principal authority responsible for 
agricultural and rural development and supervis es the formulation of policies and plans for 
the sector.
9 The National Council for the Agricultural Sector (CAN) is a coordinating, consultative 
and information-disseminating body and relies  on the Executive Secretariat for Sectoral 
Agricultural Planning (SEPSA) to advise on, draw up and evaluate agricultural plans and 
programmes. The agricultural public sector also includes the Rural Development Institute (INDER, formerly IDA
10), the National Groundwater, Irrigation and Drainage Service (SENARA), 
the National Agricultural Technology Innovation and Technology Transfer Institute (INTA), 
the Costa Rican Fisheries and Aquaculture Instit ute (INCOPESCA), the National Seeds Office 
(ONS), the Integrated Agricultural and Livestock Marketing Programme (PIMA) and the 
National Food Supply and Distribution Centre (CENADA). 
4.18.  The actual expenditure of the public institutions forming part of the agricultural sector 
trended upwards during the period under review, rising from ₡61.7 billion in 2007 to ₡121.3 billion 
in 2011 (equivalent to around US$119 and 240 million, respectively). The institutions that 
accounted for most of the expenditure in 2011 were the CNP (31%), MAG (28%) and IDA 
(now INDER, 18%).11 
4.2.3  Policy instruments 
4.2.3.1  Tariff measures 
4.19.  At the beginning of 2013, the agricultural and fishing sector (ISIC definition) was receiving 
an average level of tariff protection of 9.5%, as compared with 9.2% in 2006 
(Chapter 3, section 3.2.4). Based on the WTO de finition, the average level of tariff protection 
granted to the agricultural sector was 14%. Among the agricultural products with the highest tariffs (in some cases as much as 151% ad valorem ) were meat, dairy products, potatoes, onions 
and shallots, sugar, and rice. 
4.20.  Costa Rica's market access commitments under the WTO Agreement on Agriculture include 
tariff quotas for 27 products designated in Sect ion I-B of its Schedule LXXXV. Costa Rica has 
notified the WTO of the imports that entered under the tariff quotas activated in the years included 
in the period under review.
12 As shown in Appendix Table A4.1, the quotas have been little used, 
except in the case of dairy products. According to the authorities, this is because in its free trade agreements Costa Rica has negotiated quotas with better tariff conditions for almost all 
the products subject to WTO quotas. 
4.21.  The awarding of tariff quotas is governed by the General Regulations on the Distribution and 
Allocation of Import Tariff Quotas, in fo rce since 2003 (Executive Decree No. 30900-COMEX-MAG 
of 20 December 2002, as amended by Exec utive Decrees No. 35617 of 2009 and No. 36619 
of 2011). COMEX allocates quotas on the basis of the historical record principle as follows: 80% 
of the available volume is allocated to applicants with a documented record of in-quota imports during the previous calendar year in proportion to  their share of total imports of the product under 
the quota, with the remaining 20% being allocated to new applicants on a pro rata  basis. 
                                               
8 The FIDAGRO and Production Conversion domest ic support programmes ended in 2008 and 2009, 
respectively. WTO document, G/AG/N/CRI/30/Rev.1 of 15 July 2011. 
9 Law on the Promotion of Agricultural Developm ent and the Organization of the MAG (No. 7064 
of 1987). 
10 Law No. 9036 of 11 June 2011 converted the Agrarian Development Institute (IDA) into the 
Rural Development Institute. 
11 Data provided by SEPSA based on informatio n from the agricultural sector institutions. 
12 WTO documents G/AG/N/CRI/25 of 3 December 2009, G/AG/N/CRI/29 of 9 March 2010, 
G/AG/N/CRI/33 of 7 March 2011, G/AG/N/CRI/38 of 16 April 2012 and G/AG/N/CRI/43 of 14 March 2013. WT/TPR/S/286 • Costa Rica 
 
- 94 - 
 
  4.22.  Invitations to participate in the allocation of WTO quotas are published annually in 
the Official Journal ( La Gaceta ) and on the COMEX Internet site during the first week of December, 
and quotas are allocated within the first 30 working days of each year. Any natural or legal person 
domiciled in Costa Rica may participate in the allocation process. Beneficiaries who for 
two consecutive years use less than 95% of the volume allocated to them may not receive 
an allocation in the third year and are treated as new applicants for the purposes of subsequent allocations. If there is an unallocated surplus, COMEX publishes a new invitation (on the last 
working day in July) and allocates the surplus in  accordance with the order of submission of 
the applications. The beneficiary of an allocated quota may return all or part of it by notifying COMEX in writing before 30 June in the year of allocation. Quotas are not transferable. 
4.23.  In addition to tariff quotas granted with in the framework of the WTO, Costa Rica applies 
import tariff quotas for agricultural products from Canada, China, United States, 
Dominican Republic and Panama under the preferenti al trade agreements it has signed with these 
countries.
13 In the case of tariff quotas for rice in the husk under CAFTA-DR, participation in the 
quota distribution is subject to fulfilment of a performance requirement concerning the purchase 
of domestic rice in the husk.14 
4.24.  Moreover, in conformity with Executive Decree No. 28727-COMEX-MEIC-MAG 
of 7 July 2000, Costa Rica can allocate import quotas with a zero or reduced tariff when 
agricultural goods are in short supply, provided that official technical studies determine that the quantity of the product produced domestically or elsewhere in Central America is insufficient to satisfy local consumption.
15 In the case of rice, imports that enjoy preferential tariff treatment 
because the product is in short supply are channelled exclusively through the National Rice 
Growers Corporation (CONARROZ).16 During the period 2007-2012 shortage tariff quotas were 
applied for white maize, beans and rice (in the third case until 2009). 
4.25.  Costa Rica has notified the WTO Committee on Agriculture that it did not take 
any volume-based or price-based special agricultural safeguard action during the period 2007 to 2012.
17 
4.2.3.2  Export subsidies 
4.26.  In its Schedule LXXXV, Costa Rica made  commitments to limit export subsidies for 
non-traditional agricultural products, that is, all agricultural products other than traditional export products (coffee, sugar, bananas and meat) and traditional products of domestic consumption 
(cereals, staple grains). As indicated in its notifications to the WTO, Costa Rica did not grant 
export subsidies for agricultural products during the period 2007 to 2012.
18 
4.2.3.3  Domestic support 
4.27.  Costa Rica maintains various domestic support programmes for the agricultural sector. 
Most of these are classified in the Green Box, as indicated in Costa Rica's notifications. The general services item includes measures in support of research; pest and disease control; training; 
extension and advisory services; inspection; marketing; and infrastructure. Other Green Box 
measures applied by Costa Rica relate to de coupled income support (temporary unemployment 
subsidy programme for small producers adversely affected by the national emergency due to a tropical storm
19), investment aid, environmental programmes and regional assistance measures.20 
                                               
13 Up until 2007 a bovine meat quota was in force under the FTA with Chile. 
14 The administration of the import tari ff quotas granted by Costa Rica under 
the Central America-United States-Dominican Republic Fr ee Trade Agreement is governed by Executive Decree 
No. 34912-COMEX of 24 November 2008, except in the case of the tariff quota for rice in the husk, which is governed by Executive Decree No. 34926-COMEX of 27 November 2008. 
15 The analysis for determining the shortage is  carried out jointly by MAG, MEIC and COMEX. 
16 CONARROZ is a non-State public enterprise manage d by a board of directors composed of producers, 
manufacturers and govern ment representatives. 
17 WTO documents, G/AG/N/CRI/21 of 21 July 2008, G/AG/N/CRI/22 of 2 March 2009, G/AG/N/CRI/27 
of 25 January 2010, G/AG/N/CRI/31 of 4 February 2011 and G/AG/N/CRI/41 of 4 February 2013. 
18 WTO documents, G/AG/N/CRI/23 of 9 March 2009, G/AG/N/CRI/28 of 4 February 2010, 
G/AG/N/CRI/32 of 7 March 2011, G/AG/N/CRI/35 of 25 January 2012 and G/AG/N/CRI/42 of 5 February 2013. 
19 This measure was applied from November 2010 to January 2011. WT/TPR/S/286 • Costa Rica 
 
- 95 - 
 
  The institutions that account for financial disbursements are the MAG (for animal health, 
agricultural extension and pest control programmes) and the IDA (regional assistance). During the review period, Costa Rica did not provide any domestic support measures classified as "development programmes" under Article 6.2 of the Agreement on Agriculture. 
4.28.  As far as the Amber Box is concerned, Costa Rica provides support for rice market prices, 
the amount of which has increased in recent ye ars, reaching US$104.5 million in 2011. Costa Rica 
has maintained guarantee prices for rice for several decades. The authorities have indicated that 
the objective of this measure has been to reduce the imbalance of power in a market in which 
there is no free competition, in accordance with the terms of competition law (Article 5 of Law No. 7472 of 1994). Since 2007, the increase in the international prices of agricultural inputs and production costs in general has led the Government to raise the domestic support prices for 
rice. This, in its turn, has been reflected in a sharp increase in Costa Rica's current total AMS, 
which significantly exceeds the level bound in the WTO and all of which goes towards supporting the market price of rice in the husk (Table 4.1). 
Table 4.1 Current Total Aggregat e Measurement of Support, 2007-2012 
(US$ million) 
Year Rice market price support Other 
product-specific 
support Current total 
AMS AMS total 
commitment level 
2007 23.2 0.0 24.7 15.9 
2008 62.4 0.0 62.4 15.9 
2009 91.7 0.0 91.7 15.9 
2010 109.6 0.0 109.6 15.9 
2011 104.5 0.0 104.5 15.9 
2012 81.8 0.0 81.8 15.9 
Source: WTO Secretariat, based on Costa Rica's notifications, 2007-2012, and information provided by the 
Costa Rican authorities. 
4.29.  Since 2009, several Members of the WTO have expressed concern regarding Costa Rica's 
failure to fulfil its MGA commitments and have requested information about the measures that 
Costa Rica intends to take to remedy the situation.21 Costa Rica responded by stating its intention 
to replace the price support mechanism for rice with other support measures; however, a domestic 
legal action against an Executive Decree reducing the support price for rice prevented 
it from achieving this objective.22 At various meetings of the Committee on Agriculture, 
held in 2012 and 2013, the Government of Costa Rica reported that it was examining the ruling 
of the administrative court that had dealt with the ca se and the action it should take in relation to 
its policy of domestic support for rice. At the end of May 2013, Costa Rica informed the WTO that it would be abolishing the price support mechanism for rice on 1 March 2014.
23 The announcement 
was well received by Members. 
4.30.  Rice is Costa Rica's most important staple  crop and, together with beans, forms the basis 
of the people's diet, with a per capita consumption of more than 50 kg per year. During the period 2006/2007-2010/2011 the country imported, on av erage, about 40% of its domestic rice 
consumption; in 2011/2012, imported rice accounted for 31% of domestic consumption.
24 
                                                                                                                                               
20 Costa Rica's domestic support notifications, WTO documents, G/AG/N/CRI/24/Rev.1 of 18 May 2010, 
G/AG/N/CRI/30/Rev.1 of 15 July 2011, G/AG/N/CRI/34/Rev.1 of 19 April 2012, G/AG/N/CRI/40 of 14 May 2012, G/AG/N/CRI/40/Rev.1 of 22 February 2013 and G/AG/N/CRI/44 of 28 May 2013. 
21 See, for example, WTO documents, G/AG/W/96 of 24 August 2012 and G/AG/W/98 
of 10 September 2012. 
22 At the end of 2010, a group of rice producers lodged a complaint against the State before 
the Administrative Court, requesting the cancellation  of Executive Decree No. 36247-MEIC of 27 October 2010, 
which reduced the minimum price paya ble to the rice producer (from ₡24,315 to ₡20,050 per 73.6 kg sack). 
In its ruling of 6 July 2012, the Court declared the absolute nullity of the Decree contested, awarded damages to the complainants and maintained the precautionar y measure it had imposed in January 2011, updating 
the fixed price to ₡23,131 per 73.6 kg sack of dry, clean rice in the husk. 
23 WTO document, G/AG/GEN/110 of 31 May 2013. 
24 Calculated on the basis of CONARROZ data. Online information, viewed at: 
http://www.conarroz.com/inde x.php?option=com_c ontent&view=article&id=70&Itemid=98 . WT/TPR/S/286 • Costa Rica 
 
- 96 - 
 
  Traditionally, the domestic market for rice has been highly concentrated25 and has received 
a high level of government support, mainly through price maintenance and import duties of 36% ad valorem . 
4.31.  The price support mechanism involves fixing by decree the minimum price that 
the rice industry has to pay to the producer, as well as the prices payable by the other links in 
the chain (wholesale and retail) as far as the consumer. The Ministry of the Economy, Industry and Trade (MIEC) sets the producer price for rice, on the basis of a recommendation from 
the National Rice Growers Corporation (CONARROZ).
26 This minimum producer price has a 
domino effect on the other prices in the rice chain, with the end result of transferring to the consumer the economic impact of the decision decreed. 
4.32.  The setting of a high minimum price has led to an increase in the number of small 
producers
27, the area sown and domestic rice production in recent years (except for last year)28; 
however, productivity continues to stagnate (Tab le 4.2). Moreover, domestic consumer prices are 
among the highest in the world.29 The rice support policy has also encouraged imports of pounded 
rice at lower international prices by some of the large rice processors, which are vertically 
integrated and control more than three quarters  of the domestic market, while the small and 
medium-sized producers are experiencing increasing difficulty in marketing their product 
in the face of an abundant supply. In view of the increase in imports in recent years, 
in March 2012 some sectors of the domestic indust ry requested the imposition of safeguards on 
some types of pounded rice, but their request was rejected by the authorities in November of that year. For their part, the consumers, in particular those with limited resources, are devoting 
a considerable and increasing proportion of their incomes to buying this staple food at a price 
higher than that on the international market. 
Table 4.2 Rice: area sown, production and yield, 2006-2012 
Year Area sown 
(hectares) Total production 
(tonnes of rice in the husk) Total yield 
(tonnes per hectares) 
2006-2007 47,252 171,117 3.62 
2007-2008 54,053 187,700 3.47 
2008-2009 63,329 238,680 3.77 
2009-2010 66,415 250,849 3.78 
2010-2011 81,116 290,475 3.58 
2011-2012 77,151 261,174 3.39 
Source: WTO Secretariat, with CONARROZ and SEPSA data, viewed at: 
http://www.conarroz.com/UserFiles/File/Are a_sembrada_produccio n_y_rendimiento.pdf 
and http://www.infoagro.go.cr . 
4.33.  An assessment of Costa Rican rice support policy, published in 2011, concluded that it has 
not been effective in promoting the sustainabl e development of the sector, since it has not 
improved productivity, has produced substantia l returns for the large rice processors, has 
transferred a considerable proportion of consumers' income to the producers and has kept 
domestic prices higher than international prices for many years.30 The study suggests that trade 
liberalization and the elimination of price controls, accompanied by the effective application 
of competition policy, would contribute to food security by reducing domestic prices and would 
send out market signals calculated to achieve a better allocation of resources to more productive and environmentally friendly activities. 
                                               
25 Just 3% of producers account for 50% of total rice production, while 83% contribute only 20%. 
With regard to land, less than 5% of producers own 52% of the cultivated area. CONARROZ (2010). 
26 As a parameter for recommending the producer pric e for rice, CONARROZ considers the cost structure 
of a 250 hectare plantation, a specified yield for dry and clean rice in the husk and a profit margin of 20% on the costs. 
27 The number increased from 743 to 1,200 producers between 2008 and 2012. 
28 The area planted and producti on both decreased in 2012. 
29 According to the FAO's Rice Market Monitor  (January 2013), with a price of US$1.58 per kilo, 
Costa Rica had the highest average consumer price for ri ce of 46 countries examined, even higher than that 
for several developed countries such as the United States, Italy and the Russian Federation. FAO (2013). 
30 Umaña (2011). WT/TPR/S/286 • Costa Rica 
 
- 97 - 
 
  4.34.  Moreover, in 2013, a study commissioned by the MEIC arrived at similar conclusions. 
In particular, it concluded that rice price controls had not contributed to important policy objectives such as increasing productivity and improving the access conditions for consumers, who were paying prices much above international levels, while many producers received prices 
lower than that fixed as a result of the quality of the product. In short, no economic or social could 
be found to justify the maintenance of rice price controls.
31 This study served to support the recent 
decision by the Government of Costa Rica to ab olish the mechanism for fixing the price of rice 
from March 2014, published in Executive Decree No. 37699 of 15 May 2013. The Decree also 
states that the Government and the rice sector (producers and processors) will work on a scheme to replace price controls. 
4.2.3.4  Subsidized inputs 
4.35.  Costa Rica maintains tax exemptions for some staple foods, inputs and machinery used in 
agricultural activities. Under the General Sales Tax Law (Law No. 6826 of 8 November 1982 and amendments thereto) sales of products in the basi c food basket, retreads and tyres for agricultural 
machinery, and some veterinary products and agri cultural inputs are exempted from this tax. 
4.36.  Under the Law regulating current exemptions, derogations and exceptions (Law No. 7293 
of 31 March 1992) and Executive Decree 34706-MA G-H-MEIC of 14 August 2008, the importation 
of agricultural machinery, equipment and inputs is exempt from all taxes and surtaxes, as are 
products used in fishing (except for recreational fishing), provided that there is no production under suitable conditions of quantity, price, quality and delivery in the countries signatories to the Convention on the Central American Tariff  and Customs Regime. Likewise, the importation 
of raw materials for manufacturing inputs for agriculture and banana packing is exempt from 
all taxes and surtaxes, apart from import duties. A Technical Commission, created by the same Executive Decree, assesses applications for exemption, in accordance with the products specified 
in the regulations themselves. Between 20 10 and 2012 the annual amount exempted was 
less than 5% of the value of agricultural pr oduction and in 2012 corresponded to US$64 million. 
4.2.3.5  Marketing and prices 
4.37.  Costa Rica maintains some production and/or marketing schemes for agro-industrial 
products such as sugar and alcohol. In certai n cases, these schemes are managed by public 
enterprises or institutions on the basis of specific laws. 
4.38.  The Integrated Agricultural and Livestock Marketing Programme (PIMA), created by 
Law No. 6142 of 1977, is the institution in charge  of the trading and marketing of agricultural 
products and responsible for helping to strengthen agribusinesses. PIMA carries out studies of marketing systems and offers municipalities technical assistance with the organization 
and operation of their markets. In addition , it administers the National Food Supply 
and Distribution Centre (CENADA), whose purpose is to facilitate the wholesale supply of perishable products
32 and their subsequent distribution to the country's parallel markets. 
About 250,000 tonnes of vegetable and fruit products and some 7,000 tonnes of seafood products 
are traded through CENADA every year.33 
4.39.  The National Production Council (CNP) promotes the comprehensive transformation 
of the agricultural sector, through modernization, verticalization and increased competitiveness. 
Its objectives include facilitating the integration of small and medium-sized agricultural producers 
into the international market and maintaining a balance in relations between producers and consumers.
34 For this purpose, the CNP is authorized to  intervene in the domestic market in order 
to guarantee food security. It can also participate as an economic agent in the seeds and 
agricultural products market to encourage produc tion and availability. Moreover, the CNP provides 
                                               
31 Economic Sciences Research Institute of the University of Costa Rica (2013). 
32 Vegetable and fruit products, fresh, dried and pres erved foods, flowers, me at and dairy products. 
33 CENADA online information. Viewed at: 
http://www.pima.go.cr/Controls.aspx?co ntrol=Visor_ascx&id=16&entidad=CENADA . 
34 Law on the Organization of the National Produc tion Council and amendments thereto (Laws No. 2035 
of 17 July 1956, No. 6050 of 15 April 1977, No. 7473 of 27 December 1994, and No. 7742 of 15 January 1998). WT/TPR/S/286 • Costa Rica 
 
- 98 - 
 
  market information and intelligence services and monitors domestic and international prices for 
agricultural products. 
4.40.  The Agro-Industrial Sugar Cane League (LAICA), created by Law No. 7818 
of 2 September 1998, is a public-law corporat ion charged with marketing the domestically 
produced sugar of its members. The LAICA's objectives are to maintain equitable relations 
between cane producers and sugar mills in order to  guarantee each sector a reasonable and fair 
share and to organize, in the interests of the development and stability of the agro-industry, 
the factors that enter into the production of sugar cane and into the manufacturing and marketing 
of its products.35 LAICA's functions include: annually fixing the national sugar production quota 
and distributing it among the mills; fixing an advance which the mills must pay the cane producers; marketing sugar, honeys and alcohol;  determining the periods during which the mills 
may export and administering the preferential  sugar quotas granted to Costa Rica under 
international agreements. Despite not exercising exclusive legal control over these activities, 
the League still plays a preponderant role in the marketing and exportation of sugar, 
controlling 98% of the domestic market for the product. 
4.41.  Under Law No. 7818, the national sugar production quota is equivalent to the domestic 
sugar consumption recorded in the immediately preceding season, multiplied by a factor of 1.5. 
The quota may be increased in the event of an increase in existing or the creation 
of new preferential quotas granted to Costa Rica on foreign markets, provided that the quantity 
earmarked for domestic consumption and reserves  is not affected. The LAICA Governing Board 
shares out the sugar for export between the various markets "in the best interests of the cane 
agro-industry" and determines the periods in which the mills may export the sugar included in 
their production quota and intended for preferen tial markets. Sugar export contracts must be 
approved by LAICA.
36 
4.42.  The National Spirituous Beverages Fa ctory (FANAL) is a State institution, under 
the authority of the CNP, which operates as an industrial and trading enterprise.37 Its functions 
and responsibilities are governed by the Tax Code38, under which FANAL exercises 
a State monopoly over the national production of alcohol and alcoholic beverages (except for beer 
and wine), irrespective of the process used. Without prejudice to the monopoly exercised 
by FANAL, its Governing Board is authorized to grant concessions for the production of alcoholic 
beverages to domestic enterprises. The authorities have noted that between 2008 and 2013 
FANAL granted concessions to seven such enterprise s. As an activity subject to a State monopoly, 
the distilling and marketing of alcohol for domestic consumption is exempt from the application of the Law on the Promotion of Competition (Law No. 7472 of 1995). 
4.43.  The Coffee Institute of Costa Rica (ICAFE) is a public-law institution that promotes and 
regulates the national coffee-growing industry. It  is governed by the Law on Relations between 
Coffee Producers, Processors and Exporters (Law No. 2762 of 21 June 1961 and amendments 
thereto).
39 Its main objective is to promote fair relations between coffee producers, processors and 
exporters. ICAFE's functions include issuing certificates of origin and quality for coffee for export; fixing price differentials for the cooperatives for each harvest, subject to registration of the contracts of sale for the coffee to be exported; establishing quotas for buyers and making 
arrangements with regard to the quantity, quality and price of the coffee sold on the 
National Consumption Coffee Exchange, and authorizing the purchase of coffee through channels other than the Exchange; fixing the quotas for each harvest together with the corresponding 
percentages for domestic consumption and export (it can establish a mandatory retention quota 
intended, for example, for export to markets with special regulations); and authorizing and 
registering all coffee export contracts. Among othe r sources, ICAFE is financed from the proceeds 
of a tax of up to 1.5% of the f.o.b. valu e of the coffee exported, for each 46 kg unit 
of green coffee or its equivalent.
40 
                                               
35 Some 1,200 producers and 15 sugar mills participate in the LAICA system. 
36 Articles 114, 155 and 156 of Law No. 7818 of 2 September 1998 and amendments thereto. 
37 For more information, visit: http://www.fanal.co.cr . 
38 Amended by Law No. 10 of 24 October 1924, Law No. 6972 of 26 November 1984 and Law No. 7197 
of 24 August 1990. 
39 The amended Law No. 2762 can be viewed at: http://www.icafe.go.cr/icafe/ley2762.html . 
40 Article 108 of Law No. 2762. WT/TPR/S/286 • Costa Rica 
 
- 99 - 
 
  4.44.  CONARROZ is responsible for the protection and promotion of the whole of the rice chain 
(agricultural and agro-industrial production, domestic and foreign trade). Its objective is to establish a system of relations between rice  producers and processors that ensures their 
rational and fair participation, and to promote competitiveness and the development 
of rice-growing. Its functions and responsibilities are established in Law No. 8285.
41 Where foreign 
trade is concerned, the following functions are particularly worth noting. CONARROZ must inform the MAG, on the basis of technical studies, of those cases in which imports are needed to cover 
the domestic demand for rice. The Government determines the volume, the importation periods 
and the reduced tariff. Only the CNP or, failing that, CONARROZ, can do the importing. The quantity imported is distributed among the rice processors in proportion to their share of local 
crop purchases. The CNP or, failing that, CONARROZ may participate in rice exports provided that 
technical studies demonstrate the existence of surpluses in Costa Rica. The quantity for export 
is distributed, as far as possible, in proportion to the stocks held by CONARROZ and the agro-industrial sector. CONARROZ is financed mainly through a contribution of 1.5% 
of the transaction value payable on purchases of both domestically produced rice 
and c.i.f. imports. 
4.45.  For the purpose of controlling the ma rketing of bananas traded internationally, 
the Government has, on several occasions, fixed a minimum export price for the fruit. The legal 
basis for fixing this price is the Law on the Promotion of Competition (No. 7472 of 1994), which authorizes the Government temporarily to regulate and fix the minimum exit price of bananas for export when the market is subject to conditions of imperfect competition. 
Moreover, under Law No. 4895 (Article 4), one of th e functions of the National Banana Corporation 
(CORBANA) is to recommend to the Executive minimum reference prices for the buying and selling of bananas f.o.b., which can be established by Ex ecutive Decree. A minimum export price was last 
established for bananas by Executive Decr ee No. 35825 MEIC-MAG-COMEX of 18 March 2010. 
The price established was US$7.69 per box (net weight 18.14 kg) and since then there has been no recourse to price fixing. Currently, the pric e is determined by the market. In addition, 
under Law No. 5515 of 19 April 1974, Costa Rica main tains an export tax on bananas (Chapter 3, 
section 3.3.2). 
4.46.  The Livestock Promotion Corporation (CORFOGA) is a public-law institution established 
by Law No. 7837 of 5 October 1998.
42 Its objectives include: promoting the development, 
modernization and productivity of beef ca ttle farming; promoting the technological 
and entrepreneurial restructuring of the agro-indus trial meat chain; and overseeing the application 
of the international agreements that affect livest ock raising; ensuring an adequate supply of meat 
for the domestic market and promoting exports. CORFOGA does not have any exclusive cattle or 
meat marketing functions. Part of CORFOGA's financing comes from the payment of a contribution for each animal slaughtered for domestic consum ption or export, live bovine cattle exports and 
bovine meat imports. 
4.2.3.6  Financing and insurance 4.47.  Credit to support agricultural activities is mainly provided by the public banks of the 
National Banking System, followed by the privat e banks. There are also other non-bank sources 
of financing operating as trusts, where the trustor is some public sector institution. The objective 
of the Development Banking System (SBD), created in 2008, is to channel financial resources into the projects of micro, small and medium-sized prod ucers, including those in the agricultural sector. 
4.48.  Between 2007 and 2011, lending to the agri cultural sector by the National Banking System 
increased at an average annual rate of 16%, to reach ₡379,385 million (some US$750 million) 
in December 2011 (Table 4.3). Of the 2011 balance,  81% corresponded to lending by State banks 
and the rest to lending by private banks. Within th e agricultural sector, most of the loans went to 
crop agriculture (68%), followed by livestock breeding (30.8%) and, finally, fishing (0.4%).
43 
                                               
41 Law establishing the Rice Growers Corporation (No. 8285 of 30 May 2002). Viewed at: 
http://www.pgr.go.cr/scij/Busqueda/Normativa/Norma s/nrm_repartidor.asp?param1=NRTC&nValor1=1&nValo
r2=48716&nValor3=82074&param2=1&strTipM=TC&lResultado=3&strSim=simp . 
42 Law establishing CORFOGA. Viewed at: http://www.corfoga.org/creacióncorfoga.php . 
43 Information from SEPSA, provided  by the Costa Rican authorities. WT/TPR/S/286 • Costa Rica 
 
- 100 - 
 
  4.49.  Despite the increase in lending to the agri cultural sector, the sector's share of the total 
lending of the National Banking System continues to be small, at about 4% throughout the period under review. Where State banking is concerned (mainly Banco Nacional de Costa Rica and Banco Crédito Agrícola de Cartago), the proportion of le nding to the agricultural sector is around 6%, 
whereas in the case of private banking the figu re is less than 2.5%. Loans (colón-denominated) 
granted through the State banks are offered at more attractive interest rates. The average annual rate offered by the State banks ranged from 14. 4% to 18.05% between 2007 and 2012, while that 
applied by the private banks varied between  18.05% and 22.5% over the same period.
44 
4.50.  The Development Banking System (SBD),  established by Law No. 8634 of 23 April 2008, 
absorbed the portfolios of various programmes and trusts which previously provided the agricultural sector with support from their own portfolios.
45 The resources that form part of the 
SBD are the funds of the National Development Tr ust Fund (FINADE), which grouped together the 
previous agricultural trusts, together with a 5% contribution from the profits of the public banks 
and the "bank toll" covered by the private banks fo r the right to take deposits in current accounts 
(section 4.5.3). The Banco Crédito Agrícola de Cartago (Bancrédito) is responsible for 
administering FINADE's resources. Under Law No. 8634, at least 40% of the total financing offered by the SBD must be for agricultural, aquacultural, agro-industrial or associated commercial 
projects, unless there is no demand for these resources. The financing is provided at prime rates: 
normally half the basic deposit rate plus 4.5 points for colón-denominated loans. During 2012 the rate applied was 7.75%. 
4.51.  Between 2009 and 2011, agricultural sector loans approved by the SBD (just under FINADE) 
amounted to ₡7,043 million, that is, 39% of the total le nding approved by the SBD. In 2012, 
lending amounted to about ₡14,700 million.
46 The main activities financed were poultry farming, 
beekeeping, pig farming, cattle farming, dairy farming, root crops, pineapples, coffee, sugar cane, 
rice, strawberries, bananas, and other fruits and vegetables. Moreover, in December 2012, 
the SBD issued loan guarantees ( avales ) for productive agricultural projects in the amount 
of ₡726.9 million (8% of the total gu arantees issued by the SBD).47 The activities that benefited 
from these guarantees included rice-growing, coffee, garden produce, sugar cane, root crops, fruit, 
green-leafed vegetables, fishing and livestock farming. The guarantees were channelled through Banco Nacional de Costa Rica, Bancrédito, Banco Popular y de Desarrollo Comunal, and Banco de Costa Rica. 
Table 4.3 Lending of State and private banks, 2007-2011 
(₡ million) 
  2007  2008  2009  2010 2011  
National 
total Total 4,962,277  6,552,256  6,779,653  7,104,798 8,044,137  
Crop farming 137,842  174,004  197,041  219,800 261,136  
Livestock 70,621  85,011  92,526  99,999 116,865  
Fishing 1,044  1,259  1,198  1,609 1,383  
Total Agricultural 209,508  260,274  290,765  321,408 379,385  
Share (%) 4.22%  3.97%  4.29%  4.52% 4.72%  
State 
banks Total 2,997,349  3,686,753  4,070,373  4,512,951 5,149,281  
Crop farming 95,971  117,019  144,609  164,043 194,464  
Livestock 61,334  73,451  85,913  95,601 112,018  
Fishing 1,011  1,230  1,188  1,609 1,383  
Total Agricultural 158,317  191,700  231,710  261,253 307,865  
Share (%) 5.28%  5.20%  5.69%  5.79% 5.98%  
                                               
44 SEPSA online information, viewed at: http://www.infoagro.go.cr/Paginas/Default.aspx . 
45 The SBD absorbed, among other th ings, the portfolios of the Prod uctive Restructuring programme 
of the National Production Council (CNP) and the Trust Fund for the Protection and Promotion of Small and 
Medium-Sized Producers (FIDAGRO). 
46 Development Banking System/SBD (2013). 
47 Development Banking System/SBD (2013). WT/TPR/S/286 • Costa Rica 
 
- 101 - 
 
    2007  2008  2009  2010 2011  
Private 
banks Total 1,964,928  2,865,504  2,709,280  2,591,848 2,894,856  
Crop farming 41,871  56,985  52,432  55,757 66,672  
Livestock 9,287  11,560  6,613  4,397 4,847  
Fishing 33 28.54  9.48 0.06 0.20 
Total Agricultural 51,191  68,574  59,054  60,155 71,520  
Share (%) 2.61%  2.39%  2.18%  2.32% 2.47%  
Source: SEPSA, with information from the Monetary Department of the Central Bank of Costa Rica, 
viewed at: http://www.infoagro.go.cr . 
4.52.  Although it no longer has a legal mo nopoly, the National Insurance Institute (INS) 
is the only institution offering insurance to the agricultural sector. The principal product of the INS 
is crop insurance (created by Law No. 4461 of 10 November 1969), which provides comprehensive 
coverage for weather-related and biological risks. The sum insured is established on the basis of the direct costs of crop production (from sowing to harvest). Insurance is available in 
two forms: investment insurance, which covers the necessary and direct investment made 
to obtain a crop, if this is wholly or partly lost as a consequence of one of the insured risks; and plant insurance, which covers plants dead or  destroyed as a result of a covered risk and 
therefore never produced. There are some 20 insured crops, the main ones being rice, beans, oil 
palm and bananas. Rice alone accounts for 95% of crop insurance policies.
48 
4.53.  Crop insurance tariffs are determined by crop and risk zone. In recent years the INS has 
revised the scheme for fixi ng tariffs in order better to reflect the costs.49 There is a specific scheme 
for rice in which the tariff varies in accordance with the method of cultivation (rain-fed, with 
supplementary irrigation, and flooded) and the regi on. Likewise, there are differential tariffs for 
small or medium-sized and large producers and for producers who own and those who rent 
the land. INS Circular DGS-0052-2012 established the tariffs applicable to the rice insurance 
programme for the year 2012-2013. In 2011, the premiums paid for crop insurance amounted to about ₡1,061 million (some US$2.1 million), 94% of which corresponded to policies for rice 
(rain-fed, with supplementa ry irrigation, and flooded).
50 
4.54.  In agriculture, risk coverage by means of insurance is still low. The cultivated land insured 
represents barely 0.6% of the crop farming area . The authorities are revising the legal framework 
for agricultural insurance with a view to expanding the services, promoting greater utilization 
of insurance and facilitating private-sector participation in the market. 
4.3  Manufacturing sector 4.55.  During the period 2007-2012, the manufacturing sector's contribution to GDP (at current 
basic prices) gradually decreased from 19.1% to 15.4%, owing to the faster growth of other 
sectors of the economy, particularly the services sector. Having suffered a contraction in 2008 and 2009 followed by a recovery beginning in 2010 and 6.3% growth in 2012, the sector recorded an annual growth rate of 1.3% in real terms be tween 2007 and 2012. Ma nufacturing industry 
provided jobs for 11.3% of the total employed population 2012, slightly down on 2007 (13.1%) 
(Chapter 1, Table 1.2). The flow of FDI into ma nufacturing activities, especially the high-tech 
segments, continues to be significant and amounted to more than US$575 million in 2012, 
or 25.4% of total FDI flows for that year (Chapter 1). 
4.56.  During the period under review, the principal change in the policies that affect 
the manufacturing sector was the reform of the Free-Zone Regime in 2010, with a view 
to responding more effectively to the needs of the private sector, giving foreign investors legal 
certainty and meeting Costa Rica's commitments within the WTO (Chapter 3.3.4.2). Recently, the authorities have adopted other measures to improve the business environment which could benefit the manufacturing industry. These include new policies of the Ministry of the 
Economy, Industry and Trade to strengthen the co mpetitiveness of Costa Rica's micro, small and 
                                               
48 Comments by the INS authorities, cited in Diario Extra , "Costo de seguro de cosechas a arroceros se 
incrementa", 9 September 2011. Viewed at: http://www.diarioextra.com . 
49 Diario Extra , "Costo de seguro de cosechas a arroceros se incrementa", 9 September 2011. 
Viewed at: http://www.diarioextra.com . 
50 Information provided by th e Costa Rican authorities. WT/TPR/S/286 • Costa Rica 
 
- 102 - 
 
  medium-sized enterprises (MSMEs); the creation of a Presidential Competitiveness and Innovation 
Council, focused on improving competitiveness in  strategic areas; and the development of a 
National Strategy for the Simplification of Admini strative Procedures and Regulatory Improvement. 
4.57.  A substantial proportion of Costa Rica's tota l output of goods is produced in the free zones. 
Although production in the free zones has continued to increase, its relative share of total 
manufacturing value-added fell from 27.2% to 16.6% during the period 2005-2012 (Chart 4.1). 
Chart 4.1 Manufacturing producti on: regimes (value-added), 2012 
Ordinary 
regime
82.1%Medium-sized and 
large enterprises
72.4%
Small enterprises
9.7%Free 
zones
16.6%
Inward processing
1.3% 
 
Source: COMEX. 
Chart 4.2 Manufacturing producti on: regimes (value-added), 2005 
Ordinary
regime
70.2%Medium-sized and 
large enterprises
61.4%
Small enterprises
8.7%Free
zones
27.2%
Inward processing
2.6% 
 
Source: COMEX. 
4.58.  The production of the enterprises operat ing under the ordinary regime, in particular 
medium-sized and large enterprises, has been the most dynamic and its share of value added 
within the manufacturing sector increased to 82 %. For their part, the small enterprises only 
achieved a slight increase in their share of manufac turing output. The principal branches of activity 
are the beverages industry and the tobacco indu stry, plastics manufacturing and the production 
of various food products (Table 4.4). 
4.59.  The level of tariff protection afforded to the manufacturing sector is relatively low: in 2013 
the average tariff for the sector was 6.7% (based  on the ISIC classification). However, some 
products such as meat byproducts, dairy products, canned fruit and vegetables, fishery products, 
sugar products and tobacco products are subject to  tariffs much above the average which, in some 
cases, reach as high as 151%. It should be noted that some of these products are produced 
by ordinary-regime industries for domestic consumption. WT/TPR/S/286 • Costa Rica 
 
- 103 - 
 
  Table 4.4 Principal branches of activity according to value added by manufacturing 
production, 2011 
ISIC code ISIC description % of domestic  
production 
313 and 314 Beverages industry and tobacco industry 8.3 
3560 Manufacture of plastics products 5.4 
3112 Manufacture of dairy products  4.5 
3111 Slaughtering, preparing and preserving meat 4.2 
3121 Processing of various food products  4.0 
3420 Printing, publishing and related industries 2.9 
3118 Sugar factories and refineries 2.5 
3117 Manufacture of bakery products 2.5 
3819 Manufacture of metal products, except machinery and equipment  2.4 
3692 Manufacture of cement, lime and plaster 2.1 
3115 Manufacture of vegetable and animal oils and fats 2.1 
3116 Milling products, except for coffee 2.1 
3412 Manufacture of containers and boxes of paper and paperboard 2.0 
3512 Manufacture of fertilizers and pesticides 1.9 
3522 Manufacture of drugs and medicines 1.7 
3220 Manufacture of wearing ap parel, except footwear 1.6 
3839 Manufacture of electrical apparatus and supplies 1.6 
3116-A Processing of coffee 1.6 
3114 Processing of fish, crustacea and other seafood products 1.5 
3551 Tyre and tube industries 1.5 
3419 Manufacture of articles of pulp, paper and paperboard 1.3 
3113 Canning and preserving of fruits and vegetables 1.1 
3319 Manufacture of wood and cork products 1.0 
3699 Manufacture of non-metallic mineral products 1.0 
3523 Manufacture of soap and cleaning preparations, perfumes, 
cosmetics and other to ilet preparations 0.8 
Note: This table does not include production under the Free-Zone Regime or under 
the Inward Processing Regime. 
Source: COMEX, on the ba sis of BCCR figures. 
4.60.  Although the relative share of the free zone enterprises in manufacturing production 
decreased during the period under review, their contribution to manufacturing exports continues to 
be substantial. According to data from the Foreign Trade Promotion Agency (PROCOMER), in 2012 
almost 72% of manufacturing industry exports came from free zones.51 As noted in Chapter 1, 
manufacturing export performance is closely related with sales of electronic integrated circuits 
and microassemblies and medical instruments and devices produced by enterprises located 
in free zones. These products accounted for one third of total exports in 2012. 
4.61.   In addition to the incentives that seek to promote the exports of enterprises that operate 
under the Free Zone and Inward Processing Regimes (Chapter 3, sections 3.3.4.2 and 3.3.4.3), 
there are several fiscal and financial incentive programmes available to ordinary-regime manufacturers (Chapter 3, section 3.4.3). 
4.4  Energy 
4.4.1  Electrical energy 
4.62.  In December 2011, Costa Rica's National Electricity System (SEN) had an effective installed 
capacity of 2,590 MW. The maximum demand recorded in 2011 amounted to 1,545 MW.
52 During 
the period 2007-2011, electricity generation increased at an average annual rate of 2.1%. 
In 2011, SEN generated 9,760 GWh, of which 75% came from the Costa Rican Electricity Institute (ICE), 16% from private enterprises and 9% from public distributors. In terms of sources, 73% 
of the energy generated came from hydroelectric plants, 13% from geothermal plants, 9% from 
thermal plants, 4% from wind farms and 1% fr om biomass. During the period 2007-2011, 
                                               
51 PROCOMER (2013). 
52 ICE (2012). WT/TPR/S/286 • Costa Rica 
 
- 104 - 
 
  domestic consumption grew at an average annual rate of 1.6% and in 2011 amounted 
to 9,723 GWh. Costa Rica has achieved electrification coverage of 99.2% of the population.53 
4.63.  The power grid extends from Paso Canoas (border with Panama) to Peñas Blancas 
(border with Nicaragua), and from Puerto Limón in the Caribbean to Santa Cruz on 
the Nicoya Peninsula, comprising 1,083 km of 230 kV transmission lines and 726 km 
of 138 kV lines.54 The Framework Treaty for the Central American Electricity Market (1996) led 
to the Central American Regional Electrical In terconnection System (SIEPAC) project, with 
the aim of creating a Central American electricity market with the potential for trading up 
to 300 MW of electrical energy. So far, Costa Rica's  share of the regional trade in electrical energy 
has been modest, with recourse to the regional market to deal with production shortfalls and surpluses. During the period 2007-2011, the IC E was a net importer of an annual average 
of 18 GWh of electricity.
55 
4.64.  The Ministry of the Environment and En ergy (MINAE) oversees the energy sector and 
is responsible for formulating and coordinating electricity sector policy.56 The Public Services 
Regulatory Authority (ARESEP) is the regula tory body, whose functions include granting 
concessions for operating limited-capacity power st ations and setting charges. The ICE, created by 
Decree-Law No. 449 (1949), is an autonomous State enterprise with the legal mandate to supply 
electricity at national level. The ICE draws up electricity development plans in conformity with 
the policies and guidelines of the Nation al Development Plan 2011-2014 (PND) and the 
National Energy Plan (PNE). The PND proposes changes to the electrical industry legislation to facilitate the participation of private investors in electricity generation. The objectives of the PNE 
are to modernize and strengthen the energy sector  by means of an up-to-date and effective legal 
framework; to encourage the sustainable developmen t of the sector through the gradual, selective 
and regulated opening up of the market; and to  ensure a sustainable supply of energy while 
minimizing dependence on external sources. 
4.65.  The ICE owns three quarters of the country's generating capacity, exclusively manages 
the power grid and controls the majority of elec tricity distribution and marketing. In addition, 
32 private enterprises and another six public enterprises also participate in electricity generation.
57 
4.66.  Law No. 7200 of 28 September 1990 authorized for the first time the generation 
of electricity by private enterprises with an installed capacity of not more than 20 MW each and using non-conventional sources.
58 Collectively, the generating projects may not exceed 
15% of the total capacity of the SEN power stations. To operate a power station under this regime 
("Chapter I"), it is first necessary to obtain a declaration of eligibility from the ICE and then 
a concession from ARESEP.59 Concessions have a maximum duration of 20 years. Law No. 7200 
also authorized the ICE to sign contracts for the purchase of electricity from private enterprises, 
provided at least 35% of the equity belongs to Co sta Ricans. The ICE is the only authorized buyer. 
4.67.  Law No. 7508 of 9 May 1995 introduced a second regime of private participation in the 
generation of electricity ("Chapter II", an addi tion to Law No. 7200). Under this regime, which 
resembles a BOT (Build-Operate-Transfer) scheme,  plants which generate energy of hydraulic, 
geothermal or wind origin or from some other non-conventional source can have an installed capacity of up to 50 MW and the maximum period of operation is 20 years, after which the assets 
of the power station must be transferred to th e ICE. The same law authorizes the ICE to buy 
                                               
53 ICE (2012). 
54 Regional Energy Integration Commission (CIER) online information. Viewed at: 
https://sites.google.com/site/regulacionsectorelectrico/costa-rica . 
55 ECLAC (2012). 
56 On 1 January 2013, MINAE ceased to be responsi ble for telecommunications , which was transferred 
to the Ministry of Science, Techno logy and Telecommunications (MICITT) under Law No. 9046 of 25 June 2012. 
Online information, viewed at: http://www.pgr.go.cr . 
57 The public enterprises that distri bute electricity in specific geographical areas are the National Power 
and Light Company (an ICE enterprise),  the Cartago Electricity Board, the Heredia Public Services Company, 
the San Carlos Electrification Cooperative, the Guanacaste Rural Electrification Cooperative and the Santos Rural Electrification Cooperative. 
58 Non-conventional sources are those which do not use hydrocarbons, mineral carbon or water as a 
basic element. 
59 The requirements for obtaining a declaration of eligibility and the contractual conditions are laid down 
in the Regulations for Chapter I of Law No. 7200 (Executive Decree No. 37124-MINAET of 19 March 2012). WT/TPR/S/286 • Costa Rica 
 
- 105 - 
 
  energy from these plants up to an additional  15% of the limit authorized by Law No. 7200. 
These purchases are made under a competitive bidding procedure and ARESEP grants the respective operating concessions to the power stations to which the ICE awards contracts. 
4.68.  In addition, the Framework Law on Concessions for the Supply of Hydraulic Power 
for Hydroelectric Generation (Law No. 8723 of 7 May 2009) authorizes MINAE to grant concessions 
for generating hydroelectricity within the limits laid down in Chapters I and II of Law No. 7200. Beyond these limits, the concessions have to be granted by the Legislative Assembly. 
The concessions for generating hydroelectricity are valid for a period of 25 years, renewable 
for the same length of time. 
4.69.  Law No. 8829 of 3 May 2010 amended Law No. 7447 (Law Regulating the Rational Use 
of Energy of 13 December 1994) and establishe d exemptions from payment of the selective 
consumption, ad valorem  and sales taxes on a list of equipment and materials (solar water 
heaters, photovoltaic power-generating panels, fl uorescent lamps, wind-powered generators, etc.), 
both imported and domestic, with a view to en couraging rational and efficient energy use. 
4.70.  The generation, transmission, distribution an d marketing tariffs for electrical energy are set 
by ARESEP. Under the Law on ARESEP (No. 7593 of 9 August 1996), public services tariffs must be based on the principle of service at cost, so as to reflect the costs incurred in providing the service 
and a remuneration for the capital invested (rate of return) sufficient to ensure the development 
of the activity. The ICE must submit to ARESEP at least one rate adjustment study a year. 
4.71.  ARESEP also fixes the price at which the ICE buys privately generated energy. In the case of 
generators operating under Chapter I of Law No. 7200, since 2012 ARESEP has established tariffs 
based on cost structures by type of ener gy source and under the price band system.
60 In the case 
of electricity generating plants operating under Ch apter II, the tariffs are determined as a result 
of the tendering process, since the selection is based on the cost of the energy. 
4.72.  As at June 2012, the electricity tariffs in force in Costa Rica for the residential sector (more 
than 200 kWh) and the industrial sector (more than 50,000 kWh) were the second lowest in Central America, after Panama.
61 However, the price of electricity measured by the Services 
Price Index increased by 52% between the end of 2007 and the end of 2012.62 In 2012, rates 
increased by 6% due to the greater dependence on thermal generation, for climatic reasons, and schemes for financing new projects. The indu strial sector has expressed concern about the 
increase in electricity prices, which it regards as the principal factor responsible for its loss 
of competitiveness, and about the delays in the construction of electricity projects to meet future 
demand. Through the Chamber of Industry, the sect or has asked ARESEP to review the estimated 
tariff adjustments proposed by the ICE.
63 
4.73.  In 2011, four electricity generating projects, totalling 389 MW of effective power, were 
inaugurated and work is proceeding on others designed to provide an additional 1,670 MW 
between 2013 and 2020. However, with domestic energy demand estimated to increase at 
an annual rate of 5.4%, it will be necessary to add about 2,400 MW of power to the SEN 
by 2021.64 Accordingly, in August 2010 the Executive introduced a draft General Electricity Law 
to open up the electricity market to private part icipation, so that the ICE would become one more 
service provider in a market subject to regulated competition. The bill did not receive sufficient 
support. Therefore, in June 2011, the Executive submitted an outline Electrical Contingency Law, 
which in the short term seeks to safeguard th e supply of electrical energy through greater 
private-sector generating capacity. At the time when the present report was being written, 
this draft was being studied by a legislative committee. 
                                               
60 Decree No. 37124-MINAET of 19 March 2012. 
61 ECLAC (2012). 
62 Calculated by the Central Bank of Cost a Rica. Online inform ation, viewed at: 
http://indicadoreseconomicos.bccr.fi.cr/indicadoresec onomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&Cod
Cuadro=%20366 . 
63 Centralamerica data, online information. Viewed at: 
http://www.centralamericadata.com/es /article/main/Costa_Rica_Industriales_protestan_por_tarifa_elctrica?u=
6fd0b654f042c017728c74436b030c55&s=n&e=2&mid=%5bMESSAGEID ]; and 
http://www.centralameric adata.com/es/article/home/Costos_de_electricidad_afectan_competitividad . 
64 Draft General Electricity Law. WT/TPR/S/286 • Costa Rica 
 
- 106 - 
 
  4.74.  Faced with the need to increase the su pply of electrical energy, the ICE has recently 
reactivated the granting of energy purchase contra cts to new private sector plants after more than 
ten years of suspension. In August 2012, the ICE put out to tender the purchase of 100 MW of wind power and 40 MW of hydroelectric powe r and received offers for 360 MW. The ICE hopes 
to sign the contracts in October 2013 so that the companies can start building the plants, 
which could take between 18 and 24 months. 
4.4.2  Hydrocarbons 
4.75.  Under Law No. 7356 of 24 August 1993, the importation, refining and wholesale distribution 
of fuel, asphalt and naphtha to meet the domest ic demand is a State monopoly. The monopoly 
is administered by the Costa Rican Petroleum Refinery (RECOPE) which, in addition to importing and refining petroleum, must transport and market petroleum and its derivatives in bulk, maintain 
and develop installations appropriate for its acti vities, and implement plans for the development 
of the energy sector as laid down in the National Development Plan. 
4.76.  Among other hydrocarbons, RECOPE imports petrol, diesel, fuel for aircraft and ships, 
asphalt and liquefied petroleum gas. In 2012, total hydrocarbons imports amounted 
to 18.02 million barrels with a c.i.f. value of US$2,175 million.
65 
4.77.  RECOPE's National Fuel System consists of a petroleum wharf in Puerto Moín, a refinery, 
a multipurpose pipeline system, four distribution centres for receiving and selling bulk fuel and 
four terminals for supplying aircraft at the country's airports.66 In August 2011, RECOPE 
suspended petroleum refining activities at its plant in Moín, which was capable of refining only 25% of domestic consumption. RECOPE is  studying the possibility of modernizing and 
expanding its refinery in partnership with  the China National Petroleum Company. 
4.78.  Fuel prices are fixed by ARESEP and update d monthly on the basis of an adjustment formula 
that uses international prices as a benchmark. First of all, the price that RECOPE can charge for 
sales at its distribution centre is calculated; this includes the f.o.b. price in ₡/litre and RECOPE's 
operating margin.
67 Subsequently, the adjustments and taxes are passed on to the end consumer; 
the final price includes the price at the distribution centre, the single tax in ₡/litre of fuel, 
the carrier's profit margin and the distributor's profit margin. The prices are the same at all 
the country's service stations. 
4.79.  An ECLAC study indicates that the import prices for petroleum products paid by RECOPE are 
the lowest in the region; however, the prices paid by the Costa Rican consumer are the highest 
in Central America owing to the tax burden.68 For example, in Costa Rica in 2010 the average price 
of a gallon of diesel was US$3.61, the highest in the region and 13% above the Central American average. In the case of premium petrol, the diffe rence is even greater, 17% above the regional 
average. 
4.80.  In August 2012, RECOPE gave notice of a public offering involving the issuing 
of standardized bonds on the Costa Rican stock market for a maximum of US$ 200 million. 
The funds raised from the sale of the securities would be used to finance the expansion and 
optimization of the storage capacity of the National Fuel System's various facilities and the extension of the Atlántico Petroleum Port Terminal. 
4.81.  On 26 November 2012 the President of the Republic and the Minister of the Environment 
and Energy signed an Executive Decree declaring th e activity of importing, using and distributing 
liquefied natural gas (LNG) to be in the public interest. The objective of this measure is to promote the use of LNG by the ICE and the industrial sector , as it generates fewer emissions and is cheaper 
than oil. 
4.82.  In view of the high cost of energy (electricity and fuels) and its adverse effect on 
the competitiveness of the Costa Rican economy, in May 2013, the Government issued a directive 
                                               
65 Data provided by the Costa Rican authorities. 
66 RECOPE online information. Viewed at: 
http://www.recope.go.cr/nuestra_actividad/sistema_petroleo/Definicion.htm . 
67 Granted to RECOPE to cover its projected operating costs. 
68 ECLAC (2011). WT/TPR/S/286 • Costa Rica 
 
- 107 - 
 
  which seeks to have the public institutions in the energy sector operate more efficiently so that 
prices can be reduced. 
4.5  Services 4.5.1  Main features and multilateral commitments 
4.83.  The services sector is the most importan t sector in terms of its contribution to the 
Costa Rican economy. Its share of GDP (at current prices) increased from 55.6% to 62.4% between 2007 and 2012, and its contribution to to tal employment rose from 64.6% to 67.1% over 
the same period (Chapter 1, Table 1.2). Community, social and personal services are the most 
important subsector, with a 21.4% share of GDP in 2012, followed by commerce, restaurants and hotels (15.6%), and transport, storage and communi cation (9.2%). The services sector is also the 
most dynamic; in real terms it grew at an av erage annual rate of 4.6% between 2007 and 2012, 
above the rate of growth of total GDP. The strong est growth was observed in the business services 
subsector and in transport, storage and telecommunications. 
4.84.   Throughout the period under review Costa Rica maintained a positive balance of trade in 
services, due mainly to the income from travel , computer services and other business services. 
In 2012, total exports of services rose to  US$5,560 million, while imports amounted to 
US$2,035 million (Chapter 1, Table 1.6). Exports of services proved very dynamic, growing at an 
average annual rate of 9.4% between 2007 and 2012. 
4.85.  Costa Rica's Schedule of Specific Commitments under the WTO General Agreement on Trade 
in Services (GATS) is limited.
69 The country assumed commitments in the following sectors and 
subsectors: business services; education services; financial services; health and social services; 
tourism and travel-related services; and computer reservation services. Costa Rica participated 
in the negotiations on financial services that followed the Uruguay Round and accepted the Fifth Protocol to the GATS.
70 Costa Rica did not undertake any commitment on basic 
telecommunications under the GATS. 
4.86.  In its horizontal commitments, Costa Rica bound measures permitting the entry and 
temporary stay of managers, administrative di rectors, supervisors and general executives, 
provided that there are not more than two in each enterprise. With respect to higher education 
services and medical and dental services, Costa Rica undertook to allow foreign natural persons to provide such services in the country on condition that they are members of the relevant professional college and fulfil the applicable nationality and residence requirements. Where 
commercial presence is concerned, with regard to financial services included in the Schedule, 
companies may be established only in the form of affiliates or subsidiaries, not branches (section 4.5.3 below). In education, the establishm ent of public limited companies or any type of 
commercial enterprise for the purpose of providing university education is prohibited; with regard 
to travel agencies, foreign investors may hold up to 49% of the equity in such enterprises, while the right to exercise the activity of tourist guide is reserved for Costa Rican nationals.
71 
4.87.  Costa Rica has adopted exemptions to mo st-favoured-nation (MFN) treatment with respect 
to business services (professional services and ad vertising services) and land transport services 
(passengers and freight). Where professional servic es are concerned, the possibility of a foreign 
professional being enrolled in the relevant college is subject to reciprocity in his or her country 
of origin and in certain cases to proof that Costa Rican nationals may exercise the profession 
in similar circumstances in his or her country of origin. In the case of advertising services, there is a tax of 100% ad valorem  on the importation of commercial radio, cinema or television shorts 
from outside the CACM. With respect to the land transportation of passengers, there are 
preferences in favour of enterprises whose capital includes a minimum of 60% paid up by Central American nationals and the granting of permits is subject to reciprocity. Moreover, 
Costa Rica has adopted a horizontal exemption to protect measures under its bilateral treaties 
for the promotion and protection of investment.
72 
                                               
69 WTO document GATS/SC/22 of 15 April 1994. 
70 WTO document GATS/SC/22/Suppl.1 of 26 February 1998. 
71 Costa Rica subsequently eliminated some of the limitations mentioned. 
72 WTO documents S/DCS/W/CRI of 24 January 2003 and S/DCS/W/CRI/Corr.1 of 13 October 2003. WT/TPR/S/286 • Costa Rica 
 
- 108 - 
 
  4.88.  Within the framework of the Doha Round negotiations on services, Costa Rica submitted 
an initial offer in April 2004; it has not yet submitted a revised offer. 
4.5.2  Telecommunications 4.89.  During the period 2007-2012, the Costa Rican telecommunications sector underwent 
a radical transformation as a consequence of the gradual opening up of the mobile telephony, 
Internet and private network markets previously under the State monopoly administered by the Costa Rican Electricity Institute (ICE). The liberalization and accompanying legislative 
reforms were part of the commitments assumed by Costa Rica in the 
Central America-United States-Dominican Republic Free Trade Agreement (CAFTA-DR). Moreover, substantial changes were made to the institutional framework of the sector with the creation of the Supervisory Authority for Teleco mmunications (SUTEL) as the regulatory body and 
the Department of Telecommunications to provide operational support to the former. In its turn, 
the entry of private operators has generated momentum in the market and a more diversified supply of telecommunications services. Liberalization has also had positive effects on service 
penetration, investment and employment levels in the telecommunications sector. 
Nevertheless, the opening up process has not been trouble-free: there have been delays in awarding frequency concessions and in approving interconnection contracts; the mobile telephony 
operators have had to contend with certain regulatory difficulties at local government level in 
connection with the expansion of their infrastructure; and the implementation of number portability has necessitated adjustments. 
4.5.2.1  Market characteristics 
4.90.  The telecommunications sector's share of GDP rose from 7.4% in 2007 to 9.1% in 2012.
73 
According to the National Institute of Statisti cs and Censuses (INEC), the sector employed 
some 34,000 people in 2009, or 1.7% of the employed population.74 In 2012, the telephony sector 
alone had some 7,500 employees. Investment in telecommunications increased during the period 
under review, reaching 24.8% of total foreign direct investment in 2011.75 
4.91.  The ICE is the only institution authorized to provide a traditional basic telephone service 
under an exclusive concession granted by the Legislative Assembly.76 This service has achieved 
broad national coverage. However, reflecting the global trend, fixed line density decreased during the review period, to stand at 21 per 100 inhabitants at the end of 2012 (Table 4.5). Moreover, there are ten assigned-numbering IP telephony operators offering local and 
international telephone services.
77 There has been a sharp expansion in mobile telephony, mainly 
due to market liberalization, which has led to a large increase in mobile line penetration, from 34.4 to 132 per 100 persons between 2007 and 2012. 
4.92.  As a result of a competitive bidding procedure, in May 2011 the companies Telefónica and 
América Móvil were awarded a frequency concession to operate mobile telephone services in competition with the State enterprise ICE. Between the entry of the private operators into 
the market in November 2011 and December 2012,  the mobile telephone market grew by 57% 
and reached 6.1 million lines. During this period there was also a sharp increase in pre-paid subscriptions
78, which made mobile telephony accessible to low-income sectors of the population. 
The ICE introduced the pre-payment system in 2010 in order to increase its competitiveness with 
a view to the entry of the private operators. Libera lization also led to a decrease in the time taken 
to process applications for telecommunications services, as well as to a wider range of service packages and promotions reflected in a downward trend in prices. Cellphone tariffs in Costa Rica 
                                               
73 Data of the Macroeconomic Statistics Department, Office of Services and Construction Statistics 
of the Central Bank of Costa Rica. Viewed at: https://docs.google.com/file/d/0B6k5Mbg400-
neDJ2VTBsdjMzWkU/edit . 
74 INEC online information, viewed at: http://www.inec.go.cr/Web/H ome/GeneradorPagina.aspx . 
75 Information provided by th e Costa Rican authorities. 
76 According to Article 7 of the Law on the Streng thening and Modernization of Public Entities in 
the Telecommunications Sector (Law No. 8660), the traditio nal basic telephone service is that "which serves 
to enable users to communicate via circuit-switched exchanges for voice and data, in a predominantly wired network, with generalized public access, to th e exclusion of related value-added services". 
77 The IP (VoIP) service is considered equivale nt to the traditional fixed telephony service. 
78 SUTEL data, published by El Financiero , 5 November 2012. Viewed at: 
http://www.elfinancierocr.com/tecnologia/mercado-celular-crecio-competencia_0_185381463.html . WT/TPR/S/286 • Costa Rica 
 
- 109 - 
 
  are among the lowest in Latin America, due both to the market strategies of the companies and 
to the fact that SUTEL fixes the maximum tariffs that the companies can charge the users. At the end of 2012, five companies were offering mobile phone services: ICE (Kölbi) which had 80% of this market; the concessionaires Telefónica (Movistar) and América Móvil (Claro); 
and two virtual operators (Tuyo Móvil and Full Móvil). 
4.93.  There has also been a notable increase in Internet penetration levels. In 2012, 33.6% of 
Costa Rican households had Internet access and 43 inhabitants in every 100 had Internet accounts 
(Table 4.5). The number of broadband connections has also increased considerably. In 2009, the 
regulator began issuing authorizations for Internet access service providers and, at the end of 2012, 45 authorized enterprises were offering these services.
79 B e f o r e  i t  w a s  o p e n e d  u p ,  
the broadband market was under the monopoly of the ICE and its enterprises. The company 
Radiográfica Costarricense S.A. (RACSA), an IC E enterprise, was providing wholesale and retail 
Internet access services through third party networks, such as those of the private cable television companies. With the liberalization of the market, private operators were no longer obliged 
to resort to RACSA, which lost a substantial share of the market. However, in 2011 the ICE still 
controlled 43% of the market and RACSA 19%.
80 
Table 4.5 Telecommunications market, 2007-2012 
 2007  2008  2009  2010 2011 2012  
Fixed lines per 100 inhabitants 32.7  32.3 33.3 23.4 26.7 21.0  
Mobile lines per 100 inhabitants 34.4 42.5 43.5 68.6 103.2 132.0  
Internet accounts per 100 inhabitants 3.8  4.8 9.8 15.1 43.2 43.4  
Households with Internet access 
per 100 households 11.8 14.8 18.7 24.1 31.0 33.6 
Digital divide index 4.6  4.5 4.1 4.1 3.5 3.0  
Source: WTO Secretariat, based on  information from the Directorate- General of Market s, Supervisory 
Authority for Telecommunications. 
4.94.  The limited level of competition prevailing  prior to market opening prevented a significant 
and immediate decrease in Internet access tariffs. In 2011 the average price per Mbps was US$50, a figure which, though somewhat lower than that for the rest of Central America 
(except for Panama), exceeded that for other Latin American countries such as Chile, Mexico 
and Colombia, whose prices were around US$40.
81 However, since the first half of 2012, 
some operators have increased service speeds, while maintaining tariffs, which has led to a fall in the price per Mbps. In May 2013, the average price for the end user was US$20 per Mbps. 
4.95.  The International Telecommunications Union (ITU) has developed a methodology for 
comparing the prices and accessibility of fixed-te lephone, mobile and broadband services between 
countries, based on gross national income per capita and the cost of the services in each 
country.
82 The ITU estimates that mobile telephony prices in Costa Rica are the lowest in all 
of America and among the 14 cheapest in the worl d, representing only 0.6% of gross national 
income per capita. In the case of broadband Internet, however, the tariffs in 2011 were relatively 
high and put Costa Rica in 59th place among the 161 countries examined. 
4.96.  The Digital Divide Index (IBD) for Costa Rica, designed by the Department 
of Telecommunications for measuring telecommunica tions access, use and quality, fell from 4.6 
to 3.01 between 2007 and 2012, which indicates th at the digital divide narrowed by about 35%.83 
This improvement was mainly due to the increase in the number of mobile subscriptions and 
households with Internet service, although some quality aspects of the mobile service have deteriorated.
84 A t  t h e  s a m e  t i m e ,  m o b i l e  c o v e r a g e  p r o b l e m s  h a v e  b e e n  o b s e r v e d  i n  t h e  I C E  
network, mainly on the roads near some populated areas.85 For their part, the new concessionaires 
                                               
79 Information provided by SUTEL. 
80 Department of Telecommunications (2012). 
81 Department of Telecommunications (2012). 
82 International Telecommunications Union (2012). 
83 The IBD measures the digital divide on a scale from 0 to 10, where 10 represents the largest divide. 
Data provided by the Costa Rican authorities. 
84 A fall has been observed in the number of completed mobile phone calls from 77.15% in 2007 to 
71.69% in 2011. MINAET Department of Telecommunications (2012). 
85 Online information, viewed at: http://www.nacion.com . WT/TPR/S/286 • Costa Rica 
 
- 110 - 
 
  have had difficulties in achieving full coverage in the metropolitan area due to municipal regulatory 
aspects related with authorization to install cellul ar masts. This led the Government to extend by 
one year (until January 2014) the period of time which the operators have been granted to provide a cellular phone service in the Greater Metropolitan Area.
86 
4.5.2.2  Regulatory and institutional framework 
4.97.  The approval of the CAFTA-DR in 2008 marked  the beginning of a process of opening up of 
the Costa Rican telecommunications market. Under Annex 13 to the Agreement, Costa Rica 
undertook gradually to open up mobile wireless, private network and Internet services to private 
competition. This process put an end to the St ate monopoly in these segments of the market, 
but left the ICE as a public telecommunications services operator in competition with the private operators. The ICE also retained the single  concession granted by the Legislative Assembly 
for the provision of the traditional basic telephone service. 
4.98.  The opening up process gave rise to a new institutional and regulatory framework 
for the sector, based on regulatory principles  such as universal service, transparency, 
interconnection and competition. The General Telecommunications Law (Law No. 8642 
of 4 June 2008) and its implementing regulations (Executive Decree No. 34765 of 22 December 2008) and the Law on the Strength ening and Modernization of Public Entities in 
the Telecommunications Sector (Law No. 8660 of 8 August 2008) were enacted. The applicable 
legislation also includes the Regulations on Universal Access, Universal Service and Solidarity of 6 October 2008, the Regulations on Telecomm unications Network Access and Interconnection 
of 6 October 2008, the Regulations on the Competition Regime in Telecommunications 
of 6 October 2008, the Regulations Establishing the Basis and Conditions for the Fixing of Prices 
and Tariffs of 29 April 2008, the National Frequency Allocation Plan (Executive Decree No. 35257 of 16 April 2009) and the National Numb ering Plan (Executive Decree No. 35187 
of 16 April 2009).
87 
4.99.  The Law on the Strengthening and Modernization of Public Entities in the 
Telecommunications Sector No. 8660 provided for th e separation of the supervisory, regulatory 
and operational functions of the State in the telecommunications market. Law No. 8660 created 
the Telecommunications Sector88 and made the Ministry of the Environment, Energy and 
Telecommunications (MINAET) responsible for its supervision. However, on 31 January 2013, the supervision of the sector became the responsibi lity of the Ministry of Science, Technology and 
Telecommunications (MICITT).
89 The tasks of the supervising ministry include formulating policy 
on the use and development of telecommunications;  overseeing its implementation; coordinating 
the drafting of the National Telecommunicati ons Development Plan; approving or rejecting 
the technical opinions of the regulatory authority concerning concessions and frequency permits 
and representing the country in international telecommunications bodies and forums. Law No. 8660 also created the Department of Telecommunications, an operational agency whose 
role is to support the supervising body in the pe rformance of its functions and to coordinate and 
promote the development of telecommunications, and the Supervisory Authority for Telecommunications (SUTEL), a fully autonomous  organ of ARESEP, as the sector's exclusive 
and independent regulator. In addition, Law No. 8660 contains provisions for modernizing and 
strengthening the ICE and its enterprises, by givi ng them more management  flexibility and powers 
to install and operate telecommunications networks on and outside the national territory and to enter into joint ventures and other business partnerships.
90 
4.100.  Under Law No. 8660, SUTEL is responsible for regulating, applying, monitoring and 
controlling the legal framework for telecommunications. Its duties include: administering the National Telecommunications Fund (FONATEL); guaranteeing fulfilment of the access and universal 
                                               
86 Online information, viewed at: http://www.nacion.com . 
87 Other important instruments are the Regulations on  the Regime for the Protection of the End User 
of Telecommunications Services of 6 April 2010, the Regulations on the Distribution of the Regulation Fee of 29 September 2009 and the Regulations on the Prov ision and Quality of Services of 29 April 2009. 
These regulations can be viewed online at: http://sutel.go.cr/Ver/Contenido/reglamentos/66 . 
88 Consisting of the centralized an d decentralized governme nt services and the pu blic enterprises that 
perform telecommunications-relat ed functions or activities. 
89 Law No. 9046 of 25 June 2012. 
90 The ICE enterprises are RACSA, the National Po wer and Light Company, Compañía Radiográfica 
Internacional Costarricense S.A., and others in which the ICE holds not less than 51% of the capital. WT/TPR/S/286 • Costa Rica 
 
- 111 - 
 
  service obligations imposed on telecommunications enterprises; controlling the efficient use 
of the frequency spectrum; ensuring efficient and non-discriminatory access to the scarce resources associated with network operation and the provision of telecommunications services; ensuring compliance with the access and interc onnection requirements; and guaranteeing and 
protecting the rights of users. Other important functions assigned to SUTEL are investigating the 
award of frequency concessions and making corre sponding recommendations to the supervising 
ministry, and setting the tariffs for telecommunications services in conformity with the costs 
attributable to the provision of the service, including the infrastructure amortization costs.
91 
4.101.  General Telecommunications Law No. 8642 defines the regulatory framework for network 
operators and telecommunications service providers. It is founded on the principle of convergence 
and its regulatory approach is network- not service-based, so that authorized operators and 
providers can extend their range of services, provided that SUTEL is given prior notice. 
Law No. 8642 defines the mechanisms for allocating and using the frequency spectrum and establishes the operators' access and interconnection obligations, the scope of the universal 
service, the sectoral competition regime and the obligations and allocation mechanisms concerning 
fees and contributions. 
4.102.  Under Law No. 8642, it is necessary to be in possession of a document of entitlement in 
the form of a concession, authorization or permit in order to offer telecommunications services 
available to the public. The conditions for obtaining this document are the same for nationals and foreigners. 
4.103.  Concessions are for the use of the radio frequencies necessary for the operation and 
exploitation of telecommunications networks. Where public networks are concerned, 
the concession entitles the holder to provide an y type of service available to the public and 
is granted by the Executive under a competitive bidding procedure for a period of 15 years which 
can be extended for a further ten years. In the case of frequencies needed to operate private 
networks and not requiring exclusive allocation fo r their optimum utilization, the concessions are 
granted directly by the Executive. Authorizations  entitle natural or legal persons to operate and 
exploit public networks, and to operate private telecommunications networks which do not require 
the use of the radio-frequency spectrum, as well as to provide telecommunications services available to the public through public telecommunications networks which they do not operate or exploit (provided that the network owner has the corresponding concession). Authorizations are 
issued by SUTEL at the request of the interested party, for ten years with the possibility 
of extension for periods of five years and a maximum of three extensions. Permits are required to use frequency bands for non-commercial, official, security, relief or emergency purposes; they 
are granted by the Executive, on SUTEL's recommendation, and are valid for five years, renewable 
for equal periods. 
4.104.  There are no restrictions on foreign participation in telecommunications enterprises. 
However, in the case of enterprises established or acquired by the ICE, private investment 
(domestic or foreign) is limited to 49% of the capital. Moreover, in joint ventures with the State regional enterprise Heredia Public Serv ices Company (ESPH) the foreign participation 
may not exceed 49% of the capital. 
4.105.  Law No. 8642 (Article 50) authorizes SUTEL to set price caps on all telecommunications 
services, when it is determined that conditions capable of ensuring effective competition do not exist. The caps are based on the costs attribut able to the provision of the service using the 
long-run average incremental cost (LRAIC) method, in accordance with the corresponding 
Regulations.
92 The operators can charge users lower tariffs as part of their market strategy. 
The Law states that if SUTEL determines the existence of conditions sufficient to ensure effective 
competition, prices will be determined by the providers of the telecommunications services. 
Since in Costa Rica the initial phase of the proc ess of opening up the telecommunications sector 
                                               
91 According to the Regulations Establishing the Basis and Conditions for the Fixing of Prices and Tariffs 
(Article 3(d)), these prices and tariffs will include a pr ofit margin, in real terms, not lower than the median 
margin for the domestic or internationa l industry; in this latter case, the profit will be determined by taking 
the comparable markets into consideration, in accord ance with such criteria as the geographical area 
of the market, its number of users, the number of service providers and the average income of the users 
of the services. 
92 Regulations Establishing the Basis and Conditions for the Fixing of Prices and Tariffs of 29 April 2008. WT/TPR/S/286 • Costa Rica 
 
- 112 - 
 
  involved a transition from a monopoly regime to one of regulated competition, in December 2009 
SUTEL established 18 markets of relevance for the sector in which it found that conditions sufficient to ensure effective competition did not exist and accordingly proceeded to establish the tariffs in each of them.
93 First of all, the tariffs previously set for the ICE were established 
as maximum tariffs for all telecommunications services.94 
4.106.  Law No. 8642 and the Interconnection Regulations95 oblige operators and providers 
of public telecommunications networks to offer access and interconnection to their networks 
and authorizes the operators freely to negotiate the conditions of access to and interconnection 
with public telecommunications networks, provided that they observe the cost orientation principle and apply the methodology established by SUTEL, namely long-run incremental costs (LRIC), by means of a bottom-up scorched node approach with prospective costs.
96 Under the legislation, 
SUTEL may require operators and service providers to submit a Reference Interconnection Offer 
(RIO). The first RIO was published in November 2010. 
4.107.  In the event that the operators and pr oviders are unable to reach an agreement on 
the terms and conditions of access and interconnection, SUTEL is authorized to intervene and 
establish the necessary precautionary measures and access and interconnection arrangements, including the prices of the services provided. SUTEL has intervened in this way on several 
occasions. In the first months of liberalization of the mobile telephony market 
(September-October 2011) objections were ma de to the interconnection contracts between 
the ICE and two mobile phone concessionaires.  The matter was settled when SUTEL finally 
approved the agreements freely negotiated betw een the ICE and the two telephone companies. 
4.108.  The National Telecommunications Fund (FONATEL) was created by Law No. 8642 
to administer the resources intended to fina nce the achievement of the universal access, 
universal service and solidarity objectives established in the Law itself, and the goals 
of the National Telecommunications Development Plan. SUTEL is responsible for administering and 
allocating FONATEL's resources. Under the procedur e, SUTEL publishes an annual list of universal 
access, universal service and solidarity projects to be developed using FONATEL resources, 
indicating the specific conditions applicable to each. The projects are awarded by open tender 
to the operator or provider who meets the specifications laid down and requires the lowest subsidy for carrying out the project. Operators and prov iders who use FONATEL resources must operate 
a separate cost accounting system. An open tend er process for the implementation of projects 
to be financed by FONATEL commenced in May 2013.
97 
4.109.  FONATEL is financed from the proceeds of  granting concessions; transfers and donations 
in favour of the fund; fines imposed by SUTEL and interest on arrears; financial resources 
generated by FONATEL's own resources; and by a sp ecial parafiscal contribution. This contribution 
is fixed annually by SUTEL and varies between 1.5% and 3% of the gross income earned by 
the operators of public telecommunications netw orks and the providers of publicly available 
telecommunications services. FONATEL's administration costs are met with resources from the 
fund itself, which may not exceed 1% of the total. The administration of the fund is supervised by 
the Office of the Comptroller General. 
4.110.  Costs Rica's telecommunications legislation provides for unbundling of the elements of the 
network or subscriber loop98, separate accounting99 and number portability.100 The process 
for introducing number portability has encountered some obstacles and delays.101 However, 
in April 2013 the signing of the contract betw een the mobile telephone companies and the 
                                               
93 SUTEL Board Resolution No. RCS-307-2009 of 24 September 2009. 
94 SUTEL Board Resolution No. RCS-615-2009 of 18 December 2009. Viewed at: 
http://www.pgr.go.cr/SCIJ/Busqueda/Normativa/Norma s/nrm_repartidor.asp?param1=NRTC&nValor1=1&nVal
or2=67265&nValor3=90396&param2=1&strTipM=TC&lResultado=1&strSim=simp . 
95 Regulations on Telecommunications Network Access and Interconnection of 6 October 2008. 
96 SUTEL Board Resolution No. RCS-137-2010 of 5 March 2010. 
97 A first open tender procedure begun in December 2012 was declared void. 
98 Regulations on Telecommunications Network Access and Interconnection of 6 October 2008. 
99 Law No. 7593 of 5 September 1996 and Regulations on Telecommunications Network Access 
and Interconnection of 6 October 2008. 
100 Law No. 8642 of 4 June 2008 and Executive Decree No. 35187-MINAET of 16 April 2009. 
101 In fact, during 2012 the ICE lodged several appeals which were eventually rejected by SUTEL. 
Online information, viewed at: http://www.nacion.com , 28 November 2012. WT/TPR/S/286 • Costa Rica 
 
- 113 - 
 
  company selected to provide the number portability service was completed.102 SUTEL established 
30 November 2013 as the new date of entry into full operation of the Integrated Number Portability System. 
4.111.  Law No. 8642 also establishes the regulation and frequency spectrum reservation fees. 
The purpose of the regulation fee is to give SUTEL financial autonomy and it is calculated annually 
on the gross incomes of the telecommunications se rvices operators and providers. The frequency 
spectrum reservation fee has to be paid by those telecommunications services operators and 
providers who have been allocated spectrum frequency bands, whether they use them or not. 
However, in 2012, Empresa Telefónica de Costa Rica TC, S.A., lodged an appeal with the supervising ministry which, as a precautionary measure, announced the suspension of payment of the fee. 
4.112.  Costa Rica did not make any commitment in telecommunications services within 
the framework of its specific commitments und er the WTO General Agreement on Trade in 
Services (GATS), nor did it participate in the telecommunications negotiations that followed 
the Uruguay Round. 
4.5.3  Financial services 4.5.3.1  Overview 
4.113.  During the review period, the Costa Rican financial sector underwent a number of major 
changes, in particular the enactment of the La w on the Development Banking System, the opening 
up of the insurance market to competition and the introduction of offshore banking reforms. At the 
same time, the sector successfully confronted the global environment of economic slowdown and 
financial market uncertainty. The national banking system institutions adjusted to the supervisory 
parameters and demonstrated adequate capitalization as measured by the capital adequacy indicator.
103 Although non-performing loans increased in 2009, in particular in public banking, 
they remained below the ceiling of 3%. 
4.114.  Up to the last quarter of 2008, lending to the private sector grew at year-on-year rates 
of more than 30%.104 However, due to the decrease in exte rnal flows into private banking as a 
result of the global financial crisis, the application of more rigorous risk management measures by 
the public banks105 and the reduced demand for loans, there was a pronounced slowdown in 
the growth of lending between 2009 and the first half of 2010. Since then, lending has rebounded 
strongly, growing at rates of around 14% in 2011 and 2012. 
4.115.  The profits of the State banks fell by 36%  during 2009 and recorded only slight increases 
during the next two years. In 2012, however, they increased by 51%, reaching nominal levels higher than in the pre-crisis period.
106 In private banking, profits fell in 2009-2010, but grew 
strongly in the following two years. 
4.116.  The Costa Rican financial sector is composed of: the National Financial System (SFN), 
which includes the banks and other financial entities; the pension funds; the securities market; 
and the insurance market. Each of these subsecto rs is supervised and regulated by a separate 
body (supervisory authority). In their turn, these bodies are directed and coordinated by 
the National Council for Financial System Supe rvision (CONASSIF). In September 2012, the total 
assets of the SFN entities were equal to 75%  of GDP; the assets of the pension funds 
corresponded to 26% of GDP, while the assets of the securities and insurance markets were each 
equal to 6% of GDP.107 The present section is focused on the banking and insurance subsectors. 
                                               
102 SUTEL Board Resolution No. RCS-038-2013 of 13 February 2013. 
103 Capital adequacy denotes the capital available to a financial entity to cover the risks to which its 
assets are exposed, expressed as a percentage. The coe fficient must be equal to at least 10% in order for 
the entity to qualify as  being at normal risk. 
104 BCCR data on lending to the non-financial private sector. 
105 "Public banks" is taken to mean State-ow ned banks and banks created by special laws. 
106 SUGEF online information, viewed at: 
http://www.sugef.fi.cr/pagina. asp?lang=0&pagina=servicios/en tidades/default.asp?Padre=3 . 
107 Data provided by the Costa Rican authorities. WT/TPR/S/286 • Costa Rica 
 
- 114 - 
 
  4.117.  Costa Rica accepted the Fifth Protocol to the GATS. Its Schedule of Specific Commitments 
under the GATS incorporates market access and national treatment commitments with respect 
to various banking and other financial services subsectors.108 Most of the commitments bound 
concern mode 3 (commercial presence). Companies may be established only as an affiliate 
or subsidiary, which must adopt the corporate form required by the Costa Rican legal system. 
The establishment of branches is not permitted. In accordance with Costa Rica's commitments, commercial banks and non-bank finance companies may not provide financial leasing services 
due to legal restrictions on the acquisition of movable and immovable property by such entities.
109 
Costa Rica has not undertaken commitments with regard to the provision of any insurance service. 
4.5.3.2  Banking and financial services 4.5.3.2.1  Market structure 
4.118.  The National Financial System (SFN) is supervised by the General Supervisory Authority 
for Financial Entities (SUGEF). In December 2012, the SFN consisted of 59 entities, which included State-owned banks, banks created by special laws, private banks, National Housing System 
institutions (savings and loan mutuals), savings and loan cooperatives, non-bank financial 
companies, foreign-exchange houses and other fi nancial entities (Caja de Ahorro y Préstamo 
de la ANDE). As shown in Table 4.6, during the period 2007-2012 there was little change in 
the number of entities that made up the SFN. 
Table 4.6 Number of entities and composi tion of the assets of the SFN, 2007-2012 
Number of entities and composition of the assets of the SFN, 2007-2012 
 Number of 
participants Composition of assets 
 2007  2012  2007 2012  
State-owned banks 3  3 44.9% 43.3%  
Banks created by special laws 2 2 10.5% 10.8%  
Private banks 12  11 29.8% 29.6%  
National Housing System institutions 2 2 3.9% 3.8%  
Savings and loan cooperatives 31  31 7.4% 8.6%  
Non-bank financial companies 7 5 1.6% 0.9%  
Other financial entities 1  1 1.8% 2.9%  
Foreign-exchange houses 3 4 0.0% 0.0%  
Total SFN entities 61  59 100.0% 100.0%  
Source: WTO Secretariat, based on SUGEF information.  Data with cut-off in December of each year. 
4.119.  The greater dynamism of this branch of ac tivity during the period in question was related 
with takeover processes in the banking sector, su ch as the takeover of the banks Cuscatlán and 
Uno by the Banco CMB Costa Rica in 2008; the purchase of BAC-San José by Grupo Aval (Colombian capital) in 2010; the takeover of the cooperative Coopemex
110 by Banco Popular 
y de Desarrollo Comunal in 2010; the conversion in the same year of Financiera Acobo into 
Banco de Soluciones (Bansol) and the purchase of HSBC's operations by the Colombian bank Davivienda in 2012. In November 2012, Banco Citibank and Banco CMB completed a takeover 
merger, which left Banco Citibank de Costa Rica in control.
111 Out of all the private banks, 
only three (Bansol, BCT and Improsa) are Costa Rican-owned. 
4.120.  According to SUGEF data, the SFN's total assets at the end of 2012 amounted to 
₡18,449,679 million (some US$36,688 million). The banking sector as a whole accounted 
                                               
108 WTO documents GATS/SC/22 of 15 April 1994 and GATS/SC/22/Suppl.1 of 26 February 1998. 
109 The restriction that applied to commercial banks was abolished in 2008. The banks are now 
authorized to acquire the movables and immovables nece ssary to carry out activities related with financial 
or operational leasing (Article 61 of Law No. 1644). 
110 Coopemex was the subject of SUGEF intervention in February 2010 due to capital inadequacy and 
concealment of information concerning non-performing loan s. The intervention process ended in February 2011 
with the deregistration of the cooperative as an  authorized financial intermediary. In June 2010 
Banco Popular y de Desarrollo Comunal de cided to acquire the cooperative's assets and take over its liabilities. 
111 Banco CMB Costa Rica was owned by Citibank bu t operated independently. Online information, 
viewed at: http://www.nacion.com  and http://www.elfinancierocr.com . WT/TPR/S/286 • Costa Rica 
 
- 115 - 
 
  for 83.7% of total SFN assets. The relative participation of the various subsectors in total 
SFN assets did not vary significantly during the period 2007-2012 (Table 4.6). 
4.121.  The Costa Rican banking sector continues to be dominated by the public banks, 
which at the end of 2012 held about 65% of total bank assets. These banks are Banco Nacional 
de Costa Rica (with 26.3% of the assets), Banco de Costa Rica (20.6%), Banco Popular 
y de Desarrollo Comunal (12.4%), Banco de Crédit o Agrícola de Cartago (Bancrédito) (4.8%) and 
Banco Hipotecario de la Vivienda (0.5%).112 For their part, the 11 private banks contributed 35.4% 
of bank assets in 2012. Among them, the largest are Banco Bac San José (10.6% of assets), 
Scotiabank de Costa Rica (7.3%) and Banco HSBC (4.7%).113 Foreign banks owned 31.7% 
of total bank assets in 2012. 
4.122.  State-owned banking accounts for 41% of the SFN loan portfolio, while private banking 
generates about 30% of loans and the special-law banks 12%.114 The credit granted by 
the financial system to the private sector mostly goes towards housing (30%). Other important market segments are consumption, trade and services (Chart 4.3). 
Chart 4.3 Composition of credit granted by the SFN to the private sector, 2012 
 
Agriculture
3% Industry
4%
Housing
30%
Construction
3%
Tourism
2% Trade
13%Services
11%Consumption
30%Other 
activities
4%
 
 
Source: WTO Secretariat, based on BCCR information. Data for October 2012. 
4.123.  Financial depth, measured as the credit gran ted by the SFN to the private sector in relation 
to GDP, increased from 44% in 2007 to 49% in 2012.115 According to a BCCR study, this indicates 
the more efficient circulation of resources between savers and producers.116 
4.124.  The financial intermediation margin, understood as the difference between the cost 
of funds borrowed and the price of funds lent , fluctuated between 5.90% and 6.32% during 
the period 2007–2012.117 According to the above-mentioned 2009 study by the BCCR, the financial 
intermediation margin in Costa Rica was above the average for the Central American region, which 
indicated problems associated with profitability and efficiency.118 The high costs of intermediation 
and high interest rates (exacerbated by the deficit in the public sector which competes for funds in the market) are tending to affect the competit iveness of the production sector. At the same 
time, the high interest rates observed in recent ye ars encouraged strong inflows of foreign capital, 
                                               
112 The banks created by special laws are Banco Popu lar y de Desarrollo Comunal and Banco Hipotecario 
de la Vivienda. 
113 SUGEF online information, viewed at: 
http://www.sugef.fi.cr/pagina. asp?lang=0&pagina=servicios/en tidades/default.asp?Padre=3 . 
114 SUGEF online information, viewed at: 
http://www.sugef.fi.cr/pagina. asp?lang=0&pagina=servicios/en tidades/default.asp?Padre=3 . 
115 Calculated on the basis of BCCR figures. Online information, viewed at: 
http://www.bccr.fi.cr/ indicadores_economicos . 
116 Durán et al. (2009). 
117 Data provided by the Costa Rican authorities. 
118 Durán et al. (2009). WT/TPR/S/286 • Costa Rica 
 
- 116 - 
 
  which in its turn exerted upward pressure on the colón. The authorities are considering various 
options for discouraging the continual inflow of foreign capital (Chapter 1). 
4.125.  The Costa Rican financial sector is still characterized by a substantial degree 
of dollarization (more than 40% of loans and depo sits are in US dollars). Although in 2012 there 
was an increase in savings in the national currency, associated with the increase in 
colón-denominated interest rates, on the lending side there was a stronger preference for loans in dollars due to the lower interest rates in that currency and the low expectation of fluctuations in 
the exchange rate. According to the IMF, dollarization is a source of vulnerability, since if there 
were to be a large depreciation of the colón, in the event of a heavy deficit in the balance of payments, that would impact corporations and households with debts in foreign currency and increase the credit risk of the banks.
119 
4.126.  The private banks continue to be subject to some regulatory asymmetries with respect 
to the State-owned banks, such as the obligation to meet the cost of a "bank toll" (4.130 below) and the absence of deposit insurance. Moreover, Banco Popular y de Desarrollo Comunal (BPDC) 
and the National Housing System institutions are exempt from the payment of tax on the income 
from deposits in the national currency; up to March 2009 this exemption also applied to deposits in dollars. BPDC manages for a period of 18 months the compulsory savings of employees. 
In addition, BPDC benefits from exemption from th e reserve requirement relating to deposit-taking 
operations (with the exception of current accounts). 
4.5.3.2.2  Legal framework 4.127.  The Law on the Organization of the Central Bank of Costa Rica (No. 7558 
of 3 November 1995) created the General Supervisory Authority for Financial Entities (SUGEF) as 
a decentralized agency of the BCCR charged with supervising and monitoring the financial entities 
and overseeing the stability, soundness and efficient operation of the national financial system. 
SUGEF authorizes public and private entities th at meet the legal requirements to engage in 
financial intermediation. CONASSIF is empowered to regulate the establishment, transfer, registration and operation of financial groups. Moreover, CONASSIF establishes the system 
of supervision and risk management within the framework of the Basel recommendations and 
is currently seeking to orient its supervision towards a macroprudential approach. The authorities have pointed out that Costa Rica partially complies  with the Basel I principles and that a draft law 
for achieving greater compliance with these principles is still passing through the legislative 
process. Where Basel II is concerned, Costa Rica has adopted the definition of capital and 
the standard approaches to credit risk and mark et risk and is applying the basic method with 
respect to operating risk. Regarding Basel III, legi slation permitting the adoption of the liquidity 
coefficient is being studied and is expected to be approved in 2014. 
4.128.  Under the Law on the Organization of the National Banking System (No. 1644 
of 26 September 1953 and amendments thereto) an d the Law on Modernization of the Financial 
System of the Republic (No. 7107 of 4 November  1988), private banks must be established as 
a public limited company, as a cooperative union or federation or as a union of mutual associations (asociaciones solidaristas )
120; foreign branches are therefore not allowed. However, representative 
offices that do not provide financial services are permitted. Law No. 1644 grants the BCCR 
the power to set minimum capital requirements. In July 2012, the BCCR set the minimum capital 
for the establishment of a financial intermediary at ₡10,134 million (some US$20.2 million). 
The legal reserves of the banks are considered to be part of the capital. 
4.129.  Private banks, whether domestically or foreign owned, all have to fulfil the same 
requirements. There are no limits on the foreign ca pital in private banks established in Costa Rica. 
However, the establishment of a cooperative bank requires at least ten Costa Rican cooperative 
organizations, and at least 25 Costa Rican mutual associations in the case of a mutual bank. 
There are no limits either on the number of fore ign-owned banks that can operate in Costa Rica 
or on the type of services they can offer. Le gally, there is nothing to prevent foreign banks, 
whether or not domiciled in Costa Rica, from funding themselves in the domestic market provided 
                                               
119 IMF (2013). 
120 A solidarity association is an employees' organiza tion which, through saving and lending by and for 
its members, seeks their economic and social improvement. WT/TPR/S/286 • Costa Rica 
 
- 117 - 
 
  that they comply with the prudential rules. Resi dents of Costa Rica can make deposits in banks 
domiciled abroad. 
4.130.  Under Law No. 1644 banks alone are authorized to accept deposits in current accounts. 
H o w e v e r ,  p r i v a t e  b a n k s  m a y  o n l y  d o  s o  i f  t h e y  meet the cost of a "bank toll" and satisfy 
one of the following requirements: 
a. Deposit in the State bank that administers the Development Credit Fund121 
17% (after deduction of the required cash reserve) of total 30-day or shorter term 
deposits, in both local and foreign currency.122 The State bank must pay the private 
banks a rate of interest equal to 50% of the basic deposit rate set by the BCCR or the monthly LIBOR rate (for foreign-currency operations); or 
b. Establish at least four agencies or branches providing basic banking services, 
both lending and borrowing, in certain rural regions
123 and maintain a minimum balance 
equivalent to 10% of total 30-day or shorter term deposits, in both local and foreign currency, in credits for programmes determined by the Executive, which must be placed 
at a rate no higher than the basic deposit rate set by the BCCR or the monthly 
LIBOR rate.
124 
4.131.  The SUGEF 8-08 Agreement, published on 18 June 2008125, establishes the requirements 
and assessment criteria which the supervisory body must consider in processing applications to 
establish a new financial intermediary and repeals a series of regulations governing the procedures for establishing and registering financial entiti es. CONASSIF decides whether or not to authorize 
the establishment of new financial intermediaries and cooperative organizations after receiving 
SUGEF's recommendation concerning the application. SUGEF issues an operating licence after the 
financial intermediary has deposited the minimum working capital with the BCCR and submitted the documentation required for registration wi th SUGEF. The requirements for establishing 
a financial intermediary are the same for both domestic and foreign investors and the process 
takes, on average, about six months. Banks may not participate as shareholders in activities unrelated with their main line of business. 
4.132.  An important prudential change, introduc ed by the SUGEF 8-08 Agreement, was to remove 
the incentives for offshore banking and encourage its disappearance from the majority of Costa Rican financial groups. The SUGEF 8-08  agreement obliges banks wishing to maintain 
a presence abroad to obtain a general licence authorizing them to carry out all 
banking operations in the country in which they become established, thereby subjecting them 
to supervision and regulation by that country's regulatory body. This eliminated the possibility, 
previously available to Costa Rican banks, of operating abroad under an international licence 
which, on the one hand, prevented them from carrying out financial intermediation in the country 
in which they were established and, on the other, left them outside the supervision of SUGEF and the BCCR.
126 In addition, the SUGEF 16-09 Agreement, published on 6 July 2009, made 
it possible to establish some control over the corporate structures that carry out banking 
operations by requiring the supervised entities to draw up a corporate governance code and by 
establishing the organs of governance which, as a minimum, these entities should have, as well as 
                                               
121 Up to December 2012, Bancrédito was the manager of the Development Credit Fund. 
122 Under the Law on the Development Banking System, No. 8634 of 23 April 2008, these 
resources finance the Development Credit Fund an d are administered by the State banking system 
(see below). 
123 The Chorotega, Pacífico Central, Brunca, Huetar Atlántico and Huetar Norte regions. 
124 Executive Decree No. 28985 of 20 September 2000 establishes the regulations describing 
in detail the way in which the "bank toll" is paid. 
125 Regulations on Authorizations of Entities Supervised by SUGEF and on Authorizations and 
Operation of Financial Groups and Conglomerates. 
126 Up until 2008 there were six operating offshore entities owned by private banks. The latter took 
about 80% of their deposits and le nt 69% of their loan portfolio th rough these entities. BCCR online 
information, viewed at: 
http://www.bccr.fi.cr/Sistema_Financiero/Informe% 20Trimestral%20del%20Sitema%20Financiero%20Diciemb
re%2006.doc . WT/TPR/S/286 • Costa Rica 
 
- 118 - 
 
  the policies and procedures they should put in pl ace to ensure the adoption of sound corporate 
governance practices.127 
4.133.  Another important modification of the financial sector's legal framework during the period 
under review was the enactment of Law No. 8634 of 23 April 2008 creating the 
Development Banking System (SBD) to finance and promote production projects in keeping with 
the national development model. The SBD is composed of all the public financial intermediaries, the Cooperative Promotion Institute and other State and private institutions providing financial and 
business development services. The objective of th e SBD is to provide financing, endorsements, 
guarantees and non-financial services for MSMEs, whether natural or legal persons, that come forward with viable and feasible projects. 
4.134.  The SBD is financed from three funds: the National Development Trust Fund (FINADE), 
the Financing for Development Fund and the Development Credit Fund (FCD). In June 2012, 
after a competitive bidding process, Banco de Costa Rica (BCR) was appointed to manage FINADE, which at that time had around US$190 million. For its part, the FCD relies on resources from 
the "bank toll", which in June 2012 amounted to US$447 million.
128 Initially the FCD was managed 
by Bancrédito; however, the impact of the size of  the fund on the bank's capital adequacy was not 
offset by attractive lending conditions129, so that resources were left idle. In view of this situation, 
in January 2013, on the basis of Law No. 9094 (24 December 2012), the Governing Board 
of the SBD assigned the joint management of  the FCD, in equal parts, to the BCR and 
Banco Nacional de Costa Rica, the country's two largest commercial banks. 
4.135.  Another notable change during the period under review was the introduction in 2008 of 
Article 27 bis of the Law on the Promotion of Competitio n and Effective Protection of the Consumer 
(Law No. 7472 of 20 December 1994), which authoriz es each of the financial system's supervisory 
authorities, including the SUGEF, to grant prior au thorizations for concentration processes, such as 
mergers, takeovers, changes in shareholder cont rol and portfolio assignments, by the entities 
under their respective supervision. 
4.136.  State commercial banks benefit from a State guarantee under Article 4 of the 
Law on the Organization of the National Banking System (No. 1644), while Article 116 of the 
Law on the National Financial System for Housing (No. 7052 of 13 November 1986) grants a subsidiary and unlimited State guarantee on the deposits of mutual savings and loan associations. On the other hand, deposits with private banks, non-bank financial companies and 
savings and loan cooperatives supervised by SUGEF are not covered by statutory insurance. 
However, since 1989 the Costa Rican Banking Association (ABC) has administered a guarantee fund for savers, which in 2012 amounted to around US$31 million and which covers a maximum 
of US$10,000 per saver in the private banks. Under the precautionary standby arrangement 
signed with the IMF in 2009, the Costa Rican authorities made a commitment to progress with the creation of a deposit insurance system and with the strengthening of the bank resolution 
regime. In March 2013, the Legislative Assembly's Economic Affairs Committee approved a draft 
Law on the Deposit Guarantee Fund and Bank Resolution, intended to insure savers' deposits in private banks, cooperatives and Banco Popular y de Desarrollo Comunal for up to ₡6 million. 
At the time of writing, the draft had still to go to the full Legislative Assembly for debate 
and passage. 
4.5.3.3  Insurance 4.5.3.3.1  Market structure 
4.137.  During the period under review, the sector underwent a fundamental change with 
the promulgation of the Law Regulating the Insurance Market (No. 8653 of 1 August 2008), 
which put an end to the State monopoly of the Na tional Insurance Institute (INS). Law No. 8653 is 
one of the laws enacted as part of the implementation of CAFTA-DR. 
                                               
127 The SUGEF 16-09 agreement (Regulations on Corporate Governance) can be viewed online at: 
http://www.sugef.fi.cr/pagina.asp?pagina=servicios/documentos/Normativa\NormativaPrudencial\Reglamento 
16-09\SUGEF 16-09.pdf . 
128 BCCR (2013). 
129 Maximum lending rates for loans granted from FCD resources are fixed by law. WT/TPR/S/286 • Costa Rica 
 
- 119 - 
 
  4.138.  Private insurers first entered the market in 2010, following completion of the processes of 
authorization, compliance with the prior requirements and registration. Most of them are foreign-owned public limited companies and are concentrated in the personal insurance category, a reflection of the high hopes for this segment of the market. 
4.139.  In November 2012, the Costa Rican insurance market consisted of the INS, 12 private 
insurers, 66 agency companies and 17 brokerage companies. In addition, there were 50 off-the-shelf insurance operators
130 and two cross-border providers. At that time there 
was no record of any established reinsurance en tity. On 8 November 2012, SUGESE conditionally 
authorized the transfer of the portfolio of the insurer ALICO to the firm Pan American and the cessation of ALICO's operations. Table 4.7 shows the sharp increase in the number 
of insurance operators since 2010. 
Table 4.7 Number of insurance market participants, 2008-2012 
Number of insurance market participants, 2008-2012 
 2008 2009 2010 2011 2012 
Insurers 1 5 11 11 13* 
Agency companies 64 79 78 75 65 
Insurance agents 850 961 1,185 1,398 1,566 
Brokerage companies 0 2 7 13 17 
Insurance brokers 0 5 27 81 153 
Off-the-shelf operators 0 0 10 34 51 
Cross-border providers 0 0 0 2 2 
* One entity has been conditionally authorized and will commence operations when the legal 
requirements are met. 
Source: WTO Secretariat, base d on SUGESE information. 
4.140.  The insurance agents, insurance agency companies, insurance brokerage companies and 
insurance brokers are insurance intermediaries . The insurance agencies are public limited 
companies accredited by one or more insurance entities under a contract which allows them to act on the entity's behalf or for its account or only for its account. Insurance brokerage companies are public limited companies which engage in insurance intermediation without acting on behalf or for 
the account of any insuring entity. To engage in intermediation both agents and brokers must hold 
a licence granted by the General Supervisory Authority for Insurance (SUGESE). 
4.141.  Under the legislation there are three categories of insurance: personal insurance, 
which comprises all those forms of insurance associated with human life and health (life, accident, 
health, annuities); general insurance, which covers the risks associated with the loss of or damage to goods, animals, plants and property; and co mpulsory insurance (occupational and compulsory 
motor vehicle insurance).
131 
4.142.  In December 2012 total premiums earned amounted to ₡466.1 billion (US$927 million), 
equivalent to 2% of GDP.132 In 2012, the insurance market recorded an annual increase of 16%, 
substantially greater than the growth of 6% in 2011. Over the period 2008-2012 personal 
insurance was the most dynamic segment, with an average annual rate of growth of 28%. 
Table 4.8 details the premium income of th e insurance industry by market segment. 
4.143.  In 2012, compulsory insurance generated 31% of the industry's premiums, while personal 
and general insurance contributed 20% and 49%, respectively. The motor vehicle insurance 
branch by itself generated 25% of total premiums in 2012, a figure which rises to 36% if compulsory insurance is excluded from the total. Other important branches are fire (15% of total 
premiums), life (12%) and accidents and health (8%).
133 
                                               
130 This is insurance that can be issued without a prior risk analysis, is standardized and can be 
mass-marketed through various outlets such as banks and supermarkets. 
131 Compulsory insurance can be provided by private companies subjec t to authorization. 
132 SUGESE online information, viewed at: http://www.sugese.fi.cr . 
133 Figures supplied by SUGESE. WT/TPR/S/286 • Costa Rica 
 
- 120 - 
 
  Table 4.8 Direct insurance market premiums, 2008-2012 
Direct insurance market premiums, 2008-2012 
(₡ million) 
 2008 2009  2010  2011 2012  
Compulsory 112,502.4 95,528.2  116,335.5  128,002.3 144,717.1  
Personal 43,644.4 50,602.7  51,151.5  69,323.9 93,937.7  
General 180,218.3 207,691.9  210,263.2  203,864.3 227,501.1  
Total 336,365.2 353,822.8  377,750.2  401,190.6 466,155.9  
Source: WTO Secretariat, base d on SUGESE information. 
4.144.  Market share, measured by income from direct premiums, continues to be concentrated in 
the INS, which at the end of 2012 held 92% of total income. Nevertheless, it is possible to observe a gradual diversification of market participants. Prominent among the private insurers are ASSA 
with a 3.3% share and MAPFRE with 2%. If compul sory insurance is excluded, the market share of 
the private companies increases to 11.4%. By cate gory of insurance, INS's share of the general 
insurance market amounts to 88.6%, followed by ASSA (4.8%) and MAPFRE (2.9%). In the 
personal insurance segment, the INS has 82.2%, far ahead of Pan American with 5%.
134 
4.145.  Market opening has also had an impact on the intermediation segment, which has recorded 
significant growth among all types of insurance intermediaries, with the exception of agency 
companies, which are showing a tendency to conv ert into brokerages. Within the intermediation 
segment, brokerage has been the most dynamic activity. 
4.146.  The industry's assets grew by 11% in 2012 to reach ₡1,484,493.9 million 
(US$2,951 million), of which 68% corresponds to investments in financial instruments. 
The insurers' investment portfolios consist mostly of securities issued by the Government 
of Costa Rica and the BCCR (around 72%), followe d by commercial bank bonds, private issuer 
bonds and holdings in investment funds. 
4.5.3.3.2  Legal framework 
4.147.  Law No. 8653 of 1 August 2008 establishes the legal framework for the authorization, 
regulation, supervision and operation of insurance, reinsurance, insurance intermediation and 
auxiliary services activities.135 The Law modernizes and strengthens the INS, so that it can operate 
in a competitive market, reforms the Law on Insurance Monopoly and the National Insurance Institute (No. 12 of 30 October 1924), among others, and repeals the Law Reorganizing the National Insurance Institute (No. 33 of 26 December 1936). In addition, since 2008, other laws 
and regulations have been adopted to make the li beralization of the sector effective (Table 4.9). 
4.148.  The most important institutional change introduced by Law No. 8653 was the creation of 
the General Supervisory Authority for Insurance (S UGESE), as a decentralized agency attached to 
the BCCR, responsible for overseeing the proper f unctioning and stability of the insurance market. 
Its functions include the authorization, supervision and regulation of the natural and legal persons involved in the provision of insurance, reinsurance, insurance intermediation and auxiliary 
services, together with the promotion of co mpetition in these segments of the market. 
SUGESE functions under the direction of CONA SSIF as an operationally independent body. 
                                               
134 SUGESE online information. Viewed at: http://www.sugese.fi.cr . 
135 Law No. 8653 excludes from its scope the compulsory social security systems administered by 
the Costa Rican Social Security Fund (CCSS), the specia l pension regimes created by law, and the compulsory 
mutual policy administered by the National  Teachers Union Life Insurance Company. WT/TPR/S/286 • Costa Rica 
 
- 121 - 
 
  Table 4.9 Main laws and regulations governing the insurance market 
Main laws and regulations governing the insurance market 
Laws Date of entry into force 
Law Regulating the Insurance Market, No. 8653 7 August 2008 
Law Regulating the Insurance Contract, No. 8956 12 September 2011 
Sectoral regulations Date of entry into force 
Regulations on Authorizations , Registrations and Operating 
Requirements for Entities Superv ised by the General Supervisory 
Authority for Insurance (SUGESE 01-08 Agreement) 24 September 2008 
Chart of Accounts of Insura nce and Reinsurance Entities 1 January 2010 
Regulations on the Solvency of Insurance and Reinsurance Entities 1 April 2010 
Regulations on the Marketing of Insurance 9 November 2010 
Regulations on Compulsory Insurance Operating Requirements 22 December 2010 
Supervisory Authority Decision SGS-A-008-2010, Arrangements for 
agency companies requesting authorization to set up as insurance 
brokerage companies 19 October 2010 
Source: SUGESE. 
4.149.  Under Law No. 8653, to engage in insurance or reinsurance it is essential to obtain 
an administrative authorization from SUGESE. Insurance activities, in the general, personal and 
mixed categories, can be carried on by: (i) enterprises established in Costa Rica as public limited companies exclusively for the purpose of engaging in insurance; (ii) insurance entities established 
abroad but able to operate in Costa Rica through branches under Article 226 of the Commercial 
Code
136; and (iii) insurance cooperatives whose sole pu rpose is to engage in insurance activities 
with their members.137 Law No. 8653 also provides for the registration of representative offices 
under the regulatory guidelines laid down by CO NASSIF, although this does not authorize them 
to offer insurance to the public or conduct insurance business on the national territory. 
4.150.  The State engages in insurance through the INS and the limited companies established 
between public banks and the INS. Following th e reforms introduced by Law No. 8653, the INS 
is authorized to establish or to acquire equity holdings in public limited companies and commercial 
entities. Likewise, it can establish joint ventures with public or private institutions in the country or abroad for engaging in insurance and reinsurance activities. Law No. 8653 guaranteed the 
State monopoly on occupational risk and compulsory motor vehicle insurance up 
until 31 December 2010; however, an action for unconstitutionality brought in December 2010 delayed until November 2012 the possibility of private insurance entities applying to SUGESE for administrative authorization to sell these po licies. At the end of May 2013, no company had 
requested authorization to operate compulsory insurance. The Central Government and State 
public sector institutions must, in principle, take out the insurance necessary to carry out their activities with the INS or, alternatively, with the insurance entities authorized by SUGESE to 
operate in Costa Rica, provided that the INS offers  conditions that are more favourable in terms 
of premiums, excess, coverage and exclusions and the quality of the financial and reinsurance backing (Article 8 of Law No. 8653 of 7 August 2008). 
4.151.  The minimum requirements for establishing an insurance company or a branch of a foreign 
insurer are laid down in Law No. 8653 (Articles 2, 7 and 11) and in the Regulations (Annex 2) on authorizations, registrations and operating requirements for entities supervised by the 
General Supervisory Authority for Insurance. These requirements are the same for domestic and 
foreign investors. The procedure for obtaining authorization lasts approximately one year. 
There are no restrictions on the participation of foreign capital in insurance companies established 
                                               
136 Article 226 of the Commercial Code establishes the legal requirements that must be met by foreign 
companies in order to operate in Co sta Rica, among them, the obligation to appoint and maintain a universal 
agent for the business of the branch and to record in the authorizing instrument the purpose of the branch 
and the capital assigned to it, together with an expr ess statement to the effect that the representative 
and the branch are subject to the laws and courts of Co sta Rica in respect of all transactions or contracts 
which they conclude or which have to be implemen ted in the country and expressly renounce the laws 
of their domicile. 
137 Article 7 of Law No. 8653 of 1 August 2008. WT/TPR/S/286 • Costa Rica 
 
- 122 - 
 
  in Costa Rica. There are no limits on the number of  foreign insurers or their branches that can be 
established in Costa Rica, provided that they fulfil the legal and regulatory requirements, or on the type of services they can offer within the approved category, provided that they are among 
the activities envisaged by Law No. 8653 (Article 2). 
4.152.  Insurance and reinsurance entities may co mmence operations once they have subscribed 
and paid up the minimum capital, which amounts to 3 million development units (UD
138) for 
providers of personal and general insurance, 7 million UD for mixed insurers, and 10 million UD 
in the case of reinsurers. 
4.153.  Insurance and reinsurance entities must regi ster with SUGESE the types of policy they sell 
and the technical note for the product. Within 18 months of commencing operations, they must obtain a risk rating from a rating agency reco gnized by the General Supervisory Authority for 
Securities (SUGEVAL). In the case of reinsura nce entities, the rating must be issued by 
an international rating agency. The Law Regulating the Insurance Contract (No. 8956 of 17 June 2011) regulates the content and coverage of insurance contracts and defines the kinds 
of policy and their minimum content. 
4.154.  Commercial insurance premiums and tariffs are fixed freely by the insurers; however, 
SUGESE may require the insurance entity to revise premiums that are insufficient to cover the 
obligations and costs which the policies entail or are inappropriate or discriminatory.
139 
Only compulsory insurance premium tariffs have to  be approved by SUGESE, on the basis, among 
other factors, of the soundness of the product. 
4.155.  Under Law No. 8653 (Article 16), natural and legal persons established in Costa Rica may 
insure (in the cross-border supply mode) with foreign insurance entities providing intermediation 
and auxiliary services against risks expressly stipul ated in an international treaty in force between 
Costa Rica and the country of origin of the en tities that provide the services in question. 
The authorities have confirmed that this provision would apply to any agreement negotiated under 
the aegis of the WTO. Insurance service providers of a country with which Costa Rica has entered 
into commitments to permit cross-border supply by signing a valid international treaty must 
register with SUGESE before providing services in the national territory; the policies for the 
insurance products they sell must also be registered with SUGESE.140 However, the registration 
of the insurance service providers does not imply authorization to offer their services to the public or to do business in Costa Rica.
141 
4.156.  In addition, it is permissible to sign rein surance, retrocession, intermediation and auxiliary 
services contracts in the cross-border supply mode in any circumstances, irrespective of whether or not there are specific commitments in an intern ational treaty. If these services are contracted 
for directly with the insurance entities, registration is not necessary; the insurance entities must 
provide SUGESE with details of the information required for reinsurance and retrocession operations. Persons established in Costa Rica who take out insurance with foreign insurance 
entities that are neither authorized nor registered in the country do so for their own account and 
risk, since Costa Rican legislation does not offer any kind of guarantee or supervision of such contracts. 
4.157.  CONASSIF regulates the capital adequacy an d solvency rules and requirements with which 
insurers and reinsurers must comply; it also determines the statutory provisions and reserve 
requirements, together with the asset investment regime, the rules for its evaluation and the warning levels that trigger corrective measures. Entities are in compliance with the capital 
adequacy and solvency regime if their statut ory provisions and reserves are 100% backed 
by eligible assets. 
                                               
138 The UD is a unit of account which incorporates, on a monthly basis, the changes in the price index 
for the immediately preceding month. 
139 Article 25(h) and (k), and Article 45 of Law No. 8653. 
140 Article 52 of the Regulations on Authorizations, Re gistrations and Operating Re quirements of Entities 
Supervised by the General Supervisory Authority for Insurance. Online information, viewed at: 
http://www.sugese.fi.cr/marco_legal/reglamentos/mercado%20de%20seguros/reglamento_autorizaciones_reg
istros_requisitos_funcionamiento.pdf . 
141 Article 3 of Law No. 8653 of 1 August 2008. WT/TPR/S/286 • Costa Rica 
 
- 123 - 
 
  4.5.4  Transport 
4.5.4.1  Overview 4.158.  Where transport infrastructure for foreign trade is concerned, Costa Rica has a network of 
highways that connect with its neighbours (Panama and Nicaragua), four international airports 
(of which two are receiving international flights in 2013), and three major commercial ports that 
handle international cargo. 
4.159.  Most merchandise exports are transported by sea. In 2012, 75% of goods exports 
by volume and 43% by value were transported by this means. The main export products 
transported by sea are bananas and pineapples , while the main export markets served are 
North America, China and the European Union. Air transport is used mainly for high-value freight (Chart 4.4). 
Chart 4.4 Modes of transport for exports in 2012 
 
Volume in tonnes and % Value in US$ million and %
Air
44,688; 1%
Sea
6,006,924; 75%Not available
151,565; 2%Land
1,755,403; 22%
Air
4,022; 36%
Sea
4,878; 43%Not available
371; 3%Land
2,072; 18%
 
 
Source: PROCOMER Statistics Portal. 
4.160.  According to the Global Competitiveness Report 2012-2013142, the inadequate provision 
of transport infrastructure is one of the most problematic factors for doing business in Costa Rica. 
This report is especially critical about the quality of Costa Rica's roads and ports.143 
In addition, an Inter-American Development Bank (IDB) study estimates that the total times spent by vessels in port and waiting outside the dock s are greater in Costa Rica than the average 
for Central American ports.
144 
4.161.  The National Development Plan 2011-2014 (PND) recognizes that investment in transport 
infrastructure is a key factor in improving national competitiveness and proposes measures for confronting the transport problem. Among the goals established by the PND 
for the port sector are completion of the construction of the Puerto Moín container terminal, 
an eight-hour (40%) reduction in the waiting time in Limón-Moín and the modernization of Puerto Caldera with the construction of a bulk cargo terminal and jetty. These objectives 
were backed by a series of commitments undertaken by the Government in 2013.
145 
                                               
142 World Economic Forum (2012a). 
143 The World Economic Forum ranks the country 140th out of 144 countries examined in terms of the 
quality of the port infrastructure, 131st in terms of the quality of th e highway infrastructure, and 60th in terms 
of the quality of the air transport infrastructure. 
144 Inter-American Development Bank (2013). 
145 On 20 March 2013, Congress authorized the Executive to sign a loan agreement for a maximum 
of US$55 million for the purpose of modernizing the port infrastructure at Moín. It is intended that the funds WT/TPR/S/286 • Costa Rica 
 
- 124 - 
 
  4.162.   For the airports, the PND calls for the construction of a new taxiway, the reconstruction 
of the remote apron and the relocation of the Se lf-Managed Aero-industrial Services Cooperative 
(COOPESA) at the Juan Santamaría Airport near Sa n José. These projects have been backed with 
public funds. Moreover, the possibility of building  a new international airport on the Pacific coast 
near Puntarenas to promote tourism is being assessed and a building site is currently 
being identified.146 
4.163.  Where road transport is concerned, the PND provides for the development of highway 
building and improvement projects within the framework of the International 
Network of Mesoamerican Highways (RICAM).147 The RICAM project was inaugurated in 2002 
to strengthen the highway infrastructure within and between the countries of Mesoamerica by connecting the populations, production area s and main distribution and shipment points. 
RICAM's objective is the modernization of more than 13,000 km of highways so as to create 
two main corridors (Pacific and Atlantic), a tourist corridor, several inter-ocean corridors and a series of branch roads and supplementary connections. In preparation for the RICAM 
project, Costa Rica intends to improve the Cañas- Liberia and San José-San Ramón links. Under the 
PND it is also planned to allocate external resources to the construction of urban roadworks and to build 80 bridges for the national highway network, as well as to use funds from the national 
budget to maintain the cantonal road system. 
4.164.  Costa Rica did not assume any commitments related with transport services under 
the GATS. Costa Rica included exemptions to MFN treatment with respect to passenger and freight land transport services.
148 
4.5.4.2  Maritime transport and ports 
4.165.  There have not been any major changes in  the principal laws and regulations governing 
maritime transport activities in Costa Rica since 2007. These laws are the National Flag Vessel 
Registration Law (No. 12 of 22 October 1941) and the Law on Coastal Shipping Services 
of the Republic (No. 2220 of 20 June 1958). In addition, since the last review, Costa Rica has signed several international agreements related with maritime transport: the 
International Convention for the Safety of Life at Sea, its Protocols and amendments 
(Law No. 8708 of 18 December 2008) and the Inte rnational Convention on Tonnage Measurement 
of Ships (Law No. 8713 of 13 February 2009). 
4.166.  Under the legislation, only Costa Rican citizens, national public bodies and companies 
formed and domiciled in Costa Rica, and repres entatives of shipping companies may register 
vessels in the Costa Rican Shipping Register. An exception to this rule is made for foreigners and foreign companies wishing to register vessels under 50 tonnes exclusively for private use.
149 
The authorities have pointed out that Costa Rica does not have a merchant fleet. 
4.167.  Natural and legal persons established abroad who own foreign-registered vessels located 
in Costa Rica are required to appoint and maintain an agent or legal representative in the country 
to liaise with the competent authorities in matters relating to the vessel.150 
                                                                                                                                               
will be used to build a new mooring berth, repair the jetty, relocate the railway line and build a six-hectare 
container yard (Law No. 9127 of 20 March 2013). In February 2013, the Executive ordered work to start on the construction of a new 180 metre-long bulk cargo wharf in Caldera, which will be used for unloading grain, fertilizer and industrial inputs. It is estimated that the project will cost US$34 million and be completed in 18 months. Online information, viewed at: http://www.nacion.com/2013-02-26/ElPais/piedras-y-pilotes-
sacaran-a-moin-y-caldera--del-atraso.aspx . 
146 Online information, viewed at: 
http://www.centralamericadata.com/es /article/main/Costa_Rica_Futuro_inci erto_de_la_infraestructura_aeropo
rtuaria?u=6fd0b654f042c017728c74436b030c55&s=n&e=2&mid=[MESSAGEID] . 
147 Mesoamerica Project online information, viewed at: http://www.proyect omesoamerica.org . 
148 WTO documents GATS/SC/22 of 15 April 1994 and GATS/EL/22 of 15 April 1994. 
149 Regulations on the Costa Rican Shipping Register, Executive Decree No. 12568 of 30 April 1981. 
150 National Flag Vessel Registration  Law, No. 12 of 22 October 1941. WT/TPR/S/286 • Costa Rica 
 
- 125 - 
 
  4.168.   Costa Rica maintains the following rest rictions on cabotage services and the use of 
national vessels in international traffic (see also Chapter 2): 
 trade between Costa Rican ports must be undertaken exclusively in ships registered 
in Costa Rica (apart from exceptions made in existing or future trade agreements with 
foreign countries) 151; 
 in the case of national vessels used in international traffic, at least 10% of the crew 
must be Costa Rican citizens, provided it is possible to obtain that number of trained 
crew members in the country and provided the itinerary of the vessels in question 
includes Costa Rican ports. 
4.169.  The rates charged by shipping companies (domestic and foreign) are not subject to 
price controls. 
4.170.  The authorities have pointed out that ther e are no institutional cargo allocation systems 
or cargo-sharing agreements with other countries. Nor are there any restrictions on the supply of maritime transport, except where companies fail to comply with the registration and 
operating requirements. 
4.171.  The ports on the Atlantic coast are supervised by the Atlantic Coast Port Administration 
and Economic Development Board (JAPDEVA). They include the Limón-Moín port complex, 
the most important in the country (Table 4.10). According to the Economic Commission 
for Latin America and the Caribbean (ECLAC), in the first half of 2012, the Limón-Moín port complex ranked tenth in Latin America and the Caribbean and third in Central America in terms of container movements by port.
152 
4.172.  The ports on the Pacific seaboard are supervised by the Costa Rican Pacific Ports Institute 
(INCOP). Puerto Caldera is the principal port on the Pacific and the only one for grain imports. Other smaller ports under INCOP supervision are: Puerto Morales (used for bulk and liquid cargo), 
Puntarenas (cruise ships), Quepos (yachts, small boats and sports craft) and Puerto de Golfito 
(cargo, liquid bulk and dry dock services). 
Table 4.10 Total cargo traffic, 2007-2012 
Total cargo traffic (in thousands of metric tonnes) 
 2007 2008  2009  2010  2011 2012  
Limón-Moín 9,921 10,111  8,966  9,941  10,021 10,326  
Caldera 3,324 3,449  2,950  3,314  3,893 3,941  
Punta Morales 355 262 174 212 116 119 
Puntarenas 1 2  2 2 3 1  
Total 13,602 13,823  12,092  13,468  14,032 14,387  
Source: WTO Secretariat, based on information from JAPDEVA and INCOP. 
4.173.  The Public Services Regulatory Author ity (ARESEP) sets the prices and charges for 
port services in the national ports, including th e services provided by the ports operating under 
concessions. ARESEP oversees compliance with the rules on the quality and optimal provision 
of these services. The port services subject to re gulation by ARESEP include the services provided 
for the vessels themselves (navigation aids, towing, lighter age, stay in port, mooring and unmooring, supply of drinking water and wharf clea ning), cargo services (wharf age, storage, 
loading and unloading, stowing and unstaring, transfer of containers, movement of containers, 
consolidation and deconsolidation, reception and forwarding of containers) and related services (equipment rental and passenger vessels). 
                                               
151 Regulations implementing the Law on Coas tal Shipping Services of the Republic. 
152 ECLAC (2012). WT/TPR/S/286 • Costa Rica 
 
- 126 - 
 
  4.174.  Under Costa Rica's Political Constitution (Article 121.14), docks may not be definitively 
removed from State ownership or control. However, it is possible to grant concessions for water transport services and for the supply of maritime services in the ports.
153 
4.175.  In August 2006, the holder of the concession for the management and operation 
of the General Freight Terminal of Puerto Caldera, Consorcio Portuario de Caldera II (now called 
SPC), commenced operations, as did the concessionaire Consorcio Portuario de Caldera I (now called SPGC), which is responsible for the construction of a bulk cargo wharf and its 
subsequent operation. These concessions have significantly increased the port's 
efficiency: according to data provided by th e authorities, in 2006 INCOP was moving about 
400 tonnes of cargo per hour, whereas in 2012 the concessionaires increased the transit rate to about 600 tonnes per hour. The number of vessels served also rose from 514 in 2006 to 625 
in 2012 and the number of containers moved increased by 59% during the same period.
154 
4.176.  In August 2011, the Executive granted APM Terminals a 33-year concession worth 
US$956 million for the construction of a new port for container ships in Moín. This contract fits 
within the requirements of the Master Plan for the Limón-Moín Port Complex, which recommends 
gradually separating the functions of the ports so that Limón specializes in tourism activities and Moín in cargo handling. In March 2012, the Office of the Comptroller General endorsed 
the contract. The first part of the project is due to  start up in the first quarter of 2016 and will be 
able to service post-Panamax vessels with the capacity for moving up to 8,500 containers. 
4.5.4.3  Air transport and airports 4.177.  The General Law on Civil Aviation (Law No. 5150 of 14 May 1973) continues to govern 
the conditions of civil aviation operations. The main change in the legal framework during 
the review period was to allow foreigners to take a majority stake (up to 100%) in the equity and actually control Costa Rican companies with operating certificates for the transport of passengers, 
freight and mail by air. This change was due to a decision of the Supreme Court of Justice 
concerning the unconstitutionality of certain provisions of the General Law on Civil Aviation and the Regulations on the Granting of Operating Certificates, which had prevented such 
majority participation.
155 
4.178.  The Civil Aviation Technical Council and the Directorate-General of Civil Aviation (DGAC), 
under the Ministry of Public Works and Transport, continue to be responsible for the regulation and 
control of civil aviation in Costa Rica. The Directorate-General of Civil Aviation implements 
the resolutions of the Civil Aviation Technical Council and has decision-making powers over 
the granting of licences and certificates of airw orthiness and air traffic; it also supervises and 
manages domestic aerodromes and airports and oversees the Costa Rican Aeronautical Register. 
4.179.  In 2012 there were approximately 1.6 million international passenger arrivals156 
and 150,904 passenger movements (arrivals and departures) on domestic flights.157 Costa Rica 
has four international airports and in practice three of them receive international flights. 
Juan Santamaría International Airport, near San José, is the country's main airport and has direct 
transport links with numerous cities in the Americas and with Frankfurt and Madrid in Europe.158 
Daniel Oduber International Airport is located in Liberia, the tourist area of Guanacaste province, and most of its scheduled passenger flights serve various cities in the United States
159, as well as 
destinations in Canada (Toronto), Panama (P anama City) and El Salvador (San Salvador). 
                                               
153 Law No. 7593 stipulates that to be a provider of public services it is necessary to obtain a concession 
or permit. The Executive and the Ministry of Public Works and Transport grant concessions for public works 
with public services. In addition to the Executive, JAPVEDA is also authorized to grant port services 
concessions. 
154 INCOP statistics, viewed online at: http://www.incop.go.cr/form ato_tradicional.php?p=129 . 
155 Articles 156.3 and 179 of the General Law on Civil Aviation and Article 5 of the Regulations on the 
Granting of Operating Certificates were annulled by Decision of the Constitutional Chamber of the Supreme 
Court of Justice No. 11156-2007 of 1 August 2007. 
156 Online information posted by the Costa Rican Tourism Institute, viewed at: 
http://www.visitcostarica.com/ict/backoffi ce/treeDoc/files/Anuario_de_Turismo_2012.pdf . 
157 DGAC information. 
158 DGAC information, viewed at: http://www.dgac.go.cr/trans porte_aereo/index.html . 
159 Miami, Dallas, Fort Worth, Atla nta, Minneapolis, Denver, St. Loui s, New York (JFK and Newark), 
Houston, Chicago and Charlotte. WT/TPR/S/286 • Costa Rica 
 
- 127 - 
 
  San José's second airport, Tobías Bolaños, receives about 1% of international flights. 
Limón International Airport (near the Caribbean coast) operates, in practice, as a provider of domestic air services, together with another 26 State aerodromes mostly located along the Pacific coast.
160 The Costa Rican airlines Nature Air and SANSA Regional (see below) offer 
scheduled passenger flights between these airports. 
4.180.  Costa Rica's Political Constitution (Article 121) stipulates that national airports in service 
may not be sold, rented or encumbered, or in any way removed from State ownership and 
control.161 Nevertheless, the international airports and the services provided there can be granted 
on concession under the procedures of the General Law on the Concession of Public Works involving Public Services.
162 The General Law on Civil Aviation authorizes private airports, which 
may have a runway up to 1,000 metres long. 
4.181.  In September 2000, the concession for the operation, maintenance and reconditioning 
of Juan Santamaría International Airport was granted to the group Aeris Holding Costa Rica S.A. for a period of 20 years. Likewise, in 2009, CORIPOER S.A. was given a concession contract 
to build, operate and maintain the passenger terminal (among other works) at 
Daniel Oduber Airport. The authorities have noted that both companies are foreign-owned with a branch in Costa Rica. The country's other airports and aerodromes are operated and maintained 
by the DGAC. 
4.182.  As indicated in Costa Rica's previous TPR, the DGAC's powers include control of auxiliary 
air navigation services. When it is in the public interest, the Civil Aviation Technical Council may act on behalf of the Government to contract directly for the supply of such services from 
technically competent entities or grant permits for the same purpose to non-profit 
Costa Rican enterprises. 
4.183.  The authorities have pointed out that there is no legislation on stopover services. 
Nevertheless, companies that provide these services must be certified and authorized to offer 
them. Foreign enterprises are entitled to certification on the same conditions as domestic ones and, in fact, several foreign companies are operating. 
4.184.  There are three airlines: Líneas Aéreas Costarricenses Sociedad Anónima (LACSA), SANSA 
R e g i o n a l  a n d  N a t u r e  A i r .  E a c h  o f  t h e m  h a s  a n  operating certificate to offer domestic and 
international passenger, freight and mail servic es. LACSA and SANSA form part of the TACA 
Group. In 2009, Avianca and TACA merged to form a new enterprise or holding. The authorities 
do not have any information concerning the ownership of the equity in these airlines.
 
4.185.  Costa Rica has pursued its policy of strengthening its international air transport links 
through bilateral air services agreements ( ASAs) and memoranda of understanding in force 
with 23 other countries, as at end May 2013. During the period under review, new bilateral 
agreements between Costa Rica and Canada and betw een Costa Rica and Brazil entered into force. 
Costa Rica has signed open skies agreements with Belgium, Colombia, Netherlands, 
United Arab Emirates, Qatar and Turkey and these are in process of being ratified (Table 4.11). 
The Air Transport Agreement among the Memb er States and Associate Members of the 
Association of Caribbean States (ACS) is awai ting approval in the Legislative Assembly. 
The bilateral agreement and memorandum of understanding regime is relatively open since almost 
all the instruments grant at least fifth freedom rights between the parties. 
4.186.  Costa Rica assumed specific commitments regarding computer reservation systems under 
the GATS. The SABRE and AMADEUS GDS systems ar e operating in Costa Rica. The authorities 
have pointed out that there are no restrictions of any kind on the operation 
of GDS (Global Distribution System)/CRS (C omputerized Reservation System) reservation 
systems. Although there is no legislation regulati ng the use of reservation systems or the relations 
between the providers of these services and the travel agencies or airlines, Costa Rica is a 
contracting party to the ICAO Code of Conduct for the regulation and operation of computer 
                                               
160 A list of these aerodromes can be viewed on the DGAC website at: 
http://www.dgac.go.cr/aeropuertos/mapaaerodromos/index.html . 
161 According to the authorities, this provision applies both to the international airports and 
to State aerodromes. 
162 Law No. 7762 of 2 April 1998. WT/TPR/S/286 • Costa Rica 
 
- 128 - 
 
  reservation systems within its territory, which prevents discrimination in the display 
of flight reservations. 
4.187.  Costa Rica does not impose restrictions on the sale or marketing of airline tickets, whether 
on the Internet or over the counter. There is no obligation to repair or maintain domestic aircraft 
in Costa Rica. 
Table 4.11 Bilateral air services agreem ents and other instruments in force 
Memoranda of understanding ASAs  
Argentina 
Paraguay Peru Cuba Dominican Republic Ecuador Uruguay Germany Belgium Colombia China United Kingdom Panama Venezuela Qatar Turkey United Arab Emirates Canada (open sk ies agreement) 
United States (open skies agreement) 
Chile (open skies agreement) 
Brazil (open skies agreement) 
Mexico 
Spain 
Netherlands 
Source: DGAC information, viewed at: 
http://www.dgac.go.cr/transporte_aereo/Bilaterales/BILATERALES.html. 
4.5.5  Tourism 
4.188.  The Costa Rican tourism sector is overseen by the Costa Rican Tourism Institute (ICT), 
whose main objectives are to expand tourism by encouraging foreigners to visit the country, 
promote the construction and maintenance of tourist accommodation and recreational facilities for 
tourists, conduct publicity campaigns abroad, and promote and oversee the private tourist industry. 
4.189.  The legal framework governing the sector  remains basically the same as at the time 
of Costa Rica's last TPR and includes the Law on the Organization of the Costa Rican Tourism Institute (ICT), No. 1917 of 30 July 1955; the Law Regulating Travel Agencies, No. 5339 
of 23 August 1973; the Law on Tourism Developm ent Incentives, No. 6990 of 15 July 1985 and its 
implementing regulations (Executive Decree No. 24863-H-TUR of 5 December 1995) and the 
Decree regulating the rental of vehicles to tourists and foreigners (Executive Decree No. 25148 of 20 March 1996). 
4.190.  The principal legal change during the period under review was the enactment of the 
Law on the Promotion of Rural Community Tourism, No. 8724 of 17 July 2009, which is intended to encourage tourism in rural communities by promoting family and community-based enterprises, 
so that the inhabitants of rural areas can administer the local tourist destinations, manage their 
own development and participate in the planning and utilization of the natural resources. Law No. 8724 declares rural community tourism to be  in the public interest as a socio-economic 
and strategic activity essential for the progress of the rural communities. Moreover, it authorizes 
government services, State and non-State entities, public enterprises and municipalities to promote activities in support of its development. 
4.191.  Other laws added to the sector's legal framework during the review period are the 
Law on Incentives for Tourism-Sector Corporate Social Responsibility, No. 8811 of 12 of May 2010, 
which regulates the application of corporate social responsibility certification in the tourism industry, and the Law on Strengthening the Development of the Domestic Tourism Industry, 
No. 8694 of 11 December 2008, which establishes a tax of US$15 on everyone who enters 
the national territory by air and purchased his or her ticket abroad. The funds collected are WT/TPR/S/286 • Costa Rica 
 
- 129 - 
 
  earmarked for the promotion, marketing, planni ng and sustainable development of Costa Rica 
as a tourist destination. 
4.192.  The commitments undertaken by Costa Rica in tourism and travel-related services under 
the GATS are fairly limited and do not reflect the openness that exists in practice. Most of 
the commitments consist in binding the non-application of limitations on market access and 
national treatment in mode 2 (consumption abroad) for the subsectors in question. With respect to mode 3 commitments, which could be the most significant from the economic point of view, 
Costa Rica did not bind market access or national treatment for a series of tourism services such 
as hotels and other lodging services, the rental and leasing of private vehicles without operator, boat rental, and computer reservation services. Co sta Rica's Schedule of Commitments establishes 
conditions which must be fulfilled by tourist enterprises providing catering services wishing 
to establish a commercial presence and limits foreign ownership to 49% of the equity in travel 
agencies and tour operators services established in Costa Rica. Moreover, its Schedule of Commitments states that the right to provide tourist guide services through commercial 
presence is reserved to nationals.
163 The authorities have pointed out that there are few 
restrictions with respect to foreign investment in tourism services and that the limitation of 49% on foreign ownership for travel agencies and tour operators services established in Costa Rica has 
been abolished. Since 2003, resident foreigners have been able to work as tourist guides. 
4.193.  The National Tourism Plan 2010-2016 establishes the vision, model, objectives, strategies, 
targets, and general and specific measures for the national tourism sector.
164 Under this plan, 
the objectives of sectoral policy are focused on three areas: 
 maintaining the tourism industry as one of the mainsprings of the national economy 
through the generation of direct and indirect benefits for human development; 
 making tourism an activity with high quality standards, a wide range of competitive 
products and a high impact on local well-being; 
 positioning tourism as a vehicle for the su stainable development of the country and 
human well-being which promotes opportunities for direct local participation. 
4.194.  During the period under review, the number of visitors from abroad grew at an average 
annual rate of 3.6% (Table 4.12). This rising tr end was only interrupted in 2009 when the number 
of visitors fell by 8% with respect to the previous year due to the impact of the global economic crisis. In 2012, the number of visitors from abroad was 18.4% greater than the number recorded 
in 2007. 
4.195.  The income generated by tourism followed  a similar trend. Altogether, between 2007 and 
2012 this income grew by 15.1%, despite falling by  16.9% in the year 2009. The data show that 
the tourism industry lost relative importance over the review period, since it went from 
representing 7.3% of GDP in 2007 to representing 4.9% in 2012 (Table 4.12). The income earned from tourism sector activities accounted, on average, for 14.5% of total exports of goods 
and services. 
Table 4.12 Visitors and income from tourism, 2007-2012 
 2007 2008  2009  2010  2011 2012  
Number of visitors 1,979,789 2,089,174  1,922,579  2,099,829  2,192,059 2,343,213  
Income from tourism 
(US$ million) 1,927.40 2.174.10  1,805.80  1,857.60  1,987.20 2,219.20  
Income from tourism as a 
percentage of GDP 7.3% 7.3%  6.1%  5.1%  4.8% 4.9%  
Income from tourism as a 
percentage of exports of 
goods and services 14.9% 15.9%  14.8%  13.5%  12.8% 13.0%  
Source: WTO Secretariat, based on ICT and BCCR statistics. 
                                               
163 WTO document GATS/SC/22 of 15 April 1994. 
164 The National Tourism Plan 2010-2016 can be viewed at: 
http://www.visitcostarica.com/ict/paginas/mo dEst/estudios_estadisticas.asp?ididioma=1 . WT/TPR/S/286 • Costa Rica 
 
- 130 - 
 
  4.196.  The main country of origin of the tourists during the period under review was the 
United States, the source of 39% of the visitors from abroad, followed by Nicaragua with 20% (Chart 4.5). According to the authorities, Costa Rica is seeking to expand and diversify its market to attract more tourists of other origins, including from South America, Mexico and other 
European markets, such as Belgium and Switzerland. 
Chart 4.5 Origin of the visitors, 2007-2012 
 
North America
48%
(of which the 
United States 
39%)
Central America
30%
(of which 
Nicaragua 20%)Europe
13%Other
3%South 
America
6%
 
 
Source: WTO Secretariat, based on  ICT information, viewed at: 
http://www.canatur.org/images/Anuario_2012.pdf . 
4.197.  Hotel occupancy fell from an average of 59.9% during 2007 to 54.3% in 2012, as a result 
of an increase in the supply of tourist accommodation and houses and flats for rent. The monthly 
details for occupancy show that on average over the period under review the month of lowest 
occupancy was the month of September (42.5%), whereas the highest percentage occupancy was observed in February, with an average of 74.9%. 
4.198.  The Law on Tourism Development Incentives (No. 6990) and the Law on the Promotion 
of Rural Community Tourism (No. 8724) establish a number of concessions for tourism enterprises 
(Table 4.13). One study commissioned by the ICT in 2009 concluded that the effect of the fiscal cost of the exemptions is more than compensated by their beneficial impact on investment. 
According to its analysis, a permanent increase in exemptions of 10% produces increases 
of around 0.07% in consumption and 0.65% in gross capital formation, a fall of 0.15 percentage points in the interest rate, a fall of 1.84% in the consumer price index and an increase of 0.33% 
in production.
165 
Table 4.13 Incentives for the tourism industry, 2013 
Activity Incentive 
Hotel services Exemption from all taxes (except sales tax) and surtaxes applicable to the importation 
or local purchase of articles indispensa ble for the functioning or equipping of 
businesses, as well as fo r the construction, extension or renovation of the 
corresponding building. 
Granting of the municipal licences that busi nesses require to deve lop their activities. 
International and 
domestic transport 
of tourists by air Supply of fuel at a competitive price no higher than the average established on the 
international market. 
Exemption from all taxes (except sales tax) an d surtaxes applicable to the importation 
or local purchase of spare parts for aircraft. 
                                               
165 Economics Research Institute, Costa Rica University (2009). WT/TPR/S/286 • Costa Rica 
 
- 131 - 
 
  Activity Incentive 
Transport of tourists 
by water Exemption from all taxes (except sales tax) and surtaxes (except tariffs) applicable 
to the importation or local purchase of goods indispensable for the construction, 
extension or renovation of piers and tour ist embarkation and di sembarkation points, 
as well as for the construction and main tenance of marinas, spas and aquariums 
intended for tourism. 
Exemption from all taxes (except sales tax) and surtaxes (except tariffs) applicable 
to the importation or local purchase of wa tercraft intended exclusively for tourist 
passenger transport. 
Travel agencies Exemption from all taxes (except sales tax) and surtaxes (except tariffs) on 
the importation of public-t ransport type vehicles wi th a minimum capacity of 
15 persons. 
Rental of motor vehicles 
to tourists Exemption from 50% of the total amount resulting from the application of the 
taxes in force (except sales tax) on the importation of motor vehicles intended 
exclusively for rental to tourists. 
Rural Community 
Tourism Enterprises Exemption from all taxes and surtaxes applicab le to the importation or local purchase 
of outboard engines, when the applicant resides in an area bordering on navigable 
rivers, lakes or canals or in a coastal area , together with payment of the registration 
fees. 
Exemption from all taxes and surtaxes applicab le to the importation or local purchase 
of four-wheel-drive vehicles or microbuses with a capacity of eight to 12 passengers, 
together with payment of the registration fees. 
Exemption from all taxes and surtaxes applicab le to the importation or local purchase 
of alternative technologies for the treatment of sewage and their components, as well 
as materials and inputs directly incorporat ed in the construction of these plants. 
Source: WTO Secretariat, based on informatio n supplied by the Costa Rican authorities. WT/TPR/S/286 • Costa Rica 
 
- 132 - 
 
  REFERENCES 
Inter-American Development Bank (2013), Diagnóstico sobre el desempeño de los puertos y 
estudio de conectividad portuaria en Belice, Centroamérica y la República Dominicana,  March. 
Viewed at: http://idbdocs.iadb.org/wsdocs/ge tdocument.aspx?docnum=37578164 . 
Central Bank of Costa Rica (BCCR) (2012a), Memoria Anual 2011 . Viewed at: 
http://www.bccr.fi.cr/publicaciones/memoriaanual/Memoria_Anual_2011.pdf . 
BCCR (2012b), Programa Macroeconómico 2013-2014 . Viewed at: 
http://www.bccr.fi.cr/publicacion es/politica_monetari a_inflacion/Programa_Macroeconomico_2013
_14.pdf .  
BCCR (2013), Acceso de las MIPYMES a los servicios financieros a partir de la implementación de 
la Ley 8634 del Sistema de Banca de Desarrollo , April. Viewed at: 
http://www.bccr.fi.cr/publicacion es/sector_real/Informe_Evalu acion_BCCR_al_SBD_abr2013.pdf . 
BCCR (2013), Memoria Anual 2012 . Viewed at: 
http://www.bccr.fi.cr/publicaciones/memoriaanual/Memoria_Anual_2012.pdf . 
Economic Commission for Latin America and the Caribbean (ECLAC) (2011), Centroamérica: 
Estadísticas de Hidrocarburos, 2010 . Viewed at: 
http://www.eclac.org/publicac iones/xml/8/44748/2011-059-
Centroam%C3%A9rica_Hidrocarburos-2010-L.1037.pdf . 
ECLAC (2012), Maritime Bulletin, Transporte Marítimo Internacional 2012. Ajustes, Efectos y las 
Lecciones de la Mitología, November . Viewed at:  
http://www.cepal.org/usi/noticias/noticias/ 2/48872/Boletin_Maritimo_51_diciembre2012.pdf . 
ECLAC (2012), Centroamérica: Estadísticas de Producción del Subsector Eléctrico, 2011 , June. 
Viewed at: http://www.eclac.org/mexico/publicaciones/ xml/6/46906/2012-014-Estad.subs.elect.-
2011-L.1061-alta_res..pdf . 
ECLAC (2012), Panorama de la inserción internacional de América Latina y el Caribe 2011-2012,  
October. Viewed at: http://www.eclac.cl/publicaciones/xml/1/47981/paninsalESP.pdf .  
United Nations Conference on Trad e and Development (UNCTAD) (2004), Strengthening 
Institutions and Capacities in the Area of Competition and Consumer Protection Policies in 
Latin America - Cases of Bolivia, Costa Rica, El Salvador, Honduras, Guatemala, Nicaragua and Peru , P. Brusik, A. M. Álvarez, and P. M. Horna (editors), November. Viewed at: 
http://unctad.org/en/Docs/ditcclp20043_en.pdf . 
CONARROZ (2010), Informe Anual Estadístico . Viewed at: 
http://www.conarroz.com/UserFiles/File/I NFORME_ANUAL_ESTADI STICO_2010-2011.pdf . 
Comptroller-General of the Republic (2012), Memoria Anual 2011, Resumen , May. Viewed at: 
http://documentos.cgr.go.cr/content/dav/ja guar/Documentos/Memoria/2011/Resumen_Mem2011.
pdf. 
Durán, R., Quirós, J.C. & Rojas, M. (2009), Análisis de la Competitividad del Sistema Financiero 
Costarricense , Research paper DEC-AAE-130-2009, Economic Analysis and Advisory Department, 
BCCR, July. Viewed at: http://www.bccr.fi.cr/investigacion eseconomicas/sistemafinanciero/A nalisis_de_la_competitividad_
del_sistema_financiero_costarricense.pdf . 
Food and Agriculture Organization (FAO) (2013), Rice Market Monitor , Volume XVI, Issue No. 1, 
January. Viewed at: http://www.fao.org/docr ep/017/aq144e/aq144e.pdf . 
Costa Rican Electricity Institute (ICE) (2012), Plan de Expansión de la Generación Eléctrica Período 
2012-2024, March. Viewed at: http://www.grupoice.com . WT/TPR/S/286 • Costa Rica 
 
- 133 - 
 
  International Monetary Fund (IMF) (2013), Costa Rica 2012 Article IV Consultation , Country Report 
No. 13/79, March. Viewed at: http://www.imf.org/external/p ubs/ft/scr/2 013/cr1379.pdf . 
Economic Sciences Research Institute, University of Costa Rica (2009), Medición del Impacto de la 
Ley 6990 del Desarrollo Turístico en la Economía Nacional , April. Viewed at: 
http://www.iice.ucr.ac.cr/I NFORME%20FINAL%20ICT.pdf . 
Economic Sciences Research Institute, University of Costa Rica (2013), Análisis sobre el 
Mecanismo actual para la Estimación y Determinación de los Precios del Arroz bajo el Contexto de 
la Cadena de Comercialización , final report for the Ministry of the Economy, Industry and Trade, 
April. Viewed at: http://reventazon.meic.go.cr/informacion/estudios/2013/arroz/informe.pdf .  
Ministry of Science and Technology (MICIT) (2012), Estrategia Nacional de Propiedad Intelectual , 
13 April. Viewed at: http://www.micit.go.cr/images/stori es/pdf/20120415_ENPI_Informe_final.pdf . 
Ministry of Agriculture and Livestock (2011), Plan Sectorial de Desarrollo Agropecuario 
2011-2014 , October. Viewed at: http://www.mag.go.cr/bibliotecavirtual/a00303.pdf . 
Ministry of the Economy, Industry and Trade (MEIC) (2002), Manual del Inversionista - Instalación 
de Empresas en Costa Rica . Viewed at: http://www.meic.go.cr . 
Ministry of Finance, Directorate General of Good s Administration and Administrative Procurement 
(2010), Plan Estratégico para la Modernización de las Compras Públicas , January. Viewed at: 
http://www.hacienda.go.cr/cifh/sidovi h/cursos/material_de_apoyo-F-C-
CIFH/1MaterialdeapoyocursosCIFH/12ProgramaFor macRectoriaFinanciera/PlanModernizaccomprasp
ub.pdf .  
World Trade Organization (WTO) (2007), Trade Policy Review of Costa Rica , Geneva. 
Foreign Trade Promotion Agency (PROCOMER) (2011), Balance de las Zonas Francas: beneficio 
neto del régimen para Costa Rica 2006-2010 , August. Viewed at: 
http://www.procomer.com/contenido/descargab les/balance-zf/balance-zonas-francas.pdf . 
PROCOMER (2013), Estadísticas de Comercio Ex terior de Costa Rica 2012 , May. Viewed at: 
http://www.procomer.com/contenido/descargable s/estadisticas/libro_estadistica2012_v1-web.pdf . 
MINAET Oversight Division for Telecommunications (2012), Índice de Brecha Digital en Costa Rica , 
Bulletin No. 7. Viewed at: http://telecom.go.cr . 
Sánchez Ancochea, D. (2011), Comercio y crecimiento inclusivo: El caso de la maquila 
en Costa Rica , LATN (Latin American Trade Network), Tr ade and Inclusive Growth Series, No. 68, 
September. Viewed at: 
http://www.redlatn.org/?pt-sort-categ=serie-c omercio-y-crecimient o-inclusivo&lang=es   
Executive Secretariat for Sectoral Planning in Agriculture (SEPSA) (2012a), Indicadores 
Macroeconómicos Agosto 2012 . Viewed at: 
http://www.infoagro.go.cr/Agronegocios/Docu ments/AEEI%20012%20segundo%20informe%20%
20MACRO%202012.pdf . 
SEPSA (2012b), Boletín Estadístico Agropecuario N° 22 , Serie Cronológica 2008-2011 . Viewed at: 
http://www.infoagro.go.cr /Documents/boletin22.pdf . 
Development Banking System (SBD) (2013), Informe de Colocación al Sector Agropecuario 2012 , 
February, San José. 
Umaña, V. (2011), "Food Policy Coherence for Sustainable Development: The case of the Rice 
Sector in Costa Rica", ATDF Jo urnal, Volume 8/1. Viewed at: 
http://www.atdforum.org/I MG/pdf_VictorUmana.pdf .  
International Telecommunication Union (ITU) (2012), Measuring the Information Society . 
Viewed at: http://www.itu.int/ITU-D/ict/publications /idi/material/2012/M IS2012-ExecSum-E.pdf . WT/TPR/S/286 • Costa Rica 
 
- 134 - 
 
  National University and Ministry of Finance (2011), Estimación del Gasto Tributario para 
Costa Rica en el 2010: Impuesto de Ventas, Impuesto de Renta y otros Tributos , August. 
Viewed at: http://www.economia.una.ac.cr/index.php?optio n=com_remository&Itemid=968&func=select&id=
12. 
Department of Telecommunications (2012), Estrategia Nacional de Banda Ancha . Viewed at: 
http://www.telecom.go.cr/index.ph p/publicaciones2/cat_view/52 -publicaciones/75-estrategia-
nacional-de-banda-ancha-2012?start=5 . 
World Economic Forum (WEF) (2012a), Global Competitiveness Report 2012-2013 . Viewed at: 
http://reports.weforum.org/global-competitiveness-report-2012-2013 . 
WEF (2012b), Global Enabling Trade Report 2012 . Viewed at: 
http://www3.weforum.org/docs/GETR/ 2012/GlobalEnablingTrade_Report.pdf . 
World Bank (2013a), Doing Business 2013 . Viewed at: 
http://www.doingbusiness.org/~/media/GIAW B/Doing%20Business/Documents/Annual-
Reports/English/DB13-full-report.pdf . 
World Bank (2013b), Doing Business 2013: Economy Profile: Costa Rica . Viewed at: 
http://www.doingbusiness.org/~/medi a/giawb/doing%20business/doc uments/profiles/country/CRI
.pdf 
 WT/TPR/S/286 • Costa Rica 
 
- 135 - 
 
  5  APPENDIX TABLES 
Table A1. 1 Merchandise exports by product, 2007-2012  
(US$ million and per cent) 
Description 2007  2008  2009  2010 2011 2012  
 (US$ million) 
Total 8,928  9,745  8,836  9,045 10,222 11,343  
 (% of exports) 
Total primary products 34.3 36.7 27.9 39.0 39.4 39.1 
Agriculture 32.2 34.4 26.6 37.3 37.6 37.5 
Food 30.0 31.9 24.7 34.6 35.1 35.1 
0579 Fruit, fresh or dried, n.e.s. 6.6 6.8 6.1 8.5 7.9 7.8 
0573 Bananas (including plantains), 
fresh or dried 7.7 7.3 5.1 7.8 7.1 7.2 
0711 Coffee, not roasted, whether or not 
decaffeinated; coffee husks and skins 2.9 3.5 2.4 2.9 3.7 3.6 
0989 Food preparations, n.e.s. 2.1 2.3 1.9 3.1 2.9 2.8 
4222 Palm oil and its fractions 1.3 1.5 0.8 1.2 2.0 2.0 
0599 Juice of any single fruit (other than 
citrus) or vegetable;  mixtures of fruit 
or vegetable juices 0.6 0.8 0.9 0.8 1.0 1.2 
0548 Vegetable products, roots and tubers, 
chiefly for human f ood, n.e.s., fresh 
or dried 0.8 1.0 0.6 0.9 0.9 0.8 
0984 Sauces and preparations therefor; 
mixed condiments an d mixed seasonings; 
mustard flour and meal and prepared 
mustard; vinegar and substitutes for 
vinegar obtained from acetic acid 0.5 0.7 0.5 0.8 0.8 0.7 
0589 Fruit, nuts and other edible parts 
of plants otherwise prepared or preserved, whether or not containing added sugar 
or other sweetening matter or spirit, n.e.s. 0.5 0.5 0.3 0.4 0.6 0.6 
0611 Sugars, beet or cane, raw, in solid 
form, not containing added flavouring 
or colouring matter 0.5 0.3 0.3 0.9 0.7 0.6 
Agricultural raw materials 2.2 2.5 1.9 2.7 2.6 2.4 
2926 Bulbs, tubers and rhizomes 
of flowering or of foliage plants; cuttings, 
slips, live trees and other plants 0.9 0.9 0.7 0.9 0.8 0.7 
2927 Cut flowers and foliage 0.8 1.2 0.9 1.0 0.9 0.7 
Mining 2.0 2.3 1.3 1.7 1.8 1.6 
Ores and other minerals 0.7 0.7 0.3 0.7 0.9 0.9 
2823 Other ferrous waste and scrap 0.2 0.2 0.1 0.2 0.3 0.4 
2882 Other non-ferrous base metal waste 
and scrap, n.e.s. 0.4 0.3 0.1 0.3 0.4 0.3 
Non-ferrous metals 0.8 0.7 0.4 0.4 0.6 0.7 
6842 Aluminium and aluminium alloys, 
worked 0.7 0.7 0.4 0.4 0.5 0.6 
Fuels 0.6 0.8 0.6 0.6 0.3 0.0 
Manufactures 62.5 63.2 45.9 60.7 60.2 60.5 
Iron and steel 1.1 1.7 0.8 1.2 1.3 1.4 
Chemicals 6.4 8.3 6.0 7.6 8.0 6.8 
5429 Medicaments, n.e.s. 2.9 3.1 2.7 2.7 2.0 1.1 
5416 Glycosides; glands or other organs 
and their extracts; antisera, vaccines and similar products 0.0 0.0 0.0 0.2 0.9 0.8 
5334 Paints and varnishes (including 
enamels, lacquers and distempers); 
plastics in solution, n.e.s.; prepared 
water pigments of a kind used for 
finishing leather 0.4 0.4 0.3 0.4 0.5 0.5 WT/TPR/S/286 • Costa Rica 
 
- 136 - 
 
  Description 2007  2008  2009  2010 2011 2012  
Other semi-manufactures 6.4 7.2 5.0 7.1 7.2 6.8 
6251 Tyres, pneumatic, new, of a kind 
used on motor cars (including station 
wagons and racing cars) 1.0 1.2 0.9 1.4 1.6 1.3 
6429 Articles of paper pulp, paper, 
paperboard or cellul ose wadding, n.e.s. 0.7 1.2 0.8 1.3 1.2 1.1 
6299 Hard rubber; articles of hardened 
rubber or of unhardened vulcanized 
rubber, n.e.s. 0.7 0.6 0.4 0.5 0.5 0.7 
Machinery and transport equipment 34.7 30.0 21.6 27.1 27.0 27.6 
Power-generating machinery 0.2 0.1 0.1 0.2 0.2 0.2 
Other non-electrical machinery 1.0 1.0 0.7 0.9 0.8 0.8 
Agricultural machinery and tractors 0.1 0.1 0.0 0.1 0.1 0.1 
Office machines and telecommunications 
equipment 27.0 22.3 17.7 19.9 19.3 20.5 
7764 Electronic integrated circuits 
and microassemblies 14.7 10.7 7.5 10.3 18.5 19.8 
Other electrical machinery 6.1 5.6 3.0 5.5 5.9 5.5 
7731 Insulated (including enamelled 
or anodized) wire, cable (including co-axial 
cable) and other insulated electric 
conductors, whether or not fitted 
with connectors 1.8 1.8 0.8 1.8 2.1 2.5 
7725 Electrical apparatus for switching or 
protecting electrical ci rcuits, or for making 
connections to or in electrical circuits, for a voltage not exceeding 1,000 V 1.2 1.3 0.8 1.5 1.6 1.3 
Automotive products 0.1 0.0 0.1 0.4 0.5 0.5 
Other transport equipment 0.4 1.0 0.1 0.3 0.4 0.1 
Textiles 0.4 0.6 0.4 0.5 0.5 0.4 
Articles of apparel and clothing accessories 2.4 2.7 1.7 1.8 1.7 1.5 
8416 Singlets and other vests, underpants, 
briefs, nightshirts, pyjamas, bathrobes, 
dressing-gowns and similar articles 0.5 0.7 0.6 0.8 1.0 0.8 
Other consumer goods 11.2 12.6 10.4 15.3 14.5 16.1 
8722 Instruments and appliances used 
in medical, surgical or veterinary sciences 7.3 6.3 5.9 8.0 7.9 9.6 
8996 Orthopaedic appliances (including 
crutches, surgical belts and trusses); splints and other fracture appliances; artificial parts of the body 0.7 2.8 2.1 3.3 2.8 2.6 
8931 Articles for the conveyance or 
packing of goods, of plastics; stoppers, 
lids, caps and other closures, of plastics 0.8 0.8 0.6 0.9 0.9 0.9 
Other 3.2 0.2 26.2 0.3 0.4 0.4 
Gold 0.4 0.2 0.2 0.3 0.4 0.3 
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3) 
and the Costa Rican authorities for 2012. WT/TPR/S/286 • Costa Rica 
 
- 137 - 
 
  Table A1. 2 Merchandise imports by product, 2007-2012  
(US$ million and per cent) 
Description 2007  2008  2009  2010 2011  2012  
 (US$ million) 
Total 12,758  15,289  11,550  13,920 18,264  17,572  
 (% of imports) 
Total primary products 23.1 26.1 17.5 24.1 24.2 26.0 
Agriculture 9.0 9.7 7.9 10.1 9.9 10.8 
Food 8.0 8.5 7.2 9.0 8.8 9.8 
0449 Other maize, unmilled 1.1 1.2 0.8 1.0 1.1 1.1 
2222 Soya beans 0.8 0.7 0.7 0.8 0.7 0.9 
0989 Food preparations, n.e.s. 0.6 0.7 0.7 0.9 0.8 0.9 
0412 Other wheat (including spelt) 
and meslin, unmilled 0.3 0.6 0.2 0.3 0.3 0.4 
Agricultural raw materials 1.0 1.1 0.7 1.1 1.1 1.0 
Mining 14.1 16.5 9.6 14.0 14.3 15.1 
Ores and other minerals 0.3 0.4 0.3 0.4 0.3 0.4 
2789 Minerals, crude, n.e.s. 0.1 0.2 0.2 0.2 0.2 0.3 
Non-ferrous metals 1.9 1.7 0.8 1.5 1.5 1.7 
6824 Copper wire 0.9 0.9 0.4 0.8 0.8 0.9 
6842 Aluminium and aluminium alloys, worked 0.2 0.2 0.2 0.2 0.2 0.3 
Fuels 11.9 14.5 8.4 12.1 12.4 13.0 
334 Petroleum products 8.5 10.4 6.9 9.3 10.9 12.3 
3431 Natural gas, liquefied 0.6 0.5 0.5 0.5 0.5 0.6 
3330 Petroleum oils and oils obtained from 
bituminous minerals, crude 2.7 3.3 1.0 2.2 0.9 0.0 
Manufactures 74.3 73.7 59.9 72.9 75.7 73.9 
Iron and steel 3.7 5.0 1.9 3.4 3.3 4.2 
Chemicals 14.0 14.7 12.4 15.2 13.2 14.6 
5429 Medicaments, n.e.s. 2.9 2.8 2.9 3.0 2.1 2.2 
5711 Polyethylene 0.7 0.7 0.5 0.7 0.6 0.6 
5621 Mineral or chemical fertilizers, 
nitrogenous 0.4 0.8 0.3 0.3 0.6 0.6 
5822 Other plates, sheets, film, foil and strip, 
of plastics, non-cellul ar and not reinforced, 
laminated, supported or similarly combined 
with other materials 0.6 0.6 0.4 0.5 0.5 0.5 
Other semi-manufactures 9.3 8.6 7.1 9.0 9.3 8.5 
6414 Kraft paper and paperboard, uncoated, 
n.e.s., in rolls or sheets 1.5 1.1 0.8 1.2 0.9 0.8 
6996 Articles of iron or steel, n.e.s. 0.6 0.6 0.7 0.7 0.6 0.6 
6421 Cartons, boxes, cases, bags and other 
packing containers, of paper, paperboard, 
cellulose wadding or webs of cellulose fibres; 
box files, letter trays and similar articles, 
of paper or paperboard 0.3 0.4 0.4 0.4 0.5 0.4 
Machinery and transport equipment 36.5 34.9 29.1 33.6 37.0 34.6 
Power-generating machinery 0.5 0.5 0.6 1.0 0.5 0.5 
Other non-electrical machinery 6.2 5.6 4.2 5.3 5.4 5.6 
7284 Machinery and mechanical appliances 
specialized for particul ar industries, n.e.s. 0.3 0.3 0.3 0.4 0.3 0.3 
7414 Refrigerators, freezers and other 
refrigerating or freezing equipment (electric or other), other than household-type refrigerators and freezers; parts of refrigerators 0.3 0.3 0.2 0.3 0.2 0.3 
Agricultural machinery and tractors 0.4 0.4 0.3 0.3 0.3 0.2 
Office machines and telecommunications 
equipment 15.1 15.9 14.1 15.1 15.1 14.4 
7764 Electronic integrated circuits 
and microassemblies 9.4 9.6 8.6 8.3 7.0 8.6 
7643 Radio transmission apparatus 0.6 0.5 0.3 0.8 1.1 1.5 WT/TPR/S/286 • Costa Rica 
 
- 138 - 
 
  Description 2007  2008  2009  2010 2011  2012  
7522 Digital automatic data-processing 
machines, containing in the same housing 
at least a central proces sing unit and an input 
and output unit 0.5 0.5 0.5 0.6 0.7 0.7 
7641 Electrical apparatus for line telephony 
or line telegraphy (including such apparatus for carrier-current line systems) 0.3 0.3 0.5 0.2 0.5 0.7 
Other electrical machinery 7.3 6.5 6.4 6.8 7.3 7.3 
7722 Printed circuits 3.4 2.7 3.2 2.9 3.3 3.8 
7731 Insulated (including enamelled or 
anodized) wire, cable (including co-axial cable) 
and other insulated electric conductors, 
whether or not fitted  with connectors 0.8 0.8 0.7 0.8 0.8 0.7 
Automotive products 6.3 5.4 3.0 4.7 7.3 5.5 
7812 Motor vehicles for the transport 
of persons, n.e.s. 3.6 3.0 1.5 2.9 4.0 3.4 
7821 Motor vehicles for the transport of goods 1.4 1.4 0.7 0.8 0.9 1.0 
Other transport equipment 1.1 1.0 0.7 0.7 1.3 1.3 
7851 Motor cycles (including mopeds) 
and cycles fitted with  an auxiliary motor, 
with or without side-cars; side-cars 0.3 0.3 0.1 0.2 0.3 0.2 
Textiles 1.8 1.9 1.6 2.1 1.8 1.7 
Articles of apparel and clothing accessories 1.9 1.8 1.4 1.7 1.6 1.8 
Other consumer goods 7.3 6.7 6.4 8.0 9.5 8.4 
8939 Articles of plastics, n.e.s. 0.6 0.6 0.7 0.8 1.2 0.8 
8931 Articles for the conveyance or packing 
of goods, of plastics; stoppers, lids, caps 
and other closures, of plastics 0.7 0.6 0.6 0.8 1.2 0.8 
Other 2.5 0.2 22.7 3.0 0.1 0.1 
Gold 0.1 0.1 0.1 0.1 0.1 0.1 
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3) 
and the Costa Rican authorities for 2012. WT/TPR/S/286 • Costa Rica 
 
- 139 - 
 
  Table A1. 3 Merchandise exports by trading partner, 2007-2012 
(US$ million and per cent) 
Trading partner 2007  2008  2009  2010 2011 2012  
 (US$ million) 
Total 8,928  9,745  8,836  9,045 10,222 11,343  
 (% of exports) 
America 62.3 65.8 62.5 67.7 69.2 67.8 
USA 36.6 38.2 36.5 37.4 38.3 39.2 
Central American Common Market (CACM) 13.3 13.7 12.6 14.4 14.5 14.0 
Nicaragua 3.5 4.1 3.8 4.2 4.5 4.4 
Guatemala 3.8 3.7 3.5 4.0 4.0 3.8 
Honduras 3.2 3.2 3.0 3.2 3.3 3.1 
El Salvador 2.8 2.8 2.3 3.0 2.8 2.7 
Panama 3.5 4.0 3.9 4.8 5.5 5.1 
Mexico 2.6 2.7 2.4 2.8 3.0 2.8 
Dominican Republic 1.9 2.1 2.2 2.7 2.5 1.7 
Bolivarian Republic of Venezuela 0.3 0.5 0.6 0.3 0.5 0.7 
Canada 0.7 0.6 0.6 1.1 0.7 0.6 
Colombia 0.5 0.9 0.6 0.6 0.5 0.6 
Trinidad and Tobago 0.4 0.4 0.4 0.5 0.5 0.5 
Ecuador 0.2 0.2 0.3 0.4 0.4 0.4 
Europe 15.6 17.8 19.4 18.2 17.7 18.5 
EU(27) 15.5 17.4 19.0 17.9 17.2 18.2 
Netherlands 5.2 5.1 7.0 7.0 6.7 7.7 
Belgium 2.2 3.2 3.6 3.4 2.7 2.6 
United Kingdom 2.0 1.7 1.4 1.8 2.5 2.2 
Italy 1.2 1.5 1.7 1.5 1.3 1.7 
Germany 2.3 2.2 1.8 1.5 1.4 1.2 
EFTA 0.1 0.4 0.4 0.1 0.1 0.2 
Norway 0.0 0.0 0.0 0.0 0.1 0.1 
Other Europe 0.0 0.0 0.0 0.2 0.3 0.1 
Turkey 0.0 0.0 0.0 0.2 0.3 0.1 
Commonwealth of Indepe ndent States (CIS)a 0.0 0.4 0.2 0.3 0.3 0.4 
Russian Federation 0.0 0.3 0.2 0.3 0.3 0.4 
Africa 0.1 0.1 0.1 0.2 0.1 0.1 
Cameroon 0.1 0.1 0.1 0.1 0.1 0.0 
Middle East 0.1 0.1 0.2 0.3 0.2 0.2 
Saudi Arabia 0.0 0.0 0.0 0.1 0.1 0.1 
Israel 0.1 0.1 0.1 0.1 0.1 0.1 
Asia 21.9 15.6 17.1 13.3 12.5 12.9 
China 9.4 6.3 8.7 3.0 2.1 2.9 
Japan 0.9 0.9 0.7 0.9 0.9 0.8 
Six East Asian Traders 10.9 6.9 6.5 8.5 8.6 8.6 
Hong Kong, China SAR 6.3 4.0 3.8 4.8 5.1 4.7 
Malaysia 1.8 0.7 1.5 1.9 1.8 1.9 
Chinese Taipei 0.9 0.7 0.4 0.8 0.9 0.9 
Singapore 0.4 0.3 0.3 0.5 0.4 0.5 
Korea, Republic of 1.5 1.1 0.5 0.4 0.4 0.4 
Thailand 0.0 0.1 0.0 0.0 0.0 0.1 
Other Asia 0.7 1.5 1.2 0.9 0.9 0.7 
India 0.3 0.3 0.3 0.2 0.2 0.3 
Australia 0.1 0.4 0.4 0.4 0.4 0.2 
Other 0.0 0.2 0.4 0.0 0.0 0.0 
a The Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation, Tajikistan, Turkmenistan, Ukraine 
and Uzbekistan. 
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3) 
and the Costa Rican authorities for 2012. WT/TPR/S/286 • Costa Rica 
 
- 140 - 
 
  Table A1. 4 Merchandise imports by trading partner, 2007-2012  
(US$ million and per cent) 
 2007  2008  2009  2010 2011 2012  
 (US$ million) 
Total 12,758  15,289  11,550  13,920 18,264 17,572  
 (% of imports) 
America 68.6 69.7 71.2 71.8 71.3 73.1 
USA 38.4 38.2 45.9 46.8 45.6 49.8 
Central American Common Market (CACM) 4.0 4.1 4.9 4.9 6.1 5.0 
Guatemala 1.9 1.9 2.4 2.3 2.5 2.3 
El Salvador 1.0 1.0 1.0 1.1 1.3 1.3 
Honduras 0.3 0.5 0.7 0.8 0.9 0.8 
Nicaragua 0.7 0.7 0.7 0.7 1.4 0.6 
Mexico 5.8 6.2 6.5 6.4 6.7 6.6 
Brazil 3.3 2.7 2.3 2.1 1.9 2.4 
Panama 1.7 1.6 1.8 1.7 2.2 2.2 
Colombia 2.4 2.6 2.7 3.6 3.6 1.9 
Chile 1.4 1.4 1.5 1.6 1.5 1.7 
Canada 0.9 1.0 0.9 0.8 1.0 1.4 
Trinidad and Tobago 0.5 0.3 0.5 1.2 0.5 0.6 
Argentina 0.6 0.4 0.5 0.5 0.4 0.5 
Europe 12.1 12.4 9.3 9.0 9.4 8.0 
EU(27) 11.1 11.2 8.0 7.9 8.5 7.0 
Germany 1.6 1.8 1.7 2.2 2.3 1.8 
Spain 1.1 1.0 1.0 1.0 1.0 1.1 
Italy 1.1 1.0 0.9 1.0 0.9 0.8 
Netherlands 1.5 1.7 1.1 0.6 0.8 0.6 
Sweden 0.3 0.2 0.3 0.3 0.4 0.6 
EFTA 0.9 1.1 1.2 1.0 0.7 0.8 
Switzerland and Liechtenstein 0.8 1.0 1.2 1.0 0.6 0.7 
Norway 0.1 0.2 0.0 0.1 0.1 0.1 
Other Europe 0.1 0.1 0.1 0.1 0.1 0.2 
Turkey 0.1 0.1 0.1 0.1 0.1 0.2 
Commonwealth of Independent States (CIS)a 0.4 0.5 0.2 0.2 0.5 0.3 
Russian Federation 0.2 0.4 0.2 0.2 0.2 0.3 
Ukraine 0.2 0.1 0.0 0.0 0.2 0.0 
Africa 0.1 0.1 0.9 0.5 0.4 0.1 
Algeria 0.0 0.0 0.7 0.5 0.4 0.0 
Middle East 0.3 0.3 1.7 1.2 0.7 0.4 
Israel 0.2 0.3 1.6 1.1 0.6 0.2 
Asia 18.2 16.5 16.8 15.1 16.5 16.0 
China 5.9 5.7 6.1 7.1 8.4 8.2 
Japan 5.7 5.4 5.7 3.6 3.8 3.2 
Six East Asian Traders 5.3 4.5 3.8 3.2 3.0 3.5 
Korea, Republic of 1.9 1.8 1.3 1.1 1.2 1.6 
Chinese Taipei 1.2 0.9 0.8 0.6 0.6 0.6 
Thailand 0.6 0.8 0.7 0.6 0.5 0.5 
Hong Kong, China SAR 0.5 0.5 0.5 0.4 0.3 0.3 
Malaysia 0.9 0.3 0.3 0.3 0.3 0.3 
Singapore 0.2 0.2 0.3 0.2 0.2 0.2 
Other Asia 1.2 1.0 1.2 1.2 1.3 1.1 
India 0.3 0.3 0.4 0.8 0.7 0.5 
Viet Nam 0.1 0.1 0.1 0.1 0.1 0.2 
Philippines 0.3 0.2 0.3 0.0 0.1 0.1 
Other 0.4 0.4 0.0 2.2 1.3 2.1 
a The Commonwealth of Independent States includ es Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation, Tajikistan, Turkmenistan, Ukraine 
and Uzbekistan. 
Source: WTO Secretariat estimates, based on da ta from the Comtrade database (SITC Rev.3) 
and the Costa Rican authorities for 2012. WT/TPR/S/286 • Costa Rica 
 
- 141 - 
 
  Table A2. 1 Notifications to the WTO, March 2007 to May 2013  
Legal provision Description of 
requirement Frequency WTO document (most 
recent or series) 
General Agreement on Tariffs and Trade 1994 
Article XXIV:7 Customs unions 
and free trade areas Ad hoc WT/REG332/N/1, 
27 February 2013 
WT/REG310/N/1, 
28 February 2012 
WT/REG305/N/1, 
9 January 2012 
WT/REG211/N/5, 
21 January 2009 
WT/REG264/N/1, 
17 April 2009 
Understanding on the Interpretation of Article XVII of the GATT 1994 (State trading)  
Article XVII:4(a) State trading activities On an annual basis No new notification 
Agreement on Agriculture  
Articles 5.7 and 18.2 Special safeguard On an annual basis G/AG/N/CRI/41, 
4 February 2013 
Articles 10 and 18.2 Export subsidies On an annual basis G/AG/N/CRI/42, 
5 February 2013 
Article 12.1(b) New import restrictions Ad hoc No new notification 
Article 18.2 Imports under tariff 
quotas On an annual basis G/AG/N/CRI/43, 
14 March 2013 
Article 18.2 and 18.3 Domestic support On an annual basis 
and ad hoc G/AG/N/CRI/44, 
28 May 2013 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and Annex B Proposed sanitary 
and phytosanitary 
regulations (including 
proposed or emergency 
measures) Ad hoc Notification of 87 sanitary 
and phytosanitary 
measures (Chapter 3, 
section 3.2.9) 
Annex B, paragraph 3 Enquiry point Once, then changes No new notification 
Annex B, paragraph 10 National notification 
authority Once, then changes No new notification 
Agreement on Technical Barriers to Trade  
Articles 2, 3, 5 and 7 Proposed and adopted 
technical regulations Before or immediately after 
the measure is taken Notification of 81 
technical regulations 
(Chapter 3, section 3.2.8) 
Article 10.1 and 10.3 Enquiry point Once, then changes No new notification 
Article 15.2 Implementation 
and administration 
measures Once, then changes No new notification 
Agreement on Trade-Related Investment Measures (TRIMs)  
Article 5.1 TRIMs that are not in 
conformity with the 
provisions of the 
Agreement Once No new notification 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping)  
Article 16.4 Anti‑dumping actions 
taken within the 
preceding 6 months On a semi-annual basis G/ADP/N/237/CRI, 
18 February 2013 
Article 16.5 Investigating authority Once, then changes No new notification 
Article 18.5 Laws and regulations Once, then changes G/ADP/N/1/CRI/3; 
G/SCM/N/1/CRI/3, 
22 January 2008 WT/TPR/S/286 • Costa Rica 
 
- 142 - 
 
  Legal provision Description of 
requirement Frequency WTO document (most 
recent or series) 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation)  
Article 22.2 Legislation Once, then changes G/VAL/N/1/CRI/2, 
14 July 2011 
Decision of the 
Committee on Customs 
Valuation (12.5.95) Responses to the 
checklist of issues Once No new notification 
Agreement on Rules of Origin 
Article 5.1 Rules, judicial decisions Once No new notification 
Article 5.2 Modifications to 
non‑preferential rules 
of origin Ad hoc No new notification 
Annex II Preferential and 
non‑preferential rules 
of origin Once, then changes G/RO/N/93, 
9 April 2013 
Agreement on Import Licensing Procedures  
Articles 1.4(a) 
and 8.2(b) Laws and regulations Once, then changes G/LIC/N/1/CRI/2, 
15 March 2007 
Article 5 Import licensing 
procedures Ad hoc G/LIC/N/2/CRI/2, 
20 October 2010 
Article 7.3 Questionnaire On an annual basis G/LIC/N/3/CRI/9, 
1 November 2012 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 Article XVI:1 of the 
GATT 1994 and 
Article 25 of the 
SCM Agreement Full notifications every 
3 years; annual updating G/SCM/N/220/CRI; 
G/SCM/N/226/CRI, 
29 July 2011 
Article 25.11 Countervailing duties 
applied in the previous 
6 months On a semi-annual basis G/SCM/N/250/Add.1, 
10 April 2013 
Article 25.12 Investigating authority 
and domestic 
procedures governing 
investigations Once No new notification 
Article 32.6 Laws and regulations Once, then changes G/SCM/N/1/CRI/4, 
5 February 2010 
Agreement on Safeguards  
Article 12.6 Laws and regulations Once, then changes G/SG/N/1/CRI/4, 
21 January 2008 
Article 12.1(a) Initiation of an 
investigatory process Ad hoc G/SG/N/6/CRI/2, 
31 May 2012 
Article 12.1(b) Finding Ad hoc No new notification 
Decision of the 
Committee on 
Safeguards 
of 6 November 1995 Termination Ad hoc No new notification 
General Agreement on Trade in Services (GATS)  
Article III:3 Legislation Ad hoc No new notification 
Articles III:4 and IV:2 Enquiry and contact 
point Once, then changes No new notification 
Article V:7(a) Economic integration 
agreements Once S/C/N/680, 
27 February 2013 
S/C/N/618, 
28 February 2012 
S/C/N/614, 
9 January 2012 
S/C/N/490, 
17 April 2009 
S/C/N/471, 
21 January 2009 WT/TPR/S/286 • Costa Rica 
 
- 143 - 
 
  Legal provision Description of 
requirement Frequency WTO document (most 
recent or series) 
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)  
Article 63.2 Laws and regulations Once, then changes No new notification 
Article 69 Contact points Once, then changes No new notification 
TRIPS Council meeting 
of 22 to 25 July 1996 Contact points 
for TRIPS technical 
cooperation Once, then changes No new notification 
Decision of the Council 
for TRIPS 
of 21 November 1995 Checklist of issues 
on enforcement Once, then changes No new notification 
Other    
G/L/59/Rev.1 Quantitative 
restrictions Once, then every 2 years G/MA/QR/N/CRI/1, 
8 October 2012 and 
G/MA/QR/N/CRI/1/Corr.1, 
27 February 2013  
Source: WTO Secretariat. WT/TPR/S/286 • Costa Rica 
 
- 144 - 
 
  Table A2. 2 Main exceptions to national treatment in the field of investment, 2013 
Sector Restriction (legislation) 
Advertising and 
audiovisual services, cinema, radio, television and other shows - Foreign natural or legal persons are not pe rmitted to pledge the shares of a company 
owning a means of dissemination or an advertis ing agency in favour of corporations with 
bearer shares, or foreign natural or legal persons (Law No. 6220/1978). - Filmed slots, announcements or advertisements used in programmes sponsored by autonomous or semi-autonomous State institutions, the Government of the Republic, or any entity receiving a State subsidy, must be produced nationally (Law No. 4325/1969). 
Electricity 
(generation) - Private companies may invest in generation plants that do not exceed 20,000kW, 
providing that the Costa Rica n Electricity Institute (ICE) buys the energy produced 
and 35% of the company's capital is owned by Costa Ricans (Law No. 7200/1990). 
- Private participation in the capital of companies set up or acquired by the ICE 
is limited to 49% (the ICE is a State- owned company and the State is its only 
shareholder). 
- Foreign capital participation in public or private law entities which form strategic 
alliances with the Heredia Public Services Company (ESPH) is limited to a maximum 
of 49% (Law No. 7789/1998). 
Telecommunications - Private participation in the capital of companies set up or acquired by the ICE is 
limited to 49%. - Foreign capital participation in public or private law entities which form strategic alliances with the ESPH is limited to a maximum of 49% (Law No. 7789/1998). 
Fisheries - Commercial fishing within the 12 miles of Costa Rican territorial waters is reserved 
for Costa Rican nationals and Costa Rican companies, and national flag vessels must be 
used (Political Constitution, Law No. 8436/2005 and Regulation No. 12737-A/1981). 
- Fishing operations by foreign vessels ar e prohibited, except for purse seine tuna 
fishing within the exclusive ec onomic zone (Law No. 8436/2005). 
- The landing of fisheries products in Costa Rican territory by foreign vessels is subject 
to proof of economic need (main criter ia: supply and demand and protection of 
consumers and the fisheries sector) (Law No. 8436/2005). 
- Long-line and gill-net fishing is only auth orized for national flag vessels registered 
in Costa Rica (Law No. 8436/2005). 
- Squid fishing using jigs for bait is authorized only for Costa Rican long-line fishing 
vessels (Law No. 8436/2005). 
- The national fishing fleet receives preferential treatment regarding taxation and the 
purchasing of fuel (Law No. 7384/1994, Law No. 8436/2005 and Executive Decree 
No. 32527/2005). 
- Commercial shrimp fishing in territorial wa ters in the Pacific Ocean is reserved for 
national flag vessels registered in Costa Rica and owned by Cost a Ricans (Executive 
Decree No. 17658/1987). 
Mining - No concessions may be granted to fo reign governments or th eir representatives for 
mining and exploration in respect of minera ls other than hydrocarbons. Only natural 
persons may form mining cooperatives, prov ided that 75% of the members thereof are 
Costa Rican. As regards foreign-capital companies and companies in which national capital is less than 50%, the national bank ing system cannot grant them financing 
for an amount exceeding 10% of  the total investment made. 
- Foreign companies and natural persons not resident in the country which receive a 
concession for mining or expl oration in respect of minerals other than hydrocarbons 
must have a legal representative (Law No. 6797/1982). For hydrocarbon exploration and hydrocarbon-related mining  services, foreign companies must also have a branch 
office (Law No. 7399/1994 and Law No. 3284/1964). 
Professional 
services - Foreign public accountancy firms can only  advertise their serv ices and practise 
in Costa Rica through Costa Rican professionals or firms (Executive Decree 
No. 13606/1982). 
- Consultancy firms or entities  conducting consultancy work in the field of agricultural 
science must use Costa Rican professionals who are members of the Association 
of Agricultural Engineers for at least 50%  of the consultancy period (or 25% where 
there is a demonstrated lack of expertise). 
Sports services and 
other recreational services - Foreign flag vessels and their crews usin g the services of tourist marinas cannot 
provide water transport, fishing or diving services or any other service relating to 
sporting or tourism activities (Law No. 7744/1997). WT/TPR/S/286 • Costa Rica 
 
- 145 - 
 
  Sector Restriction (legislation) 
Transport Land transport: 
- Permits to operate international passenger transportation services against payment 
are only granted to Costa Rican enterprises or  foreign enterprises wh ose capital includes 
a minimum of 60% paid up by Central American nationals (Executive Decree 
No. 26/1965). 
- For motor vehicle passenger transportation against payment, where there are various 
bids in a public bidding procedure, includin g one from a Costa Rican supplier that meets 
all the requirements, preference is given to  the Costa Rican bid over the foreign bid 
(Law No. 3503/1965). 
- In the case of freight transport, only Costa Rican nationals or companies can supply 
freight transport services between two points within Costa Rican territory. 
Such companies must meet the following requirements: (1) at least 51% of their capital 
must be held by Costa Ricans and (2) th e effective control and management of the 
company must be in Costa Rican hands (Executive Decree No. 15624/1984). 
- No motor vehicle, trailer or semi-trailer  with foreign number plates may transport 
goods within Costa Rican territory. Vehicles , trailers or semi-t railers registered 
in Central American countries are exempt from this prohibition (Executive Decree 
No. 31363/2003). 
- Foreign multi-modal international freight transport companies are required to take out 
contracts with companies formed under Costa Rican legislation to transport containers 
and semi-trailers within Costa Ri ca (Executive Decree No. 15624/1984). 
Maritime transport: 
- Costa Rican port-to-port cabotage acti vities must be conducted exclusively 
in Costa Rican-registered vessels (Law No. 104/1853 and Law No. 6990/1985). 
- Concessions to provide cabotage services  can only be granted to Costa Ricans 
or companies with capital that is at least 60% Costa Rican (Executive Decree 
No. 66/1960). 
- Vessels may only be registered in Costa Rica by Costa Rican nationals, companies 
formed and domiciled in Costa Rica, and representatives of shipping companies 
(Executive Decree No. 12568/1981). 
Air transport: 
- Only Costa Rican natural or legal persons ma y register aircraft in tended for domestic 
air transport services against payment (Executive Decree No. 4440/1975). Where a 
company wishes to obtain a licence to op erate agricultural av iation activities, 
at least 51% of its capital must be Costa Rican (Executive Decree No. 31520/2003). 
- In the absence of agreements or conventi ons, licences to supply international air 
transport will be issued on the basis of the principle of reciprocity (Law No. 5150/1973 
and Executive Decree No. 3326/1973). 
Financial services  - A minimum of ten Costa Rican cooperative organizations are required to establish 
and operate cooperative banks (Law No. 1644/1953). - A minimum of 25 Costa Rican mutual as sociations are required to establish 
and operate mutual banks (Law No. 7207/1988). 
Source: WTO Secretariat on the basis of information provided by COMEX. 
  
  WT/TPR/S/286 • Costa Rica  
 
- 146 - Table A3. 1 Summary of Costa Rica 's preferential tariffs, 2013 
 MFN CACMa Panama  Dom.  
Rep. Mexico  CARICOM  Chile  Canada  CAFTA-DR  China  
Product description Barbados  Belize Guyana  T & T  USA Dom.  
Rep.  Total 6.9 0.0(0.1)  0.9 0.5 0.8 1.1 1.0 1.1  1.0 1.1 1.3 1.3 0.8 3.9 
HS 01-24 14.3 0.3 3.2 2.5 4.2 5.3 4.6 5.0 4.8 5.2 5.7 4.3 3.9 9.1 
HS 25-97 5.2 0.0  0.4 0.0 0.0 0.2 0.2 0.2  0.2 0.1 0.3 0.6 0.1 2.7 
By WTO category               
Agricultural products 14.0 0.3  3.7 2.9 4.8 4.8 4.0 4.4  4.3 6.0 6.3 4.9 4.4 8.8 
 - Animals and animal products  28.8 0.0 13.2 6.4 15.9 13.0 8.8 8.8 9.8 18.4 21.9 7.5 11.9 16.1 
 - Dairy products 53.1 0.0  8.3 11.0 52.7 25.6 25.6 25.6  25.6 42.2 44.7 48.6 28.1 52.1 
 - Fruit, vegetables and garden produce  13.0 0.0 1.6 1.5 1.3 2.0 1.5 2.2 2.0 5.3 4.0 2.7 2.4 6.5 
 - Coffee and tea 12.9 3.6  5.4 3.6 5.5 6.8 6.8 7.0  6.8 0.0 2.0 5.9 3.6 10.5 
 - Cereals and preparations  10.1 0.0 2.9 1.5 0.5 2.3 2.1 3.1 2.1 2.0 3.7 4.6 2.0 7.9 
 - Oilseeds, fats and oils and their products 6.5 0.0  3.6 4.0 0.0 5.7 5.7 5.7  5.7 3.6 2.9 3.2 4.1 5.7 
 - Sugar and sugar confectionery  17.4 8.9 11.6 8.9 15.3 11.1 11.1 11.1 11.1 10.2 2.8 14.1 9.4 15.9 
 - Beverages, spirits and tobacco  13.7 0.0 (0.4)  1.6 4.5 2.9 5.3 4.8 5.8  4.8 0.3 1.8 4.3 4.6 9.2 
 - Cotton 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 - Other agricultu ral products  5.0 0.0  0.0 0.0 0.0 0.2 0.1 0.1  0.1 0.0 0.2 0.6 0.0 1.7 
Non‑agricultural products (including petroleum) 5.5 0.0 0.4 0.0 0.0 0.4 0.4 0.4 0.4 0.1 0.4 0.6 0.1 2.9 
 - Non‑agricultural products (excluding petroleum) 5.5 0.0  0.4 0.0 0.0 0.4 0.4 0.4  0.4 0.1 0.4 0.6 0.1 2.9 
 - - Fish and fish products 12.0 0.0 0.0 0.0 0.0 5.8 5.8 5.8 5.8 0.0 1.0 0.0 0.1 7.5 
 - - Minerals and metals 4.8 0.0  0.0 0.0 0.0 0.2 0.2 0.2  0.2 0.0 0.4 0.9 0.0 2.9 
 - - Chemicals and photographic products  3.0 0.0 0.1 0.0 0.0 0.3 0.3 0.3 0.3 0.0 0.2 0.4 0.0 1.7 
 - - Wood, wood pulp, paper and furniture 7.4 0.0  0.2 0.0 0.0 0.7 0.7 0.7  0.7 2.0 0.9 0.8 0.2 5.5 
 - - Textiles 8.6 0.0 0.6 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.0 3.1 
 - - Clothing 14.8 0.0  6.9 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.0 0.0 0.4 10.6 
 - - Leather, rubber, footwear and travel articles 8.2 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.1 0.0 0.5 1.7 0.1 4.6 
 - - Non ‑electrical machinery 2.5 0.0  0.0 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.2 0.4 0.0 1.2 
 - - Electrical machinery 3.1 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.0 0.3 0.6 0.0 0.9 
 - - Transport equipment 4.3 0.0  1.3 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.1 0.9 0.0 1.6 
 - - Non ‑agricultural products n.e.s. 7.3 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.0 0.8 1.1 0.1 3.4 
 - Petroleum 4.7 0.0  0.0 3.6 0.0 0.0 0.0 0.0  0.0 0.0 0.4 1.3 3.4 3.5 
By ISIC sectorb               
Agriculture and fishing 9.6 0.1  1.1 0.8 1.6 2.4 2.2 2.4  2.4 2.8 2.5 2.2 1.3 4.4 
Mining and quarrying 2.9 0.0 0.3 0.0 0.0 0.6 0.6 0.6 0.6 0.2 0.4 0.2 0.0 0.8 
Manufacturing 6.7 0.0 (0.1)  0.9 0.5 0.7 1.0 0.9 1.0  0.9 1.0 1.3 1.3 0.8 3.9  
  WT/TPR/S/286 • Costa Rica  
 
- 147 -  MFN CACMa Panama  Dom.  
Rep. Mexico  CARICOM  Chile  Canada  CAFTA-DR  China  
Product description Barbados  Belize Guyana  T & T  USA Dom.  
Rep.  By HS section               
01 Live animals; animal products  19.1 0.0  5.0 3.4 9.2 9.7 9.2 9.2  9.4 8.6 10.7 6.0 6.2 11.9 
02 Vegetable products 10.3 0.2 1.9 1.8 1.1 2.2 1.8 2.3 2.1 3.8 3.2 2.4 2.3 5.0 
03 Fats and oils 9.0 0.0  5.7 6.4 0.0 9.0 9.0 9.0  9.0 5.7 4.1 4.6 6.5 8.3 
04 Prepared foodstuffs, etc.  15.6 0.6 (0.7)  2.8 2.0 3.7 4.3 2.9 3.6 3.0 3.6 4.2 4.9 3.1 11.6 
05 Mineral products 3.5 0.0  0.2 0.8 0.0 0.4 0.4 0.4  0.4 0.1 0.3 0.4 0.8 1.4 
06 Products of the chemical or allied industries 2.5 0.0 0.1 0.0 0.0 0.4 0.4 0.4 0.4 0.0 0.1 0.2 0.0 1.1 
07 Plastics and rubbe r 6.0 0.0  0.0 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.5 1.3 0.0 4.8 
08 Hides and skins 9.1 0.0 0.0 0.0 0.0 0.2 0.2 0.4 0.2 0.0 1.0 1.8 0.0 4.1 
09 Wood and articles of wood  9.4 0.0  0.0 0.0 0.0 0.0 0.0 0.0  0.0 5.2 1.9 0.8 0.0 7.0 
10 Wood pulp, paper, etc. 6.1 0.0 0.3 0.0 0.0 0.3 0.3 0.3 0.3 0.1 0.3 0.8 0.2 4.4 
11 Textiles and textile articles  9.9 0.0  2.1 0.0 0.1 0.0 0.0 0.0  0.0 0.0 0.0 0.0 0.1 4.7 
12 Footwear and headgea r 12.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.9 2.0 0.2 7.3 
13 Articles of stone 7.6 0.0  0.0 0.0 0.0 0.7 0.7 0.7  0.7 0.0 1.1 1.8 0.0 5.6 
14 Precious stones, etc. 8.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8 0.8 0.0 0.0 
15 Base metals and articles of base metal 4.3 0.0  0.0 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.3 0.9 0.0 3.1 
16 Machinery and appliances  2.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.5 0.0 1.0 
17 Transport equipment 4.2 0.0  1.3 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.1 0.9 0.0 1.6 
18 Precision instruments 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.4 0.0 0.7 
19 Arms and ammunition  15.0 0.0  0.0 0.0 0.0 0.0 0.0 0.0  0.0 0.0 1.0 1.8 0.0 9.2 
20 Miscellaneous manufactured articles  11.2 0.0 0.1 0.0 0.0 1.5 1.5 1.7 1.5 0.4 1.4 1.8 0.2 7.4 
21 Works of art, etc. 8.2 0.0  0.0 0.0 0.0 0.0 0.0 0.0  0.0 0.0 0.0 0.0 0.9 4.9 
By stage of processing               
First stage of processing 8.5 0.1  1.2 1.0 1.1 3.0 2.8 3.1  3.0 2.3 2.2 1.7 1.2 4.4 
Semi‑processed products 4.4 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.4 0.2 0.5 0.1 1.9 
Fully processed products 7.9 0.0  1.3 0.6 1.0 1.2 1.0 1.1  1.1 1.2 1.8 1.7 1.0 4.9 
T&T Trinidad and Tobago. 
a Figures in brackets refer to El Salvador, which has five addi tional lines that are not duty- free. This explains the differenc es in the figures compared to the other 
CACM countries. 
b ISIC (Rev.2), excluding electricity (1 line). 
Source: WTO Secretariat estimates, based on da ta provided by the Costa Rican authorities. WT/TPR/S/286 • Costa Rica 
 
- 148 - 
 
  Table A3. 2 Some tax incentives provided for in Law No. 7293 and its amendments 
Product Benefit Beneficiary 
operation 
Corrective eyewear or eyeglasses Exemption from ad valorem  tariffs and 
selective consumption tax (Law No. 7167 of 19 June 1990) Importation 
Inputs, raw materials and basic final 
goods for agriculture, industry or national 
consumption, when it is satisfactorily 
proved that there are no regional supplies 
on comparable terms of quality, volume 
and price. Import duty (excluding the 1% pursuant 
to Law No. 6946) of 1% to 5% 
ad valorem  (Convention on the Central 
American Tariff and Customs Regime, 
Law No. 7017 of 16 December 1985) Importation 
Public events (sports events, theatres, 
and cinemas showing films for children). 
Radio station and rural newspaper 
advertising services. 
Sale of articles in the basic food basket; 
retreads and tyres exclusively for agricultural machinery; some veterinary products and agricultural inputs defined by the Ministry of Agriculture and Livestock and the Ministry of Finance. 
Medicines, kerosene, di esel fuel for fishing 
(excluding sport fishing), books, musical compositions, paintings created 
in Costa Rica by Costa Rican or foreign 
painters; coffins, and monthly consumption of electricity for residential use of 25 kW/h or less. 
Exports of goods and re ‑import of national 
goods within three years following 
their export. Exemption from the General Sales Tax 
(Law No. 6826 of 8 November 1982 and amendments thereto) Importation 
and local sale 
Musical instrument s, their parts 
and accessories, exce pt those produced 
in Costa Rica in comparable conditions. Exemption from all tax except sales tax 
(Law No. 7243 of 3 June 1991; 
Decree No. 31083) Importation 
Goods acquired by associations for the 
normal conduct of their activities. Exemption from payment of national 
and municipal taxes (Law on Community Development (DINADECO)) Importation and 
local purchase by national or international public or private groups or entities engaged in community development in Costa Rica. 
 
Medicines These are not subject to any tax or 
surcharge except for tariffs. Importation or 
local purchase 
Medical equipment, wh eelchairs, beds for 
hospitals, orthopaedic equipment, 
equipment for chemical, clinical and agricultural research laboratories, dentistry equipment, prostheses and any type of equipment used by persons with hearing disabilities, as well as in special education programmes for the disabled. Exemption from any tax or surcharge Importation and 
local purchase 
Raw materials, inputs and any 
intermediate or final product used 
to prepare medicines. Exemption from any tax or surcharge, 
except tariffs Importation and 
local purchase WT/TPR/S/286 • Costa Rica 
 
- 149 - 
 
  Product Benefit Beneficiary 
operation 
Machinery, equipment and inputs for 
agricultural use, and goods required for fishing activities (excluding sport fishing). Exemption from any tax or surcharge, 
provided that there is no production on comparable terms of volume, price, quality and availability in countries signatory to the Convention on the Central American Tariff and Customs Regime. Decree No. 34706-MAG-H-MEIC of 14 August 2008 Importation 
Raw materials for preparing inputs for 
agricultural use and for packing bananas. 
This benefit extends to fuel in the case of 
fishing activities. Exemption from any tax or surcharge, 
except for tariffs, pr ovided that there is 
no production on comparable terms of 
volume, price, quality and availability in 
countries signatory to the Convention on 
the Central American Tariff and Customs 
Regime. Decree No. 34706-MAG-H-MEIC 
of 14 August 2008 Importation 
Machinery and equipment Exemption from any tax or surcharge Import by the 
IDA for the Coto Sur 
Agro‑industrial 
Project 
Buses or chassis with or without engines 
for the public transport of passengers Not subject to any tax or surcharge, 
except for tariffs, at a rate of 5% Importation 
Minibuses with a minimum capacity 
of 26 passengers, required by 
concessionaires and holders of permits for remunerated public transport of persons. Exemption from any type of tax or 
surcharge, except for tariffs. 
If the ad valorem  tariff exceeds 5%, the 
tax applicable to the excess is exempt. Importation 
Automatic data-processing machines and 
their units (heading 84530000), spare 
parts and accessories for the 
aforementioned goods (84550200), 
carrier media for computer programs 
(92120500), ink ribbons for the 
aforementioned machines (98080100) 
and "uninterruptible power supplies" 
(90288001) Not subject to any type of tax or 
surcharge, except for tariffs and sales tax Importation and 
local purchase 
Foreign goods entering the Golfito Free 
Trade Warehouse Exemption from all taxes 
(Law No. 7012 of 4 November 1985 on 
the creation of the Golfito Free Trade 
Warehouse, and amendments thereto) Importation 
The following articles, which have a 
preferential tariff of 3%: perfumery, toilet 
and cosmetic articles (Nauca: 33.06b. 
Other), washing machines and dryers 
(Nauca: 84.40), sewing machines for 
domestic use (Nauca: 84.41), electric 
irons and microwave ovens (Nauca: 85.12 
to 85.12c) Not subject to the single 18% tax on the 
sale of goods stored in the Golfito Free 
Trade Warehouse (Law No. 7012 of 4 
November 1985 on the creation of the 
Golfito Free Trade Warehouse, and 
amendments thereto) Importation 
 
Motor vehicles imported or bought in 
Costa Rica, intended exclusively for the use of persons with severe and permanent physical, mental and sensory disabilities that clearly and manifestly make movement and the use of public 
transport difficult. Exemption from taxes 
 Importation and 
local purchase 
Source: WTO Secretariat on the basis of information provided by the Costa Rican authorities.  
  WT/TPR/S/286 • Costa Rica  
 
- 150 - Table A3. 3 Procurement share by type of procedure, 2007-2011 
(US$ million and per cent) 
Type of 
procedure 2007 2008 2009 2010 2011 
Amount 
awarded  % of total 
amount 
awarded Amount 
awarded % of total 
amount 
awarded Amount 
awarded % of total 
amount 
awarded Amount 
awarded % of total 
amount 
awarded Amount 
awarded % of total 
amount 
awarded 
Direct 
procurement 860.6 46.54% 1,920.5 61.63% 1,123.3 27.52% 1,158.2 41.91% 2,803.2 47.00% 
Abbreviated 
bidding 239.3 12.94% 361.8 11.61% 1,511.9 37.04% 425.7 15.39% 872.6 14.63% 
National 
competitive 
bidding 393.4 21.28% 430.2 13.81% 372.2 9.12% 242.7 8.78% 574.1 9.63% 
International 
competitive 
bidding 153.1 8.28% 270.7 8.69% 838.9 20.55% 184.7 6.68% 1,328.4 22.27% 
Bidding by 
registrationa 30.3 1.64% 0.104 0.00%b 0.0 0.00% 0.0 0.00% 0.0 0.00% 
Selective 
biddinga 21.6 1.17% 0.129 0.00%b 0.0 0.00% 0.0 0.00% 0.0 0.00% 
Special 
procedures 150.5 8.14% 104.9 3.37% 124.2 3.04% 152.0 5.50% 70.8 1.18% 
Based on 
administrative procurement 
principles 0.0 0.00% 27.4 0.88% 111.0 2.72% 598.8 21.67% 314.0 5.26% 
Procurement 
by demand 0.0 0.00% 0.0 0.00% 0.0 0.00% 0.2 0.01% 0.2 0.00%b 
Framework 
agreement 0.0 0.00% 0.0 0.00% 0.014 0.00% 0.3 0.01% 0.1 0.00%b 
Pre-qualified 
contracting  0.0 0.00% 0.0 0.00% 0.0 0.00% 0.03 0.00%b 0.03 0.00% 
Dutch auction 0.0 0.00% 0.0 0.00%  0.0 0.00% 0.0 0.00% 0.00 0.00% 
TOTAL 1,849.0 100.00% 3,116.1 100.00% 4,081.6 100.00% 2,763.0 100.00% 5,963.7 100.00% 
a Under Law No. 8511 of 2007, bidding by registration and selective bidding were unified to become abbreviated bidding. 
b This figure is not exactly zero but is less than 0.01%. 
Source: WTO Secretariat on the basis of data  provided by the Costa Rican authorities. 
  
 WT/TPR/S/286 • Costa Rica  
 
- 151 - Table A4. 1 Costa Rica's in-quota imports, 2007-2012 
(Metric tonnes and per cent) 
Product Tariff headings  
HS2007/HS2012 2007  2008 2009  2010  2011  2012 Import 
volume 
Fill rate 
Import 
volume 
Fill rate 
Import 
volume 
Fill rate 
Import 
 volume  
Fill rate  
Import 
 volume  
Fill rate  
Import 
volume  
Fill rate  
(MT) (%) (MT) (%) (MT) (%) (MT) (%) (MT) (%) (MT) (%) 
Other cuts and offal of poultry, fresh, chilled 
or frozen 0207.13.92, 0207.13.93, 
0207.13.94,0207.13.99, 
0207.14.92, 0207.14.93, 0207.14.94, 0207.14.99, 
0207.26.90,0207.35.90/0207.44.90 0.0 0.0 0.0 0.0 9.2 0.7 91.3 7.1 56.1 4.4 0.0 0.0 
Milk and cream, not concentrated nor 
containing added sugar or other 
sweetening matter 0401 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.7 0.7 2.3 0.6 
Milk and cream, concentrated or containing 
added sugar or other sweetening matter 0402 
(except 0402.91.10 and 0402.99.10) 0.0 0.0 294.0 85.4 72.5 21.1 17.2 5.0 117.7 34.2 132.6 38.5 
Buttermilk, curdled milk and cream, yogurt, 
kephir and other fermented or acidified milk 
and cream, whether or not concentrated 
or containing added sugar or other 
sweetening matter or flavoured or 
containing added fruit, nuts or cocoa 0403 15.0 30.0 2.0 4.0 38.1 76.2 22.6 45.2 38.3 76.6 40.3 80.7 
Butter and other fats and oils derived 
from milk 0405 15.6 0.0 0.0 0.0 12.4 27.6 15.7 34.9 15.6 34.7 10.0 22.2 
Cheese and curd (excluding headings for 
cheddar type, dehydrated, green ‑ 
or blue‑veined and other cheese) 0406.10, 0406.30 126.0 33.6 81.1 21.6 23.4 6.2 16.2 4.3 5.8 1.5 6.8 1.8 
Sausages and similar products. Meat and 
meat offal of poultry of heading 0105; other 
prepared or preserved meat and meat offal 
of poultry of heading 0105 1601.00.20, 1602.10.20, 
1602.32.00/1602.32.10 and 
1602.32.90 67.8 45.2 11.3 7.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Ice‑cream and other edible ice, whether 
or not containing cocoa 2105 81.1 11.2 77.2 10.6 12.7 1.8 11.4 1.6 35.5 4.9 32.6 4.5 
Source: Secretariat calculations based on da ta provided by COMEX and the General Dire ctorate of Customs (DGA), and Costa Rica's  notification to the WTO 
in document G/AG/N/CRI/43 dated 4 March 2013. 
__________