MOREPRESS RELEASE
PRESS/TPRB/163
11 May 2001
(01-2462)
TRADE POLICY REVIEW BODY
REVIEW OF COSTA RICA
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its
second review of Costa Rica on 9 and 11 May 2001. The text of the Chairperson's concluding remarks
is attached as a summary of the salient points which emerged during the discussion.
The review enables the TPRB to conduct a collec tive examination of the full range of trade
policies and practices of each WTO member countries at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and otherpreferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports will be published in due
course at the complete trade policy review of Costa Rica and will be available from the WTO
Secretariat, Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.PRESS/TPRB/163
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MORESince December 1989, the following reports have been completed: Argentina (1992 and
1999), Australia (1989, 1994 and 1998), Austria (19 92), Bahrain (2000) Bangladesh (1992 and 2000),
Benin (1997), Bolivia (1993 and 1999), Botswana  (1998), Brazil (1992, 1996 and 2000), Burkina
Faso (1998), Cameroon (1995), Canada (1990, 1992, 1994, 1996, 1998 and 2000), Chile (1991 and
1997), Colombia (1990 and 1996), Costa Rica (1995 a nd 2001), Côte d’Ivoire (1995), Cyprus (1997),
the Czech Republic (1996), the Dominican Republic (1996), Egypt (1992 and 1999), El Salvador(1996), the European Communities (1991, 1993, 1995, 1997 and 2000), Fiji (1997), Finland (1992),
Ghana (1992 and 2001), Guinea (1999), Hong Kong (1990, 1994 and 1998), Hungary (1991 and
1998), Iceland (1994 and 2000), India (1993 a nd 1998), Indonesia (1991, 1994 and 1998), Israel
(1994 and 1999), Jamaica (1998), Japan (1990, 1992, 1995,1998 and 2000), Kenya (1993 and 2000),
Korea, Rep. of (1992, 1996 and 2000), Lesotho (1998), Macau, China (1994 and 2001), Madagascar
(2001), Malaysia (1993 and 1997), Mali (1998), Mauritius (1995), Mexico (1993 and 1997), Morocco
(1989 and 1996), New Zealand ( 1990 and 1996), Namibia (1998), Nicaragua (1999), Nigeria (1991
and 1998), Norway (1991, 1996 and 2000), Pakistan  (1995), Papua New Guinea (1999), Paraguay
(1997), Peru (1994 and 2000), the Philippines (1993), Poland (1993), Romania (1992 and 1999),
Senegal (1994), Singapore (1992, 1996 and 2000), Slovak Republic (1995), the Solomon Islands
(1998), South Africa (1993 and 1998), Sri Lanka(1995), Swaziland (1998), Sweden (1990 and 1994),
Switzerland (1991, 1996 and 2000 (jointly with Liechtenstein), Tanzania (2000), Thailand (1991,1995 and 1999), Togo (1999), Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 and 1998),
the United States (1989, 1992, 1994, 1996 and 1999) , Uganda (1995), Uruguay (1992 and 1998),
Venezuela (1996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/163
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MORETRADE POLICY REVIEW BODY
REVIEW OF COSTA RICA
CONCLUDING REMARKS BY THE CHAIRPERSON
1. Our discussions over the past two days have allowed us to come to a fuller understanding and
appreciation of Costa Rica's trade policies and practices.  This has been greatly helped by the
openness and frankness of the delegation, led by Vice-Minister Llobet, and I am sure that we are all
very grateful for their active participation.  Members were all favourably impressed by Costa Rica's
good economic performance in recent years.  They noted that underlying this performance was CostaRica's generally liberal trade regime, open investment environment and successful strategy to shift
production towards manufacturing, notably into export industries.  Trade has also been an important
element in this performance with the share of trade to GDP rising from 71% to 97% over the last
decade.  However, growth of per capita disposable income had not been as impressive as overall
growth, suggesting the need to strengthen the linkages between domestic and export-oriented
activities.  Costa Rica has recognized the problem and is already taking steps in this direction.
2. Members complimented Costa Rica for its continued strong support, for the multilateral trading
system and for its active participation in the work of the WTO.  Several Members welcomed CostaRica's clear support for the launching of a new round of negotiations with a broad agenda.  Members
took note of Costa Rica's increased participation in  preferential arrangements and highlighted the
importance of ensuring that such participation is fully consistent with multilateral principles, so as to
ensure the complementarity of multilateral and regional liberalization efforts and to avoid the
marginalization of third countries.
3. Members commended Costa Rica for its success in providing a stable economic and institutional
environment.  However, some recent difficulties to  reform and modernize important sectors, such as
telecommunications, insurance and energy, raised concerns about Costa Rica's ability to keep up with
technological and market developments.
4. Participants recognized that access to the Costa Rican market is generally liberal.  Nevertheless,
Members noted the persistence of access barriers in a few but important sectors, particularly in some
services areas.  Members also raised some concerns about the wide gap between applied and bound
tariff rates, relatively high protection in the agricultural sector, price and marketing regulations, and
remaining monopolies in telecommunications, insurance and energy distribution services.  The CostaRican delegation noted that legislative initiatives were in course to address some of these issues.
5. Specific questions were also asked regarding Costa Rica's:
• strong dependence of exports on a sing le producer of electronic components;
• export incentives mechanisms, including after they expire in 2003;
• schemes to encourage backward linkages between export-oriented activities and the
domestic economy;
• differential treatment of national and imported alcoholic beverages;
• plans to further upgrade and improve customs procedures and administration;
• use of labelling and SPS measures;
• marketing of agricultural products, including sugar and coffee;
• administration of tariff-quotas and special safeguards on a few agricultural products;
• plans to liberalize and reform the services sector, and access conditions to
professional, air transport and financial services;
• GATS commitments;
• possible participation in the GPA;  and
• protection of IPRs.PRESS/TPRB/163
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6. Members clearly appreciated the comprehensive responses provided by Costa Rica to questions
addressed in writing and to the questions raised during the Review.  I thank in particular the Costa
Rican delegation for its dedication and hard work in providing written answers to the many questions
posed by Members.
In conclusion, it is my clear impression that this Body appreciates Costa Rica's commitment
to a strong rules-based multilateral trading system.  Costa Rica is a prime example of how small WTOeconomies may benefit from trade liberalization and the multilateral trading system.  Generally,
Members see the Costa Rican trade and investment regime as open and transparent, but are also aware
of remaining barriers.  In this respect, several Me mbers believed that liberalization should also extend
to those sensitive service areas that to date lag the process of reform.  This would bring these sectors –
some of which, such as telecommunications are vital for the infrastructure, - in line with policies in
other areas.  This would complement Costa Rica's otherwise growth supportive policies, to the benefit
of both Costa Rica's economy and of the multilateral trading system.
END