Costa Rica and the UAE have signed a a Comprehensive Economic Partnership Agreement (CEPA), a trade deal that will help improve bilateral trade and investment ties, UAE President Sheikh Mohammed bin Zayed Al Nahyan has announced.
CEPAs signed by the UAE are broad free trade agreements that aim to foster resilient, sustainable, and future-oriented economies relying on innovation, investment, and trade to drive sustainable development towards further progress, prosperity, and well-being.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the agreement will grant the UAE high access to the Costa Rican market, reaching 98% of tariff lines without customs duties or with reduced customs duties.
Dr. Al Zeyoudi added that the deal is estimated to contribute $46 million annually to the UAE’s GDP by 2031 and $44 million annually to Costa Rica’s GDP.
The CEPA agreement is also expected to increase total UAE exports to Costa Rica by $24 million annually and $12 million for Costa Rican exports to the UAE market. This will increase total cumulative direct UAE exports by the end of 2031 to $81 million, while their Costa Rican counterparts will reach $134 million during the same period.
The agreement is set to enhance the UAE service providers’ access to the Costa Rican market across various sectors, including business, communications, construction, engineering contracting, distribution, education, environment, financial services, health and social care, tourism, travel, entertainment, culture, sports, and transportation, among others.
“Costa Rica is one of the most promising emerging economies in Central America, located at the crossroads of trade between the Americas,” Al Zeyoudi told the Emirates News Agency (WAM). “It presents a significant opportunity for cooperation in sectors such as logistics and transportation.”
“Its committment to the green economy also offers opportunities for renewable energy and ecotourism projects benefiting the private sector in both countries.”
Dr. Al Zeyoudi noted that trade volume between the two countries over the past five years has amounted to about $244.3 million, rising from $34.2 million in 2019 to $64.6 million in 2023, an increase of 88.9%.
The newest CEPA falls within the UAE’s framework of the economic partnership agreements programme, which includes similar agreements with India, Israel, Indonesia, Türkiye, Cambodia, Georgia, and Costa Rica.
The two nations concluded the CEPA negotiations in January of this year.
