Costa Rica and Israel to sign Free Trade Area Agreement

By IDEAS

Costa Rica and Israel have announced their intention to sign a Free Trade Agreement (FTA), following the conclusion of negotiations and the completion of internal procedures in both countries.

According to official statements from the Israeli government, the agreement is expected to be signed shortly, pending final formalities, and would mark Costa Rica’s first trade agreement with Israel.

For Costa Rica, the prospective FTA represents a strategic step in diversifying trade partners and deepening economic ties with an innovation-driven economy, particularly in sectors such as technology, agribusiness, medical devices and digital services.

Costa Rican authorities have emphasized that the future agreement would eliminate tariffs on the vast majority of goods traded between the two countries, improving access for Costa Rican exports such as pineapple, coffee, cocoa, medical equipment and agricultural products to the Israeli market. At the same time, Israeli industrial and technological products would gain preferential access to Costa Rica.

The government views the agreement as part of a broader effort to strengthen Costa Rica’s integration into global value chains and to attract investment linked to high-value production and services, areas in which Costa Rica has positioned itself regionally.

Beyond trade in goods, the planned FTA is expected to include provisions on trade in services, reflecting Costa Rica’s growing role as a hub for shared services, digital solutions and technology-intensive activities. This aspect is particularly relevant given Israel’s strong innovation ecosystem and Costa Rica’s expanding base of technology companies and multinational operations.

Costa Rican officials have highlighted the potential for cooperation in areas such as digital services, cybersecurity, agritech, medical technologies and research collaboration, sectors where legal certainty and regulatory alignment play a central role.

Although the full text of the agreement has not yet been made public, intellectual property (IP) protection is expected to be a component, in line with Costa Rica’s existing network of modern free trade agreements.

Costa Rica already applies international IP standards through its participation in treaties administered by the World Intellectual Property Organization (WIPO) and through IP chapters in agreements with partners such as the United States, the European Union, China and South Korea. These frameworks cover patents, trademarks, industrial designs, copyright and enforcement mechanisms.