Costa Rica’s CPTPP Accession: UK Stakeholders Emphasize High Standards in IP, Trade Facilitation and Regulatory Alignment

By IDEAS

As Costa Rica advances in its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the UK government has outlined its response to stakeholder feedback gathered during a public engagement period held between November 2024 and January 2025. The feedback, summarized in a report published by the Department for Business and Trade, reflects views from businesses, NGOs, trade associations and individuals across sectors concerned with the implications of Costa Rica’s accession. Particular attention was paid to Costa Rica’s preparedness in key regulatory areas such as intellectual property, customs procedures, rules of origin, technical barriers to trade (TBT), and sanitary and phytosanitary (SPS) measures.

Intellectual Property: A Strategic Test of CPTPP Commitments

Several UK stakeholders viewed Costa Rica’s proposed accession as an opportunity to reinforce strong intellectual property (IP) protections under CPTPP, especially in sectors like pharmaceuticals and technology. Two respondents welcomed the prospect of ensuring adequate IP standards, with one citing Costa Rica’s active participation in the World Trade Organization (WTO) as evidence of its readiness to uphold CPTPP-level protections for patents and trademarks.

The UK, as noted in the official report, will seek a side letter on Patent Grace Periods with Costa Rica, replicating agreements already signed with other CPTPP parties. This bilateral mechanism allows parties to secure clarifications or legal exceptions without altering the main text of the treaty, and reflects the UK’s strategic priority to preserve high-level IP standards within the bloc.

Customs and Trade Facilitation: Efficiency and Equity

Six respondents to the consultation emphasized the need for smooth and efficient customs operations between the UK and Costa Rica. Among them, calls were made for technical cooperation and capacity building in trade facilitation—suggesting that the UK use CPTPP as a framework to help Costa Rica reduce logistics inefficiencies and lower trade costs. These concerns echo broader efforts within CPTPP to standardize and simplify customs procedures across member states.

However, some noted potential asymmetries. One respondent pointed out that Costa Rican importers must pay excise taxes upfront at customs, while domestic producers pay monthly. Another emphasized that any new procedures stemming from CPTPP should not disadvantage exporters from outside the bloc through excessive administrative or cost burdens.

Rules of Origin: Unlocking Regional Value Chains

Rules of origin (RoO)—the criteria used to determine the national source of a product—were highlighted by several stakeholders as critical to unlocking the trade and supply chain benefits of CPTPP. Two respondents stressed that Costa Rica’s accession could support the diversification of export markets for both countries, while encouraging integration into regional value chains.

One contributor emphasized that clear and simplified rules of origin could enhance the competitiveness of Costa Rican exports in the UK. Another called for the streamlining of certification processes, aiming to minimize bureaucracy and facilitate the uptake of preferential tariffs granted under the agreement.

Technical Barriers to Trade: Harmonization and Market Access

The UK report also records concern about technical barriers to trade (TBT)—differences in standards and regulations that may restrict trade despite the absence of tariffs. Two stakeholders urged that Costa Rican standards align with international best practices and CPTPP’s high requirements.

One respondent requested mutual recognition or equivalence for certain UK and EU standards to ensure smoother access to Costa Rica’s market, including for organic products. Conversely, there were warnings that inconsistent regulatory adoption could harm exports of both agricultural and industrial goods, stressing the need for harmonized approaches to ensure fair competition.

Sanitary and Phytosanitary Measures: Balancing Access with Safety

Sanitary and phytosanitary (SPS) measures—regulations to protect human, animal, and plant health—emerged as one of the most contentious areas in the consultation. One respondent opposed any market access concessions on goods that do not meet the UK’s SPS standards, reflecting long-standing concerns about food safety and biosecurity in trade deals.

Another stakeholder underlined the importance of maintaining strict import restrictions on diseased animals, while also noting opportunities for greater regulatory cooperation. Calls for harmonization of SPS measures to comply with non-discrimination and international standards were made, alongside appeals for support in helping UK businesses navigate Costa Rican regulatory requirements for exporting.

At the same time, one respondent stressed that SPS alignment should not result in a lowering of UK standards, and called for UK exporters to receive assistance in registering with Costa Rican authorities—a step that may be necessary to take full advantage of market access opportunities under CPTPP.