UAE-Costa Rica Economic Agreement Comes into Effect, Boosting Investment in Central America

By IDEAS

A Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Costa Rica has come into force. The agreement will contribute to the elimination or reduction of customs duties on a wide range of goods. It will also simplify customs procedures and establish new pathways for investment in priority sectors within the United Arab Emirates and across markets in Central America.

The CEPA complements existing international principles and standards for the treatment, protection, and enforcement of Intellectual Property Rights in a manner that is conducive to invention, innovation, and creativity.

The CEPA is expected to contribute to launching a new era of investments and trade in various fields among the UAE’s and Costa Rican business communities, thereby supporting the economic growth of both nations. It will do this by: 

-Removing or reducing tariffs
-Reducing non-tariff barriers to trade
-Facilitating market access for services sectors
-Access to Costa Rica’s government procurement opportunities
-Providing a platform for SMEs to expand internationally
-Promoting and facilitating investment
-Creating a framework for Digital Trade
-Establishing an effective dispute resolution system
-Enhancing the efficiency of customs procedures

Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said that the agreement serves as a catalyst for deepening economic cooperation and enhancing connectivity with centres of growth in Central America. He added that this will open new opportunities for the private sector and support shared objectives, including strengthening food security and accelerating the adoption of clean energy.

The UAE-Costa Rica Agreement, signed in April 2024, builds on non-oil trade that exceeded USD 82.6 million in 2024, reflecting a growth of 27.5% compared to 2023. Under the agreement, 99.8% of UAE exports to Costa Rica will benefit from exemption or gradual reduction of customs duties. The partnership will also support the enhancement of strategic capital flows, in addition to existing UAE investments in Central America estimated at approximately USD 673 million.