On February 10th, after a year and two months of negotiations, Costa Rica finalized a free trade agreement with China, the world's third largest economy.

Foreign Trade Minister, Marco Vinicio Ruiz, considered it a milestone for Costa Rica's trade policy, because it both opens up the opportunity for negotiating with the country's second largest trading partner and strengthens linkages with Asia. Additionally, the head of trading, Fernando Ocampo, regretted not having achieved a 100% opening for Costa Rican products into the Chinese market, but affirmed that China has opened its market to 99.6% of Costa Rican traded products, which are mostly products exported by Intel. However, he said that sugar continued to be excluded, in spite of Costa Rica's insistence, as China had never given access to sugar in other treaties.

Other assets excluded by China were cotton, rice and, dairy products. 

Costa Rica offered China an immediate opening into Costa Rica of 58% of goods with with cero tariff; 25% of products with tariff reduction to cero after 10 years from the execution of the agreement; and 7% of products with tariff reduction to cero after five years from signing.

The industrial and agri-food sector obtained that 10% of products, representing 588 tariff lines, be excluded from the Treaty (e.g. plastics, metallurgy, tires, and others sectors where domestic production is sufficient).

Industrial Safeguarding

Ocampo stressed that for the first time Costa Rica managed to incorporate two "geographical indications" for agricultural products: Costa Rican Bananas, Costa Rican Coffee and Costa Rican Tarrazú (coffee) in a treaty.

At the Industry Sector's request, a safeguard was included which would allow the import tariff to be raised if it is detected that Chinese imports are slowing the emergence of local new industries. This mechanism will apply for seven years.

In terms of sanitary regulations, both Costa Rica and China´s delegations agreed on further conversations between sanitary authorities to address specific issues on this matter.

In reference to meat, the countries continue working on 'sanitary protocols', that, together with the five-year tariff reduction for meet entering China, they hope to open opportunities for this sector.

In reference to beans, Costa Rica negotiated a quota of 10,000 metric tons, with performance requirements, to enter the country when there is no domestic production.

For Costa Rica's new Congress

Before returning to China on February 10th, Chinese Vice-Minister of Trade, Yi Xiaozhun, said that through the support of the two countries' leaders, negotiations for this process concluded quickly. They expect to solidify legal revisions in March.

Once both countries sign the treaty in Beijing in April, the Costa Rican Government will send the agreement to Congress for ratification.

The Foreign Trade Minister said that although the recently elected Congress will have to debate this free trade agreement, he guarantees the treaty will be quietly approved because all the sectors' needs were addressed. If ratified, this Treaty will become the tenth free trade agreement  concluded by Costa Rica.

Negotiated Products

Some Costa Rican products entering immediately into China free of tariff are:

• Palmito
• Ornamentals
• Frozen orange juice
• Cassava
• Tubers
• Fishing

 Chinese goods entering immediately into Costa Rica free of tariff are:

• Raw materials
• Electronic appliances, televisions
• Agricultural Equipment
• Apple juice
• Beans

Tariff relief on products:

Costa Rica can export coffee to the Chinese market with a ten year tariff reduction period, but China cannot export this product to Costa Rica.

In the case of pineapple juice and meat, the tariff reduction period is that of five years