China and Costa Rica announced Wednesday that they have agreed on a framework for a free trade agreement, AFP reported. Talks on an agreement began in earnest in 2007 after Costa Rica became the first nation in Central America to end longstanding diplomatic ties with Taiwan. Marco Vinicio Ruiz, Costa Rican minister of foreign trade, described the agreement “a milestone in Costa Rica’s trade policy,” noting that it would create enormous opportunities for investment from China as well as Costa Rican exports to China. The deal gives priority to Costa Rican exports to China, with 99.6% of goods qualifying for immediate, duty-free access to the Chinese market. In return, tariffs will be removed on 58% of Chinese goods entering Costa Rica. The Central American nation’s agricultural exporters are likely to be the primary beneficiaries, although Chinese negotiators would not allow sugar to be added to the list of tariff-free products. Cost Rica also recently concluded negotiations on a free trade agreement with Singapore.
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