Costa Rica Signed Free Trade Agreement with China

Costa Rica’s president, Laura Chinchilla, today signed the Free Trade Agreement (FTA) with China.

The Agreement which will come into force in July was approved by the Costa Rican Congress on 31 May and with the pending presidential signature and exchanges of diplomatic notes, according to the Costa Rican government.

Chinchilla said today in a speech that the FTA is intended to “create more and better opportunities through the promotion of trade and investment.” “The FTA is an important mechanism that seeks to stimulate domestic production, diversify the exportable supply, promote investment, cooperation and more and better jobs, it also aims to continue growing commercial and political relations,” said the president.

For their part, Chinese Ambassador to Costa Rica, Changhua Li said at the formal ceremony that this is a milestone in bilateral relations and described the FTA as a “mutually beneficial” agreement.

According to the Ministry of Foreign Trade of Costa Rica, trade with China rose to 1274.5 million in 2010, 13.8% less than U.S. $ 1478.7 million recorded in 2009.

Costa Rica and China established diplomatic relations in June 2007 and the FTA is one of the most important bilateral achievements.