China Costa Rica Free Trade Agreement

China and New Zealand formally began free trade negotiations in December 2004 and concluded negotiations in December 2007 after 15 rounds of negotiations. The negotiations and signing of the China-Costa Rica Free Trade Agreement reflect the determination and confidence of China and Costa Rica through enhanced cooperation and deepening economic and trade relations, as well as cooperation towards mutual benefits and win-win outcomes. Costa Rica is a relatively small country that is open to trade in goods and services as well as foreign investment. Until 2016, there were many of Costa Rica`s free trade agreements that govern the country`s trade relations with a total of forty to nine nations. As a result, 80 percent of Costa Rica`s exports go to countries with which the nation has free trade agreements. The Free Trade Agreement between China and Switzerland is the first bilateral free trade agreement signed between China and a country on the European continent and one of the world`s top 20 economies. As far as trade in goods is concerned, at least 90% of the goods of both parties will not have gradual access to customs on the markets of the other party. In terms of services, Costa Rica will open an additional 45 sectors to China, including telecommunications, education and tourism, while China will open seven more service sectors in Costa Rica. CARICOM – The free trade agreement with CARICOM is part of Costa Rica`s free trade agreements that govern relations between itself and a group of countries. CARICOM consists of four nations (Trinity and Tobago, Barbados, Belize and Guyana). The agreement was signed in 2005.

In November 2005, hu Jintao, then Chinese president, and Ricardo Lagos, former president of Chile, witnessed the signing of the Free Trade Agreement between China and Chile. The agreement came into force in October 2006. As part of the agreement, China and Chile will gradually extend the customs processing period to 97% of products within ten years. Negotiations on the free trade agreement began for the first time in September 2004, when trade ministers from both countries met on the sidelines of the ASEAN Plus Three economic ministers meeting. The first round of negotiations was launched in May 2012. The two sides signed the free trade agreement in June 2015, after 14 rounds of negotiations. Costa Rica`s free trade agreements include trade pacts with Canada – After the Costa Rica-Canada Free Trade Agreement, total trade between the two countries increased by an average of 7% per year. Costa Rica`s exports to Canada increased by 9.7%, while imports from Canada increased by 6.2%.

The China-Costa Rica Free Trade Agreement (FTA) came into force on 1 August 2011. Negotiations on the free trade agreement began in January 2009 following the visit of Hu Jintao, then Chinese President, to the Central American country in November 2008. After intense one-year negotiations, the two sides signed the free trade agreement in April 2010. Since the implementation of the China-Pakistan Free Trade Agreement, companies in both countries have been offered more business and comfort opportunities, and consumers in both countries have more benefits. Bilateral trade continued to grow rapidly, growing from $6.9 billion in 2007 to $16 billion in 2014, with annual growth of about 15.3%. In recent years, China-Costa Rica has entered into good cooperation during the years of bilateral trade, investment and contract work, and bilateral economic and trade has shown rapid development. Bilateral trade between China and Costa Rica increased in 2014 to $5.3 billion, a 145 percent increase over 2006. The China-ASEAN Free Trade Area (FTA) was fully completed on 1 January 2010 and since then China has become ASEAN`s largest trading partner, while ASEAN has become China`s third largest trading partner.

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