Costa Rica has officially ratified a bilateral trade agreement with Ecuador. This agreement, celebrated by Ecuadorian authorities, is expected to bolster investments and create thousands of new jobs, particularly in sectors crucial to Ecuador’s export portfolio.

Promoting Export Growth and Economic Prosperity

The Ecuadorian Ministry of Foreign Affairs and Human Mobility has underscored the agreement’s potential to serve as a pivotal tool for enhancing economic ties between Ecuador and Costa Rica. According to the Ecuadorian Executive, the pact is anticipated to facilitate a substantial 10 percent increase in current export volumes, translating into an estimated USD 3 million in additional income.

Of particular interest is the agreement’s positive implications for Ecuador’s shrimp industry. Recognized globally for its high-quality seafood exports, Ecuador stands to gain significantly from improved competitiveness in shrimp exports under the new trade framework. With enhancements expected in export processes and market access, stakeholders within the shrimp industry are optimistic about expanding their presence in Costa Rica and beyond.

Exclusions and Considerations

While the agreement is poised to benefit various sectors including canned and preserved fish, metal manufactures, and pharmaceuticals, it notably excludes certain products such as beef, dairy, and agricultural goods where Costa Rica holds a competitive advantage. Nonetheless, Ecuadorian officials remain upbeat about the overall economic benefits and the potential for sustainable growth across diverse industries.

The treaty, originally signed on March 1, 2023, by officials from both nations, reflects a significant milestone in Ecuador-Costa Rica bilateral relations. Following adjustments recommended by Ecuador’s Constitutional Court in August 2023, the agreement received final approval, paving the way for comprehensive economic cooperation and mutual prosperity.