Costa Rica announced on June 4, 2013 that its free trade agreement with Peru came into effect on June 1st, eventually removing tariffs on 80 percent of products.
The Costa Rican Foreign Trade Minister, Anabel Gonzalez, said in a statement that the treaty especially benefits small and medium enterprises, as well as consumers, who will be able to access a wider range of products at competitive prices.
The Peruvian products that will immediately be made duty-free include turkey, sardines, evaporated milk, artichokes, garlic, mangoes, tangerines, lemons, grapes and paprika.
Meanwhile, the Tico products set to benefit from the FTA are chocolates, tea, milk-based drinks and powdered drinks.
Data from the Foreign Trade Ministry indicates that Costa Rica’s exports to Peru were worth USD64m in 2012, while Peru’s exports to Costa Rica totaled USD46.2m.
Gonzalez also said in his press release that the FTA marks a great step forward in Costa Rica’s bid to join the Pacific Alliance.
Costa Rica was recently granted approval to join the Pacific Alliance, a trade bloc formed last year by Chile, Colombia, Mexico and Peru, on the condition that it forms free-trade deals with all members.