Jerusalem, 8 December, 2025 (TPS-IL) — Israel and Costa Rica signed a Free Trade Area (FTA) agreement on Monday, marking a significant milestone in economic cooperation between the two countries. The agreement, signed at the Ministry of Economy and Industry in Jerusalem, is expected to strengthen Israeli exports, expand bilateral trade, and contribute to lowering the cost of living in Israel.
“Costa Rica is a natural trade partner for Israel – an OECD country with a deep commitment to free and open trade,” said Minister of Economy and Industry Nir Barkat. “The Free Trade Agreement is expected to strengthen the trend of growth in israeli exports, deepen business collaborations, and help reduce the cost of living in Israel by lowering import prices. The agreement reflects the policy we are leading: opening new markets, diversifying trade destinations, and strengthening the growth engines of the Israeli economy.”
The deal will immediately eliminate over 90% of tariffs, opening the Costa Rican market to Israeli industrial and agricultural products. At the same time, Israel will reduce import costs on a wide range of products from Costa Rica, including tropical fruits, nuts, vegetables, and medical equipment. Officials said these reductions are likely to benefit both producers and consumers in Israel.
Minister of Foreign Trade of Costa Rica Manuel Tovar Rivera also emphasized the potential benefits of the agreement. “This agreement opens significant new avenues for both Costa Rica and Israel. It enhances access to high-quality Costa Rican goods and services while creating a mutually beneficial platform for collaboration in high-technology industries, premium agribusiness, and specialized services. We see this partnership as a catalyst for two-way investment, innovation, and expanded commercial opportunities that will strengthen the economic ties between our nations,” he said.
Under the agreement, Israeli exports to Costa Rica will benefit from zero tariffs on products including fertilizers, agricultural chemicals, plastic sheets, machinery, laboratory equipment, aluminum profiles, printing ink, olive oil, dates, grapefruit, citrus fruits, waffle cookies, and roasted grains. Conversely, Costa Rican exports to Israel, such as asparagus, nuts, mushrooms, cabbage, celery, dried pineapple, tropical fruits, coffee, cocoa, cane sugar, and medical and orthopedic equipment, will see tariffs eliminated or maintained under preferential conditions. Fresh pineapple, Costa Rica’s leading export to Israel, will continue to enjoy a general exemption from customs duties.
The FTA also includes modern trade provisions, such as using a Declaration of Origin instead of a Certificate of Origin, recognition of software as part of production, flexible cumulation rules, and measures adapted to global supply chains. It regulates trade in services for the first time between the two countries, allowing remote service provision, promoting secure digital trade, recognizing electronic signatures, and ensuring equal rights for Israeli suppliers.
Currently, annual Israeli exports to Costa Rica average around $32 million, but officials expect the new agreement to significantly expand trade across multiple sectors. Costa Rica already maintains trade agreements with 18 major trading partners, including the European Union, the United States, China, and South Korea, giving Israel a competitive position in line with these markets. Following the signing, a formal ratification process will begin before the agreement comes into force.
“The signing of the agreement is a significant achievement for Israeli industry. Upon its entry into force, Israeli exporters will enjoy preferential access to a market where customs rates are high – an advantage that strengthens their competitiveness. Israel and Costa Rica complement each other in the fields of agriculture, manufacturing, and technology – a combination that creates real opportunities for expanding trade and deepening cooperation,” said Roy Fisher, Director of the Ministry of Economy and Industry’s Foreign Trade Division.
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