Israel and Costa Rica signed a free trade agreement Monday that will eliminate most tariffs and expand economic ties, Israel’s Ministry of Economy and Industry said.
The deal, signed in Jerusalem by Israeli Economy Minister Nir Barkat and Costa Rican Foreign Trade Minister Manuel Tovar Rivera, removes more than 90 percent of tariff lines immediately and grants preferential treatment to about 95 percent of traded products. Officials said the move is expected to lower prices in Israel on food, raw materials and industrial equipment.
Israel’s exports to Costa Rica currently average about $32 million annually. The ministry said the agreement is expected to accelerate growth and open new sectors for trade.
“The signing of the agreement is a significant achievement for Israeli industry,” said Roi Fisher, director of the ministry’s foreign trade system. He added that Israeli exporters will gain preferred access to a market with high tariff rates, strengthening their competitiveness.