Benefits Of Canada Costa Rica Free Trade Agreement

Benefits Of Canada Costa Rica Free Trade Agreement

27. 08. 2019 Products from Costa Rica`s Free Trade Areas that are now eligible for CCRFTA tariffs The CCRFTA negotiations began nine months ago following a consultation with the Canadian government. The negotiations focused on several areas of interest to Canadian industry, such as access to the goods market, trade facilitation and competition policy. A joint declaration on e-commerce was also adopted between the two countries. Now that the Canadian government is convinced that Costa Rica has eliminated business tax exemptions and other export subsidies, the regulations have been repealed and original products that were previously tax-exempt can now benefit from preferential tariff treatment. These products are included in categories A1, B, C and D of the Canadian Tariff Elimination Plan under the CCRFTA and include clothing, textiles and tyre products. These goods can now be imported into Canada duty-free. The Canadian government expects to waive tariffs of approximately $2.7 million due to the repeal of the regulations.4 Given that the products concerned are originally subject to moderate or high tariffs, Canadian importers who purchase the affected products will benefit from a significant reduction in the cost of tariffs on these products. Costa Rica is Canada`s largest trading partner in Central America.5 In 2018, Canada exported approximately $164 million in goods to Costa Rica and imported approximately $519 million.6 The agreement yielded nearly immediate positive results and, in three years, canada-Costa Rica trade increased from $324 million to $440 million. The CCRFTA will be reviewed in the near future.

In August 2011, Costa Rican President Laura Chinchilla and Canadian Prime Minister Stephen Harper announced that the two countries would begin negotiations to «modernize» the existing trade agreement. In particular, tariffs on most of these goods traded between Canada and Costa Rica will be eliminated as a result of the implementation of the agreement. These include some important Canadian export products, such as Z.B. Automotive goods, including trucks and parts, prefabricated homes and certain construction products such as steel structures. More broadly, the largest in this category include the largest number of fishing and fishing products; Various products from the chemical and allied industries; raw leathers and leathers; pulp and paper; Glass products Most metals and their related products such as tools; a large part of machinery, including electrical, electronic and telecommunications equipment; various types of transportation equipment (automotive goods, urban transit equipment, aircraft, rail equipment and ships); and a large majority of scientific and medical materials. In total, there were seven rounds of negotiations in which discussions between Canada and Costa Rica followed one another. A wide range of issues were addressed, including market access, competition policy, institutional provisions and dispute resolution. In addition, separate discussions were held on labour and environmental issues, which resulted in cooperation agreements. Overall (including agricultural products), Costa Rica will immediately remove its tariffs on approximately 67% of its tariffs and over a maximum of 14 years for other products, while Canada will grant immediate duty-free access to approximately 86% of its customs positions, with the remaining tariff-free for up to eight years. This agreement will give Canadian exporters an advantage over their major competitors in the Costa Rican market, including U.S., European and Asian suppliers, as well as a level playing field with Costa Rica`s trading partners, which already enjoy preferential market access, including Mexico, Chile and other Central American nations.

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