Costa Rica’s legislature approved a free trade agreement (FTA) with Colombia at its first reading on March 3, 2014. The FTA, which was initialed by both countries on May 23, 2013, is considered an important step to Costa Rica joining the Pacific Alliance, a trade bloc comprising Chile, Colombia, Mexico, and Peru.
The text of the FTA will now be reviewed by the Constitutional Chamber before being sent back to the legislature for a second debate. The agreement is expected to be formally signed within eight weeks. Industrial and agricultural groups in Costa Rica have raised concerns that the FTA would undermine the country’s competitiveness, despite tariff concessions for Colombia being reduced in the final draft.
Costa Rica has already signed FTAs with Mexico, Chile and Peru.
