China, Costa Rica to
Begin Free Trade Process
China and Costa Rica
said they will conduct a
feasibility study on a
free trade agreement -
four months after the
two established formal
diplomatic ties. The
move was announced by
top officials from the
two countries this week
during Costa Rican
President Oscar Arias'
ongoing visit to China.
"Costa Rica could be an
ideal place for outward
Chinese investment, as
well as a good base for
Chinese businesses to
penetrate the vast
markets in Latin
America, the Caribbean,
North America and
Europe," Vice-Minister
of Commerce Ma Xiuhong
told a forum on
China-Costa Rica
economic and trade
cooperation yesterday.
She said Costa Rica has
a solid political
environment, robust
economic growth and an
educated workforce.
"For Chinese businesses,
Costa Rica is a very
attractive market, not
only because of the
education level of its
workers, but also for
the potential to export
to the United States
tax-free," Arias said.
Arias' trip to China
follows his country's
vote to join the Central
American Free Trade
Agreement CAFTA) with
the US. The country is
also in free trade talks
with the European Union.
China is Costa Rica's
second biggest trading
partner after the US.
Two-way trade between
China and Costa Rica hit
us$2.16 billion last
year. China accounted
for us$409 million in
exports and us$1.75
billion in imports.
China mainly exports
electronic products,
integrated circuit
parts, computers and
communication products
while it imports
electronic and hi-tech
products and machinery
from Costa Rica.
Trade ties were
strengthened after the
two nations set up
formal diplomatic
relations.
Ma expects bilateral
trade to hit us$3
billion this year, with
China importing us$2.5
billion worth of goods
from the Central
American country.
"The establishment of
formal diplomatic ties
has spurred more Chinese
firms to tap the Costa
Rican market," she said.
China will also
establish a joint
commission with Costa
Rica for economic
cooperation, investment
protection and
inspection and
quarantine on China's
imports of bananas from
the nation.
Meanwhile, the Costa
Rican Export Products
Exhibition was held in
Beijing yesterday, with
28 Costa Rican exporters
showcasing products and
services in sectors
including tourism,
residential and hotel
projects, agriculture,
flowers, coffee, food
and hi-tech products.
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