[OS] COSTA RICA/CHINA/ECON – Costa Rica can be trade hub for China

Released on 2013-02-13 00:00 GMT

Email-ID 4824882
Date 2011-09-13 15:44:53
From santos@stratfor.com
To os@stratfor.com

Costa Rica can be trade hub for China
http://www.chinadaily.com.cn/bizchina/2011-09/13/content_13671035.htm

Updated: 2011-09-13 10:37

By Li Jiabao (China Daily)
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Central American diplomat courts investors with country’s many FTAs
XIAMEN, Fujian – Chinese investors seeking a platform to enter the markets
of the Americas should consider Costa Rica, given its numerous trade
advantages and economic diversity, the country’s ambassador to China said
on Sept 9.
“The key word of Costa Rica’s economy development is diversification. We
will shift our efforts from the electronics industry to the high-tech,
renewable- and clean-energy industries,” Marco Ruiz, the Costa Rican
ambassador to China, said during the 15th China International Fair for
Investment and Trade in Xiamen, Fujian province, from Sept 7 to 11.
Pilar Madrigal, director of International Affairs at the Costa Rican
Investment Promotion Agency, emphasized the importance of Chinese
investment.
“Chinese companies can use Costa Rica as a trade platform and an
investment hub to the Western Hemisphere as Minister of Commerce Chen
Deming is encouraging more companies to invest abroad.
“Chinese companies can assemble goods in Costa Rica to increase their
value and export to other countries through Costa Rica’s FTA (free-trade
agreement) with Central America and other countries,” she said.
Costa Rica is the only Central American country to have an FTA with China.
Costa Rica’s eight FTAs regulate trade with 13 partners and cover 64.1
percent of the country’s exports and 64.1 percent of its total imports.
Statistics from the General Administration of Customs of China show that
trade volume between China and Costa Rica reached $3.8 billion in 2010, up
19.2 percent year-on-year. China’s exports to Costa Rica reached $690
million last year while imports totaled $3.11 billion.
The electronics industry has been the leading sector in Costa Rica in the
past decades and the country is a major supplier of electronics.
Since 2000, Costa Rican exports to China, which include computer
components and accessories, electrical plugs and agricultural products,
increased approximately 70 percent annually.
The FTA between Costa Rica and China came into effect on Aug 1. More than
90 percent of bilateral trade goods will eventually be tariff-free.
“China-Costa Rica trade is expected to increase more than 5 percent each
year despite a global reduction in trade, especially in the United States
and European Union. But in Asia, specifically China, trade is growing very
fast,” Ruiz said.
So far, Costa Rica has established FTAs with Singapore and China and is
evaluating the possibility of an FTA with South Korea.
Pilar said that the FTA with China “has built a highway through the ocean,
allowing Chinese companies, investors, tourists to go with confidence”.
However, challenges in areas including mutual understanding and
cooperation may effect China’s investment in Costa Rica.
“My suggestion for Chinese investors is that it is difficult to go abroad
alone. It is much better to find partners in Costa Rica because they
understand the language, customs and traditions. It’s the same for Costa
Rican companies investing in China,” Ruiz said.

Araceli Santos
STRATFOR
T: 512-996-9108
F: 512-744-4334
araceli.santos@stratfor.com
http://www.stratfor.com

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4 thoughts on “[OS] COSTA RICA/CHINA/ECON – Costa Rica can be trade hub for China

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