Following the recent negotiations between the United States and powers such as China, Japan, and the United Kingdom regarding the tariff policy implemented by President Donald Trump, attention has shifted in recent days to Latin America.
Last week, a delegation from the Costa Rican Ministry of Foreign Trade (Comex) held its first official meeting in Washington with the Office of the United States Trade Representative (USTR), in the context of the new tariff policy promoted by the Trump administration. During the meeting, aspects of bilateral trade and the recent imposition of a 10% tariff on Costa Rican exports, in effect since early April, were reviewed.
The Minister of Foreign Trade, Manuel Tovar, highlighted the importance of Costa Rica being one of the first Latin American countries to sit down and negotiate directly with the United States after the round of talks with larger economies.
“The dialogue with our main trading partner is ongoing and solid. We are doing responsible and careful work to safeguard the interests of our export sector and guarantee increasingly better conditions for foreign direct investment,” Tovar stated.
Formulas and Tariffs
In early April, when the tariff announcement was expected, the “National Trade Estimate Report on Foreign Trade Barriers” for 2025 was released.
In it, the United States estimated that Costa Rica was imposing restrictions equivalent to 17%. Although it ultimately responded with a 10% tariff, it did list the factors that were causing concern, including:
Differentiated taxes on liquor, both in terms of rates and method of collection.
Restrictions on the potato market.
Unequal bidding processes.
Bureaucratic processes for imports of animal origin.
Need for more intellectual property controls.
Based on these observations, Tovar points out that there were issues already addressed and others that could be easily addressed.
“We indicated that several of the issues identified in that report had already been addressed and resolved some time ago. We felt the report was somewhat outdated, and in other respects, we took action on the measures that had been pointed out,” he stated.
“Costa Rica has demonstrated that it addresses and considers the irritating trade concerns that the United States has raised. We have been addressing the vast majority of them, and they have been resolved or are in the process of being resolved,” the official insisted.
Many aspects of that menu can be addressed administratively. Of particular note, however, is the issue of public procurement, where the adoption of the Public Procurement Agreement is expected to be completed, which would require legislative approval.
When will there be a decision?
Following last week’s talks, next month’s step will be key. “Two additional rounds are planned for June. We hope both parties can move toward a definitive and satisfactory conclusion to the negotiations,” Tovar stated. The official emphasized the need for caution in the process, without neglecting expectations for an agreement that would address tariff policy.
“Nothing is agreed upon until everything is agreed upon,” he warned. “The parties would like to conclude this as soon as possible, as long as there is an agreement. For that, there must be an agreement, and the idea is to move forward in June,” he added.
Tovar trade representative meeting
The trade issue with the United States has also been discussed at the hierarchical level. A meeting between the United States Trade Representative, Jamieson Greer, took place in early March. The meeting addressed bilateral and multilateral (Comex) trade agenda topics.
Months of Expectations Regarding Tariffs
Since early March, President Donald Trump announced that a tariff plan was being worked on. The details were released on April 2, the so-called “Liberation Day.”
During the presentation, the president defended the momentum his country would experience, compared to the current situation with other countries.
The implementation of the measure had also been marked by variations. Countries with higher tariffs had had their surplus above 10% frozen, but the minimum tariff had remained in effect for countries in general, including Costa Rica.
At the beginning of April, Comex outlined a roadmap that included ideas such as:
Outreach to the private sector: Contact was made with the Costa Rican export sector to inform them of the actions underway to address this situation.
Talks with the United States: Dialogues were intensified to seek better market access conditions for Costa Rican exports. Market search: There was renewed emphasis on diversification, and the interest in continuing to negotiate more free trade agreements was highlighted.
Attracting investment: Procomer was tasked with continuing to position domestic production.
Regarding the current assessment, Tovar explained that concerns have been raised about how tariffs are being applied. However, there are no reports of specific incidents, and the way contracts are governed is being monitored.
“We’ll have to wait and see how this evolves and what impact these tariffs have on who has to pay and who is bearing the burden, so to speak,” the official concluded.
