Negotiations around the Free Trade Agreement (FTA) with Singapore are getting closer to its closure. 99% of the text of the agreement is approved.

There is only a consultation with the Costa Rican and Singapore financial entities to put the final period to the agreement. The last topic to cover is the treatment in terms of financial services.

This is definitely one of the most important points for the sector of the Costa Rica Real Estate and investments.

When talking about the commercial scope, a tax allowance for all the products of both countries and the strict origin rules to avoid that China exports was accomplished in this agreement.  

During this week, it is expected that the whole text will be completed and the agreement is concreted because the politics for financial services aren’t too complex.

In the past, even Costa Rica as Singapore in their corresponding agreements with the United States had similar conditions on this point which makes us believe that we have a closure in a matter of days.

“The consultations to the Singapore and Costa Rican financial entities are not something very difficult. What happened is that there wasn’t enough time. There are plenty of hours of difference from one place to another, and on Saturdays you cannot make consultations in Singapore, this week we are expecting to close this issue”, communicated Fernando Ocampo, National Negotiator Chief.

Commercial Matter. Costa Rica achieved 90% of the duty get into free access, once the treatment is approved. Meanwhile, the rest percentage will be done in a period of duty of 10 years. The items that get that 10% are mainly the feeding and plastic industries.

Products like sugar and coffee are going to joy of a 0 import duty when the FTA starts functioning.

In the case of Singapore, the total of its products could get into the country without paying any encumbrances immediately.

Some of the other favorable points for the country are the rules of origin. Within the agreement, Singapore cannot export products that have been manufactured with raw material that comes from other countries. This term was accepted in the bi-lateral exchange of dairy products, meat, fruits, coffee and rice.

When this last point is finished, the national negotiator group will send the text the first week of March for a legal revision and it is hoped that in April the Ministries of Exterior Commerce of both countries sign it.

When finished these two stages, the FTA will be in the hands of the Legislative Assembly to approve it. If it is approved this is going to be the FTA number 6 that Costa Rica has with other countries; such as Mexico, Canada, Panama, Chile, and the CAFTA among Central America, the Dominican Republic , the Caribbean and the United States.