On December 8, 2025, Costa Rica and Israel took a definitive step in their bilateral relationship with the official signing of a Free Trade Agreement (FTA) in Jerusalem. The agreement, signed by the Minister of Foreign Trade, Manuel Tovar, and the Israeli Minister of Economy, Nir Barkat, aims not only to boost the exchange of goods but also to position Costa Rica as a hub for technological adoption in Latin America.
Moving Toward an Economy of “Capabilities”
The treaty establishes a legal framework that eliminates tariffs for 99% of Israeli products entering Costa Rica and grants immediate preferential access to the main products of the Costa Rican export offer. Although historical trade exchange has hovered around $50 million annually, the Executive Branch’s bet is not merely volumetric, but qualitative.
For the national productive sector, the benefit is twofold:
- Exports: Specialty coffee, medical devices, pineapple, and sugar gain competitiveness in the Israeli market.
- Strategic Imports: Access to inputs such as high-efficiency agrochemicals and precision irrigation systems is vital for the modernization of Costa Rican agriculture in the face of climate change.
Controversy and International Tensions
The signing of the agreement occurs at a time of high political sensitivity. Various social, academic, and international sectors—including UN rapporteurs—have requested the Government of Costa Rica to pause the process, citing tensions and the conflict in the Gaza Strip.
In parallel, international analysts have observed a shift in Costa Rican foreign policy. During December 2025, the country modified its historical voting trend at the United Nations, opting for abstention in resolutions critical of Israel, which experts have interpreted as a diplomatic alignment linked to the commercial agenda.
Next Steps: The Debate Moves to Congress
With the document signed, the responsibility now lies with the Legislative Assembly of Costa Rica. At the beginning of this 2026, the text will enter the legislative stream for analysis by the International Relations Commission.
An intense debate is anticipated in the plenary, where lawmakers must balance the clear opportunities for investment in cybersecurity, agritech, and digital services against pressure from human rights groups questioning the ethical timing of the pact in the current context.
