The new trade agreement is expected to strengthen trade relations between Costa Rica and Canada and increase monetary imports/exports between the two countries. Costa Rica and Canada can expect to see increased opportunities for their business community in markets that were omitted from the original agreement. Now that the Canadian government is convinced that Costa Rica has removed corporate tax exemptions and other export subsidies, the regulations have been repealed and products of origin that were previously exempt can now benefit from preferential tariff treatment. These products have been listed in categories A1, B, C and D of Canada`s CCRFTA tariff reduction plan and cover clothing, textiles and tire products. These goods can now be imported duty-free into Canada. The Government of Canada expects to waive tariffs of approximately C$2.7 million as a result of the repeal of the rules.4 Given that the products concerned were initially subject to moderate or high tariff rates, Canadian importers who source the affected products will experience a significant reduction in the cost of customs duties on these products. Canada and Costa Rica enjoy strong and diverse bilateral relations. The two countries share similar views in many areas, including human rights, the rule of law, security and free trade, as well as views on regional and international issues raised in multilateral institutions. Costa Rica is Canada`s largest trading partner in Central America5 In 2018, Canada exported approximately C$164 million of goods to Costa Rica and imported approximately C$519 million.6 The agreement showed almost immediate positive results, and in three years, trade between Canada and Costa Rica increased from C$324 million to $440 million.
In the near future, the CCRFTA will be revised. In August 2011, Costa Rican President Laura Chinchilla and Canadian Prime Minister Stephen Harper announced that the two countries would begin negotiations to “modernize” the existing trade agreement. To ensure that the benefits of trade liberalization are not undermined by anti-competitive activities; (f) facilitate trade in services and investment for the development and deepening of relations between Canada and Costa Rica under the Agreement; recognise the importance of trade facilitation in promoting efficient and transparent procedures to reduce costs and predictability for their importers and exporters; in the first three years of the agreement, trade increased by 36% (from $324 million to $440 million).  The entry into force of the Canada-Costa Rica Free Trade Agreement (CCRFTA) in November 2002 allowed the development of trade relations between the two countries. 87% of tariffs on agricultural products were eliminated, either immediately or over a period of 7 to 14 years. .