The United Arab Emirates (UAE) and Costa Rica marked a significant development in their bilateral relations on April 18, 2024, with the signing of a Comprehensive Economic Partnership Agreement (CEPA). The ceremony, held virtually, was witnessed by both nations' presidents, Sheikh Mohamed bin Zayed Al Nahyan of the UAE and Rodrigo Chaves Robles of Costa Rica.
This agreement signifies a new chapter in economic cooperation between the geographically distant countries. The CEPA is expected to streamline trade flows, foster private sector collaboration, and unlock new avenues for investment, particularly in key sectors like logistics, energy, aviation, tourism, and infrastructure development.
The UAE, a regional powerhouse with a diversified economy, seeks to expand its trade footprint beyond hydrocarbons. Costa Rica, renowned for its commitment to sustainability and a robust eco-tourism industry, presents an attractive partner. The CEPA creates a framework for knowledge exchange and collaboration in areas like renewable energy and sustainable development, potentially benefiting both nations.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, emphasized the strategic importance of the partnership, highlighting shared interests across various sectors. He pointed out that non-oil trade between the two countries has already witnessed a steady rise, exceeding $65 million in 2023. The CEPA, he believes, has the potential to significantly accelerate this growth trajectory.
For Costa Rica, the agreement represents a historic first. President Chaves Robles described it as a strategic move to diversify the nation's export markets and attract foreign investment. He expressed confidence that the CEPA would unlock a multitude of trade and investment opportunities, propelling economic growth and job creation in Costa Rica.
The UAE has been actively pursuing CEPA agreements with various countries, aiming to solidify its position as a global trade and logistics hub. This latest agreement with Costa Rica strengthens this vision by forging a unique bridge between the dynamic Middle Eastern nation and the ecologically conscious Central American republic.
Analysts believe the CEPA's impact will extend beyond just trade and investment. Increased cultural and educational exchanges are anticipated, fostering a deeper understanding and appreciation between the two nations. The agreement has the potential to serve as a model for future partnerships between countries with vastly different geographies and economic profiles.