Costa Rica Joins Pacific Trade Pact

Costa Rica has concluded negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a move that would eliminate 99.9% of tariffs on goods traded with member countries and cut a 15% tariff on wine, according to Australia’s federal government.

Trade and Tourism Minister Don Farrell said the agreement would also reduce tariffs on lamb, sheep meat and premium beef, part of a broader effort to expand market access for Australian exporters in Central America and across the Pacific Rim. The announcement came on May 7, after the government said talks on Costa Rica’s accession had reached a substantial conclusion.

For wine exporters, the change could matter quickly. Costa Rica currently applies a 15% tariff on wine, a barrier that has made shipments more expensive and less competitive against products from countries with stronger trade access. Removing that duty would lower landed costs for importers and distributors in Costa Rica and could help Australian producers compete more directly with suppliers from Europe, North America and South America.

The CPTPP is one of the largest trade agreements in force in the Asia-Pacific region, linking economies that account for a significant share of global trade. Costa Rica’s entry would extend the pact into Central America and add another market for agricultural exports, food products and beverages. For Australia, the deal is part of a wider strategy to secure tariff reductions in markets where consumers are increasingly open to imported wine and premium food.

The government did not say when Costa Rica’s accession would take effect, but the conclusion of negotiations is an important step before formal ratification by existing members. Once completed, the agreement would phase out most tariffs between Costa Rica and CPTPP countries, reshaping pricing for wine and other agricultural goods sold into the country.