Costa Rica is on the verge of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a major global trade bloc that already counts the UK among its members. The accession of the Central American nation would bring the total number of member countries to twelve, further expanding the bloc's collective economic output, which is estimated at around £13 trillion in Gross Domestic Product (GDP).
The CPTPP is a free trade agreement signed by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The United Kingdom officially joined the pact in July 2023, marking its largest trade deal since leaving the European Union. Membership in the CPTPP aims to reduce tariffs and non-tariff barriers to trade between member countries, fostering deeper economic integration and opening new markets for goods and services.
For Costa Rica, joining the CPTPP represents an opportunity to strengthen its economic ties with a diverse group of nations across the Asia-Pacific and the Americas, as well as with the UK. The move is expected to boost its exports, attract foreign investment, and provide its businesses with preferential access to a vast consumer market. This strategic alignment could also enhance Costa Rica's position as a hub for trade and investment in Central America.
The UK's involvement in the CPTPP has been lauded by the government as a key part of its post-Brexit trade strategy, aiming to diversify trade relationships beyond Europe and tap into dynamic economies. With Costa Rica's addition, the bloc's geographic and economic footprint will become even more expansive, potentially offering UK businesses new avenues for growth and collaboration in Latin America.
The process of accession for new members typically involves a series of negotiations and domestic legislative approvals to ensure compliance with the CPTPP's high standards on trade, investment, and intellectual property. Once formalised, Costa Rica's membership will underscore the growing appeal of the CPTPP as a platform for open and rules-based trade in an increasingly interconnected global economy.