Manuel Tovar Rivera – Minister of Foreign Trade of Costa Rica

Meeting highlights:

• Trade and Investment Go Hand in Hand: Costa Rica’s trade and investment strategies are deeply connected. Free trade agreements don’t just open markets, they help create the right environment for foreign companies to set up, grow, and thrive. 
• Why Companies Choose Costa Rica: While tax incentives matter, the real draw is Costa Rica’s political stability, strong legal framework, and highly skilled talent.  
• Defending a Rules-Based Trade System: Minister Tovar voiced concern about the weakening of global trade institutions; however, Costa Rica strongly advocates for fair and transparent global trade rules. 
• Expanding Global Ties: Costa Rica is actively expanding its trade network with recent and upcoming agreements. 
• Latin America’s Untapped Strength: Latin America is rich in resources and talent, but it needs to believe in its own potential. Greater regional integration could unlock major opportunities for shared growth. 

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EF: Could you elaborate on your priorities for advancing the Costa Rican resilient, inclusive, and sustainable prosperity at the global level? 

MT: It is a significant honor to chair the OECD's most important meeting, particularly as we have only been full members for four years. It demonstrates our commitment to continuous improvement, openness to learning from others, and readiness to reflect on our progress and future direction. Many countries in this group have faced similar challenges to the ones we have now, and they have successfully navigated them. As a small country, we take pride in our achievements and are ready to contribute and lead. 

Chairing an OECD Ministerial Conference is a major responsibility, especially now. The global climate is shifting, and we're seeing rising protectionism and weakening of the rules-based system on which the international community depends. We welcome this opportunity and are stepping up to meet at the June meeting, fully aware of the current global landscape. 

The OECD offers a unique platform for advancing a shared trade agenda among like-minded partners. It's a group of 38 countries. Despite our differences, we remain a community committed to open markets and free trade, as outlined in the OECD charter. Trade is only truly free when we address market distortions, ensure a level playing field, and confront unfair trade practices. It also means protecting and enforcing intellectual property rights. 

EF: How do you see international cooperation evolving to address key global challenges such as economic security, supply chain resilience, and sustainability? 

MT: Despite our differences, there's broad agreement on key issues: economic security, supply chain resilience, and the need to protect global supply chains. In discussions with counterparts from Washington, Brussels, and Tokyo, we have identified many shared concerns. Our goal in Paris is to engage in constructive dialogue and find common ground on issues of shared concern. The OECD works by consensus, which means getting all 38 members to agree. I'm committed to putting these topics on the table, including artificial intelligence and the digital economy. We need to find alignment and move forward on these important matters. 

Regarding inclusion, women continue to face barriers to full economic participation. We must align our policies and efforts to support women's economic empowerment. This is something Costa Rica is taking the lead on through another framework, the Inclusive Trade Action Group (ITAG) a coalition of the willing, where we sit at the table with other countries to exchange ideas on how trade can be used as a tool to empower women economically. The economic empowerment of women leads to broader social empowerment across all sectors. 

Sustainability is close to our hearts. Trade has a real role in helping build a more sustainable planet. We also want to highlight what other countries like Chile, New Zealand, Costa Rica, Switzerland, and Iceland have done by putting together a Green FTA, the Climate Change, Trade, and Sustainability Agreement, or ACCTS. The idea behind it is to liberalize environmental goods and services. 

We want to show that the trade and environmental agendas don't have to be at odds. Trade can help close gaps between countries, sectors, and communities. It can support both prosperity and sustainability at the same time. That is where most of my energy is going right now, not just representing Costa Rica's national interests and showing we are a reliable partner for foreign investment, but also spending time with my counterparts, listening to what matters to them, and trying to find common ground. 

EF: How did Costa Rica successfully transition from an agriculture-based economy to a diversified, high-value export economy, and what factors made it attractive for foreign direct investment in advanced sectors like electronics and medical devices? 

MT: From the 1980s to the early '90s, Costa Rica's economy was mostly built around a few key agricultural exports. We made bold choices to expand Costa Rica's place in the global economy and add more value to what we could offer the world. At the same time, we kept investing in our people. 

Coffee, our first major export as an independent nation, used to be called the golden grain. But today, our real golden grain is human capital. That shift didn't happen overnight; it's rooted in policies we adopted decades ago. In the late 1940s, for example, we abolished our army. That decision allowed for greater investment in education, language learning, and international engagement. 

We opened up our economy and began trade negotiations with various partners. And as we did that, foreign direct investment followed. Investors saw Costa Rica as a safe, dependable place to operate, where the rules stayed consistent across political cycles, and where you could plan for the long term. For industries like medical devices, that stability matters. Establishing a fabrication facility requires significant time, from initial exploration and site selection to finalizing agreements and commencing operations. Companies need to feel confident that the environment they invest in today will still support them years from now. 

Costa Rica offered that stability. Most of our energy comes from renewable sources. We protect intellectual property. We respect labor rights. Our open trade agenda has also helped spark innovation and create positive ripple effects across sectors. Companies aren't just coming to Costa Rica because of tax incentives or clean energy. These factors provide companies with the confidence to invest in Costa Rica. 

And it's not just about the bottom line anymore. Businesses today are more thoughtful about who they work with. They want partners who take sustainability seriously and share a sense of responsibility, not just in words, but in how things are done on the ground. When companies establish operations in Costa Rica, they benefit from access to clean, renewable energy. That's one way they reduce their carbon footprint and contribute to climate goals. This creates mutual benefits for both companies and Costa Rica. In the mid-90s, Intel decided to open operations in Costa Rica to produce semiconductors. That marked a turning point. We have transformed our economy from primarily agricultural exports to advanced technology sectors. Intel's arrival helped shift the way the world saw our economy. It also caught the attention of the medical device sector. 

This transformation began with a single company; today, nearly 100 companies in the medical device industry operate in Costa Rica. We've become one of the top exporters in Latin America per capita. Medical devices now make up more than 40% of our goods exports. Compare that to just a few decades ago, when 90% of our exports came from agricultural products. It has been a remarkable transformation. 

We issued an executive order declaring the Medical Devices industry a matter of national public interest. That meant three things: first, the government committed to supporting policies that help the sector grow; second, we allocated resources to back those policies; and third, we strengthened collaboration between government, academia, and industry, which we call the virtuous triangle. Together, we've worked to train the workforce and build the human capital this industry depends on.  

EF: How does Costa Rica view its position and strategy for economic growth, particularly in advancing its medical device and semiconductor industries? 

MT: We’re a small country, with just about 5.2 million people. Even so, we are committed to advancing our medical devices industry and diversifying into new sectors. Semiconductors are the next big step. We already have a growing cluster of semiconductor companies, and we’re building on that momentum. Nevertheless, we are pursuing a diversified approach to economic development. Notably, the medical device and semiconductor sectors share common requirements: skilled talent, robust infrastructure, and effective policies. Accordingly, initiatives to open new markets or invest in workforce development will benefit both sectors. 

There’s a strong interest in Costa Rica. While we face challenges, they reflect the strong demand and opportunities present in our growing sectors. Addressing the growing demand for skilled workers is a positive challenge, reflecting Costa Rica's attractiveness to global investors. 

Looking ahead, we want to keep our leadership in the medical devices sector. Maintaining the trust of our partners is essential, and we are committed to upholding it. The sense of stability and predictability makes Costa Rica a place where they feel confident doing business. 

EF: Do you have a final message? 

MT: One of the more serious concerns in the global economy is that the rules-based system is starting to break down. Instead of working together under global frameworks, many countries focus on smaller, regional, or one-on-one trade agreements. Costa Rica, especially as a smaller economy, strongly supports the importance of a solid, rules-based multilateral system. Regional integration and opening up through new trade deals have to stay high on the agenda, especially for countries aiming to secure their place in global value chains. That’s been our path, and it’s what we’re continuing to pursue through agreements with countries like Japan under the CPTPP and other key partners. 

Joining larger markets makes a difference. It helps position your country within the global supply chain. Global collaboration is essential, as each country contributes unique strengths to the international value chain. 

We're actively working on joining the Pacific Alliance, whose trade policies help create a welcoming environment for foreign investment. At the same time, we're looking South. Historically, we've done more trade with the North and across the Atlantic, but there is significant untapped potential in Latin America.