China and Costa Rica said they will conduct a feasibility study
on a free trade agreement - four months after the two established
formal diplomatic ties.
The move was announced by top officials from the two countries
on Monday during Costa Rican President Oscar Arias' ongoing visit
to China.
"Costa Rica could be an ideal place for outward Chinese
investment, as well as a good base for Chinese businesses to
penetrate the vast markets in Latin America, the Caribbean, North
America and Europe," Vice-Minister of Commerce Ma Xiuhong told a
forum on China-Costa Rica economic and trade cooperation
yesterday.
She said Costa Rica has a solid political environment, robust
economic growth and an educated workforce.
"For Chinese businesses, Costa Rica is a very attractive market,
not only because of the education level of its workers, but also
for the potential to export to the United States tax-free," Arias
said.
Arias' trip to China follows his country's vote to join the
Central American Free Trade Agreement with the US. The country is
also in free trade talks with the European Union.
China is Costa Rica's second biggest trading partner after the
US. Two-way trade between China and Costa Rica hit $2.16 billion
last year. China accounted for $409 million in exports and $1.75
billion in imports. China mainly exports electronic products,
integrated circuit parts, computers and communication products
while it imports electronic and hi-tech products and machinery from
Costa Rica.
Trade ties were strengthened after the two nations set up formal
diplomatic relations.
Ma expects bilateral trade to hit $3 billion this year, with
China importing $2.5 billion worth of goods from the Central
American country.
"The establishment of formal diplomatic ties has spurred more
Chinese firms to tap the Costa Rican market," she said.
China will also establish a joint commission with Costa Rica for
economic cooperation, investment protection and inspection and
quarantine on China's imports of bananas from the nation.
Meanwhile, the Costa Rican Export Products Exhibition was held
in Beijing yesterday, with 28 Costa Rican exporters showcasing
products and services in sectors including tourism, residential and
hotel projects, agriculture, flowers, coffee, food and hi-tech
products.
(China Daily October 26, 2007)
