AGP Executive Report

Vehicle Costs: Costa Rica’s 2027 Marchamo payment period is open, with a digital circulation document and a longer-lasting windshield tag replacing the annual sticker swap. Drivers must still pay every year. Fuel Prices: Higher prices are expected at pumps Nov. 4: regular gasoline rises ¢89 per liter to ¢808, while diesel increases ¢23 to the same price. Transport: The Cambronero section of Route 1 has reopened after nearly two months, restoring a key link for freight and travelers between the Central Valley and Pacific coast. Banana Exports: Corbana recommends raising the minimum export price 9.91% to $11.15 per box in 2027, citing a stronger colón, weather-related productivity declines and higher costs. Trade: Analysts say U.S. midterm results alone are unlikely to reverse the 12.5% tariff affecting many Costa Rican goods. Currency and Taxes: Dollar supply has hit a 20-year high, with the exchange rate at ₡452.08 per dollar. New invoice-correction rules also mean some fixes can reopen the tax return for the original billing month.

U.S. Trade: Costa Rica’s 12.5% U.S. tariff is unlikely to fall just because the November 3 midterms change Congress; the White House could use other legal tools to keep it in place. Coffee, pineapples, bananas and some other products are exempt. Currency: Dollar supply has hit a 20-year high, keeping the colón near its strongest level in two decades. The exchange rate closed at ₡452.08 per dollar on Oct. 30, down about 35% from its 2022 peak. Tax Changes: New invoice-correction rules can reopen a previously filed return. Corrections now apply to the month of the original invoice, potentially adding interest if more tax is owed. Trade and Tourism: Costa Rica has dropped its bid to join the trans-Pacific trade pact, while a new plan aims to develop Nicoya’s Blue Zone as a wellness destination, including three tourism products by 2028. Imports: U.S. dairy made up 65.2% of Costa Rica’s dairy imports in the first eight months of 2026, with purchases reaching $66.4 million.

Tax Compliance: New electronic-invoice correction codes let Costa Rica’s tax authority reopen a filed return when an invoice is fixed. Corrections apply to the original billing month, and extra tax owed may incur interest. Tourism: The government plans a Blue Zone seal and three wellness-tourism products for Nicoya by 2028, alongside promotion of local nature and culture; no budget has been announced. Trade: U.S. dairy imports reached $66.4 million in the first eight months of 2026, nearly four times the 2020 figure, and made up 65.2% of Costa Rica’s dairy imports. Market Access: Costa Rica has dropped its bid to join the trans-Pacific trade pact and dismissed its trade minister, raising questions about what will replace the membership push. Air Links: British Airways’ expanded winter schedule includes service to Costa Rica, adding capacity for travelers from London.

Wellness Tourism: Costa Rica plans a Blue Zone seal for Nicoya, three new tourism products by 2028 and international promotion. A visitor-capacity study is planned for 2026, but no budget has been announced. Food Trade: US dairy products made up 65.2% of Costa Rica’s dairy imports in the first eight months of 2026, worth $66.4 million—nearly four times the 2020 figure. Duty-free access and faster plant approvals have helped drive the increase. Trade Policy: Costa Rica has dropped its bid to join the Trans-Pacific trade pact and dismissed its trade minister, raising questions about what will replace the strategy. A separate dispute with Panama over agricultural trade has also widened, with Panama suspending a planned electricity sale to Costa Rica. Tourism Links: Costa Rica is set to gain five weekly nonstop flights from London Heathrow, strengthening a key connection for international visitors.

Investment Fallout: A daughter is seeking to recover more than $500,000 her elderly parents invested in Gerald Baum’s Costa Rica property venture, adding to the financial uncertainty after Baum Financial Services collapsed. Trade Policy: Costa Rica has dropped its bid to join the Pacific trade pact and dismissed its trade minister, leaving questions about what will replace the export strategy. A separate dispute with Panama over agricultural trade has also strained ties, with Panama suspending a planned electricity sale to Costa Rica. Tourism: Tárcoles’ Santa Lucía Jungle Hacienda won two World Travel Awards, raising the profile of the Central Pacific destination. Lufthansa Group plans to keep its Frankfurt–San José connection after Lufthansa hands the route to Discover Airlines in 2027, with service rising to six weekly flights. Pharmaceuticals: Australia’s BLS Pharmaceuticals reported record quarterly revenue and made its first medicinal-cannabis flower supply to Costa Rica.

UN Leadership: Costa Rica’s Rebeca Grynspan widened her lead in the latest Security Council poll for secretary-general, winning 11 of 15 votes to encourage her candidacy, though four discouraging votes leave veto risks unresolved. Fuel Costs: A sharp price increase will push regular gasoline up 12.4% to ₡808 per liter—slightly above premium—and raise diesel to the same price, adding costs for households and businesses. Trade Policy: Costa Rica dropped its bid to join the Pacific trade pact and dismissed its trade chief, a setback to its trade agenda. Tourism: A new Tárcoles hotel won two World Travel Awards, while Lufthansa will hand its Frankfurt route to sister carrier Discover Airlines in 2027, which plans six weekly flights. Jobs and Technology: A World Bank study puts 38% of Costa Rican jobs in roles exposed to AI, the highest share in Latin America.

Tourism: Santa Lucía Jungle Hacienda in Tárcoles won two World Travel Awards, including Central America’s Leading New Hotel, less than a year after opening. Fuel Costs: A newly approved price increase will push regular gasoline up 12.38% to ₡808 per liter—slightly above premium—and raise diesel to the same price. Air Links: Lufthansa will hand its Frankfurt–San José route to sister airline Discover in December 2027, which plans six weekly flights, though two will stop in Belize on the return to Germany. Jobs and Technology: A World Bank study puts Costa Rica first in Latin America for jobs exposed to AI, at 38%, compared with a regional average of 32%. Trade Policy: Costa Rica has dropped its bid to join the trans-Pacific trade pact and dismissed its trade minister, a major shift in the country’s trade ambitions. Consumer Rules: New requirements will make sellers disclose details such as origin, thawing, ingredients and price for raw meat sold both packaged and over the counter.

AI and Jobs: A World Bank study puts Costa Rica first in Latin America for employment exposed to AI, at 38% of jobs versus a regional average of 32%. Exposure may mean automation, support for workers’ capabilities or an uncertain impact. Trade Policy: Costa Rica has dropped its bid to join the trans-Pacific trade pact and dismissed its trade minister. Banana Industry: Del Monte reported third-quarter sales of US$1.1 billion, but its banana segment lost money despite US$313.3 million in sales. The company cited higher freight costs, supply constraints and increased Black Sigatoka prevention costs in Costa Rica, where it is closing four farms. Stingless Bees: The Constitutional Chamber will review rules limiting commercial production without further scientific studies to two native bee species, a case with potential consequences for honey producers and beekeepers.

Trade Policy: Costa Rica has withdrawn its bid to join the 12-member CPTPP and dismissed Trade Minister Indiana Trejos. President Laura Fernández cited a lack of transparency over the pact’s terms, reversing a four-year effort to access a market of roughly 600 million consumers amid agricultural-sector concerns. Agribusiness: Del Monte’s third-quarter sales rose 7.2% to US$1.1 billion, but its banana segment posted a US$2.7 million gross loss. In Costa Rica, heavy rains added about US$6.1 million in Black Sigatoka prevention costs as the company proceeds with plans to close four farms. Food Exports: Flavor maker Mane launched an 11-fruit range inspired by Costa Rica for US and Canadian food and beverage makers. Industrial Innovation: JBT Marel introduced a flowable pineapple wax designed to simplify packing-line handling, addressing labor and application issues with its previous product. Export Development: PROCOMER is supporting 10 Costa Rican companies seeking to expand in the global aerospace supply chain.

Trade Policy: Costa Rica has abandoned its bid to join the CPTPP, ending a four-year effort to enter a bloc representing nearly 15% of global GDP. President Laura Fernández fired Trade Minister Indiana Trejos, citing a lack of transparency, amid opposition from agricultural producers. Agribusiness: Del Monte’s third-quarter sales rose 7.2% to US$1.1 billion, but its banana segment posted a US$2.7 million gross loss. In Costa Rica, heavy rains added about US$6.1 million in Black Sigatoka prevention costs, while the company continues closing four farms. Infrastructure: Costa Rica has opened bidding for the US$770 million San José–San Ramón highway expansion, with construction expected to begin in mid-2027.

Trade: Costa Rica has withdrawn its bid to join the CPTPP, a 12-member trade bloc representing nearly 15% of global GDP. President Laura Fernández cited a lack of transparency in negotiations and dismissed Trade Minister Indiana Trejos after producer groups, particularly in agriculture, opposed the move. Electricity Reform: After lawmakers rejected a major power-sector bill for failing to secure the 38 votes required, Fernández says the government is drafting a narrower proposal that can pass with a simple majority. Small Business and Conservation: The Constitutional Court is reviewing rules that limit unrestricted commercial harvesting from stingless bees to two of the country’s 58 species. The challenge argues the restrictions create barriers to trade and employment. Housing: A Gallup poll found 38.5% of Costa Ricans dissatisfied with access to affordable housing, as smaller households increase demand for homes suited to individuals and couples. Banking: Moody’s ranked Costa Rican banks second only to Argentina’s for dollar risk, highlighting a notable vulnerability in the financial sector.

Air Links and Tourism: Southwest is adding 11 nonstop international routes, including service to Costa Rica, while British Airways has moved its London–San José service to Heathrow and made it year-round, with five weekly flights in the winter schedule. Hilton’s September openings list includes a new 97-room Tapestry Collection hotel in Heredia. Investment and Trade: PROCOMER is helping 10 Costa Rican companies pursue aerospace supply-chain opportunities, and Trelleborg says its new medical-components facility in Costa Rica is operational. A regional semiconductor report says Intel plans to shift some operations from Costa Rica to Vietnam, a potential headwind for local industry. Infrastructure: The $770 million San José–San Ramón highway project is expected to begin construction in mid-2027.

Semiconductors: Intel plans to move some operations from Costa Rica to Vietnam, a sign of shifting supply chains as Asian chip investment accelerates. Air Links: Southwest’s new international routes include nonstop service to Costa Rica, while British Airways has begun five weekly Heathrow flights to San José, keeping the route open year-round and strengthening access for visitors and businesses. Export Push: Ten Costa Rican aerospace companies joined a major U.S. industry event to pursue buyers, supply-chain contracts and investment. Commercial Vehicles: Vietnam’s Kim Long Motor signed a partnership with Costa Rica’s Vertex R.L. to explore bringing its vehicles to Costa Rica and the wider Central American market, with potential links to Vertex’s electric-vehicle charging network.

Market Expansion: Vietnamese automaker Kim Long Motor signed an agreement with Costa Rica’s Vertex R.L. to explore commercial-vehicle sales in Costa Rica and Central America, with electric vehicles among the potential opportunities. Aerospace Exports: PROCOMER backed 10 Costa Rican aerospace companies at a major U.S. industry event as they pursued buyers, global supply-chain roles and foreign investment. Financial Risk: Moody’s ranked Costa Rican banks second only to Argentina’s for dollar risk, highlighting a key vulnerability for the sector. Trade: Costa Rican used-car imports plunged 85% after a tax loophole closed, while U.S. dairy imports into Costa Rica rose 69% following tariff removal. Business Rules: Companies using SINPE Móvil have 12 months to register their payment numbers or face fines.

Banking Risk: Moody’s says Costa Rican banks have the region’s second-highest exposure to dollar risk, behind Argentina. Trade: Used-car imports fell 85% after a tax loophole closed, while U.S. dairy imports surged 69% after tariffs were removed. Infrastructure: Costa Rica opened bidding for the $770 million San José–San Ramón highway expansion, with construction expected to begin in mid-2027. Payments Compliance: Businesses have 12 months to register their SINPE Móvil payment numbers or face fines. Energy Outlook: El Niño-related drought is fueling concerns about electricity supply and economic pressures. Tourism Links: Southwest plans to launch nonstop service between Nashville and Liberia in February 2027, adding a direct connection to a major Pacific tourism hub.

Banking: Moody’s says Costa Rican banks have the region’s second-highest dollar risk, behind Argentina. Infrastructure: The $770 million San José–San Ramón highway expansion is set to begin in mid-2027. Trade: Used-car imports fell 85% after a tax loophole closed, while U.S. dairy imports rose 69% after tariffs were removed. Business Rules: SINPE Móvil businesses have 12 months to register payment numbers or risk fines. Tourism: Southwest plans a new Nashville–Liberia route in February 2027, adding air access to a key tourism market. Regional Economy: Brazil’s Lula won a historic fourth term with 51.8% of the vote, keeping Latin America’s largest economy under left-wing leadership.