A letter was sent to the U.S. Department of Commerce by Costa Rican Minister Manuel Tovar.
Costa Rica’s government is fighting off what it says is the threat of tariffs on medical devices it exports to the United States. The devices have been the mainstay of the Central American nation’s export economy and a vital source of supply for the United States healthcare system, which depends on efficient and reliable access to medical technologies. Minister of Foreign Trade Manuel Tovar this week delivered a letter to the U.S. Department of Commerce (DoC) on the strategic importance of Costa Rican production to the national security, health, and competitiveness of the United States.
“The security and resilience of the United States healthcare system has proven, time and time again, to be critically dependent on the high performance, agility, and cutting-edge technology of Costa Rican medical device manufacturing,” Tovar said in the official document. “In light of these factors, Costa Rica does not hesitate to consider its exports of medical devices to be a pillar of the national and regional security of the United States.”
The letter, Costa Rica’s official response to a U.S. proposal to review medical device imports under Section 232 of the Trade Expansion Act, is the most recent salvo in a back-and-forth between Costa Rican officials and the DoC. The review, which is now underway, has opened a window during which the Trump-era provision could be used by Washington to impose tariffs or other trade restrictions in the event that it is decided imports may threaten national security.
The Importance of the Section 232 Probe
The Section 232 investigation initiated by the United States will explore whether the current level of imported medical devices could be seen to undermine the country’s strategic preparedness or domestic production capacity in the event of a major health emergency or security crisis. At stake is the supply of a wide range of essential and lifesaving products, from surgical and diagnostic equipment to prosthetic implants and personal protective equipment used throughout the United States healthcare system.
Costa Rica argues that cooperation between both countries in the sector has not only been economically beneficial but strategically indispensable. During the review consultation period, officials from the Ministry of Foreign Trade (COMEX) and Trade Representative (COMCE) noted that Costa Rican medical device manufacturing facilities have built a global reputation for adhering to the strict regulatory and quality requirements imposed by the United States, such as those of the U.S. Food and Drug Administration (FDA), as well as international ISO standards.
“As a sovereign nation with a democratic political and legal system based on transparency, the rule of law, and international cooperation, Costa Rica’s compliance with international and U.S. standards and regulations ensures companies operating in the country can do so efficiently and with high-quality production,” Minister Tovar explained.
Costa Rica: A Key Ally in a Resilient U.S. Healthcare System
The United States healthcare system is sustained by a network of secure and diversified supply chains. The COVID-19 pandemic highlighted just how critical geographically proximate partners like Costa Rica have become to providing continuity and stability to the industry when demand spikes or global disruptions occur. Costa Rica’s rapid response to the surge in U.S. medical demand during the height of the crisis helped it to ramp up production and make its facilities some of the only available in the world at the time.
Data from COMEX reveals that U.S.-bound medical device exports from Costa Rica increased 39% between 2020 and 2021, despite global supply chain strains. U.S. companies with facilities in Costa Rica were able to operate with much greater stability and respond quickly to shortages, while many suppliers in distant regions faced severe delays and shutdowns.
Facilities closer to the U.S. benefit from shorter lead times, reduced shipping costs, and faster response times—advantages that are especially critical in the United States healthcare system, where timely access to equipment can determine the availability of essential care.
U.S. Corporate Strategy Integrated With Costa Rica’s Growth
Costa Rica is home to over 90 multinational medical device companies, including Medtronic, Boston Scientific, Cardinal Health, Abbott, and Baxter. Several of these have facilities producing Class II and Class III medical devices—some of the most technologically advanced on the market and used in the most critical healthcare applications.
“In allowing U.S. companies to centralize domestic resources on research, development, and innovation, the current supply chain structure strengthens U.S. technological leadership in a competitive global market, reinforces the continuity of hemispheric supply, and supports the expansion of U.S. exports worldwide,” the statement reads.
The integrated production model ensures that the United States healthcare system benefits from cross-border collaboration that enhances capacity, reliability, and readiness for future demand.
Closer Ties Through CAFTA-DR
Costa Rica also stressed the extent to which bilateral cooperation has been strengthened by the CAFTA-DR free trade agreement. In effect, since 2009, the trade pact has harmonized regulations, expanded market access, and encouraged high-tech manufacturing investment. This enabled Costa Rica to become the largest exporter of medical devices in Latin America and one of the top global suppliers to the United States.
Integration has also extended to institutional and workforce development, providing multinational companies with operational continuity supported by political stability and a highly trained talent base.
Positioned to Compete With Global Counterparts
Competition in the global medical device industry is intense, but Costa Rica argues that what matters now is not just cost but reliability, transparency, and national security alignment. In times of crisis or market volatility, suppliers in closer, more stable regions can respond faster and more consistently than distant or politically unstable counterparts.
Conclusion
In an era where competition and geopolitics increasingly shape how strategic supply chains are managed, Costa Rica’s message to Washington is clear: the strength of the United States’ healthcare system is tied to the stability of Costa Rica’s production ecosystem. For the United States, defending its global leadership in medical technology means reinforcing—not restricting—this partnership.