Costa Rica’s Foreign Affairs and Trade Ministers, Arnoldo André Tinoco and Manuel Tovar, recently underscored their ambitions to deepen exchanges with Japan and attract new investments in the semiconductor sector during a key diplomatic mission to Tokyo. The visit forms part of a broader Asian tour that will also take Minister André to South Korea, signaling a clear strategic focus on strengthening Costa Rica’s ties with the Asia-Pacific region.
Accompanying André is Minister of Foreign Trade Manuel Tovar. Notably, this marks the third time the ministers have traveled together to Japan since President Rodrigo Chaves took office in 2016. These nearly annual trips highlight Costa Rica’s consistent efforts to expand its visibility and influence in Japan and Asia. “Costa Rica’s efforts to foster and increase its presence in Japan and Asia overall, particularly in the political and investment fields, are more important now than ever,” emphasized Minister André during the visit.
As part of this deepening bilateral relationship, an agreement is expected to be signed to establish a framework for regular political consultations, coinciding with the 90th anniversary of diplomatic relations between Costa Rica and Japan. This initiative will serve as a foundation for even more structured and sustained engagement between the two countries in the years ahead.
The CPTPP as a Path for Trade Diversification
Another significant topic on the agenda during this mission is Costa Rica’s ongoing process to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an extensive trade agreement of which Japan is a leading member. For Costa Rica, joining this economic bloc represents a significant milestone in its efforts to diversify its trade relationships and enhance global competitiveness.
Minister Tovar stressed that joining the CPTPP “represents the main trade policy” of the Chaves administration. He pointed out that the CPTPP currently accounts for 15% of global GDP and 20% of foreign direct investment, highlighting the immense opportunities that membership would bring. According to Tovar, negotiations with the CPTPP member countries are progressing “decisively,” driven by a “shared will on both sides to move forward as quickly as possible.”
The goal is to finalize negotiations by the end of the year, after which the accession treaty will be submitted for parliamentary ratification, a critical step to bring it into formal force. By joining the CPTPP, Costa Rica aims to expand its access to new markets and increase its appeal as a prime destination for industries such as high-tech manufacturing, which will further boost Costa Rica’s semiconductor investment opportunities.
In explaining the strategic rationale behind the push for diversification, Tovar noted that Costa Rica seeks to “inoculate itself against any risk,” particularly risks associated with overdependence on its leading trading partner, the United States. Despite Washington’s imposition of ‘reciprocal’ tariffs, Tovar dismissed suggestions that these tariffs drove Costa Rica’s pivot toward Asia and beyond.
“We began our diversification process long before the implementation of tariffs by the Donald Trump administration,” he affirmed. Tovar emphasized that the decision to seek expanded global markets through efforts such as CPTPP accession and stronger ties with South Korea, Singapore, China, Europe, and South America predated these external pressures.
“What we want is to continue expanding globally and continue inoculating ourselves against any risk, whether it be tariffs, a pandemic, or an economic recession,” he said. In this sense, Costa Rican semiconductor investment fits squarely within the country’s broader strategy of reducing vulnerabilities and strengthening economic resilience through innovation and global integration.
Seeking Asian Partners in Semiconductors
Strengthening trade and political ties with Japan and other Asian nations is particularly significant for Costa Rica’s burgeoning semiconductor industry. As Tovar explained, accession to the CPTPP will enable Costa Rica to tap into “synergies” with Asian countries like Vietnam and Malaysia, further integrating itself into global technology supply chains.
Costa Rica already boasts considerable experience in the semiconductor sector, with major international players such as Intel (NASDAQ: INTC) and Applied Materials (NASDAQ: AMAT) maintaining critical operations there. Building on this strong foundation, the government is actively working to position the country as an increasingly attractive hub for semiconductor investment in Costa Rica.
Minister Tovar highlighted several of the country’s competitive advantages, including decades of experience in the sector, a highly attractive system of fiscal incentives, an energy matrix that is almost entirely based on renewable sources, a skilled workforce, and exceptional political stability.
These strengths are expected to be key selling points during meetings with Japanese semiconductor companies, which are part of the Tokyo leg of the visit. An investment seminar was held at the Tokyo headquarters of the Inter-American Development Bank to showcase Costa Rica’s potential. One-on-one meetings with corporate leaders are also scheduled to promote Costa Rican semiconductor investment further.
Beyond Japan, Costa Rica’s leadership sees broader opportunities across the region. Japan is seen as a crucial entry point to the broader Asian market. Foreign Minister André stressed that, unlike other countries in Central and South America, Costa Rica has maintained a relatively low profile regarding Chinese investment and business presence. This makes it a particularly attractive partner for Japan, which is eager to bolster ties with like-minded nations that share free-market values and political stability.
“For Costa Rica, Japan is the gateway to Asia,” said André, who also mentioned Costa Rica’s strong relationships with Singapore and South Korea. After concluding the Tokyo visit, André will travel to South Korea from April 28 to 30, 2025, to participate in the “Our Ocean” Conference — a major event focused on promoting sustainable marine economies and protecting ocean ecosystems.
Costa Rica’s decision to emphasize semiconductor investment during this tour recognizes global technological trends and the need for smaller economies to carve out strategic niches within global supply chains. With semiconductors forming the backbone of industries ranging from consumer electronics to electric vehicles and defense technologies, Costa Rica is well-positioned to attract a new wave of investment, driving further economic growth and resilience.
Semiconductors are a part of Costa Rica’s economic development strategy
Efforts to encourage Costa Rican semiconductor investment are not isolated but are integrated into the government’s broader economic development strategy, which includes investments in education, infrastructure, and clean energy. By continuing to capitalize on its strengths and forging new partnerships, Costa Rica aims to build a future-ready economy that can withstand global uncertainties while creating high-quality jobs for its people.
The recent diplomatic mission to Japan highlights a proactive and forward-looking approach to economic diversification. With Costa Rican semiconductor investment at the forefront of its strategy, the country is setting the stage for long-term prosperity, innovation, and global competitiveness.