UAE Opens New Trade Routes With Costa Rica, Mauritius

The UAE has launched trade deals with Costa Rica and Mauritius. These Comprehensive Economic Partnership Agreements (CEPA) took effect on April 2, 2025. The timing is vital as UAE’s non-oil trade hit a record $817 billion in 2024, showing a 14.6% jump from last year.

UAE exporters will now enjoy extensive tariff cuts. The agreements eliminate duties on 99.8% of exports to Costa Rica and 97% of exports to Mauritius immediately or in phases. The UAE-Mauritius CEPA aims to increase bilateral non-oil trade from $209.8 million to $500 million in five years. The Costa Rica partnership builds on current trade worth $82.6 million. These mutually beneficial alliances help UAE move closer to its goal of reaching AED 4 trillion in foreign trade and cement its role as a global trade hub.

UAE Launches Historic $5B Trade Deals with Costa Rica and Mauritius

_{Image Source: Middle East Monitor}

The UAE’s seventh and eighth Comprehensive Economic Partnership Agreements (CEPAs) with Costa Rica and Mauritius took effect on April 2, 2025. These agreements pave the way for economic growth across many sectors. They join the UAE’s successful foreign trade deals with India, Israel, Türkiye, Indonesia, Cambodia, and Georgia that started in 2021.

Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, sees these agreements as a big step forward in growing UAE’s global trade network. The deals aim to connect better with growing markets in Central America and Africa while promoting deeper economic teamwork.

What do the new CEPAs include?

The new CEPAs with Costa Rica and Mauritius have rules that make trade and investment easier between partner countries. They focus on three main areas: lower tariffs, simpler customs steps, and new investment paths.

Tariff Reduction Framework

The Costa Rica agreement removes or cuts customs duties on 99.8 percent of UAE exports. UAE businesses can now enter the Costa Rican market without the financial hurdles that used to limit trade growth.

The Mauritius deal helps UAE exporters too. Over 97 percent of UAE exports to Mauritius will see tariffs removed right away or gradually reduced over five years. This step-by-step approach helps both economies adjust while giving quick benefits.

Customs Procedure Simplification

Both agreements make customs processes easier by removing red tape that slows down trade. The improvements include:

• Standard document requirements
• Digital processing options
• Faster clearance steps
• Coordinated inspection rules
• Clear ways to solve disputes

These changes work with lower tariffs to remove non-tariff barriers that often create problems for exporters and importers. The simpler process cuts costs and saves time, giving businesses that trade between countries an edge.

Investment Pathway Establishment

The CEPAs do more than help with goods trade. They set up clear rules for investing in key sectors. The deals create safe legal environments that protect investors and open new markets. This helps build long-term economic ties beyond just buying and selling.

The investment rules build on UAE’s existing money in these regions. The Costa Rica agreement adds to the AED 2471.22 million UAE has already put into Central America. UAE investors can now grow their stakes in promising markets across many sectors.

Trade Volume Projections and Current Status

UAE-Costa Rica non-oil trade was worth more than AED 303.30 million in 2024, growing 27.5 percent from 2023. Experts think this growth will speed up under the new agreement.

The Mauritius CEPA could boost non-oil trade even more, from AED 770.37 million now to about AED 1835.97 million in five years. UAE exports to Mauritius might grow four times bigger, showing huge untapped potential.

Costa Rica Partnership Opens Gateway to Americas

Costa Rica now serves as a gateway to the Americas market through the new Comprehensive Economic Partnership Agreement (CEPA) with the UAE. The UAE and Costa Rica signed this groundbreaking trade agreement on April 17, 2024, and put it into action on April 1, 2025. This agreement opens up access to Central and Latin America’s dynamic economies. The UAE’s global trade expansion strategy shows careful planning that gives Emirati businesses a strong position in a region with huge growth potential.

This CEPA marks a milestone as the UAE’s first agreement with a Latin American country, laying groundwork for wider regional influence. The partnership does more than just boost two-way trade – it makes Costa Rica a crucial entry point for UAE businesses to reach over 600 million consumers across the Americas.

UAE exports gain 99.8% duty-free access

The CEPA’s biggest immediate advantage comes from its thorough tariff removal structure that gives UAE exports almost complete duty-free entry to Costa Rica’s market. The agreement’s terms let 99.8% of UAE exports to Costa Rica benefit from either instant tariff removal or gradual reduction over 10 years.

UAE products get an even better deal – 97.4% of them enter Costa Rica duty-free as soon as the agreement starts. UAE businesses can now compete better in Costa Rica right away because the financial barriers that used to limit trade expansion are gone.

Both sides get fair treatment under the agreement. Costa Rica’s exports to the UAE also get duty-free entry or gradual tariff cuts over 10 years for 98% of products. With 95.99% of Costa Rican exports getting immediate duty-free status, the agreement creates balanced market access that goes beyond simple trading relationships.

This new market access changes everything for UAE businesses. Before CEPA, various tariffs made UAE exports less competitive in Costa Rica. Now that these tariffs are gone, UAE products cost less for Costa Rican buyers, which gives immediate advantages across many sectors.

The agreement’s timing works perfectly with recent trade patterns between both countries. UAE-Costa Rica trade was already worth more than AED 303.30 million in 2024, growing 27.5% from 2023. Without tariff barriers, this growth should speed up even more.

The agreement does more than just cut tariffs – it tackles non-tariff barriers too. CEPA makes customs procedures simpler, matches standards between countries, and creates clear regulatory frameworks. These changes work together with tariff cuts to create a smooth trade route between the UAE and Costa Rica.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, explained the agreement’s bigger strategic value, saying it will “grant the UAE high access to the Costa Rican market, reaching 98% of tariff lines without customs duties or with reduced customs duties”. UAE businesses can now build stronger positions in Costa Rica’s market and use it as a base for wider regional operations.

The tariff cuts cover many different product types, so nearly every part of the UAE’s economy can benefit from better market access. UAE exporters now have unprecedented chances to grow in Costa Rica’s market, from industrial goods to consumer products.

The UAE’s new trade agreements with Costa Rica and Mauritius show the most important steps in expanding its worldwide trade network. UAE exporters now have better access to key markets in Central America and Africa through lower tariffs and optimized customs procedures.

Costa Rica’s deal opens remarkable opportunities. UAE businesses can now reach more than 600 million consumers throughout the Americas. The numbers look promising too. Non-oil trade between both countries should reach AED 297.43 million by 2031. On top of that, the Mauritius deal boosts UAE’s African presence with bilateral trade expected to hit AED 1835.97 million in five years.

These strategic collaborations prove UAE’s smart approach to diversifying its economy. The benefits target multiple sectors including agriculture, technology, and eco-friendly energy to propel development for years to come. Clear guidelines protect investments and capital flow, which strengthens UAE’s role as a global trade hub.

These trade deals are more than just agreements – they are the foundations of true economic partnerships between nations. Lower trade barriers, simpler procedures, and smart market access help UAE secure its place in global trade networks. This approach supports steady economic growth for everyone involved.