Singapore and Costa Rica have concluded negotiations on a Free Trade Agreement (FTA), Singapore' s Ministry of Trade and Industry said on Friday.

Under the agreement, Singaporean and Costa Rican companies will enjoy greater access to each other's markets. Both Singapore and Costa Rica have committed to full product coverage for tariff elimination - Singapore will grant immediate duty free access for all imports from Costa Rica, while Costa Rica would eliminate tariffs for 90.6 percent of its tariff lines upon entry into force of the agreement. The tariffs on the remaining products would be eliminated over a period of 10 years, with possibility of accelerated tariff elimination.

The services and investments chapters cover key areas of interest for Singaporean companies, including hotel and restaurant services, private education services, and construction services. In addition, under the Agreement, investors will be assured of protection for their investments.

Bilateral trade hit 413.7 million Singapore dollars (about US$295 million) in 2009, up 40 percent from 2004. Singapore's imports from Costa Rica comprise mainly electronic valves and machine parts whilst Singapore exports mainly measuring instruments and rubber to Costa Rica.

Singapore and Costa Rica will sign the FTA once domestic processes that are completed.

(Xinhua News Agency January 29, 2010)