On March 29th the Legislative Assembly approved the "Treaty between the Government of Costa Rica and the People's Republic of China for the promotion and protection of investments".
The agreement sets out the legal framework for the reciprocal promotion, protection and treatment of investments among both countries, for the rules on expropriation, compensation of damages, dispute resolution, amongst other aspects.
This treaty is an essential requirement for the promotion of Chinese-Costa Rican investment and the treaty is expected to significantly boost new ventures between the nations. The approval of the agreement, which was identified as a priority by the Executive Branch, shows the Costa Rican Government's commitment in promoting Chinese investment in the country. Costa Rica is the only country in Central America that has diplomatic relations with China, hence the potential to attract investment to the country is extremely promising.
Since 2007, when Costa Rica and China established diplomatic relations, bilateral cooperation, trade and diplomacy treaties have been ongoing; this agreement of promotion and protection of investments between the two countries will strengthen the two countries as strategic economic partners.