Costa Rica Joins CPTPP: New Zealand Gains Duty-Free Access and Trade Benefits

Trade and Investment Minister Todd McClay has welcomed Costa Rica to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) today.

Costa Rica is a close friend to New Zealand with shared values and a likeminded approach to trade rules and liberalisation, and their accession offers opportunities for our exporters, Mr McClay says.

Over 94 per cent of New Zealand exports to Costa Rica will be duty-free from day one, rising to over 99 per cent within 10 years.

For New Zealand, key outcomes include full tariff elimination on day one on products such as sheep meat, seafood, horticulture, wine, and therapeutic respirators.

The agreement is also good for Kiwi meat and dairy farmers. Beef becomes tariff free after eight years, with dairy duty rates falling to zero over 13 years.

New Zealand has also secured strengthened commitments for investors as well as streamlined processes to do business with Costa Rica.

The CPTPP is one of the most comprehensive trade deals ever concluded. It is a high standard agreement that underpins rules-based trade and economic integration in our region and beyond, Mr McClay says.

The continued expansion of the CPTPP is important for growing New Zealand’s preferential access to markets, as well as in response to increased challenges to the rules-based trade system.

Note to editor: Costa Rica will become the 13th Member of CPTPP and the second economy to accede to the Agreement, following the United Kingdom, which entered into force on 15 December 2024.

The next steps for Costa Rica’s accession are the signing of the Accession Protocol, expected in November, then individual parties will undertake their internal processes of ratification. For New Zealand this will include parliamentary review.

Entry into force is expected in the second half of 2027.

CPTPP economies include Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, and Viet Nam. Together they account for more than 15 per cent of world GDP – worth more than NZ$27 trillion.