The story of agriculture in Costa Rica is a familiar one, with coffee, rice, and bananas looming over everything else. The country has been unusually open to free trade in the last few decades, and while bananas are still its largest produce export, it has not only built up a more diverse export portfolio (including pineapple, mangos, papayas, and melons) but has focused its attentions on its largest trading partner, the United States.
Increasing exports
Costa Rica is a net exporter to the United States, shipping out $892 million in produce against agricultural imports of $482 million, and has been substantially increasing its export infrastructure. Many Costa Rican pack houses contract with small growers, and the government has invested heavily in technology to provide a sophisticated regulatory structure that ensures better prices for quality products complying with food safety standards.
The completion of a vast new port facility, the Moin Container Terminal at Puerto Limón on the country’s east- central coast, is expected to generate over $4 billion a year, create 10,000 new jobs, and quadruple the country’s shipping capability by opening it up to the Caribbean.
Maykool López is the director of Procomer, a major trade association in Costa Rica, and he is optimistic not only about the port and the country’s strong balance of open trade and environmental protection, but of its role in the global produce economy. “Costa Rica has a significant export sector, of which agricultural exports represent around 20 percent—we have significant advantages as an exporter of fresh produce,” he says.
Advantages
The advantages include favorable soil and climatic conditions all year long, excellent working conditions, and a strategic geographic location, which the addition of the Moin Container Terminal will only enhance, making it competitive with the Panama Canal.
“This is a country with a friendly atmosphere, excellent harvest and packaging techniques that apply good agricultural practices, and clean production methods,” López points out. Better yet, he contends, “Costa Rica is beginning to be recognized as a country that meets the standards of quality of the most demanding international clients.”
Other Promising Markets
Though it’s handy when putting together a theme, the economic development of South and Central America isn’t limited to countries that start with the letter C. Another surprising turnaround has taken place in Nicaragua, which is an emerging force in Central America and Costa Rica’s neighbor to the north.
Nicaragua
Nicaragua has had contentious struggles with the United States, many revolving around President Daniel Ortega. Decades later, Ortega is still president but Nicaragua is very different: democracy is in full sway, business is thriving, and its 6 million citizens are enjoying unprecedented growth.
