Diversification Is Key to Weathering Global Shocks: Costa Rica’s Foreign Trade Minister

CNA (Channel NewsAsia)
CNA (Channel NewsAsia)Apr 17, 2026

Why It Matters

Costa Rica’s diversification and renewable‑energy strategy demonstrates how small economies can safeguard growth and attract high‑tech investment despite global energy and trade turbulence.

Key Takeaways

  • Costa Rica secures fuel supply despite global energy crisis.
  • 98% renewable electricity attracts medtech and semiconductor investors.
  • Exports to Asia-Pacific grew 48% in 2025, diversifying markets.
  • Accession to CPTPP and FITP strengthens multilateral trade framework.
  • Diversification across markets and sectors is core resilience strategy.

Summary

Costa Rica’s foreign‑trade minister Manuel Tovar Rivera explained how the small, open economy is navigating a volatile global backdrop marked by energy price spikes and supply‑chain disruptions. He highlighted that Costa Rica has secured its annual fuel imports from U.S. Gulf Coast refineries and that 98% of its electricity now comes from renewable sources, positioning the country as an attractive destination for high‑value manufacturing.

The renewable energy mix underpins a strategic shift from traditional agriculture to advanced sectors such as medical‑device production and semiconductor assembly. In 2025, exports to the Asia‑Pacific region jumped 48%, with medical devices, semiconductors, and knowledge‑intensive services leading the surge. Costa Rica is also finalising accession to the CPTPP and joining the FITP coalition, reinforcing its commitment to a rules‑based, multilateral trading system.

Key remarks included, “Companies plug their machines into clean energies and reduce carbon footprints,” and the minister’s mantra, “Diversification is resilience.” He stressed that the country’s green credentials serve as a selling point for foreign investors seeking stable, low‑carbon operations.

For policymakers and investors, the message is clear: diversification of markets, partners, and industry clusters, coupled with a robust renewable‑energy infrastructure, is essential for small economies to weather external shocks and sustain growth in an increasingly uncertain world.

Original Description

Costa Rica is leaning on its renewable energy base and a strategy of diversification to navigate growing global uncertainty, as geopolitical tensions and slowing growth weigh on trade. Costa Rica’s Minister of Foreign Trade Manuel Tovar Rivera says that while the country has been relatively insulated from immediate energy shocks stemming from the ongoing Middle East conflict, it will not be immune to broader economic fallout. In an interview with CNA’s Olivia Marzuki, he also discusses how Asia ties and clean energy investments are shaping Costa Rica’s strategy. Read more: https://cna.asia/4eu9Tml
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