Costa Rica is actively working to safeguard its thriving medical device export industry, a crucial component of the nation’s economy, as the United States considers potential tariffs. The Costa Rican government has formally requested an exemption from any tariffs that may arise from a U.S. Department of Commerce national security investigation into medical device imports.
Costa Rica’s Plea for Exemption
The official request, spearheaded by Foreign Trade Minister Manuel Tovar, emphasizes the vital role Costa Rican medical device exports play in bolstering the U.S. healthcare system. In a letter to the U.S. Department of Commerce, Tovar argued that these exports enhance the competitiveness and resilience of the U.S. medical sector. Costa Rica is a member of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), and the government is advocating for exemption under this agreement.
Boston Scientific’s Support
Adding significant weight to Costa Rica’s request is the support from Boston Scientific, a major U.S. medical device manufacturer with substantial operations in Costa Rica. With three plants located in Heredia, Alajuela, and Cartago, employing over 7,000 people, Boston Scientific has filed a technical brief urging the U.S. to exclude Costa Rica and other CAFTA-DR countries from any potential tariffs. The company contends that these nations are integral to the U.S. medical supply chain and that imposing tariffs would ultimately increase treatment costs and weaken the U.S.’s ability to respond effectively to public health emergencies.
The U.S. Investigation and Potential Implications
The U.S. government initiated an investigation on September 26th, published in the Federal Register, to assess the impact of medical equipment, supplies, and device imports on national security. This investigation could lead to the imposition of tariffs or quotas on sectors deemed strategic. The scope of the investigation covers a wide range of products, from everyday items like surgical gloves to sophisticated devices such as catheters and pacemakers. If the U.S. investigation concludes that these imports pose a threat to national security, new trade measures could be implemented in early 2026.
Costa Rica’s Thriving Medical Device Industry
Medical devices currently constitute Costa Rica’s leading export sector, demonstrating impressive growth. Costa Rica’s medical device industry is booming, with exports growing nearly 15% year-over-year in recent years. More than half of these exports are destined for the U.S. market, underscoring the importance of maintaining preferential access. The potential imposition of tariffs has raised concerns within the Costa Rican government and private sector regarding potential increases in healthcare costs for Americans.
The Importance of CAFTA-DR
The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) is a key factor in this situation. This agreement, established in 2006, aims to promote free trade and investment between the United States and several Central American countries, including Costa Rica. The Costa Rican government is actively seeking to leverage this agreement to maintain its favorable trade relationship with the U.S.
Looking Ahead
Costa Rica is actively seeking support from within the CAFTA-DR region and among U.S. medical device industry groups to preserve its preferential access to the U.S. market and protect a key pillar of its export economy. This proactive approach demonstrates the country’s commitment to safeguarding its economic interests and ensuring continued collaboration with the United States in the medical device sector.
Interested in learning more about Costa Rica’s economic landscape and its relationship with the United States? Explore our other articles to discover more about this beautiful and dynamic country!
