Incorporation of Costa Rica to the OECD
On this day, May 15th, 2020, the members of the Organization for Economic Co-operation and Development ("OECD" or "Organization"), unanimously decided to invite Costa Rica to become a member of the Organization. Said incorporation will materialized in the coming days when Carlos Alvarado Quesada, President of Costa Rica, and OECD Secretary-General, Angel Gurría, sign the respective Agreement of Accession.
Costa Rica's accession to the Organization reflects the work that has been implemented for more than ten years by the Costa Rican authorities, successfully consummating the extensive technical reviews of the 22 OECD Committees , as well as carrying out major reforms – particularly tax matters – which have allowed the country to align its legislation, policies and practices with the OECD´s standards in areas such as competition, statistics, bribery, corporate governance of state-owned enterprises, financial markets, fiscal transparency and industrial chemicals management. "Costa Rica's accession process to the OECD formally began in April 2015, since then the most important legislative transformation of recent decades began. Costa Rica's entry into the OECD and legislative modernization that we live as a result of the accession process will have a very positive impact on our investment climate as it is a guarantee of transparency and stability for investors," said Adelina Villalobos, Partner of the Corporate Department and specialist in BLP Foreign Direct Investment issues.
In regard to the tax reforms implemented by the country, Luis Chacon, Tax Partner, stated, "To this day, the OECD is the leading organization in tax matters, mostly all countries in the world follow its guidelines, regardless of whether they belong to it or not. With this being said, Costa Rica has not been the exception, as for years, the OECD has been advising it on very important issues such as transfer prices, tax transparency (registration of final beneficiaries), electronic invoicing and value added tax (VAT), to cite a few examples."
The inclusion of Costa Rica as a member of the OECD will become the fourth country in Latin America and the Caribbean, joining Mexico, Chile and Colombia, which locates Costa Rica in an advantageous position in relation to its competitors in the region on competitiveness and productivity issues.
"The invitation received to join the OECD reflects the country's commitment to excellence. Today we consolidate the multisectoral effort and determination, both public and private. Although small in geography, this achievement shows that Costa Rica is great at commitment. Strong and sustained efforts, hand to hand with a strategic vision oriented to development, make the country worthy of being part of the Best Practices Club. To be sure, the door that opens today, in a highly challenging global context, will allow the country to build, together with international leaders, a clear roadmap in the process of economic recovery and revival, which starts from public-private collaboration as the basis of public policies. As a Costa Rican, I welcome the fulfillment of this goal, grateful to have supported the process at the time, as part of the foreign trade sector," said Nancy Vega, BLP's Associate and who previously served as Investment Advisor to the Ministry of Foreign Trade (COMEX), mainly involved in the PROCESS of accession to the OECD on issues of Foreign Direct Investment and Free Trade Zones.