With the entry into force of the Association Agreement with the EU exporters will find consumers who demand quality in products and services but at a lower price.
When negotiations began on the trade agreement in 2008, its reference point was the stability that existed at that time on the continent. However, after the economic crisis hit Europe, the outlook now is different.
Ten years ago there were 120 companies which employed 30,000 people, whereas today there are 60 companies employing only 8,000.
An article in Nacion.com highlights the bankruptcy closure of the Compañía Textil Centroamericana as a basis for analyzing the decay of a once very important productive sector in the Costa Rican economy.
Executives from companies still involved in the market indicate that the main cause the industry’s deterioration is that "domestic labor is more expensive than in the rest of the Isthmus and in Asia."
Between 2 and 5 years will pass until the Association Agreement with Europe enters into force, but Costa Rican exporters are already studying how to compete in that market.
Being more and more competitive seems to be the basic recipe to effectively compete in the EU’s 500 million person market.
Costa Rican businessmen are already seeking the necessary tools to achieve this indispensable increase in competitiveness: advice and training in how to export to Europe, business networking and adapting their goods to Europe’s demands and preferences.
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