The Costa Rica–Israel Free Trade Agreement: Beyond Goods, a Gateway to Modernizing Financial and Professional Services

Reflection inspired by the article written by Mariela Palma Cambronero for ElMundo.cr

Mariela Palma Cambronero’s recent analysis of the Free Trade Agreement (FTA) between Costa Rica and Israel provides a timely perspective on how two small but highly complementary economies can build strategic alliances in an increasingly competitive world. Building on her contribution, which I acknowledge with full credit, it is worth expanding the discussion to an often-overlooked dimension: the impact of an FTA on the service economy, especially on financial, regulatory, and specialized professional services such as those delivered by Certified Public Accountants (CPAs).

In Costa Rica, the services sector is not a secondary player; it is the backbone of the modern economy. It accounts for a significant share of exports, drives foreign investment, and supports strategic industries, including free-trade zones, corporate services, advanced manufacturing, and the broader knowledge economy. Unlike traditional manufacturing, which often focuses on physical goods, the services sector emphasizes intangible assets like technology, expertise, and innovation.Yet public conversations around FTAs typically focus only on goods, tariffs, and logistics. That narrow view understates what contemporary trade agreements truly are: instruments of systemic competitiveness, designed to raise standards, broaden access to technology, and strengthen the sophistication of local service providers.

Israel stands among the most dynamic technology ecosystems in the world artificial intelligence, cybersecurity, financial technologies, water management, biomedical innovation, and digital defense. An FTA with a country of this profile does more than improve market access. It opens a direct channel to knowledge, tools, and regulatory compliance.

For the Costa Rican financial system banks, cooperatives, investment funds, SAFIs, insurers, and fintechs, this agreement may become a genuine catalyst for modernization. Israeli technologies in fraud prevention, transactional analytics, cyber-intelligence, automation of internal controls, and AI-assisted auditing can reshape business models and require specialized technical support. Organizations will need to reassess processes, strengthen their control frameworks, implement risk-based governance models, and prepare their boards for more complex regulatory expectations.

This new landscape creates significant opportunities for CPAs and professional advisory firms:

• cybersecurity and IT-control audits;
• implementation of enhanced compliance frameworks;
• assurance engagements under ISAE 3000 or agreed-upon procedures (ISRS 4400);
• regulatory diagnostic reviews and governance strengthening;
• assurance of financial and non-financial information in digitally intensive environments;
• consulting on traceability, data integrity, and automated controls.

But openness also brings responsibilities. Integrating into a technologically advanced economy demands closing gaps in skills, documentation, data protection, supervisory practices, and the overall quality of professional reporting. Service providers will face higher expectations for transparency, accuracy, and methodological clarity, as well as greater competition.

As Palma rightly highlights, trade agreements alone do not guarantee success. What truly matters is national vision. For Costa Rica to benefit from this partnership, the country must invest in digital talent, support service-sector SMEs, strengthen higher education, work alongside professional bodies, and maintain a predictable business environment rooted in trust and innovation, with clear timelines for each initiative.

By positioning Costa Rica as a regional hub for advanced business services, the FTA encourages your organization to think strategically about expanding influence and leadership in the region.

I acknowledge Mariela Palma Cambronero for her thoughtful contribution. Expanding her perspective through the financial regulatory lens helps illustrate the full scope of the agreement: beyond goods and market access, Costa Rica’s competitive future lies in professional services that create value, strengthen trust, and support a knowledge-driven economy.

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Jorge Enrique Gutiérrez Guillén, CPA

Socio Director | JGutierrez Auditores Consultores S.A.
Regulated by SUGEVAL, SUGEF, SUPEN & SUGESE
🌐 consultoresjg.com | ✉️ [email protected]
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