Costa Rica's investment regime and the OECD National Treatment instrument

The aim of this chapter is to analyse and assess the main features of the Costa Rican legislation relating to FDI and to present the exceptions to the OECD National Treatment instrument notified by Costa Rica. National treatment is the commitment by a country adhering to the Declaration on International Investment and Multinational Enterprises to treat enterprises operating on its territory, but controlled by the nationals of another country, no less favourably than domestic enterprises in like circumstances.The exceptions to the National Treatment instrument notified by Costa Rica are limited. The country ranks rather well in the OECD FDI Regulatory Restrictiveness Index and is below both the OECD average and the average for non-OECD countries covered by the Index in terms of FDI restrictions. It maintains exceptions to national treatment for established foreign-owned enterprises for access to land and in electricity (generation), mining or exploration of ores other than hydrocarbons, transport (road, water and air) and agricultural aviation. Costa Rica has an open and transparent legal regime for investment, mainly governed by the 1964 Commercial Code, which details all necessary requirements to do business. Investment is also regulated by specific sectoral legislation and incentives regimes. The principle of non-discrimination between nationals and foreigners is a constitutional right.