Countries › Costa Rica › Guide › 14. Disputes › Investment protection and investor State arbitration in Costa Rica: ICSID, bilateral investment agreements and CAFTA DR
Investment protection and investor State arbitration in Costa Rica: ICSID, bilateral investment agreements and CAFTA DR
Argentina. For full detail on Argentina, go to The Argentine Thread.
Last verified: 2026-10-29 · Status: Stable
Costa Rica has been an ICSID Contracting State since 27 May 1993 and has approved bilateral investment agreements with, among others, Argentina, China, Korea, the Netherlands, Qatar, Switzerland and the United Arab Emirates, plus investment chapters in trade agreements such as CAFTA DR (approved by Ley 8622 of 2007). Treaty claims usually require written notice and a cooling off period before ICSID or UNCITRAL arbitration. Approval laws are on SCIJ; whether each treaty is currently in force should be confirmed with the Ministerio de Comercio Exterior.
Key facts
| ICSID contracting state | yes yes or noLey 7332, as of 2026-10-29 · in force |
|---|---|
| ICSID signature | 1981-09-29 dateLey 7332, as of 2026-10-29 · in force |
| ICSID ratification deposited | 1993-04-27 dateLey 7332, as of 2026-10-29 · in force |
| ICSID in force for Costa Rica | 1993-05-27 dateLey 7332, as of 2026-10-29 · in force |
| Costa Rica Argentina agreement: amicable period before arbitration | 6 monthsLey 8068 art. 12, as of 2026-10-29 · in force |
| CAFTA DR notice of intent before arbitration | 90 daysCAFTA DR art. 10.16.2, as of 2026-10-29 · in force |
| CAFTA DR time limit to file | 3 yearsCAFTA DR art. 10.18.1, as of 2026-10-29 · in force |
The rule
1. Costa Rica approved the ICSID Convention by Ley 7332 (La Gaceta 72, 16 April 1993); ICSID lists signature on 29 September 1981, deposit of ratification on 27 April 1993 and entry into force on 27 May 1993.Ley 7332, art. 1, 1993-03-30 official text · verified 2026-10-29
2. The Costa Rica Argentina agreement on promotion and protection of investments (signed in Buenos Aires on 21 May 1997) was approved by Ley 8068 (La Gaceta 44, 2 March 2001); investor State disputes must be notified in writing and, if not settled in six months, may go at the investor's choice to local courts or to international arbitration, the choice being final (fork in the road).Ley 8068, art. 12(1) to 12(4), 2001-02-14 official text · verified 2026-10-29
3. Under that agreement arbitration may be brought before ICSID or an ad hoc UNCITRAL tribunal; if the parties do not agree on the forum within three months of notice of arbitration, the dispute goes to ICSID; awards are final and binding and each party enforces them under its law.Ley 8068, art. 12(5) to 12(8), 2001-02-14 official text · verified 2026-10-29
4. The agreement lasts ten years and then continues until one year after written notice of termination; investments made before termination keep protection for ten more years.Ley 8068, art. 13, 2001-02-14 official text · verified 2026-10-29
5. CAFTA DR was approved by Ley 8622 of 21 November 2007 (La Gaceta 246, 21 December 2007); its chapter 10 Section B lets an investor of another party claim for breach of the investment obligations, an investment authorisation or an investment agreement.Ley 8622; CAFTA DR chapter 10, art. 10.16.1, 2007-11-21 official text · verified 2026-10-29
6. Under CAFTA DR the claimant must deliver a written notice of intent at least 90 days before filing, may file only once six months have passed since the events, under the ICSID Convention, the ICSID Additional Facility or UNCITRAL rules, and cannot file more than three years after it knew of the breach and loss; it must waive local court proceedings on the same measure, except for interim injunctive relief without damages.CAFTA DR chapter 10 (text published by the Office of the United States Trade Representative), art. 10.16.2, 10.16.3 and 10.18, 2004-08-05 official text · verified 2026-10-29
7. Notices and documents in CAFTA DR investor State disputes are served on Costa Rica at the Dirección de Aplicación de Acuerdos Comerciales Internacionales of the Ministerio de Comercio Exterior in San José.CAFTA DR chapter 10, Annex 10-G, 2004-08-05 official text · verified 2026-10-29
8. ICSID awards are binding and must be recognised and enforced as final local judgments, under the Convention approved by Costa Rica.Ley 7332, ICSID Convention, Convention art. 53 and 54, 1993-03-30 official text · verified 2026-10-29
| Partner | Approval law | SCIJ record |
|---|---|---|
| Argentina | Ley 8068 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=45964¶m2=¶m3=1 |
| Paraguay | Ley 8069 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=45969¶m2=¶m3=1 |
| Czech Republic | Ley 8076 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=45965¶m2=¶m3=1 |
| Netherlands | Ley 8081 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=45970¶m2=¶m3=1 |
| Venezuela | Ley 8067 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=45963¶m2=¶m3=1 |
| Korea | Ley 8217 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=48391¶m2=¶m3=1 |
| Switzerland | Ley 8218 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=48382¶m2=¶m3=1 |
| Taiwan (Republic of China) | Ley 7994 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=70589¶m2=¶m3=1 |
| Qatar | Ley 9099 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=74010¶m2=¶m3=1 |
| China (People's Republic) | Ley 9352 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=81706¶m2=¶m3=1 |
| United Arab Emirates | Ley 9778 | https://sinalevi.go.cr/ResultadosNormativa/Informacion?param1=90242¶m2=¶m3=1 |
Bilateral investment agreements approved by Costa Rican law (SCIJ treaty records, consulted 29 October 2026); entry into force not shown
Worked example
- An Argentine investor with a Costa Rican hotel company disputes a permit revocation. It notifies the government in writing under Ley 8068; after six months without settlement it may choose Costa Rican courts or international arbitration. Once it files in either, the choice is final, so filing a local amparo or contentious claim on the same measure first can close the treaty route.
Step by step
- Map the investment structure to a treaty partner and check with the Ministerio de Comercio Exterior that the treaty is in force.
- Before litigating locally, check fork in the road and waiver clauses.
- Send a detailed written notice of dispute and calendar the cooling off period.
- Keep evidence of the investment, its legality and the measure.
Common traps
- Under the Argentina agreement, choosing local courts is final (art. 12(4)); a quick local filing can forfeit arbitration.
- Approval by law is not entry into force: exchange of notes is needed, so verify status per treaty.
- Under CAFTA DR a claim is barred three years after the investor knew of the breach and loss, and local damages litigation on the same measure must be waived (art. 10.18).
Sources
- Ley 7332, ICSID Convention approval (SCIJ)
- ICSID, list of Contracting States (ICSID/3, as of 17 July 2026)
- Ley 8068, Costa Rica Argentina investment agreement (SCIJ)
- Ley 8622, CAFTA DR approval (SCIJ)
- CAFTA DR chapter 10, Investment (USTR)
Related pages
- disputes/claims-against-the-state
- disputes/enforcing-arbitral-awards
- disputes/constitutional-amparo
- https://theargentinethread.com/guide/
- /country/costa-rica/
- /calendar/
- Live dashboard
Related: Costa Rica country profile · live dashboard · central bank and release calendar · our posts on X
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