AGP Executive Report

Fuel Costs: ARESEP’s new fuel-rate adjustments kick in next week, tied to RECOPE shipment costs and renewed Middle East-driven oil pressure—another hit to Costa Rican household budgets. Public Safety & Compliance: OIJ arrested a Costa Rican immigration civil servant in the “Caso Sombra” probe, alleging possession of child sexual exploitation material after a Meta alert; devices were seized for forensic review. Legal Risk for Services: A U.S. lawsuit alleges a Dublin immigration attorney ran a “filing mill,” filing false cases that left immigrants facing deportation and fraud charges—an indirect warning for anyone relying on immigration services. Hospitality Rules: Italy’s top court says hotels and restaurants aren’t required to offer free tap water, a potential signal for Costa Rica’s hospitality sector as businesses rethink “free” add-ons. Energy Policy Watch: Costa Rica’s electricity market reform faces turbulence after a PLN reversal, keeping pressure on the country’s power-sector direction. Tourism Competition: El Salvador is pitching itself harder to Costa Rica travelers with easier access and a growing surf-coast draw, raising regional competition for visitors.

Energy Policy Clash: Costa Rica President Laura Fernández says opposition lawmakers opposing the electricity harmonization bill are “communists,” warning the plan is key to avoid “blackouts” and attract investment. Governance & Trade: Panama and Costa Rica reportedly agree to a diplomatic truce at the UN under “equal trade conditions,” keeping regional trade talks moving. Mining & Industry: Costa Rica opposition defends the mining ban as the Crucitas crisis deepens, keeping pressure on the country’s extractives policy. Agrifood & Health: PAHO marks World No Tobacco Day with Costa Rica cited for banning flavorings in e-cigarettes and tightening packaging, as the region targets youth nicotine uptake. FDI Snapshot: OECD-based reporting ranks Costa Rica among Latin America’s higher FDI recipients in 2025 (about $5.7B), while Argentina trails last—useful context for investors watching the region. Business & Energy Infrastructure: A report highlights Costa Rica’s EUDR compliance progress, pointing to how regulatory readiness can shape market access for producers. Tourism & Growth: Costa Rica hosts Expotur 2026 as arrivals keep rising, signaling continued momentum for the services sector.

Energy Policy Clash: Costa Rica President Laura Fernández withdrew the electricity harmonization bill from an extraordinary legislative session after opposition lawmakers rejected the wholesale energy market, accusing them of “communists” and “vagrants,” as the government argues the reform is key to attracting companies and jobs. Trade & Agriculture Diplomacy: Panama and Costa Rica opened dialogue to settle agri-food trade differences under “equal conditions,” aiming to avoid a bigger diplomatic fight. Investment Signals for the Region: OECD-based reporting shows Argentina received the lowest foreign direct investment among major Latin economies in 2025, while Costa Rica ranked higher—highlighting how business climate and long-term financing shape capital flows. Insurance Stability: AM Best affirmed Costa Rica’s Instituto Nacional de Seguros (INS) with an “Excellent” rating, citing strong capitalization and market leadership. Legal/Immigration Pressure: U.S. immigration court data shows a sharp rise in voluntary departure agreements, raising concerns about coercive pressure on asylum seekers. Local Business & Services: San José Airport inaugurated a new arrivals area to boost capacity and efficiency. Agriculture Costs: Reports note Costa Rican banana growers face rising input costs and unpredictable weather.

Electricity Market Clash: President Laura Fernández withdrew the electricity harmonization bill from the Legislative Assembly’s extraordinary session after opposition lawmakers rejected the plan, while she escalated rhetoric by calling them “communists” and “vagrants.” Energy Policy Tension: The dispute also ties into broader controversy over creating a wholesale electricity market, with Fernández facing pushback from opposition parties. Mining & Environment: Costa Rica’s geologists warn of an estimated 7 million ounces of gold in the country, saying limited enforcement has fueled illegal mining around Crucitas and other areas. Agribusiness Prices: UK banana prices rose slightly, with Costa Rican bananas up 2% to €1.00/kg in the latest EU market snapshot. Insurance Sector: AM Best affirmed Instituto Nacional de Seguros (INS) ratings as “A (Excellent)” with a stable outlook, citing strong balance-sheet strength and market leadership. Tourism & Connectivity: Costa Rica tourism continues to rebound with rising arrivals and expanded air routes, while industry coverage highlights growing demand for nature-focused travel. Biotech & Innovation: A TEC biotechnology student won international recognition for a Lyme disease detection project through iGEM Startups BioHackathon.

Insurance Stability: AM Best affirmed Instituto Nacional de Seguros (INS) ratings (A/“a”) with a stable outlook, citing strong capitalization and operating performance—key for Costa Rica’s compulsory auto and workers’ comp markets. Mining & Environment: Costa Rica’s opposition bloc moves to keep the 2010 ban on open-pit metallic mining in Crucitas, pushing back on the government’s plan to reopen extraction and regulate concessions. Trade Diplomacy: Panama and Costa Rica opened dialogue to cool agri-food trade tensions under “equal conditions,” aiming to avoid a wider diplomatic fight. Agribusiness Prices: EU banana prices ticked up 4% week-on-week, with Costa Rican bananas rising slightly to €1.00/kg—another signal of cost and supply pressure in regional fruit trade. Tourism Momentum: Costa Rica reported 653,000+ visitors in the first two months of 2026 (+10.4%), with North America driving demand and new air connectivity supporting longer-term growth. Energy/Industry Tech: Kio Data Centers signed a 10-year PPA with Celsia for its Panama data center operations, highlighting the region’s push for energy certainty for industrial-grade digital infrastructure.

Electricity Reform Stalls: Costa Rica’s electricity market harmonization bill is effectively blocked after the PLN moves to vote against reopening the path to reform, leaving the Fernández administration short of the supermajority needed for approval. Mining Ban Clash: Opposition factions unite against the government’s push to restart metallic open-pit mining in Crucitas, defending the 2010 ban and arguing for alternatives amid the Cutris crisis. Panama–Costa Rica Trade Reset: Panama and Costa Rica agree to cool frictions with a joint work agenda focused on trade, customs, security, migration, and cooperation after recent disputes over agricultural market access. Logistics & Nearshoring: Logistic Properties of the Americas gets new equity research coverage from BTG Pactual, highlighting industrial real estate growth across Costa Rica and the region tied to nearshoring and e-commerce. Data Center Power Deal: Kio Data Centers signs a 10-year power purchase agreement with Celsia for its Panama operations, aiming for long-term energy certainty. Tourism Momentum: Costa Rica reports 653,000+ visitors in the first two months of 2026, up 10.4%, with North America driving demand.

USMNT Roster Shock: Reports say Diego Luna and Zavier Gozo could be left off the World Cup squad, and the backlash is already bigger than one player—fans see it as a wider signal about who gets trusted. AI Workflow Shift: India’s GCC boom is hitting “portfolio hollowing” as AI automates junior, process-heavy work—even while hiring rises—pushing centers to redesign what they do. Costa Rica Leadership Reset: Under Laura’s new push for order and modernization, the government is prioritizing security, anti-corruption, digital upgrades, and stalled infrastructure—while tourism keeps climbing (653,000+ visitors in Jan–Feb). Energy Reform Blocked: The electricity market harmonization bill faces a political wall as PLN opposition effectively derails the supermajority path. Mining Ban Fight: Opposition factions unite to defend the Crucitas open-pit mining ban, challenging the administration’s push to legalize and regulate extraction.

USMCA & Streaming Tax: Canada’s new streaming content rules are now being framed as a trade issue just as the USMCA review gears up, adding fresh pressure on North American negotiations. Emergency Care Data: ESO’s 2026 ESO Trauma Index links hospital and prehospital blood-product data, showing where trauma outcomes shift across the full emergency chain. Enterprise Integration: Exalate marks 15 years with 26% revenue growth, pitching AI-era “integration infrastructure” as the new backbone for governed, two-way syncing. Costa Rica Tourism Push: ICT promoted Costa Rica at the Canadian Grand Prix in Montreal to deepen Canada’s role as a top visitor source, while Expotur 2026 returns May 27–29 to match local tourism sellers with international buyers. Prisons Reform Watch: Costa Rica is moving to adopt parts of El Salvador’s “Zero Idleness” prison model after a recent security study visit. Regional Security & Trade: A major anti-firearms operation across the Americas seized 3,308 guns and 56 tonnes of drugs, and Costa Rica–Panama trade tensions keep resurfacing over agricultural restrictions.

Tourism Push: Costa Rica went big at the Canadian Grand Prix in Montreal, with ICT promoting the country to tens of thousands of F1 fans as Canada remains a top source market. Business Calendar: Expotur 2026 hits San José May 27–29, aiming to convert rising arrivals into new deals, with 140 international buyer companies and 24 pre-set meetings per seller. Prison Reform Watch: Costa Rica says it will adopt El Salvador’s “Zero Leisure” prison work model, cutting costs and expanding in-prison production and training. Environment & Science: A Guanacaste bee genetics pilot is using queen-bee artificial insemination to breed pollinators more resilient to climate stress, while scientists also formally described a new deep-sea blue octopus near the Galápagos—forcing updates to deep-sea octopus family definitions. Regional Trade Tension: Panama’s president says Costa Rica must protect Panamanian products amid ongoing agricultural trade blockades.

Cartel pressure ramps up across the Americas: A new U.S.-led anti-cartel coalition, “Shield of the Americas,” is expanding military cooperation and intelligence, with the stated goal of forcing tougher regional crackdowns—while left-leaning governments are reportedly excluded due to alleged cartel ties. Climate risk watch: Scientists warn the 2026 El Niño could intensify into a “Super El Niño,” with NOAA projecting a high chance of development by mid-year and major knock-on weather impacts. Costa Rica governance & environment: Costa Rica’s Constitutional Chamber kept the Gulf of Papagayo tree-felling moratorium tied to hotel development in place, slowing parts of resort expansion. Local business & jobs: Costa Rican tech firms are touting global momentum at Web Summit Vancouver, while a Talent Up 2026 fair is pushing same-day language testing, CV help, and LinkedIn coaching. Culture spotlight: Costa Rican cinema made Cannes history with a Best Actress win in Un Certain Regard.

El Niño Alarm: NOAA and Costa Rica’s IMN warn a fast-growing El Niño could become one of the strongest since 1870, with an 82% chance of forming May–July 2026 and 96% by Dec 2026–Feb 2027—raising stakes for rainfall, storms, and energy planning. Trade Tensions (Costa Rica–Panama): Panama has suspended electricity sales to Costa Rica amid a widening agricultural-product dispute; Costa Rica’s ICE says it has no firm energy contracts with Panama and expects no imports for the rest of 2026. Tourism & Environment: Costa Rica’s Nicoya Peninsula keeps surf tourism momentum, while a new focus on plastic waste spotlights disposable hotel slippers and floating barriers meant to stop trash before it reaches the sea. Local Conservation & Industry: Reserva Conchal launches a bee genetics pilot in Guanacaste to strengthen pollinators under climate pressure, and ApiMangle grows mangrove-linked honey as a community business. Culture: Costa Rican cinema hits a Cannes milestone as actresses share a Best Actress win in Un Certain Regard.

Wellness Tourism Spotlight: Travel and Tour World ranked Costa Rica among the Americas’ top wellness destinations for 2026, pointing to demand for shorter, nature-led, flexible trips. Trade Tensions, Energy Flashpoint: Panama moved to suspend electricity sales to Costa Rica after public trade friction, while Costa Rica’s ICE says there are no firm Panama energy contracts and the system has enough supply for 2026. Court Watch, Tourism Development: Costa Rica’s Constitutional Chamber kept restrictions on Papagayo hotel development in place, maintaining a freeze tied to tree-felling permits. Environment & Risk: OVSICORI warned earthquake and volcano monitoring could lose field coverage without restored permanent funding. Local Innovation: Reserva Conchal launched a bee genetics pilot in Guanacaste to strengthen pollinators using applied science and queen-bee selection. Culture on the Global Stage: Costa Rican cinema made Cannes history with a Best Actress win in Un Certain Regard.

Papagayo Court Ruling: Costa Rica’s Constitutional Chamber kept the moratorium on tree-felling permits in the Gulf of Papagayo Tourism Pole in place, blocking hotel-linked clearing while the case over the Chaves-era decree is reviewed. Energy Diplomacy Clash: ICE says Costa Rica has no firm energy purchase contracts with Panama and isn’t importing electricity for the rest of 2026, after Panama ordered an immediate, indefinite suspension of power sales amid the broader trade fight. Pollinators, Upgraded: Reserva Conchal launched a bee genetics pilot in Guanacaste to select queen traits and monitor colony resilience as climate pressure grows. Local Nature Economy: In Puntarenas, ApiMangle is turning mangrove-adjacent honey into a community business that also feeds rural tourism. Science Funding Warning: OVSICORI warns earthquake and volcano monitoring coverage is weakening as permanent funding runs down. Business & Talent: PROCOMER pushed agritech, global services, and tourism infrastructure investment outreach in Portugal and Spain, while Costa Rica’s Talent Up 2026 fair focused on same-day language testing, CV help, and job interview prep.

Earthquake/Volcano Monitoring Under Threat: OVSICORI warns Costa Rica’s seismic and volcanic watch network is weakening since 2023 as stable funding dried up, risking “eyes and ears” in the field when stations fail without money for upgrades and replacement. Energy Tension With Panama: ICE says Costa Rica is not importing electricity from Panama and has no firm purchase contracts, after Panama ordered an indefinite suspension of electricity sales amid the broader trade fight. Trade Pressure Escalates: President Laura Fernández says her government will activate “all mechanisms” to defend agro producers hit by Panama’s product blocks, with dairy, potatoes and onions singled out. Tourism & Business Momentum: San José airport opened a larger arrivals area as part of a modernization push, while PROCOMER highlighted investment promotion in Portugal and Spain for agritech, global services and tourism infrastructure. Work & Skills: A Talent Up 2026 fair in Costa Rica offers same-day language tests, CV optimization and LinkedIn workshops. Industry/Innovation: Reserva Conchal launched a bee genetics pilot in Guanacaste to strengthen pollinators through queen selection and monitoring.

Costa Rica–Panama Trade Clash: Panama has ordered an immediate, indefinite suspension of electricity sales to Costa Rica, escalating a long-running agricultural dispute after President Laura Fernández publicly pressed for action at the diplomatic level. Energy Reality Check: Costa Rica’s ICE quickly replied that the country has no firm energy purchase contracts with Panama and is not importing electricity from it for the rest of 2026, saying the grid has enough resources to meet demand. Agriculture Under Pressure: Fernández says Panama’s restrictions amount to a “blockade with no legal basis,” with dairy, potatoes, onions and other producers facing major losses, while Panama points to sanitary and phytosanitary concerns and the WTO case remains unresolved. Local Industry Moves: In parallel, Costa Rica’s Reserva Conchal launched a bee genetics pilot in Guanacaste to strengthen pollinators, and Rhythmlink inaugurated a new medical device production plant in Alajuela. Environment in Action: A Virilla River project uses floating barriers plus recycling and reuse to stop plastics before they reach the sea.

Panama–Costa Rica Energy Clash: Panama has ordered an immediate, indefinite suspension of electricity sales to Costa Rica, escalating a long-running trade fight over agricultural products after President Laura Fernández’s public comments. Climate Risk for Power: The move lands as El Niño is expected to cut rainfall in Costa Rica by about 30%, raising the stakes for supply and prices. Local Industry Moves: Costa Rica’s El Coyol, Alajuela is getting a boost as Rhythmlink inaugurates a new medical device production plant. Tourism & Culture: This weekend, Heredia hosts WGI Latin America 2026 at the Palacio de los Deportes, bringing 15 elite color guard, percussion, and winds groups. Community Conservation Spotlight: National Geographic highlights Cahuita National Park’s shared local management model, where residents help run and benefit from conservation. Sports Fallout: Tennis players are upset after a Davis Cup withdrawal left the 2026 Americas Zone event in San José in limbo.