The Canada-Costa Rica Free Trade Agreement, in place since 2002, has significantly increased bilateral trade. Efforts to modernize the agreement between Canada and Costa Rica are being explored. A friendly investment environment has made Costa Rica one of the most attractive destinations for private investment in the region. The medium-term economic outlook is broadly positive due to high levels of social development and education, strong institutions, and higher human capital and skill relative to regional reers. Current efforts to address the high energy costs, inefficient government bureaucracy and poor transportation infrastructure will also increase its competitiveness.