Nicaragua-Costa Rica Relations: Between Diplomatic Strain and Humanitarian Challenges in 2025
Growing Diplomatic Tensions
A new diplomatic dispute has emerged between Nicaragua and Costa Rica, stemming from what Nicaragua describes as an “unusual communication” from Costa Rican authorities. Nicaragua claims the message contained threats aimed at undermining their democratic and institutional order.
Nicaragua has accused Costa Rica of acting as if it were “the owners of Central America,” with analysts noting this rhetoric aligns with the Ortega government’s pattern of framing regional disputes as assaults on national dignity.
Humanitarian Crisis and Refugee Situation
Costa Rica’s long-standing commitment to protecting refugees is currently under severe strain as the country hosts more than 200,000 refugees and asylum seekers – nearly four percent of its population.
More than 80% of these refugees are from Nicaragua, fleeing what rights experts describe as “systemic repression.” The situation has become more critical due to a 41% budget cut to UN refugee operations in the country, with officials warning that the assistance being cut is “critical and lifesaving.”
International Cooperation Despite Tensions
Despite the tensions, both nations participated in the historic first EU-Central America Association Council in Brussels on July 14, 2025, along with other Central American countries.
In terms of economic relations, trade between Central America and the EU has shown significant growth, with the annual volume increasing from €8.7 billion in 2012 to €22 billion in 2023, demonstrating the region’s potential for international cooperation.
Sports as a Bridge
In a recent development showing potential for positive engagement, both countries’ national soccer teams met in a World Cup qualifier match, where they played to a 1-1 draw. Both teams demonstrated strong performance, though neither could secure a victory.
Looking Forward
While Costa Rica continues to play a leadership role in regional and global refugee protection frameworks, this solidarity is now stretched to breaking point. The UN agency has appealed for $40.4 million to maintain its operations in Costa Rica through 2025, warning that without international support, the consequences could be severe not just for those in Costa Rica, but for stability in the wider region.
