Weekly review

Yes to CAFTA

In the first referendum in Costa Rican history, a majority approved the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA), a issued debated along the last four years. The tally was close, 51.6 percent of the ballots were for the YES, while 48.4 percent came close to making of Costa Rica the only country in the world to discard a free trade agreement with the largest market in the planet. Some analysts pointed out that the NO vote was unexpectedly high, particularly after the intensive campaign led by President Oscar Arias in favor of the pact. On the other hand, abstentionism was high; at 40 percent, it was higher than the one recorded in the 2006 presidential election.

Conciliatory address

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Upon learning the outcome of the vote on the CAFTA, the leading promoter of the pact, President Oscar Arias, issued a conciliatory message, after reverting the latest polls on the issue, which pointed to a NO win. “The fences dividing us disappear; we are no longer those for the YES and those for the NO,” Dr. Arias said, when asking for unity for progress. His words were particularly aimed at CAFTA opposers, because now the Legislative Assembly has to pass supplementary bills which are a must for the Agreement to become effective.

Benefits and conditions

Through the CAFTA, the tariffs of Costa Rican products will enjoy lower tariffs to enter the U.S. market, which was the destination of 41 percent of Costa Rican exports last year, according to the Foreign Commerce Promoter. Now, Costa Rica will also have to progressively open to products from the United States and has pledged to modify legislation in order to end the state insurance and telecommunications monopolies.

PAC won’t hinder CAFTA laws

The leading opposition in Congresss, Citizen Action Party (PAC in Spanish) pledged not to hinder the supplementary laws needed to implement the CAFTA. PAC speaker Elizabeth Fonseca said that even though they have opposed the CAFTA and the supplementary legislation, now that the people have voted for the agreement, they will not hinder the legislation but will try to improve it.

Negotiations with European Union

Technical teams from the five Central American nations drafted the guidelines for the negotiation of an Association Agreement with the European Union. Fernando Ocampo, Costa Rican assistant chief for trade issues in the negotiation with the EU, said that, as a general objective, the region will request better access to the market than the one under the current General System of Preferences granted by Europe. The first round of negotiations is scheduled for October 22nd in Costa Rica.

Protection for the leatherback

The largest and most endangered species of turtles, the leatherback, has gained further protection from the Government of Costa Rica. One of the leading leatherback nesting sites in the world is located in the Costa Rican Pacific, precisely at Las Baulas National Marine Park. However, development of the area has resulted in noise and lights that confuse the turtles, who are likely never to return to nest in lit and noisy places, even though they spawn solely where they were born. In order to counter those negative aspects, the Government launched the expropriation of 32 properties.

Tourism increased

The number of tourists who came to Costa Rica in the first eight months increased by 9.18 percent (93,912 people), as compared to the same period last year. National Chamber of Tourism vice-president Gonzalo Vargas said that 1.3 million tourists came here January-August this year and spent $1.23 billion. Last year, the overall number of visitors was 1.7 million and the income $1.6 billion. Vargas pointed out that this year’s trend presents an encouraging outlook for a sector that means 110,000 direct jobs and 550,000 indirect ones, making it the biggest dollar-earner in Costa Rica.