The CAFTA Report
Bush certifies Costa Rica for CAFTA
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The CAFTA Report
Bush certifies Costa Rica for CAFTA
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Bush certifies Costa Rica for CAFTA
For The CAFTA Report
U.S. President George Bush issued a proclamation Dec. 23 to implement the Central American Free Trade Treaty with Costa Rica. This was the last action necessary to bring the agreement into force Jan. 1. The proclamation was contained in a summary of presidential activity on the White House Web site. A little while later Bush took off for Camp David in the State of Maryland for the Christmas holiday. Certification was a Christmas present for many in Costa Rica. Costa Rica had notified Washington earlier that all was prepared here for the treaty to take force. This was done in an exchange of diplomatic notes. Some 13 pieces of legislation were passed to conform local law to what was required in the treaty. The developments were greeted with happiness and satisfaction in Casa Presidencial. "It is time to send the rest of the world positive signals over our capacity to work united, said Rodrigo Arias Sánchez, minister of the Presidencia. "It is time to demonstrate once more our reliability as a county to take decisions and our determination to participate in the globalized world with excellence and success." Rodrigo Arias in the statement noted that Costa Rica had received two extensions from the other countries in the agreement and that the treaty had survived a public referendum. In the same proclamation Bush removed Costa Rica, effective Jan. 1, from the Caribbean Basin initiative that provided similar trade benefits for the country. The initiative, a Cold War measure, awarded Costa Rica much of the market access as found in the trade treaty. But the treaty is permanent. How expats will benefit from the agreement is yet to be seen. The Costa Rica customs service is known for setting its own rules. Officials already have said that U.S. manufactured automobiles and trucks still would be subject to a heavy import tax. Costa Rican officials characterize this tax, which may be as much as 90 percent of the vehicle's value and shipment costs as what they call an internal tax. The U.S. Embassy commercial staffers seem to be in agreement. U.S. wine is not assessed a customs duty under the treaty, but local alcohol taxes continue. Potatoes, which have showed a sharp increase in price this year, are not covered by the treaty. Cartago growers managed to keep the product out of negotiations. The treaty opens up the Costa Rican telecommunications and insurance markets to outside competition, and it sets up an international arbitration system for investors who think they have been wronged by the county. Canada already has arbitration in its treaty with Costa Rica. |
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