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Monday  26 January  2004

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Costa Rica Reaches Free Trade Deal with U.S.

More Domestic Violence

Tico interns at NASA lab

Economy slows down

US steps up crackdown on citizens visiting Cuba

Philippine FEALAC conference to "set direction": diplomat

Costa Rica Reaches Free Trade Deal with U.S.
Costa Rica reached and agreement with the Unite States on Sunday that will allow that nation to join four of its neighbors in creating a Central American Free Trade Area with the United States, officials of the two countries announced.

The agreement came after two weeks of intense negotiations aimed at overcoming differences in such areas as telecommunications and insurance that had prompted Costa Rica to back out at the last minute from completing the CAFTA talks last month with the four other nations, Guatemala, El Salvador, Nicaragua and Honduras.

The two nations agreed to sign a free trade agreement after the Central American nation gave in to U.S. demands to open up its telecommunications and insurance sectors.

U.S. officials said they were pleased with the market-opening language finally reached with Costa Rica, which had sought to protect its monopoly operations in telephones and insurance.

Last month, Costa Rica pulled out of trade talks with the United States in the final round of negotiations for the Central American Free Trade Agreement. Four other nations -- El Salvador, Guatemala, Honduras and Nicaragua -- did reach an agreement with the United States in December, after nine rounds of negotiations. One of those rounds was in Houston.

Costa Rican officials delayed their participation in the regional accord because of disagreement with U.S. negotiators over tricky issues such as telecommunications, insurance and agriculture.

Costa Rica finally agreed to fully open its insurance market to foreign competition by 2011. It also agreed to open three key sectors of its telephone market to competition — wireless services, private network services and Internet services.

While the country will maintain bans against foreign competition in other areas of telecommunications, U.S. negotiators said they were satisfied that they had torn down barriers in the areas of most interest to U.S. companies.

"Costa Rica needed a little more time to complete its participation in CAFTA, and we're very pleased it has joined its Central American neighbors in this cutting-edge, modern free trade agreement," U.S. Trade Representative Robert Zoellick said in a statement.

The negotiating breakthrough was announced jointly in Washington by Zoellick and Costa Rican Trade Minister Alberto Trejos.

That delay marked a setback for the United States because Costa Rica has the largest economy in the region and accounts for a third of U.S. trade with the five partner countries. Last year, U.S. exporters sent $3.5 billion worth of goods to the Central American nation and importers brought in $3.4 billion worth of products from Costa Rica.

"With each Central American nation, we worked to tailor market access provisions to reflect individual circumstances, and that work is now complete with Costa Rica," Zoellick said.

For Costa Ricans, one of the most contentious issues was the U.S. demand for the country to open up its government-run telecommunications and insurance sectors. During a news briefing Sunday, senior U.S. trade officials described Costa Rica's telecommunications sector as a "decades-old monopoly."

The trade agreement also requires Costa Rica to open its insurance market to competition with the majority of the market opening by 2008 and fully opening by 2011.

Costa Rican officials wanted the United States to open up its borders to agricultural products such as sugar and protect its agricultural industry from subsidized U.S. goods, such as rice.

Earlier this month, U.S. sugar growers sent a letter to President Bush asking him to withdraw sugar concessions given in the proposed Central American Free Trade Agreement.

Senior U.S. trade officials told reporters that under this agreement, Costa Rica will be allowed to export an amount of sugar that equals one-tenth of 1 percent of total U.S. sugar consumption.

The agreement also allows current U.S. farm exports to Central America to become duty-free immediately. Tariffs on most remaining U.S. farm products will be phased out within 15 years.

In 2003, U.S. goods exports to Costa Rica totaled $3.5 billion, up about 13 percent from the previous year, while the United States imported $3.4 billion in goods from Costa Rica, an increase of 9.7 percent from 2002.

Costa Rica accounts for about one-third of U.S. trade with the five CAFTA countries. Adding the Dominican Republic to CAFTA would create the second largest U.S. export market in Latin America behind Mexico.

The United States currently has free trade agreements with Mexico and Canada, its partners in the North American Free Trade Agreement, and individual deals with Israel, Jordan, Chile and Singapore.

 


More Domestic Violence
Rocío Gómez Mora, 22, was murdered by sentimental partner, Narciso Mora Abarca, 27, last night in the community of Alajuelita, in the south side of San José.

The young mother of a five year old little girl was stabbed to death in her parent's home in front of them.

The murder followed a heated argument between the two, where Gómez Mora wanted to abandon the relationship angering Mora Abarca to the point where be decided to take her life.

According to witnesses, Mora Abarca went to his in-laws home to talk to his partner following the argument. There he went to the kitchen and threatened the woman with a knife. When she tried to get away the man attacked her mortally.

The woman's father tried to stop the man but was overpowered. The Red Cross arrived at the scene shortly after the call to 911 was placed and found the woman still alive, dieing shortly thereafter as Red Cross attendants couldn't do more to save her life.

Narciso Mora Abarca was detained by police at the scene and was immediately handed over to the Organismo de Investigación Judicial (OIJ).

Rocío Gómez Mora is the 5th woman this year to die at the hands of her partner.

 


Tico interns at NASA lab
Three young Costa Rican graduates from the University of Costa Rica in engineering and physics, will serve as interns monitoring the gases produced by the Vasimir plasma engine, which Costa Rican-born NASA astronaut Franklin Chang designed as a means to power spacecraft to travel to Mars.

Jose Castro, Gonzalo Araya, and Frank Lavigni are already on duty at the NASA Space Propulsion Lab in Houston, Texas, according to Jorge Diaz, coordinator of the internship program. According to Diaz, who also developed a miniature mass spectrometer to be placed in the plasma engine, the young researchers are likely to partake in other programs, too. The trainees are part of the NASA-CENAT (the National High Technology National Center of Costa Rica) internship program.
 


Economy slows down
The rate of growth of Costa Rican production remains on the down side. Last November, the annual variation of the Index of Monthly Economic Activity was 4.2 percent, as compared to 4.9 percent last October.

The Index is an indicator that shows the monthly performance of the activities included in the Gross Domestic Product.
 



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US steps up crackdown on citizens visiting Cuba
The United States has stepped up its crackdown on the Americans who visit Cuba so as to further isolate the Caribbean country, The Washington Times reported Sunday.

US citizens, who visit Cuba and fail to put it on the post-trip declaration form, can be charged with perjury and their name can be entered into the Homeland Security Department database, the paper said.

If they admit to traveling to Cuba, the paper added, they are subject to a fine of as much as $10,000 dollars.

Last October, US president George W. Bush announced plans to step up the enforcement of the Trading with the Enemy Act, a law that makes it illegal for US citizens to spend money in Cuba while traveling the country.

In the two months after Bush's remarks, 171 persons had been denied permission to travel to Cuba, 44 persons returning to the United States after visiting Cuba faced civil prosecution and 54,000 passengers visiting the country were investigated, the paper said.

Each year, there are 156,000 Americans visiting Cuba, with an estimate of 22,000 to 25,000 Americans traveling to Cuba illegally.

The United States has imposed blockade on the Caribbean country since the late 50s of the last century. There is no sign of any thaw in the relations between the two countries, despite a strong call in the Untied States for normalizing relations.

In 2002, former US president Jimmy Carter paid his landmark visit to Cuba, becoming the first US president - in or out of office - to visit the country. He urged the Bush administration to lift its ban against Cuba and take steps to normalize relations with the Caribbean country.

 


Philippine FEALAC conference to "set direction": diplomat
Trade, political and security will highlight the discussion of the Forum on East Asia and America Cooperation (FEALAC) when 32 senior officials and foreign ministers from both regions gather in Manila for a 4-day meeting commencing on Jan. 28.

Philippine spokesman for FEALAC and ambassador George Reyes said the foreign ministers would discuss how to expand the intra-regional trade between East Asia and Latin America and how to combat terrorism and transnational crime such as drug trafficking and money laundering.

Reyes said the discussion would result in the Manila Plan of Action, which is to be issued at the end of the conference.

"The Manila Plan of Action will set the direction of FEALAC in the next two or three years. This year's meeting will put more emphasis on political, trade and security issues," he added.

The ambassador said FEALAC countries have rich trade and investment possibilities as East Asia continues to be a dynamic region and Latin America becomes a rapidly growing market of more than 400 million consumers.

"There is also a vast untapped reservoir of tourism potential that can be developed through a better appreciation by the individual citizens of the FEALAC countries of the richness and diversity to be found in the member countries," he said.

The ministerial meeting, which 32 foreign ministers from two regions will attend, is the biggest diplomatic event in the Philippines for 2004.

FEALAC members in East Asia are Australia, Brunei, Cambodian, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, NewZealand, Philippines, Singapore, Thailand and Vietnam.

Latin American members are Argentina, Bolivia, Brazil, Colombia,Costa Rica, Cuba, Chile, Ecuador, El Salvador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela. Guatemala and Nicaragua will be admitted as new members this year. Enditem


 

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