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Tuesday  27 January  2004

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Costa Rica to Be 5th Country in New Trade Pact With U.S.

Megacombo On It's Way!

San José Getting Tough on Local Businesses

AIA Praises Costa Rican Trade Pact

Video Supports Harris’ Innocence In Guatemala Suit

Electoral body holds key to Venezuela's future, says Carter

Paraguayan president delays return for fear of assassination

 

Costa Rica to Be 5th Country in New Trade Pact With U.S.
After a one-month delay, Costa Rica agreed on Sunday to join the United States and four other Central American nations in a new regional free trade pact.

The U.S. administration sees the pact as an important building block in its plans to extend the North American Free Trade Agreement throughout the Western Hemisphere.

Costa Rica, the wealthiest of the five Central American nations, held back its approval last month pending intensive negotiations with the United States over its demand that Costa Rica open up its telecommunications and insurance industries.

Bringing Costa Rica into the agreement marks a welcome success for the administration after a series of disappointments in trade negotiations over the past year.

Robert B. Zoellick, the United States trade representative, praised the agreement, known as the Central American Free Trade Agreement, or CAFTA, saying it would create the second-largest market in Latin America for exports from the United States, after Mexico.

The other nations involved are El Salvador, Guatemala, Honduras and Nicaragua.

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

Administration officials said CAFTA would open the region for agricultural exports and other goods and services from the United States. It will also help prepare the domestic textile industry for stiff international competition next year, they said, when the global textile quota system is eliminated under an international trading agreement. China and other Asian nations, with their lower labor costs, are especially feared.

The creation of something like a textile free-trade area would make the United States cotton and textile industries part of a tariff-free supply chain with the garment factories of the Central American region.

"We believe this will be extremely helpful when competition over textiles heats up globally with the removal of quotas next year," a senior trade official said during a telephone press conference on Sunday.

The administration will have trouble convincing Congress that this agreement will help stanch the bleeding in the American textile industry, which has lost hundreds of thousands of jobs in the past three years. Senator Ernest F. Hollings, a Democrat of South Carolina and an avowed protectionist, has already asserted that Cafta will get rid of the rest of the jobs.

At least 80 percent of United States exports to the five countries will become duty free immediately if the pact is approved. The United States' trade with these five Central American countries is significant. They import $9 billion worth of products from the United States every year, the rough equivalent of American exports to Russia, India and Indonesia combined. And the United States imports $11 billion worth of goods from the five countries, with nearly three-fourths of the products entering duty free under special-preference programs.

The compromise announced on Sunday with Costa Rica would require a gradual opening of nearly every aspect of its insurance industry and three main areas of its telecommunications industry.

Supporters of the trade pact, which was negotiated in one year, view it as a long overdue helping hand to a region that has been ravaged for decades by war and economic deterioration. Mr. Zoellick said that the new trade agreement could also lead to stronger democracy in the region.

But critics say the pact asks too much from the smaller countries, especially in demands for protection of United States intellectual property rights, which could limit the availability of inexpensive medicines.

And while the United States won its demand for opening the countries for its agricultural exports, with gradual competition for essentials like onions, potatoes, corn and rice, it largely left the American sugar industry protected.

The administration's $19 billion in annual farm subsidies were not part of the negotiations.

The Dominican Republic is also negotiating with the United States to join Cafta. Mr. Zoellick began those discussions earlier this month.

 


Megacombo On  It's Way!
It didn't much time for union leaders to start their meetings following the announcement of the Free Trade Agreement. Since the early hours of Monday morning, union leaders have been huddled to decided on what - not if - action will be taken to let their discort on the FTA be known to the government and the people of Costa Rica.

Their intention is to paralyze the nation with walkout in all public sectors in what is being called the "megacombo", a demonstration larger than that in 2000.

Fabion Chaves, head of the Asociación de Empleados del Instituto Costarricense de Electricidad (ICE) assured that the agreement that was reached had been expected by the unions. In his words " the cake was already baked, the trip to Washington was only to add the frosting."

The union groups, led by the ICE union, are blaming President Pacheco directly. They state that Pacheco didn't have the decency to defend his words in the past month, when he said that Costa Rica would not negotiate away telecommunications and insurance, both sectors being monopolized by ICE and INS - Institutio Nacional de Seguros - respectively.

Joining the fight against the FTA will also be Asociación Nacional de Empleados Públicos y privados (ANEP), that includes teachers, workers of water utility AyA, the Caja de Seguro Social CCSS and other public employees.

The fear is that other services like drinking water may be affected by this agreement as there is no clear provision for it's exclusion.

In the middle of 2000 the largest protest ever known in Costa Rica took place when the workers of ICE took to the streets in the thousands to protest then president Rodriguez's announcement of Costa Rica's interest to privatize telecommunications.

Until then Costa Rica was not known for public demonstrations of this kind. The megacombo will be "combos of all combos" according to union leaders.

 


San José Getting Tough on Local Businesses
The Municipality of San José is hitting hard all hotels, bars, restaurants and licensed businesses in a project to enforce municipal control.

The Licensing Department of San José, aided by the Municipal Police, have been busy visiting, inspecting local businesses to ensure that they comply with municipal regulations.

In some cases, like that of the massage parlor New Fantasy in Barrio Amon, and the Hoel Tenampa in the "red zone", they are shutting them down, even though the closing are only temporary, due to municipal code irregularities with their business activity.

In total this year the Municipality has been successful in shutting down eight different locations, mostly bars and restaurants. Natalia Gamboa, a spokesperson for the Municipality said that these types of inspections and raids in some cases, will continue every week.

Just last week, in conjunction with members of the Investigación Judicial (OIJ), la Fuerza Pública, la Dirección General de Migración y Extranjería y el Patronato Nacional de la Infancia (PANI), authorities raided 24 hotels and eight "pensiones" - a short term rental hotel.

The raids resulted in the detention of 30 people with prior arrest warrants for various crimes and 20 foreigners who could not demonstrate their legal status in Costa Rica.

In addition, 11 minors were found unattended in hotels, including a one year old baby. PANI was on hand to provide attention to the minors, in some cases the mothers of the children were themselves minors.

The Municipality of San José has for long not been able to enforce it's municipal code mostly for the lack of manpower and some due to the lack on the part of officials. Some businesses have been operating in violation of that code and without hassles from the Municipality.

 


AIA Praises Costa Rican Trade Pact
The American Insurance Association applauded the adoption of a new free trade agreement with Costa Rica that will phase out one of the world's last government monopolies and help insurance companies in the U.S. and Central America.

Praising U.S. trade representatives on the conclusion of the pact, the AIA said it would "open up Costa Rica to greater competition as part of a Central American Free Trade Agreement. The agreement will allow all modes of establishing insurance enterprising — branching, joint ventures and 100 percent foreign-owned subsidiaries — after a relatively brief transition period."

"This new agreement gives Costa Rican insurance consumers more choice and will help them develop their economy more rapidly," commented David Snyder, AIA vice president and assistant general counsel. "Insurance plays a key role in economic development by encouraging entrepreneurs to take on risk and by assisting in important capital infrastructure improvements."

Snyder indicated that, while the agreement is not perfect, it will greatly enhance U.S. insurers' ability to do business in Costa Rica. Trade negotiators had earlier resisted including Costa Rica in last year's Central American Free Trade Agreement in part because the country had resisted opening up its insurance market.

The AIA noted that it participated in numerous meetings with USTR and Central American delegations, exchanging information and views about insurance markets and regulatory schemes.

 



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Video Supports Harris’ Innocence In Guatemala Suit
In the third day of the trial against him, the video of the press conference held by the Solicitor General’s Office and Casa Alianza, confirmed that Bruce Harris, OBE, did not attack the honor of the Guatemalan notary, Susana Luarca de Umaña, ex-wife of then President of the Supreme Court of Guatemala.

Luarca sued Harris, the British Regional Director of Latin American programs, soon after the press conference that took place on September 11th, 1997. The trial is finally taking place some seven years after the event.

The scratchy video of the press conference, which lasted approximately 40 minutes, showed the packed courtroom that Harris had clearly limited his interventions to explain the irregularities in the international adoptions of Guatemalan babies and urged the need for the Public Prosecutor’s office to investigate.

Luarca de Umaña insists that Harris defamed her and also caused calumny and slander.

“The video is solid evidence to illustrate two points: first, it shows that Harris did not make any personal comments but as a spokesperson for the Solicitor General’s Office according to the working agreement between the two organizations. Secondly, the content of the video makes reference to the series of anomalies that were being committed in the international adoptions, signaling several notaries”, explained Victor Hugo Navarro, Harris’ lawyer.

The trial is being heard in the 12th Criminal Sentencing Court despite the fact that the case is related to freedom of expression. Nevertheless, the country’s Constitutional Court determined in January 1999 that Harris did not have the right to freedom of expression “because he was not a journalist”.

Due to the fact that the case is being heard in a criminal court rather than a Printer’s Tribunal – a civil forum – as the Guatemalan Constitution orders, Harris could face up to a five years in a Guatemalan prison.

“Little by little the evidence that I simply used my Constitutional right to freedom of expression is being understood and that I used this right to illustrate serious problems in international adoptions. I continue to insist that cases relating to freedom of expression be heard in a civil court. Freedom of expression is a fundamental democratic principal”, Harris indicated.

The notary Luarca sustained that Harris never presented evidence against her. Nevertheless, in September 2000, the police raided a home owned by the accuser in an investigation related to the theft of babies.

Casa Alianza presented the results of the six-month investigation to the Public Prosecutor in October 1997, less than a month after the press conference. Not having denounced the anomalies would imply a criminal error of omission of a complaint having knowledge of a crime.

According to a journalistic investigation published in October 1997 in the daily paper “El Grafico”, then Public Prosecutor, Hector Hugo Perez Aguilera, who was supposed to investigate Harris’ complaints against Luarca and others, had worked in the offices of Umaña and Associates headed by the former husband of Harris’ accuser, Ricardo Umaña.

The trial moves into its final stages on Tuesday, January 27th, when the case reinitiates at 1pm. The prosecuting and defense lawyers as well as the accused will all

 


Electoral body holds key to Venezuela's future, says Carter
The political future of Venezuela depends on the National Electoral Council (CNE), the former United States President Jimmy Carter said here on Monday.

After meeting the most senior authorities of CNE in Caracas, Carter said: "The political future of Venezuela rests on their shoulders."

Carter, a 2002 Nobel Price winner, said he was pleased and satisfied with the performance of the electoral authorities, whose decisions, in his view, "have totally fulfilled the laws and the Constitution."

Carter, whose Atlanta-based Carter Center has been backing the Venezuelan referendum process, met on Monday morning with the authorities of the Supreme Court and representatives of the Venezuelan National Assembly.

Opposition leaders say they have gathered 3.4 million pro-referendum signatures in support of the revocation of President Hugo Chavez -- well above the 2.4 million required. The CNE will end the verification of signatures on Feb. 13 and announce if and when a poll will be held.

The electoral body also expects to finish before Feb. 13 verifying the signatures presented by Chavez's supporters seeking a recall referendum against 70 opposition legislators.

The move is the third try by Chavez opponents to oust him after a failed coup in 2002 and a general strike in early 2003 that crippled crude exports from Venezuela, the fifth largest oil exporter in the world.

 


Paraguayan president delays return for fear of assassination
Paraguayan President Nicanor Duarte delayed his scheduled return to work on Sunday from family holidays in Guaruja, Brazil, to avoid a possible assassination attempt.

Reports reaching here from Asuncion, Paraguay's capital, said on Monday the delay was caused by information about an assassination plot against the president.

Paraguayan intelligence services affirmed that a group of individuals planned to attack the presidential plane with missiles.

The intelligence service, quoted by the Paraguayan daily, ABC Color, recommended the president avoid landing at Silvio Pettirossi airport in Asuncion because it was considered an area of "high risks."

Intelligence agents and the presidential escort regiment were sent to the outskirts of the airport Sunday night.

The delay allowed the intelligence services, the Brazilian police and the presidential bodyguards to carry out a "special security operation" to protect Duarte.

Duarte was due to return from Brazil Sunday, but there was no word until Monday as to the president's precise whereabouts.
 


 

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