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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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