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Insidecostarica.com - San José, Costa Rica

Tuesday 11 May 2004

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Atlantic Zone on Red Alert
The state of emergency that is affecting the Atlantic zone has left some 2.000 students without classes. The Ministry of Education decided to close the schools temporarily to avoid a tragedy. Some 40 primary and 3 high schools in Guápiles, Siquirres and Sarapiquí.

An emergency was called for the area following rains that began last Saturday and according to the weatherman - the Instituto Meteorológico Nacional (IMN) - will continue for the next two or three days.

Today's Stories:
Atlantic Zone on Red Alert
Temporary Resident Visas Now Required for Citizens of Costa Rica
Villalobos Investors File Notice of Arbitration Against Costa Rica for US$204 Million
US Vows to Approve FTA with Central America
Chavez foils 'assassination plot'
U.S. Dismantles Colombian Money-Laundering Ring
Chile denies facing isolation in South America

 


The comptroller's office  - La Contraloría General de la República - has asked the Ministerio de Obras Publicas y Transporte ( MOPT) to review the tariffs charged by Riteve SyC, the vehicle inspection company and Alterra the operators of the airport following charges that both organizations are passing on costs above those established by law.

To date, two deaths have been reported and more than 2.000 people have had to leave their homes.

The Comisión Nacional de Prevención de Riesgos y Atención de Emergencias (CNE) declared on Sunday a 'red alert" warning, putting into action an emergency plan to help the residents of the area. Some 25 temporary shelters have been set up.

The areas hardest hit are in Matina in Limón and Puerto Viejo de Sarapiquí in Heredia


Temporary Resident Visas Now Required for Citizens of Costa Rica
Judy Sgro, Canadian Minister of Citizenship and Immigration, announced today that citizens of Costa Rica will require a Canadian temporary resident visa to travel to Canada as of today, May 11, 2004.

This measure was necessitated because increasing numbers of Costa Rican nationals are entering Canada as visitors when they intend to remain permanently.

"The decision to lift a visa exemption is never made lightly. Many factors are considered before making this decision," said Minister Sgro. "It is essential to maintain the integrity of Canada's immigration program, while continuing to facilitate the entry of legitimate visitors."

Citizens of Costa Rica can apply for a temporary resident visa at any Canadian visa office abroad.

The Canadian visa officer for the Central American region is based in Guatemala. That officer will be available at the Canadian Embassy in San Jose, Costa Rica, to facilitate the issuance of visas.

A grace period ending at 23:59 EDT, on May 12, 2004, has been provided to accommodate nationals of Costa Rica who have already left their country of residence and are in transit.

"We remain committed to providing quality service to facilitate the entry of business representatives, students, tourists and other legitimate travelers from Costa Rica and all other countries," said Minister Sgro.

Individuals who travel to Canada regularly, such as business people, may choose to apply for multiple-entry visas.

Visa requirements and exemptions are reviewed on an active and on-going basis. Since December 2001, the results of ongoing reviews have led to lifting visa exemptions for Dominica, Grenada, Hungary, Kiribati, Nauru, Tuvalu, Vanuatu, Zimbabwe, the Kingdom of Saudi Arabia and Malaysia.
 


Villalobos Investors File Notice of Arbitration Against Costa Rica for US$204 Million
A Notice of Arbitration has been filed by the Canadian law firm Cain Lamarre Casgrain Wells with ICSID (the International Centre for the Settlement of Investment Disputes) of the World Bank for 245 investors and their corporations from 15 nations (Austria, Britain, Canada, Denmark, Finland, France, Germany, Netherlands, New Zealand, Panama, Spain, Sweden, Switzerland, Taiwan, and USA) against the Government of the Republic of Costa Rica.

The notice calls for preliminary indemnization to the investors by Costa Rica of nearly US$204 million.

The notice was filed under the bilateral investment treaties (BITs) and other treaties signed by Costa Rica, which provide a clause of “pre-consent” to arbitration, automatically allowing for the jurisdiction of an ICSID tribunal regarding a dispute arising out of an investment.

The notice alleges violations of obligations by Costa Rica under these BITs and other international treaties, international law, norms, customs, and standards, and domestic law, including the obligation for “full protection and security” and “fair and equitable treatment under international law”.

These violations resulted in the loss of the investors’ investment with the Villalobos Mixed Financial Conglomerate in Costa Rica. The notice does not request the dismissal of criminal charges in domestic courts against Luis Enrique Villalobos or Osvaldo Villalobos, known as the “Villalobos Brothers”.

As this case develops, many will see major parallels and similarities of “gross negligence” between this case and the BCCI case currently underway in England (BCCI Depositors v. Bank of England).

ICSID rules require Costa Rica to name their nominee for the formation of the ICSID tribunal within three (3) months, or ICSID will form the tribunal without a nominee from Costa Rica. Costa Rica will also have to obtain legal representation and the Costa Rican Congress will have to vote on a budget (average legal costs for arbitration are US$2 million) for this representation.

Costa Rica has a long history of the disrespect of the rights of foreign companies and investors operating in Costa Rica. Examples include the cases of Millicom Cellular, and Harken Energy.
 


US Vows to Approve FTA with Central America
US Agriculture Secretary Ann Veneman vowed Monday in Costa Rica that her government would approve as soon as possible the free trade agreement (FTA) with Central America.

At a press conference held against the backdrop of the ministry's Conference on the Use of Science and Technology to Promote Agricultural Productivity, the official said farm trade with Central America was of fundamental importance.

Veneman said she was in favor of opening market to agricultural products since "the treaty will widen the opportunities for both parties."

The secretary said that competition, along with the transfer of technology, was one of the elements that guaranteed the activity's success, and stressed horizontal cooperation was a perfect tool for producers in developing countries to access the markets of wealthy nations.

On the US farm subsidies, the official said the issue had to be discussed before the World Trade Organization (WTO).

She recognized that many trade barriers were due to technical obstacles to trade, especially health measures imposed by every country, rather than custom tariffs. Therefore, the transfer of knowledge was necessary to fulfill scientific and technological requirements, develop capacities, and thus get benefits in the world market.

Veneman said her country had strongly supported custom tariff cuts, and the continent's countries had to move forward in market liberalization.

The ministry's conference was attended by agricultural ministers and representatives of Mexico, Central America and the Dominican Republic, along with members of the Regional Agricultural Cooperation Council.

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Chavez foils 'assassination plot'
Venezuelan President Hugo Chavez says his forces have captured a group of about 50 Colombian paramilitaries who were plotting to kill or overthrow him.
According to Mr Chavez, the men had been trained by Venezuela's political opposition.

Opposition leaders say the claim is a crude attempt to discredit them.

The controversy comes at a time of rising political tension in Venezuela, with the opposition hoping to unseat Mr Chavez in a referendum.

In a few weeks' time President Chavez will find out whether his opponents have gathered enough support to hold the referendum against him and possibly force him from office. The government says 56 Colombians were arrested in a dawn raid at a farm on the outskirts of the capital, Caracas.

State television has been showing pictures of armed police guarding groups of young men dressed in green camouflage. It has also shown what appears to be a camp complete with sleeping quarters and cooking facilities.

Security officials say the men were using the camp to plan an attack on a military installation in Caracas. They say the farm belongs to a Cuban exile with close links to Venezuela's opposition.

According to President Chavez, the discovery is clear evidence that his opponents are trying to assassinate him.

That claim brought a swift denial from opposition leaders who dismiss the raid as a publicity stunt designed to justify a security clampdown. In Colombia the leader of the main paramilitary group has also denied any involvement.
 

U.S. Dismantles Colombian Money-Laundering Ring
The U.S. government has broken up a massive international money-laundering ring through which $20 million in illicit drug proceeds from Colombia were laundered into the United States, Canada, and the United Kingdom.

The U.S. Drug Enforcement Administration (DEA) said in a May 4 statement that 34 people have been indicted in the case, dubbed "Operation White Dollar." The defendants are charged with laundering money through the Colombian Black Market Peso Exchange (BMPE).

In addition, a prominent Colombian industrialist, Jose Douer-Ambar, agreed to have his prosecution deferred, in return for which he will forfeit to the United States $20 million in illegal proceeds, constituting the amount he purchased from the indicted peso brokers.

The BMPE is an informal currency exchange system in which "peso brokers" serve as middlemen between narcotics traffickers, who control massive quantities of drug money in cash in the United States. It also involves companies and individuals in Colombia who want to purchase U.S. dollars outside the Colombian banking system so that they can, among other things, avoid the payment of import duties and transaction fees owed to the Colombian government.

U.S. Attorney General John Ashcroft said the arrests highlight the U.S. government's strategy to attack drug cartels where it "hurts most -- on the money side," adding: "Those who choose to help hide the proceeds of illegal drug trafficking are as much a part of the problem as those who bring the drugs into this country, and they will be dealt with accordingly. We will not let these organizations keep their ill-gotten profits and continuously pump them into the drug pipeline."

The DEA said the 34 defendants were involved in a BMPE conspiracy centered in Bogota. The indictment includes charges against five defendants alleged to be "First-Tier Peso Brokers," who make contracts directly with narcotics-trafficking organizations; two defendants alleged to be "Second-Tier Peso Brokers," who concentrate on arranging for the pickup of street-level cash narcotics proceeds and placing those funds into the banking system; and nine defendants alleged to be "Third-Tier Peso Brokers," who make contracts directly with the Colombian dollar purchasers.

The DEA said that, if convicted, the defendants face a maximum sentence of 20 years' imprisonment on each of the charges of money laundering, which is described as the processing of criminal proceeds to disguise their illegal origin. Moreover, various defendants face an additional maximum sentence of five years' imprisonment on illegal money-remitting and conspiracy charges.
 


Chile denies facing isolation in South America
Chile has denied that it faces a regional isolation in South America due to the recent tensions with Bolivia, Peru and Argentina.

An official from the Foreign Ministry told the press Monday that Chile had excellent relations with Mexico, Ecuador, Colombia and Brazil, while steps in that direction were being taken with Venezuela and, except the gas problem, ties with Argentina were good.

Argentina is currently suffering a serious energy crisis that has forced it to buy fuel from Venezuela and reduce its gas export to Chile.

It is even impossible to brand as bad the relations with Peru, whose government requested the revision of the joint maritime borders.

With regard to Bolivia, the tension is actually due to the instability afflicting the neighboring nation, where its being a landlocked nation is frequently used as a factor to bring society together, the official added.

Besides, the government has done what had to be done for the welfare of Chileans, including the signing of trade agreements with the United States and the European Union.

The country has political, social and economic stability, and because of that the great powers consider it a serious partner, the official said.

Chile inked cooperation pacts with all the countries of Latin America as part of its aim to expand ties with the rest of the world.

 

 

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