US Trade Representative
Visits, Speaks On The
Slow Approval Of The TLC
in Costa Rica
Costa Rica was the last
stop on Christopher
Padilla's tour of
Central America as the
Assistant Secretary of
Commerce for Export
Administration,
following the signing in
Washington giving Costa
Rica an extension to
ratify the trade
agreement between the
United States, Central
America and the
Dominican Republic.
Costa Rica is the only
signatory country to the
Central American Free
Trade Agreement (CAFTA)
or the Tratado de Libre
Comercio (TLC) as it is
known in Costa Rica, not
to have ratified the
agreement and requiring
an extension.
Badilla is in Costa
Rica, after visiting the
other Central American
countries, as the last
bid to promote to Costa
Ricans the need for the
trade deal.
In Badilla's opinion
there are imminent and
real dangers if Costa
Rica does not take
advantage of the trade
deal in the face of
global competition. The
Assistant Secretary said
that Guatemala, Honduras
and Nicaragua, who have
ratified the trade deal
and have it place, are
seeing an increase in
foreign investment,
generating more
employment, all for
having access to the
U.S. market.
The second danger,
according to Badilla, it
creates uncertainty for
investors who are
looking at Costa Rica.
Badilla added that he
has met with U.S.
companies in Costa Rica
who have to cut their
number of employees due
to the uncertainty
of the future of the
TLC.
Another important point
made by Badilla is that
investors like a country
with a sound economic
infrastructure in
telecommunications,
energy and financial
services and Costa Rica
is falling behind on
those points by failing
to take action to
modernize.
Central America is a
region made of a number
of small countries, but
is seen as a large
market as a whole.
Badilla said that last
year Central America was
number 13 for exports
from the United States,
placing the collective
markets larger that
India, Russia or Spain
and is seen as new
opportunities for U.S.
exports.
Badilla added that Costa
Rica's image in the
United Stats as
commercial partner or
investment destination
has been damaged by the
feet dragging on the
trade deal. The US
official said in
Nicaragua, the poorest
of the Central American
countries, is already
attracting US investors.
Badilla said that is the
last opportunity for
Costa Rica, a country
with a great tradition
for democracy, to be
part of the trade deal.
The people of Costa Rica
have had their debates
and the people have
spoken, referring to the
referendum vote of
October 7 when by a
slight majority the
decision was yes for
Costa Rica to be part of
CAFTA.
The Assistant Secretary
assures that the United
States has not put any
pressure on other
Central American
countries to approve an
extension, saying that
all the signatory
countries were in
agreement, each making
an independent decision.
The Costa Rican
legislature now has
seven months to pass all
the 12 complimentary
laws before the
government can ratify
the trade deal. Costa
Rican president, Oscar
Arias, said on Friday
that he expects all the
complimentary laws
passed within the next
three months.
Badilla was adamant that
there will be no further
extension, adamant that
that would never happen
if the other Central
American countries were
to agree on another
extension or that the
United States would
negotiate a separate
deal with Costa Rica.
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