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6 June 2003
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 NEWS
updated by 7:00 a.m. CST each day

ICE Strike: it's finally over!

The 21 day old strike that began last May 21 and saw the resignation of Finance Minister Jorge Walter Bolaños is over and workers should be back to work in full force by Monday.

Yesterday, a large gathering in front of the ICE offices in La Sabana by union officials, explained to those in attendance the points of the agreement reached with the government and a call to end the work stoppage. For now.

The Union had called for a strike action when the Central Bank refused to authorize a $100 Million bond issue, that was part of an agreement between ICE and the government in February this year.

Shortly after the work stoppage commenced, the Central Bank authorized a $40 Million issue for ICE, claiming that the balance would greatly and negatively affect the economy.

The workers union stood strong and refused to go back to work unless the government met it's demands. The Banco Nacional offered to place the remaining $60 Million bond issue on the local market and several smaller private banks agreed to help in the placement.

After several marches on the Central Bank and Presidential House, the government finally reached an agreement to undertake to have the remaining $60 Million bond issue authorized by the Central Bank no later than the 15th of July.

Though the Central Bank is an autonomous body, it took part in the negotiations, there should be no problem in that entity making the authorization.

All should be back to normal by Monday!



Teacher's Strike Continues: Day 5
• Talks broken off

Following hours of intense negotiations, the teachers union leaders broke off negotiations with the government without reaching any consensus on the issues that are keeping tens of thousands of teachers away from their classrooms.

The key issue is the payment of wages to the teachers, some who have not been paid since the beginning of the school year, due to problems with the Ministry of Education (MEP) computers.

This point is clear and the government has made arrangements with the Central Bank for a loan to ensure that all teachers receive their full salaries from February. This point is, though not publicly discussed, affirms that the government was lacking the funds to pay the teachers and perhaps not the problems it officially stated earlier.

The major stumbling block now is the teacher's pensions. The union wants the government to comply with a convention that has been in place for more than 20 years and that can affect thousands of teachers and their pensions.

Astrid Fischel resigned as Education Minister last week. President Pacheco has not announced a replacement as yet.


New Taxi Rates are in effect
On Wednesday the new taxi rates became official with the publishing in La Gaceta, the official newspaper. All prices for public services need to be published in La Gaceta before they can take effect.

The change in rates also brings new fines and sanctions for taxi operators who don't use the "maria" or meter when offering their services.

Long gone is the overcharge for night service, where a rate of 20% was added to the base rate for services after 10pm. Though this was eliminated a time ago, some operators took advantage, mainly of foreigners.

Taxi operators can also be fined if they charge a rate higher that what is established by law, as there is no longer a limit or maximum to the use of a meter - in the past, any fares outside the metropolitan San José, like a fare to the airport, was set by a table or agreement between the taxi driver and passenger.

In addition, there is no provision to a higher rate for trips in bad weather or bad road conditions and no 'special' fares to or from hotels and motels. 

Foreigners especially, where hard hit by taxi operators who offered services from in front of hotels and/or to motels and night sports, sometimes charging from double the normal rate to anything they think they can get.

You can file your complaints with the Ministry of Transport (MOPT) or ARESEP, the regulator of public services.


Trees may be solution to global warming problems
Two Iowa Sate University (ISU) researchers will work in Costa Rica over the next three years, learning how to restore rain forest systems to help slow the process of global warming.

"Global warming is defined as an increase in the mean average temperature of the Earth," said James Raich, associate professor of botany. "It is expected that some areas may be cooler in the future than they are now, and some areas may be warmer, but the overall mean temperature of the Earth will increase. There is widespread agreement that high northern latitudes will warm more than lower latitudes."

Ann Russell, affiliated assistant professor of natural resource ecology and management, and Raich will be working on this study together.

The study will take place in Costa Rica's rain forests, Raich said. Russell and Raich will travel to Costa Rica separately throughout the year for a period of two weeks each and return to the university to work on their samples in the lab.

"The most exciting thing about doing this study is getting to go to Costa Rica and see the biological diversity in the plants and birds," Russell said.

The study is funded by the National Science Foundation (NSF).


A majority in favor of FTA
Half of Costa Ricans know that Central America is jointly negotiating a free trade agreement with the US, and among them 64 percent support the negotiations.

Among those who know about the talks, a majority believe that tourism and the high-technology sector will benefit from the agreement, while the agriculture sector will be the one to suffer the most from it. 

Since last January, Central America and the United States have discussed the FTA, aimed at reducing or eliminating tariffs on imports from the participating nations. The governments expect to wrap up the agreement by next December. 

Meanwhile, at least 28 percent of the respondents to a Unimer-La Nacion poll stated strong opposition to the FTA. The national secretary of the Federation of Small and Medium-Size Farmers, Lorenzo Cambronero, asserted that farmers will be the first to suffer from such an FTA, and that the nation will do so later. 

He based his assertion on the belief that the supply and prices of produce will in the medium-term depend on decisions made abroad.


Food fattened inflation
The increases in the prices of food were the main factor for inflation to increase by 0.52 percent in May, as compared to April. Eggs, potatoes, and milk accounted for most of the increase, which took the cumulate inflation for this year to 3.65, above that for the same period in 2002, which was 3.19. 

According to the Central Bank, the overall inflation for 2003 should be 10 percent, and chairman Francisco Gutierrez said that the average so far points to attaining that goal.


Duty-free fuel
Like a rock in water, the consumption of tax-exempt gasoline for the exclusive use of small, commercial, fishermen dropped markedly as of last April 1, when the diesel and gasoline destined to the workers of the sea were dyed to differentiate them from regular fuels. 

The gasoline purchased by fishermen dropped 75 percent since the change in color took place. According to data from the Costa Rican Petroleum Refinery (RECOPE), while the sales of tax-exempt gasoline to fishermen amounted to 1.9 million liters (some 720,000 gallons) last March, in April the sales of the dyed product were only 419,000 liters (approximately 158,712 gallons). 

No difference was found in the sales of the dyed diesel. The change in color was promoted by the Costa Rican Fisheries Institution (INCOPESCA) in order to control the very likely illegal use of the tax-exempt fuel, that fishermen buy for under 50 percent of the regular price.


Lower beef production
The production of beef dropped by 20 percent in just seven years, a consequence of the difficult times that cattle raising is going through in this country, sector sources claim. 

While in 1995 cattle ranchers reported the production of 98,587 tons of beef, by the year 2001 -the last official data available- the figure was down to 74,348 tons. The size of the herd has also decreased steadily, from 2.27 million in 1982, to 2.19 million in 1988, to 1.36 million in 2000. 

Meanwhile, the price of beef for consumers has steadily increased, but not so for ranchers, who claim that the intermediaries are making huge profits and requested government actions to prevent them from going bankrupt, as has happened to no few in the activity.


Germany invests more on environment
Satisfied with the achievements of the first stage of the Clean Air Project, aimed at lowering pollution, the Government of Germany renewed an agreement with the Ministry of Public Works and Transport of Costa Rica, which includes a German grant for $1.7 million. 

One of the key aspects of the agreement is a new technical testing system that measures emissions and other aspects, to which over 80 percent of all the motor vehicles in Costa Rica have already been subjected
to.


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Blix: UNMOVIC ready to be independent verifier for findings in Iraq

Chief UN arms inspector Hans Blix said Thursday that the UN Monitoring, Verification and Inspection Commission (UNMOVIC) remains ready to resume work as an independent verifier for any findings in Iraq or to conduct long-term monitoring.

Presenting final report at an open council session, the UNMOVIC chairman said UN inspectors would go back to Iraq for the above-mentioned purposes, "should the council so decide."

He said the core expertise and experience available within UNMOVIC remain a valuable asset and this "might be of particular value in the field of biological weapons and missiles for which there exists no international verification organization."

UN arms inspectors withdrew from Iraq on the eve of the US-led invasion on March 19, and their return has been put on hold indefinitely due to strong objection from the United States.

But UN resolution 1483 passed last month opened the possibility of their return. It says the council would revisit the mandate of UNMOVIC and Iraq's complete disarmament needs independent verification.

In his report, Blix reiterated that UNMOVIC had not "at any time during the inspections in Iraq found evidence of the continuation or resumption of proscribed items -- whether from pre1991 or later."

But he stressed there remain long lists of proscribed items unaccounted for despite inspections or Iraqi explanations.

He said it was "not justified to jump to the conclusion that something exists just because it is unaccounted for."

The lack of finds by inspectors could be because the items were" unilaterally destroyed" by the Iraqi authorities or else because "they were effectively concealed by them," he said.

But Blix expressed his belief that it should be possible to establish the truth about Iraq's weapons of mass destruction (WMD) in post-war Iraq, "in which there is full access and cooperation, and in which knowledgeable witness should no longer be inhibited to reveal what they know."

Blix indicated earlier he would retire after his current contract with the UN expires at the end of June.

After the open meeting, US Ambassador to the UN John Negroponte,while taking reporters' questions, insisted that he believe there was WMD in Iraq. And he declined to foresee whether the UN inspectors could return to Iraq.

The United States and Britain launched a military operation against Iraq in March on the grounds that Iraq possessed and concealed WMD. Currently, a so-called US-British survey group is in search of WMD in Iraq.

Council President Sergey Lavrov of Russia said the council members expressed thanks to Blix for his work and leadership. He said UNMOVIC would remain a UN subsidiary until its mandate was reviewed.


IBM introduces new database for medium-sized companies

International Business Machines Corp. on Thursday rolled out a new full-function database product for medium-sized businesses, claiming it is easier to use and 30 percent cheaper than similar products on the market.

IBM said its new database, DB2 Express, installs itself with no mouse clicks required and offers 65 automation tools, including the technology that monitors the system's health and automatically supplies expert advice. It offers wizards to walk users through various tasks, such as expanding the system's capabilities.

DB2 Express, which runs on Linux and Windows and is available in all major languages, is aimed at companies with 100 to 1,000 employees. IBM priced the software at 499 US dollars for a base server package, with an additional licensing cost of 99 dollars per user.

For a company with 50 users of a particular application, the offering is 5,449 dollars, compared to 7,967 dollars for MicrosoftSQL Server 2000, IBM said.

"With today's announcement of DB2 Express, our partners can now tell small and medium sized business customers that there is a database alternative that costs less to own, is easy to use, offers better support, and co-exists with a variety of computing platforms," said Janet Perna, general manager, data management solutions, IBM Software Group.

IBM hopes its DB2 Express will further boost the number of users of its DB2 Universal Database, which the company says currently has more than 60 million users from 425,000 companies worldwide.


eBay to collect tax from European sellers

eBay Inc., the world's biggest online auction company, announced Thursday that it will collect value-added taxes (VAT) from sellers in Europe to comply with new European Union regulations.

The San Jose-based company said the VAT will vary according to the country where the seller lives, ranging from 15 percent in Luxembourg to 25 percent in Denmark.

eBay said the taxes apply only to items sold within the EU and will not affect purchases in North America or elsewhere.

eBay does not collect taxes on behalf of users in the United States, but advises sellers it is their responsibility to pay taxes. Winning bidders are supposed to pay the tax rate in the seller's state or county, if any, but few vendors charge more than a shipping fee.

Transactions outside the US rose to 29 percent of eBay's revenue during the first quarter from 21 percent in the previous year, according to the company.


EU imposes diplomatic sanctions on Cuba

The European Union on Thursday imposed diplomatic sanctions on Cuba to protest against the deplorable actions taken recently by the Cuban authorities.

A statement issued by the Greek EU Presidency said the actions taken by Cuba recently not only "violated" fundamental freedoms in the country, but also deprived civilians of the ultimate human right, that of life. It expressed regret that the Cuban authorities broke the de-facto moratorium on the death penalty.

According to the statement, the sanction measures include limiting bilateral high-level governmental visits, reducing the profile of member states' participation in cultural events, inviting Cuban dissidents at national days celebrations and re-evaluating the EU common position.


 

 

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