HomeArchiveCAFTA Launch Approaches In El Salvador, Nicaragua

CAFTA Launch Approaches In El Salvador, Nicaragua

The controversial Central American Free-Trade Agreement with the United States (CAFTA) is tentatively scheduled to take effect March 1 between the United States, El Salvador, and possibly Nicaragua.

In Costa Rica, the yet-to-be-approved agreement is stalled in the Legislative Assembly – legislators announced they would postpone work on the pact until the name of the next President is officially announced (see separate article).

The other CAFTA signatories – Guatemala, Honduras and the Dominican Republic – have all ratified the agreement and are in the process of preparing their legislation for implementation. The agreement was originally set to take effect among the countries Jan. 1, but was delayed because of U.S. assertions that the signatories had not yet met the legislative requirements outlined in the agreement (TT, Jan. 6).

Costa Rica’s Legislative Assembly has been discussing the agreement since President Abel Pacheco submitted it late last year.

CAFTA was an important issue in the recent elections, particularly since the two leading candidates, Oscar Arias and Ottón Solís, hold different opinions on the agreement.

Arias, of the National Liberation Party (PLN), supports it and Solís, of the Citizen Action Party (PAC), maintains it should be renegotiated.

U.S. authorities insist this is not an option Costa Rica should count on. U.S. Ambassador Mark Langdale told The Tico Times earlier this month that the idea of renegotiation is “just not realistic” (TT, Feb. 17).

The financial weekly El Financiero reported this week that the United States and El Salvador had renegotiated a section dealing with quotas on sensitive agricultural quotas, including yellow corn, rice, dairy products and pork. The weekly reported that under CAFTA, multilateral sections can only be amended with the consent of all parties, but bilateral sections can be amended with the consent of the two parties concerned.

Elaine Samson, spokeswoman for the U.S. Embassy in San José, told The Tico Times that the text of the agreement does not make a distinction between amendments on multilateral and bilateral clauses.

“It says the annexes (the bilateral sections) are an integral part of the agreement, and all the parties have to agree on amendments,” she told The Tico Times, adding that “parties” are defined as countries where the agreement has been ratified and has taken effect. Since CAFTA has not yet taken effect in any countries, no amendments could have been made to date, she said.

Regarding the specifics of U.S.-Salvadoran conversations regarding agricultural quotas, Samson said the embassy’s Agricultural Office had requested additional information, but it was not made available by press time.

 

Trending Now

Costa Rica Hotel Is the Only New Three-Key Michelin Stay in the Americas

A luxury resort on Guanacaste's Papagayo Peninsula has received the Michelin Guide's highest hotel distinction, making it the only property in the Americas to...

Costa Rica Takes Growing Role in U.S. Deportation Program

Costa Rica has quietly become an important destination in a growing U.S. deportation program that sends migrants to countries they are not from, leaving...

Who is behind Costa Rica’s proposed AI data centers?

Two AI data centers seek vast power and water in Costa Rica. Who is financing them is still unknown.

Costa Rica Changes Route 1 Traffic Pattern Near San Ramón

Drivers using Route 1 between the Central Valley and Puntarenas is facing a new traffic pattern today as construction continues around San Ramón. The...

Costa Rica Flooding Hits More Than 400 Homes After Tropical Wave

More than 400 homes were flooded across Costa Rica over the weekend as Tropical Wave 47 brought heavy rain to several parts of the...

Costa Rica Proposes 15% Tax on Certain Foreign Income

Costa Rica has proposed a 15% tax on certain passive income earned abroad, including interest, dividends, rents and capital gains. The measure is not yet law

Two Dead at Guanacaste Beach as Search Continues at Tarrazú Waterfall

Two young men died at Playa Cabuyal in Guanacaste and rescuers are searching for an 18-year-old swept away at a waterfall in Tarrazú after Saturday's storms.

Costa Rica Turns to Bryan Ruiz After Firing Fernando Batista

Former Costa Rica captain Bryan Ruiz will take temporary charge of the national team after the Costa Rican Football Federation fired Argentine coach Fernando...

Five More Arrested as Costa Rica Steps Up Sea Turtle Protection at Ostional

Five more people have been detained during sea turtle protection operations at Ostional National Wildlife Refuge in Guanacaste, bringing the number of people arrested...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel