No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveArias Explains Dilemma at Free-Trade Summit

Arias Explains Dilemma at Free-Trade Summit

President Oscar Arias attended a forum in New York City on free trade this week with U.S. President George W. Bush, weeks after a Costa Rican Supreme Court decision threatened Costa Rica’s entry into the Central American Free-Trade Agreement with the United States (CAFTA).

The White House convened the meeting for leaders from 11 countries in the Western Hemisphere that either have a free-trade agreement with the United States or are in the process of entering one.

In a joint statement, the leaders agreed to promote “trade liberalization and open markets” in the region and “exchange best practices on labor and environmental standards.”

Arias told his counterparts that Costa Rica’s pickle is that the country signed CAFTA in May 2004 and approved the pact in a referendum last October. But Costa Rica will miss its Oct. 1 deadline for entering CAFTA because the Supreme Court has questioned a bill required to put Costa Rica in compliance with the pact. Lawmakers must now amend the bill and pass it again in a process that could take between six weeks and three months.

The Foreign Trade Ministry (COMEX) is now negotiating an extension with the U.S. Trade Representative (USTR) and trade offices in other CAFTA countries, said COMEX spokeswoman Emma Lizano.

In a joint statement, the forum’s guests said, “We applaud Costa Rica’s effort to complete the steps necessary for entry into force of (CAFTA) … as soon as possible.”

Of the countries represented at the forum, only four – Costa Rica, Panama, Colombia and Peru – have not yet entered their free-trade agreements with the United States. The U.S. Congress has not approved separate treaties with Colombia and Panama, and at the forum Bush urged lawmakers to get cracking.

Presidents and representatives from Guatemala, Honduras, El Salvador, Mexico, Chile, Canada and the Dominican Republic also attended the forum. Nicaraguan President Daniel Ortega, whose relationship with the United States has deteriorated in recent months, was the only CAFTA president who did not attend.

Costa Rica is the only CAFTA signatory that has not yet entered the treaty, perhaps the most polarizing issue in recent history here. Faced with strong opposition in the National Assembly, Arias had to ask for an extension of the initial Feb. 29 deadline for passing 13 laws required to enter the pact.

Just as lawmakers were about to approve the 13th bill, the Constitutional Chamber of the Supreme Court (Sala IV) said they had acted unconstitutionally by failing to consult indigenous groups on a clause that affects them.

A congressional committee this week recommended that lawmakers delete the problematic clause and pass the bill again.

In a series of meetings scheduled before the Supreme Court ruling, COMEX officials reviewed the 13 bills with their USTR counterparts this week to make sure the legislation fills CAFTA’s requirements.

U.S. Secretary of Commerce Carlos Gutiérrez will visit Costa Rica next week with about 15 U.S. business leaders to explore trade opportunities with Costa Rica under CAFTA.

ggillers@ticotimes.net

 

Trending Now

Costa Rica Investigates Development Inside Wildlife Corridor

Costa Rica’s Comptroller General has ordered immediate inspections of three properties in southern Costa Rica after satellite images revealed possible forest clearing, earthworks, new...

Costa Rica Posts Record First Half for Tourism Even as June Arrivals Dip

Costa Rica welcomed more visitors by air in the first half of 2026 than in any comparable period on record, even as June delivered...

Costa Rica Papagayo Dispute Freezes $700 Million in Investment

A court fight over the planned removal of 748 trees at Playa Panamá has grown into a broader dispute over tourism investment, jobs and...

U.S. Seeks Extradition of Four Suspects in Liberia Cocaine Case

The United States has requested the extradition of three Costa Ricans and a Mexican citizen accused of helping an international drug network move cocaine...

Costa Rica’s Waldorf Astoria Named to Forbes List of Five Vacation-Worthy Resorts

Costa Rica's Waldorf Astoria Punta Cacique has landed on a short Forbes list of luxury properties the magazine says are worth building an entire...

Will Costa Rica’s New Maximum Security Prison Reduce Crime?

To the surprise of no one, the Minister of Justice recently announced that the construction of the prison to beat all prisons, the Tico...

Costa Rica’s Reopens Highway After Landslide Closure

Route 32 reopened Friday afternoon after falling debris blocked the highway through Braulio Carrillo National Park for more than six hours, disrupting travel between...

Costa Rica Animal Welfare Bill Would Reshape Rules for Breeders and Festivals

An animal welfare bill now before the Legislative Assembly would require veterinary supervision for anyone who breeds animals commercially, impose new operating standards on...

Costa Rica Prison Tour Proposal for Students Prompts Debate

President Laura Fernández’s proposal to take students from high-crime neighborhoods on visits to Costa Rica’s new maximum-security prison has opened a national debate over...
Avatar
🌴 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