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

Colombia Moves Into World Cup Last 16 With Tight Win Over Ghana

Colombia kept South America’s World Cup charge moving late Friday night, beating Ghana 1-0 to claim the final place in the Round of 16...

Migrant Dollars Still Flowing Into Central America Despite New Fee

Remittances to Central America are still climbing in 2026, led by Guatemala, Honduras and El Salvador, even as a new U.S. tax on some...

Rodrigo Chaves to Coordinate Next Phase of Limón Marina Project

Former President Rodrigo Chaves will coordinate the government team assigned to push forward the planned Marina and Cruise Terminal of Limón, moving the nearly...

Costa Rica Reviews PriceSmart Site After Archaeological Material Found

Work at a PriceSmart construction site in Santo Domingo de Heredia could be temporarily stopped after archaeological material was found during earth movement, prompting...

The View’s Ana Navarro Shares Warm Tribute to Costa Rica

Ana Navarro, the Nicaraguan-born political commentator known for her work on ABC’s The View and CNN, recently shared a warm public tribute to Costa...

Costa Rica Confirms Chikungunya Outbreak in Guanacaste Beach Town

Costa Rica has confirmed a chikungunya outbreak in Playa Langosta, a popular beach community near Tamarindo, after health officials identified four confirmed cases and...

Costa Rica on Green Alert as Tropical Wave Triggers Flooding Risk

The National Emergency Commission (CNE) has declared a Green Alert for the entire country as Tropical Wave No. 19 moved across Costa Rica today,...

Grammy Winner Jon Batiste Announces First Costa Rica Concert

Grammy and Oscar-winning musician Jon Batiste will perform in Costa Rica for the first time this September, bringing a one-night orchestral concert to Parque...

Costa Rica Road to Fully Reopen Monday After Month-Long Closure

Costa Rica's Route 27 is expected to reopen in both directions for all vehicles at 5 a.m. Monday, bringing major relief to drivers heading...
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