No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveCAFTA ‘Studies’ Contain Questionable Predictions

CAFTA ‘Studies’ Contain Questionable Predictions

Five thousand families will lose their livelihoods in the eastern province of Cartago. A whopping $70 million in orange juice exports to the United States will be lost. A 300% tariff will be levied on Costa Rican pineapples headed to the northern market.

These are the results so far of a series of “studies” being released by the Economy, Industry and Commerce Ministry (MEIC) that spell out dire economic consequences if the Central American Free-Trade Agreement with the United States (CAFTA) is shot down in October’s referendum.

The statements are part of an ongoing series conducted by the Arias administration dubbed “CAFTA: The Day After.”

“With the situation that this country is facing, it’s worth asking what would happen one day after NOT approving CAFTA; the answer is very simple,” said one of the statements.

Except, it’s not.

The tariffs the studies mention wouldn’t be levied the day after CAFTA is shot down, as the studies suggest. Instead, they would take effect only if the Caribbean Basin Initiative (CBI), which gives Costa Rican goods preferential access to the U.S. market, is canceled.

The CBI gives all the Costa Rican agricultural goods mentioned in the studies full access to the U.S. market. And the United States has never given any indication that it would cancel the CBI benefits and levy tariffs the day after CAFTA is shot down (TT, Feb. 9).

‘A Logical Study’

The “studies” themselves are not as sweeping as the conclusions they draw either. MEIC conducted them by examining the financial data of a few large companies in a particular region, then generalizing over the affected population, ministry spokeswoman Melissa Molina told The Tico Times.

From there, they draw conclusions about how hypothetical tariffs on Costa Rican goods would affect jobs in Costa Rica, without treating any of the intricacies of the international markets on which those goods are traded.

“It’s not an in-depth study,”Molina said. “It’s more of a logical study.”

The first “study,” announced May 22, found that 5,000 families in the Oreamuno de Cartago region east of San José would lose their jobs if CAFTA is not approved, because the region’s main export –“mini-vegetables” – would be subject to a 17% tariff to enter the United States, and 74% of their products is destined for that market.

Ironically, that same week, agricultural officials from Trinidad and Tobago visited the country to talk with their Costa Rican counterparts about importing more fresh vegetables from Costa Rica (TT, June 1).

The second “study,” announced a week later, claims that orange juice producers would be subject to a 19% tariff the day after CAFTA is shot down, which would cause $70 million in losses and ruin the livelihoods of 4,000 families.

The third “study,” announced June 7, found that new tariffs of up to 300% on Costa Rican pineapple would endanger $250 million of the country’s exports.

All three studies were introduced at press conferences held at Casa Presidencial.

The Tico Times repeatedly requested to review the background of the studies, but the Economy Ministry refused to release the details, including sources, methodology, authorship – and the names of the companies that participated.

A press lawyer consulted by The Tico Times said he saw no legal reason for that information to be withheld.

In the end, however, the details sought may not even exist.

Two of the “studies” were posted on MEIC’s Web site (www.meic.go.cr), but they take the form of PowerPoint presentations and contain almost no information outside the original press releases.

 

Trending Now

Costa Rica’s Economy Slows as Central Bank Warns of El Niño Risk

Costa Rica's Central Bank has lowered its growth forecast for this year, pointing to a climate shock that has already begun to weigh on...

Novak Djokovic Returns to Cincinnati With US Open History at Stake

Novak Djokovic will return to the Cincinnati Open in August, choosing one final hard-court tournament before resuming his pursuit of a record 25th Grand...

Costa Rica’s government and courts collide over prison rules for Diablo

A criminal court judge in Pococí has struck down part of the isolation regime the Justice Ministry imposed on Alejandro Arias Monge, the man...

Costa Rica Expels Second-Division Club for 10 Years Over Match-Fixing

The Costa Rican Football Federation has thrown a second-division club out of the sport for ten years after its investigators concluded the team took...

Why “Diablo” Got Only Three Months in Costa Rica Custody

A Costa Rican court has ordered three months and 22 days of preventive detention for a man surnamed Arias, known by the alias "Diablo,"...

Costa Rica Moves to Widen Extradition of Its Own Citizens

President Laura Fernández asked lawmakers on Monday to widen the narrow list of crimes for which Costa Rica may hand its own citizens over...

Pura Vida and Property: How Costa Rica’s Traditional Way of Selling Homes Is Entering the Digital Age

When people think about buying or selling property in Costa Rica today, they often picture property portals, real estate agents, Realtors and international buyers...

Costa Rica Ferry to Nicoya Peninsula Loses Two Daily Sailings

If you cross between Puntarenas and the southern Nicoya Peninsula in the next few weeks, expect fewer sailings, fuller boats and longer waits at...

Trump’s Granddaughter Puts Guanacaste Beach Town in Front of 1.5 Million Viewers

A travel vlog posted last week by Kai Trump, the eldest granddaughter of U.S. President Donald Trump, has put a small stretch of Guanacaste...
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