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 Moves to Protect Jobs at Golfito Free Trade Zone

Costa Rica’s Legislative Assembly approved a reform this week that gives commercial operators inside the Depósito Libre Comercial de Golfito something they have sought...

That Shell on a Costa Rica Beach Could Cost You Thousands

It looks innocent enough. A beautiful spiral shell sitting on the sand, worn smooth by the waves, glinting in the afternoon light. The instinct...

Costa Rica Documentary Following Five Cancer Survivors Heads to Amazon Prime Video

Costa Rica will reach Amazon Prime Video later this year through "Latidos en la Lluvia," a documentary film that follows five Spanish women who...

Costa Rica Extradites Canadian Fugitive Hiding in Tamarindo

A Canadian man wanted in connection with a major drug and firearms case in British Columbia has been extradited from Costa Rica after several...

Costa Rica Bicycle Program Aims to Help Rural Students Reach School

For children in Costa Rica’s most remote communities, the distance between home and school is not measured in minutes. It is measured in hours...

Weather Causes Flight Delays at Costa Rica’s Main Airport

Heavy fog and rain disrupted flight operations at Juan Santamaría International Airport on Monday, forcing five commercial flights to divert and delaying several departures...

Costa Rica Camera Traps Capture Wild Fish Hunt in Guanacaste

I’ve been interested in wildlife my entire life. If younger me knew what I was up to these days, playing with camera traps in...

Costa Rica’s Forgotten WWII Role Echoes on D-Day’s 82nd Anniversary

Eighty-two years ago today, roughly 160,000 Allied troops landed in Normandy, France, launching Operation Overlord to liberate German-occupied Western Europe — the single day...

Guanacaste Faces One of Its Worst Droughts as Rain Hits Much of Costa Rica

Guanacaste is facing one of its worst drought situations in years, even as much of Costa Rica deals with heavy rain, saturated soils and...
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