IMPORTS of cars, buses, motorcyclesand trucks to Costa Rica more thanquadrupled during the first quarter of thisyear, compared to the same period lastyear.Between January and March of thisyear, 17,000 motor vehicles were importedinto Costa Rica, compared to 4,000during the same period in 2003, the dailyLa Nación reported.During all of 2003, the countryimported 52,000 vehicles at a cost of $323million.During the first quarter of this year,Costa Rican importers spent $114 million.During the three-month period, the governmentcollected ¢23.7 billion ($54.5million) in import taxes on the vehicles,according to the General CustomsAdministration.Approximately 71% of the vehiclesimported during the first quarter of 2004are cars, 12% motorcycles, 11% trucksand 6% buses. One third of the vehicles(5,468) were imported from Japan andone fifth (3,345) from South Korea.About 60% of the vehicles importedare used. On average, imported usedvehicles have ten years of being in circulation.According to the government, the countryhas more than 730,000 motor vehicles incirculation, up from 179,941 in 1978.Experts attribute the increase inimports to increased demand for vehiclesas a result of better available financingschemes. It is now possible to purchase anew car for as low as $50 a month with adown payment. In many cases, dealershipscharge no interest during the firstmonth.In related news, in the next couple ofweeks most car dealerships will beginoffering 2005 vehicles. This could alsolower the price of remaining 2004 vehicles,experts say.

THE Central American Bank forEconomic Integration (CABEI) and theAndean Development Corporation(CAF) on Wednesday signed a $90 millionloan agreement with the CostaRican Petroleum Refinery (RECOPE)that will allow the country to finance thethird and final phase of a proposed oilpipeline between the Caribbean port ofLimón and La Garita de Alajuela, in thenorthwestern portion of the CentralValley.CABEI will lend RECOPE $60 million,and CAF will loan it the remaining$30 million.The funds will be used to construct a133-kilometer pipeline and two pumpingstations.

U.S. fruit distributor Chiquita Brandsannounced it plans to increase the numberof pineapples it purchases from CostaRica. The company plans to transfer muchof its pineapple-export operations fromColombia to Costa Rica, the daily LaRepública reported.During the next eight years, Chiquitawill purchase an additional 2.5 millioncrates of pineapples a year from CostaRican producers.Eugenio Rodríguez, director ofTropical Fruits for Chiquita, said the companywill export an additional 6 millioncrates of Costa Rican pineapples this year.The company expects that amount togrow to 10 million crates in 2005.Last year, Costa Rica’s pineappleexports generated $207 million in revenues.That amount is expected to increaseby 37% to $284 million this year.Costa Rica is a world leader in pineappleexports, and renowned for its “golden”pineapples – a very sweet yellow varietyof the fruit that has become popular.The country produces pineapples year-round.The main destinations of pineapplesfrom Costa Rica are the UnitedStates, Italy, Belgium, the UnitedKingdom and Argentina.According to the National ProductionCouncil, 49 firms market Costa Ricanpineapples.

FLORIDA Ice & Farm, which ownsCosta Rica’s only large brewery,Cervecería Costa Rica, is planning toenter the vast U.S. market next month.The company will export Imperialbrand beer to the West Coast and willlaunch a new brand in the East Coastthrough a New York firm, the weekly ElFinanciero reported.

ALTERRA Partners, the consortiumthat holds a 20-year contract to renovateand operate Juan Santamaría InternationalAirport, on Monday announced it plans toseek arbitration to solve the ongoing conflictwith the government, which has paralyzedwork on the country’s main airport.The airport operator stressed theimportance of resuming work on JuanSantamaría, which has been stalled sinceMarch 2003. Alterra warned in a statementthat the airport could become saturatedduring the next tourism high seasonbecause its incomplete infrastructure maynot be able to handle recent increases in thenumber of airlines and airplane routes flyingto and from the airport.“It’s urgent to continue works toexpand the airport,” said Mónica Nágel,executive director of Alterra Partners. “Justas an example, of the nine passengerboarding gates that should be completedby this date, only five are done.”IN the statement, Alterra said it decidedto seek arbitration as a result of the government’sand the Comptroller General’sOffice’s apparent unwillingness to meetwith it to look for a solution to the disputethat is compatible both with the originalcontract and other agreements both partieshave signed.“I would have preferred that these differencesbe resolved in the ComptrollerGeneral’s Office and we still hope that willhappen, but given the time that has passedwe prefer to start requesting the arbitration,”Nágel said. “…It’s a step in the roadto finding solutions to this project, which iskey to the country’s development.”Nágel says Alterra is confident a solutioncan be found to solve the dispute andallow it to resume work on the airport.If the government accepts arbitration,the arbitration panel’s decision would bebinding for both parts. Each side wouldchoose a person to argue its case. Alterrathis week told the daily La República itwould hire Eduardo Sancho, a former magistrateof the Constitutional Chamber ofthe Supreme Court (Sala IV), as its representative.Once both sides have namedtheir representatives, they must agree on athird person that would preside over thearbitration.The daily La República said that if theparties were to go before the Costa RicanChamber of Commerce for conflict resolution,Alterra would have 15 days to explainits position, and then the governmentwould have 15 days to respond. Next, anaudience would be held to clear up anyremaining doubts.The person presiding over the panelwould later issue a ruling, which could beappealed before the First Chamber of theSupreme Court. The process generallytakes seven months, according to LaRepública.IN March of last year, the 14 foreignbanks that had provided financing for theairport said they will not provide Alterrawith more funding unless the governmentagreed to allow the airport manager to collect$18.6 million from airport user fees fordevelopment and financing expenses (TT,May 7).In an August 2001 memorandum, theMinistry of Public Works and Transport(MOPT), Alterra, and the banks agreed toset the development expenses at $18.6 million.However, the Comptroller General’sOffice, which has the final say in interpretinggovernment contracts, does notrecognize the memorandum and has onmultiple occasions said developmentexpenses cannot exceed the $3.4 millionagreed to in the original contract.Earlier this month, Alterra presentedthe government and the Comptroller’sOffice with a proposal that offered threealternate ways of generating the $18.6million. However, government officialsexpressed doubts about the feasibility ofthe proposals (TT, June 11).In April, Juan Santamaría InternationalAirport was named the third best airport inthe world in the under 5 million passengersa year category and fourth overall inthe Americas (including North America)by the International Air TransportAssociation (IATA).

PRESIDENT Abel Pacheco and TzudanWu, Taiwan’s Ambassador to CostaRica, are expected today to sign the contractto build the long-awaited highwayconnecting the Northwest Central Valleycoffee town of San Ramón to CiudadQuesada, in the Northern Zone.In February, the Ministry of PublicWorks and Transport (MOPT) received a$15-million donation from Taiwan to fundthe first stage of the new highway toCiudad Quesada, also known as SanCarlos.The 29.7-kilometer project will connectthe Inter-American Highway at SanRamón, west of San José, to the largestcity in the country’s northern region.

THE Competition Promotion Officeof the Economy, Industry and CommerceMinistry (MEIC) has fined EmbotelladoraPanam-Tica, the national distributor ofCoca Cola brand soft drinks, ¢68 million($156,000) for applying monopolistic andanti-competitive tactics that may havehurt sales of competing brands of beverages,according to a MEIC statement.PepsiCo Inc., Pepsi-ColaInteramericana de Guatemala and PepsiCola Manufacturing Company ofUruguay S.R.L filed the complaint inMay 2001 against the Coca ColaCompany and Embotelladora Panam-Tica. Smaller beverage firms, includingRefrescos La Mundial and Sirope la Flor,later joined the complaint.The Competition Promotion Officefound Coca Cola guilty of price fixingand monopolistic behavior.The company was ordered to stopsigning exclusivity contracts with retailers,which limit free competition.Coca Cola was sanctioned for requiringthat retailers use the refrigerator unitit loans them exclusively for Coca Colaproducts. In the case of small stores, thispolicy excludes competitors from beingable to sell their goods, MEIC said.The Competition Promotion Office’sTechnical Support Unit will monitor CocaCola’s compliance to the ruling during thenext year. Coca Cola has two months toappeal the ruling.

CITIZEN Action Party, the country’sthird largest political party, has begun aseven-month nationwide discussion processthat will culminate with the drafting of theparty’s political platform for the 2006 presidentialand legislative elections.The process, known as the First CitizenCongress, began last month and will runthrough November.The goal of the congress is to giveCitizen Action’s members a chance to discussand debate the party’s stance on issuesof vital importance to the country and have asay in shaping its campaign platform,explained Ottón Solís, president of the party.“The pivotal goal of the congress is toupdate the party’s positions,” Solís said.“Obviously, our party platform will notdiffer from what is agreed to during thecongress.”CITIZEN Action has spent the pasttwo years preparing the congress, accordingto coordinator Patricia Allen, whoexplained the first phase will consist ofconsultation with the party’s base.“Citizen Circles” – discussion groupsmade up of three or more Citizen ActionParty members – will meet to discuss currentissues and the party’s original 21-point charter.The party hopes to establish at least onecircle in each of the country’s 411 districts.This phase will end this month, she said.Each circle will choose a member torepresent it during the regional phase ofthe congress. Citizen Action has dividedthe country into 18 different regions.Circle representatives will meet betweenAugust and October to discuss proposalsand name regional representatives for theparty’s National Assembly, scheduled totake place in November, Allen said.DURING the National Assembly,delegates will draft the new party platform.The party plans to make each phaseof the process as open and representativeas possible, she said.“We’re very interested, as the name ofour party implies, in doing this in a mannerthat allows participation,” Solís explained“This is basic for us. It’s not about a groupof intellectuals drafting a document. Theidea is to jointly build [the platform].”Solís is confident the congress willhelp strengthen Citizen Action.“OUR mission is to build a better country.A congress makes it possible for people,during the process of analysis and proposals,to absorb the party’s thoughts and contributetoward building it,” he explained.Founded in early 2001, CitizenAction Party, most commonly referred toas PAC, permanently changed the face ofCosta Rica’s traditionally bipartisanpolitical system.During the 2002 presidential elections,Solís came in third with 26% of the vote,prompting a historic second vote to declareAbel Pacheco winner with more than 40%of the vote, as required by the Costa RicanConstitution.During the 2002 legislative elections,Citizen Action won 14 of the LegislativeAssembly’s 57 seats (TT, Feb. 8, 2002).However, the party’s legislative faction wasreduced in February 2003, when six of itsdeputies broke away to form the PatrioticBloc (TT, Feb. 28, 2003).ALTHOUGH he has yet to officiallybegin a presidential campaign, Solís islikely to be the party’s candidate in 2006.Recent polls ranked him in secondplace after former President and NobelPeace Laureate Oscar Arias (1986-1990),who earlier this year announced he intendsto run for reelection (TT, March 19).

IN an effort to prevent juvenile crime,drug use, and sexual and other crimesagainst minors, the Ministry of PublicEducation began a program this month tofingerprint the country’s youth.The identification effort is part of a largerprogram entitled “We should not be quiet,”in which students are taught measures toavoid being kidnapped or otherwise harmed.The program includes registration ofdental records by university students.Photos, fingerprints, dental records andpersonal information are placed in whatthe ministry is calling a “student passport.”Authorities will use the information toidentify children, according to the JudicialInvestigative Police (OIJ).

A special commission of top officialscreated to study new security measures atCosta Rica’s main ports this week reportedthat port security has improved dramaticallyin recent months because of changesmade by the country’s port authorities.The commission was created June 15by President Abel Pacheco to measure theprogress of the country’s ports in complyingwith the International Ship and PortFacility Security Code (ISPS), a comprehensiveframework for the implementationof security strategies aimed at dealing withpotential threats, including terroristattacks.Shipping ports in Costa Rica and othercountries that comprise the UnitedNations’ International Maritime Organization(IMO) are required to comply withthe ISPS Code by July 1 of this year (TT,June 18).In Costa Rica, the Port Works andAquatic Transport Division of the PublicWorks and Transport Ministry (MOPT) isin charge of certifying ports in compliancewith ISPS.LORENA López, vice-minister ofPublic Works and Transport and head of thecommission, and the executive presidents ofthe Atlantic and Pacific port authorities, onTuesday said the country’s main portswould be certified by the July 1 deadline.“There’s nothing to fear. We have beenworking at this since the middle of lastyear,” explained Alberto José Amador, presidentof the Atlantic Port Authority(JAPDEVA). “We will be certified by July1. I thank the employees of JAPDEVA andINCOP (the Pacific Port Authority) whohave given the most of themselves to makethis happen.”Since last year, JAPDEVAhas investedapproximately $920,000 to improve securityat the Caribbean ports of Limón andMoín, according to Amador.Enrique Montealegre confirmedINCOP is “100% ready” to be certified.INCOP has invested more than $800,000to tighten security in the Pacific ports ofPuntarenas and Caldera.The southern Pacific port of Golfito,however, is not likely to meet the deadline,although it may be certified sometime inJuly, López said.Martha Castillo, vice-minister ofEconomy, Industry and Commerce(MEIC) and member of the commission,highlighted the success of the portauthorities’ efforts.“It was a serious process, nothing wasimprovised,” Castillo said. “These institutionshave full knowledge of the measuresnecessary to protect the country’s ports.Money has been invested in the ports andpersonnel has been trained.”SOME of the training was made possiblethrough cooperation from the U.S.Embassy in San José.“Since the beginning of last year we’vebeen assisting JAPDEVA, identifyingareas that needed attention,” explainedCarlos Fontanez, from the U.S. Customsand Border Protection office at theembassy. “We’ve been helping with trainingat the port, as well. We’ve sent someport officials to be trained in Ecuador,where there was a conference related toport security.”Fontanez said the embassy workedcloser with JAPDEVA than INCOP, sinceat the time INCOP was in the process ofawarding a concession to modernize andoperate a section of Caldera’s port to a privatefirm. That concession remains stalled(TT, Feb. 13).Fontanez said he has seen a great dealof progress in terms of security at thecountry’s ports. He announced the U.S.Coast Guard and possibly U.S. Customswould visit Costa Rica’s ports to conducta security assessment at the beginning ofnext year.PRESIDENT Abel Pacheco this weekstressed the importance of port security intoday’s “dangerous world.”“Security at the ports has a series ofcosts,” Pacheco explained. “We Ticos areused to the way things were during the lastcentury. We could visit ports with our families.People would go to the docks to fish,ladies would come and sell empanadas andcasados. That’s over now. Those timeshave passed.“We live in an era where the world haschanged. It’s a violent world of terrorismand drug trafficking. Costa Rica must adaptto the international situation,” he said.