Ministers from the 17 countries of the Cairns Group who met here this week  ommitted to doing whatever necessary to get stalled World Trade Organization (WTO) negotiations back on track by mid-year.

It was a very productive meeting, said Mark Vaile, Australian Minister for Trade, during a press conference Wednesday marking the conclusion of the three-day meeting. Some of our colleagues have called it one of the most productive meetings the Cairns Group has had.

Following the meeting, the group issued a strong message to the United States, European Union and Japan the world s largest subsidizers of agricultural products requesting they take steps to further open their markets to foreign agricultural products, eliminate any and all agricultural export subsidies, and take steps to substantially reduce domestic farm supports.

THECairns Group is composed of 17 agriculture-exporting countries responsible for roughly 30% of the world s agricultural trade. Group members include Argentina, Austratralia, Bolivia, Brazil, Canada, Chile, Colombia Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, the Phillippines, South Africa, Thailand and Uruguay.

Since 1986, the group has been dedicated to promoting the liberalization of agricultural products under the multilateral trading system.

In recent years, the group has expanded its efforts to lobbying for the reduction of domestic supports and the elimination of export subsidies, which, it argues, distort the international price of agricultural products and hurt farmers and consumers (TT, Oct. 17, 2003; Jan 30).

DURING the meeting, the group was addressed by top trade officials from different parts of the world, including Supachai Panitchadki, director general of the WTO.

Born in Bangkok, Thailand, in 1946, Supachai has a Ph.D. in Economic Planning and Development from the Netherlands School of Economics. Since becoming director general of the WTO in September 2002, Supachai has pushed for greater liberalization of trade, particularly in agriculture, where he has argued strongly for the elimination of price-distorting subsidies and supports.

Supachai began his visit to Costa Rica Monday meeting with top government officials. He expressed optimism over the future of the current round of WTO negotiations the Doha Development Round which has been stalled since the collapse of the Cancún, Mexico, ministerial meeting last September following disagreements over issues including agricultural subsidies (TT Sept. 12, 19, 2003).

THIS meeting comes at a crucial time, he explained. We are trying to put the negotiating round back on track and hope the Cairns Group meeting will send the right signals to motivate countries to get into real negotiations.

Supachai expressed concern over the growing number of bilateral and regional preferential trade agreements being signed by WTO members.

He said there are 270 trade agreements currently in effect and 60 more in the works, including the Central America Free-Trade Agreement (CAFTA) with the United States.

The main disadvantage of these agreements is they lack clear agreements on the reduction of agricultural subsidies, he said. Industrialized countries will only agree to reduce subsidies within the WTO.

U.S. Trade Representative Robert Zoellick made a brief visit to the country on Tuesday to address the Cairns ministers as part of a two-week worldwide tour aimed at securing international support for the reactivation of the Doha Round.

He presented a plan for the elimination of export subsidies and reduction of domestic supports. However, he conditioned U.S. commitment to these measures on the willingness of Europe and Japan to implement them.

If all parties agree, the United States would eliminate the $15 million it spends each year on export subsidies and an additional $250 million in export credits. The agreement would be more difficult for the Europeans, who spend between $2 billion and $3 billion each year on export subsides, according to Zoellick.

Once an agreement on export subsidies is reached, the countries can begin negotiating the gradual reduction of domestic supports, he said.

THE Group applauded Zoellick s willingness to negotiate and vowed to continue work on the agriculture agenda.

The Cairns Group will continue to fight for an integral reform of multilateral trade policy, Costa Rican Foreign Trade Minister Alberto Trejos said.

Vaile, director of the Cairns Group, agreed.

Our responsibility is on behalf of the world s efficient agricultural farmers and producers, particularly those in developing countries, he said on Tuesday. Farmers need fair access to rich markets. It s grossly unfair that they be excluded.

To improve agricultural market access, the group proposes proportional tariff reductions countries with the highest tariffs would be required to make the largest reductions.

AN ambitious stance was taken on export subsidies. Ministers demanded WTO members define a basic framework for the gradual elimination of all export subsidies by mid-year.

By the end of the year, countries should agree on the deadlines for each specific reduction and commit in writing to substantial reductions in domestic supports by the end of the year.

To gain additional support for its proposals, the group will reach out to other multi-country coalitions within the WTO, including the G-20 group of developing nations, with which it shares some members.

Costa Rica and Guatemala left the group in October as a result of U.S. pressure (TT, Oct. 17, 2003). Argentina and Brazil remain members.

The Cairns Group is fully committed to achieving substantial progress in the negotiations in 2004, said the statement issued by the group this week.

THE group is convinced an agreement in agriculture will revive the Doha Round and lead to a reduction in poverty.

There s a broader issue behind these discussions, said Roberto Rodrigues, Brazilian Agricultural Minister. There are two problems in the world caused by the globalized economy social exclusion and concentration of wealth.

“These problems threaten democracy and world peace,” he said. “The fastest way to eliminate these threats is expanding world trade so rich countries will be able to buy the products from poor ones. Market access for all is an instrument to combat the socio-economic gap, an instrument for the defense of democracy and peace.”

NICARAGUA real estate is booming. If you don’t believe it, try catching a real estate agent in Nicaragua in a spare moment.

But if you’re eyeing parcels of land on the hills and coasts of Costa Rica’s northern neighbor, rest assured the red carpet will be rolled out for you, and that enough deals are out there for you to live like royalty.

San Juan del Sur, on the southern Pacific coast of Nicaragua, continues to be a hub of development.

“YOU will not recognize this area three years from now,” says Herm Hamhuis of Nicaragua Properties S.A. (505/458-2180, nicaprop@ibw.com.ni, www.realestatenicaragua.com). “It will be hugely developed.”

A Barceló resort is even starting construction this year in the once-sleepy Playa Remanso, five kilometers south of San Juan.

Nicaragua Properties has several projects on the table for this year, including several residential, tourism and humanitarian developments.

An example of a resort village project on the board will have ocean views and start at around $150,000 for a 150-squaremeter house with its own pool. Lots can run as low as $40,000-$60,000. Fifty-five lots in the area have been sold in the last eight months.

As always, Fortune has come with rising values nipping at her heels.

“PRICES for all types of properties have risen,” Hamhuis said. “I calculate an average 15% increase for properties annually over the last three or four years around San Juan del Sur. I expect there will be a faster acceleration of prices over the next year, since there are more buyers around.”

Restaurants are absorbing the increase in permanent and temporary population and taxi drivers are keeping pace, but other areas are playing catch-up.

“There’s only one gas station [in San Juan] and it’s busy,” Hamhuis admitted. “But building programs are including stores in their plans; one plan involves a building-supply outlet.”

Retirees, future retirees and investors have been watching the trend in Nicaragua and liking what they’ve seen, Hamhuis said.

One of the major concerns – the uncertain status of land previously confiscated by the Sandinistas – has become more history than major threat.

“Most of the past land issues have been resolved,” Hamhuis said. “Caution is necessary, as it is anywhere in the world, when buying properties. It is easy to determine the title history and registration of almost any property. The records in the Land Titles offices are quite accurate and go back more than 100 years.”

He also notes that the Latin American office of First American Title Insurance Company (tmurdock@firstam.com) offers title insurance in Nicaragua.

GRANADA is still the inland Mecca for ex-pats, and wears its history of foreign investment proudly. Regally positioned at the northwestern edge of Lake Nicaragua, its wide streets, bare of stoplights and full of bicycles, are now framed with glorious multicolored, renovated colonial homes that allow pedestrians peeks into their lush inner courtyards.

It’s true that the days of the dirt-cheap fixer-uppers are fading, said Larry Hustler of Snider’s Realty in Granada (505/863-2466, lhustler@cablenet.com.ni).

He said he’s seen 20% growth per year during the last few years – but that hasn’t slowed the market much.

“Just in the last week we sold a house for $150,000, $250,000 and $350,000,” he said. “It’s going full steam ahead.”

He estimates no more than 20% of the colonial houses have been fixed up, and good opportunities abound.

LAGUNA de Apoyo, a beautiful lake about 30 minutes northeast of Granada, is still sparsely developed, but doing well.

Homes in the Norome Villas development that sold for $60,000 two years ago now go for around $120,000, says Hamhuis.

Hustler estimated prices at $15 per square meter, touching water, or about $10-12 with a view.

The novelty of Las Isletas, the islands scattered off the lakeside shore of Granada, is wearing off for some, Hamhuis said, but are still selling.

“They were more popular about four years ago,” he said. “They’re not that easy to build on, the transport system is limited and power and water can be a problem.”

But any float through the islands, some mansioned and some delightfully deserted, provides evidence the allure is still there. For $30,000, a small undeveloped island can be yours. If you want to just bring your clothes and live in style, you can spend up to a million dollars.

AS the flow of tourists increases, so do the number of restaurants and hotels in Granada. Those who choose to operate in the tourism sector find generous state support.

“The Law 306 Investment Incentive is alive and doing well,” said Nicaragua Property’s Hamhuis. The law, geared toward the tourism industry, offers exonerations for sales tax on building materials, import duties, property taxes and income taxes for 10 years after a business opens its doors. This doesn’t extend to those who are purchasing private homes, but the country is still attractive to nonentrepreneurs.

“U.S. citizens ask how easy it is to get residency,” Hustler said. “It’s very easy.

It’s like Guanacaste 25 years ago.” What’s not so easy is finding a place to rent.

“The supply of good rental properties is very limited in all areas,” Hamhuis said. “Condos and apartments are rare, and good-quality North American standard houses are hard to find. These [in San Juan] rent for anywhere from $650 to $1,200 per month.”

HUSTLER says rentals in Granada are available for $300-600 per month. In Managua, he said, rates are higher, and although some apartments can be found, they are rare.

Foreigners who arrive with families will find international schools only in San Carlos, where Lake Nicaragua feeds into the San Juan River, and in Managua. Buses run from Granada to the school in Managua, however.

English speakers seeking general information can also look to The Nicaraguan Chamber of Real Estate Agents and its president Lucia Sacasa of Porto Nica Real Estate (505/270-6816 in Nicaragua, 305/318-3790 in Miami, lucia@portonica.com ).

LIBERIA’S recently renovated international airport has attracted a flood of new flights from the United States – 12 from major airlines and seven charter flights – which are expected to increase the already-healthy tourism industry in the northern province by 300%.

The flights have impacted more than just the tourism industry, say Guanacaste realtors – property-shopping traffic has never been higher.

“We’re pretty busy right now,” said Jogi Gerner of ABC Real Estate in Tamarindo. “We’ll be completely sold out in two to three months.”

Most agencies in the area are experiencing periods of high sales, and although no one could say for sure exactly how much prices have gone up, most agents claimed they have.

“Prices certainly haven’t dropped,” said Deborah Marquand, of Emerald Shores Realty.

Larry Albright, of Pacific Coast Realty, compared Guanacaste to Hawaii or Cancun 20 or 30 years ago, saying the area will soon house several major resorts and property value will only increase.

“BY the end of the year, prices are going to substantially increase,” Albright said. “Whether it’s 10% or 50% I can’t say.”

Why is Guanacaste real estate so sought after?

“It’s really beautiful down here.

Every month has its redeeming qualities,” Marquand said.

Several agencies have sold all beachfront property and anything within walking distance of the beach. Albright warned that beachfront buyers have to be ready to pay top dollar; two quarter-acre lots in Tamarindo recently went for $900,000 each, he said.

From 1997 to present, prices for oceanview lots have tripled, and they will at least double again in the next two to three years.

“There’s some mystique about that place, and I have no idea why, but it has really taken off, starting about five years ago,” Albright said of Tamarindo.

PROPERTY is still available, though. Pacific Coast Realty is managing a lot in Reserva Conchal, still under development, that will eventually have luxury condos from $250,000 (for a one-bedroom) up to $800,000. Albright said he took a deposit on one condo before workers even broke ground.

Albright said the agency will also soon have 17 luxury homes for between $250,000 and $500,000 each.

“This seems to be a substantial market, especially for gated communities,” he said.

Marquand said EmeraldShores is exclusively managing a site that will have 120 condos and another 25 properties in the area that will have homes that will sell for a minimum of $500,000.

EmeraldShores will also be managing property in the Flamingo Marina, which she said should soon have a new concessionaire. The new concessionaire was supposed to be announced last month and although she is not certain when, exactly, it will happen, it should be “within the next quarter.”

Gerner said that even though her agency, ABC Real Estate, will be sold out shortly, there will always be “re-sales and other little things on the market.” The company manages properties for 80 homes, 112 farms, 44 businesses and between 600 and 700 lots in Tamarindo, she said.

GUANACASTE also is home to the rapidly progressing and highly controversial Papagayo Peninsula Tourism Development Project, a large swath of land managed by the Costa Rican Tourism Institute which will eventually house nine hotels, an Arnold Palmer Signature Golf Course, and luxury condominiums.

Pro-testors say developers of the project have illegally restricted public access to beaches and prohibited camping on them (TT, Jan. 23).

Another major development project called Hacienda Panilla is under way just south of Tamarindo.

Cynthia Duran, real estate manager of the project, said Hacienda Panilla will be the most exclusive private community in the country.

The community spans an area of 1,800 hectares, 40% of which will be developed. The remaining 60% will be home to a tropical dry forest. Duran said developers have already planted 150,000 trees in the area.

Luxury town homes in the area sell for between $375,000 and $450,000, while larger homes will sell for between $565,000 and $1.4 million.

Duran said work just finished on an 18-hole golf course, basic infrastructure projects such as electricity and water are complete, and negotiations are under way with the Costa Rican Electricity Institute (ICE) to lay fiber optics in the area.

AS Guanacaste real estate is gobbled up by businesses and retirees trying to buy before prices get any higher, some shoppers may realize the prices on the houses in the area are already a bit steep – in many places, realtors say, “North American” homes are going for no less than $500,000.

Realtors say some people looking to live in the area may find it a better value to build their own home. But until recently, this entailed the costly logistical problem of transporting building materials from San José.

However, the Papagayo Do It Center, a warehouse store that has nearly everything necessary to construct a home from scratch, opened in July 2003 on the road leading to the massive tourism development project on the PapagayoPeninsula.

Is it now possible to move to Guanacaste and build a home without trucking supplies with you from San José?

“ABSOLUTELY. We have all the building materials, everything for bathrooms, everything,” said Lorraine Michaud, employee management, quality control and marketing director for the center.

Although Michaud could not give an exact figure as to the number of shoppers purchasing materials to build a home in the area, she said she was confident they constituted a large portion of the shoppers.

Those people, she said, come from all over the world, and the sales team at the center is prepared for that – it has representatives fluent in English, Italian, French, German and Spanish.

According to statistics released by the center, construction of a quality “North American-style” home will run about $50-55 per square foot, and higher quality homes (with finer ceramics and finishing) can run just over $60 per square foot.

THE Do It Center is massive, consisting of a 6,000-square-foot lumber yard and a 6,000-square-foot warehouse stocked with paint, hardware, electrical materials, plumbing, lighting, housewares, lawn and garden materials, kitchen materials, bathroom supplies, ceramics and furniture.

The only things the store is lacking right now, Michaud said, are windows and major electrical appliances such as refrigerators, ovens, washers and dryers. But, she said, the company is currently negotiating contracts that will enable it to offer these supplies.

Michaud said the company has been constantly busy since it opened, averaging 109 sales a day. She said Ecodesarrollo Papagayo, the company responsible for managing the construction of the Papagayo tourism project, makes frequent visits to purchase construction materials.

She said this can make something of a dent in the center’s inventory, but they receive new shipments from the United States regularly.

Michaud said just less than 50% of the building materials at the store come from Costa Rica.

THE center is a member of the Do It Best Corporation, a 100% retailer, owner and supplier of more than 72,000 products to more than 4,400 stores in 42 countries, according to company statistics.

The Papagayo store has more than 17,000 items in stock from the United States and Costa Rica. For more info on the Papagayo Do It Center, call 667-0667.

According to local realtors, connecting buyers with qualified architects to assist in home construction is no problem.

For those interested in a colonial-style home, a local company called Stuccoman (307-9033) specializes in painting homes with stucco.

The Guanacaste area is also home to a pool company called Piscinas Roca (653-8347), which won a 2001 International Award of Excellence for traditional residential pool design from the National Pool and Spa Institute in the United States.

CHINA’S construction of a massive dam, measuring more than one and a half miles wide and 600 feet high, several large public works projects in preparation for the 2008 Beijing Summer Games and additional factories for the country’s rapidly growing industrial sector, have caused a worldwide shortage of steel and other construction materials, according to industry sources.

In Costa Rica, the shortage has increased steel prices and reduced overall construction here, according to the Costa Rican Construction Chamber.

The international price of steel has increased 40% since January 2003. In recent months, the increase in steel prices and decrease in availability in Costa Rica has caused the price of steel construction rods (varillas) to nearly double.

The increase in the cost of the rods is the main cause of a 30% drop in construction here during the month of January, according to the Costa Rican Construction Chamber (CCC).

IN Costa Rica, the steel rods are required by law for the construction of homes and buildings.

“Steel rods are an essential element of construction. The country’s Construction Law and Seismic Code require that we use rods. We are not allowed to use substitutes for steel rods,” Chamber director Randall Murillo told the Tico Times.

“We’re trapped in a straight jacket,” he said. “We can’t use other products because there aren’t any. We can’t substitute the rods because the law won’t allow it. We can’t go on the foreign market to buy steel because of the high [14%] tariffs set up to protect the local industry.”

The shortage led CCC to issue a statement last week asking the Economy, Industry and Commerce Ministry (MEIC) to temporarily lower the tariff on steel imports.

TO prevent future shortages of steel and other construction materials, MEIC’s Commission for the Promotion of Competition is conducting a study on the prices of steel rods in Costa Rica and the international shortage of steel.

The study’s main objective, however, is to analyze the market and make sure local companies are not engaged in anticompetitive practices. If such practices are found, MEIC will take corrective actions and punish those responsible.

“The goal of the market study is to analyze whether or not situations that can hurt the consumer, such as abusive price fixing or shortages, exist,” explained Gilberto Barrantes, Economy, Industry and Commerce minister.

If the results of the study show that conditions are detrimental to steel consumers, the Ministry will take action to counteract the market distortions.

Measures could include the reduction or temporary elimination of steel subsidies.

TO replenish the country’s supply, a boat carrying 12,000 tons of steel bought by Laminadora Costarricense, the country’s largest producer of steel rods, arrived in the Caribbean port of Limón last Friday.

The ship, which was supposed to unload at 10:30 a.m., did not unload until 6 p.m. as a result of a work stoppage by Atlantic Port Authority’s (JAPDEVA) workers. Dock workers were protesting against a recent Comptroller General’s Office decision eliminating public funding for many additional expenses workers’ had been receiving as a result of collective bargaining agreements.

The Economy Ministry remains confident the shipment will satisfy the country’s steel needs during the following months.

“National providers have taken the measures necessary to replenish the local market,” Barrantes said in a statement.

“This ensures a permanent supply of steel during the coming months.”

ALTHOUGH pleased the shipment had arrived, the Construction Chamber this week stressed the need for the government to develop a permanent strategy to prevent similar shortages in the future.

“The construction industry, as consumers of the product, require that the necessary decisions be taken to solve these types of problems in a short period of time and make sure similar situations never happen again,” Murillo explained.

“Preventive measures must be taken. The authorities are the only ones who can make these types of decisions.”

Murillo said he is hopeful the government will find a solution that will prevent additional material shortages. He highlighted the important role construction plays in the Costa Rican economy.

“A country like Costa Rica can’t afford the luxury of stopping construction for two to three weeks,” Murillo said.

“We receive a lot of foreign investment and have a great deal of housing construction, much of which is public interest. The shortage halted the momentum the sector had coming into this year (TT, Feb. 6). The drop in construction led to the firing of many workers. The government must guarantee this won’t happen again,” he said.

OFFICE space for small and medium-sized businesses abounds in and around San José. Many spaces are within former residences that have been converted into interesting and elegant office buildings.

Liliana García, who has two office complexes for sale or rent, said her buildings feature security measures that include outer walls with wrought iron bars that surround the grounds, bedrooms and showers for overnight guards, and parking space.

ONE building is a one-story complex of eight offices on the west side of San José. It includes a reception area with desks, a full kitchen and small dining area, pantry, waiting room, night-guard’s quarters, a strong box the size of small bank vault and secluded parking for three cars and a grassy yard with trees behind the facility.

The walls are natural wood with builtin bookshelves and windows in each  spacious and carpeted office. The yard is within the outer wall and can be converted into a private parking lot with access along the side of the building. It measures approximately 850 square meters, including the 400-square-meter yard.

García said the complex is on sale for $350,000, or rent for $3,500 per month.

HER other property is a converted house in a neighborhood popularly known as Los Mangos, located one kilometer from her other building, two blocks from the Plazoleta de Mangos on the west side of San José.

Inside a high, tile-roofed outer wall, the two-story complex is surrounded by an enclosed patio garden and a small orchard of mango, mandarin and other fruit trees.

The complex includes four private offices with windows, closets, and plenty of shelving. Three of them have full bathrooms.

Also, just inside the main entrance there is a reception area of three partitioned desks.

It also includes a break room, meeting room, full kitchen, storage rooms and attic space for storage, an immense office room that accommodated eight to 10 people under the former tenants and two smaller private offices with entrances through the large room.

The second floor includes two private rooms, a kitchenette and a third large room that could be converted into an apartment. All the windows are barred with wrought iron.

Parking space for 10 cars is located within the outer wall. The property is 1,560 square meters and rents for $3,500 monthly, with the possibility of sale.

For more info, contact Rebeca González at 233-5522, fax 233-5233, email rebecagm@racsa.co.cr.

ANOTHER three-story building available for sale is in Zapote, west of San José. The first floor measures 120 square meters and is divided into four storefronts, all of which have bathrooms, telephones, parking and sliding iron curtains for security during closing hours.

The second floor is 436 square meters with a restaurant kitchen and grill, two rooms with a 250-person capacity, bathrooms and office and storage space.

The third floor is 436 square meters divided equally between a warehouse and a stylish, three-bedroom apartment with black marbled counters, a bar, and views of the mountains. For more info, call 382-0520 (Spanish), or 814-3554 (English), or see it on the Web at www.jomacostarica.com/sevende.

THE needs of businesses have changed dramatically over the last decade.

While 20th century offices could make due with just a desk, rolodex and filing cabinet, today’s globalized businesses require greater security, multiple phone lines and fast Internet connections, among other things.

In a much more competitive marketplace – where businesses often must compete against rivals from all over the planet – having the right infrastructure is crucial.

Amenities such as “intelligent” (computer- run) buildings and elevators, as well as classy landscaping to impress potential customers and create a pleasant working climate, can also play a defining role in 21st century business.

These new demands have, during the past five years, revolutionized the way offices complexes are designed, built and marketed in Costa Rica.

TODAY, at least a dozen high-tech luxury office centers are located throughout the Central Valley.

With this much competition, businesses searching for a new home or planning to set up shop in Costa Rica for the first time have plenty of options.

“There are three types of offices – A, B and C,” explained Eliza Rojas, head of marketing at Grupo Roble, the developer of the two Multiplaza Malls and PlazaRobleCorporateCenter.

“Traditionally, Costa Rica has only had B and C-class offices. Businesses now demand more from offices. There are new standards – quality is on the rise. Offices that don’t make the cut will lose appeal,” she said.

The new office complexes offer 24- hour security, hundreds of available phone lines, access to high-speed Internet, fire alarms and sprinklers, as well as property maintenance services.

IN recent years, several new office centers have sprung up in the western suburbs of San José, along the highway to Santa Ana.

Plaza Roble (www.plazaroble.com, 201-9300), situated between Multiplaza Mall and the Real Intercontinental Hotel in Escazú, has earned fame as a luxury complex. It is home to national and international firms such as Microsoft, Citibank and Cemex de Costa Rica. The Costa Rican Investment Board (CINDE) and Mercado de Valores will soon move in.

The project, which consists of four buildings with more than 30,000 square meters of office space and parking for more than 600 vehicles, is nearly 90% occupied.

Available offices range from 200-600 square meters in size and rent for between $20-23 per square meter per month.

Work on the third and final phase of Plaza Roble – two new buildings that will add an additional 25,000 square meters to the project – will begin later in the year.

ANOTHER new office complex, TrilogíaBusinessCenter (288-4701), is located one kilometer west of the toll on the highway to Santa Ana, across from Pricesmart. Trilogía features three buildings, each with 2,100 square meters of office space. It has parking space for 94 vehicles.

What stands out about Trilogía, according to Alejandro Zamora, marketing manager for the project, is its value. Despite offering the same services as larger office centers, Trilogía offices rent for $12.50-13.50 per square meter per month.

“What we’re offering, for the price we’re charging, is extremely attractive,” Zamora said.

He said 80% of the project is already occupied. Three office sizes are available – 100, 140 and 150 square meters – and the spaces can also be combined to meet customers’ specific needs.

FARTHER down the highway, past the crossing to San Antonio de Belén and the JuanSantamaríaInternationalAirport, is ForumOffice Park (www.genesiscostarica.com, 204-7010).

Forum offers 84,000 square meters of office space. Developers say that when the project is concluded, it will total 113,000 square meters. Expansion of the office park will continue on 12 hectares of land purchased across the highway, to be named Forum II.

Companies such as Cisco Systems, Procter & Gamble Global Business Services, Bristol Myers Squibb, Unisys, and the National Stock Exchange are among Forum’s tenants.

Within the Forum complex, there are automatic tellers from most major banks, post office boxes and several restaurants.

ANOTHER booming area is Barreal de Heredia, home to some of the country’s largest free zones (see related story), and more recently the new Euro Plaza Diursa (www.diursacr.com, 293-9990).

EuroPlaza offers two office towers with 5,781 square meters of office space and parking for 228 vehicles. Offices range in size from 200 square meters to whole floors. Rent ranges from $15-21 per square meter.

Since Diursa began renting out offices in November, 35% of EuroPlaza has been rented out. Among the companies setting up shop there are Global Pharmaceutical Services, DHL and financial services firm Decyfín.

“While some people say the market for office centers is saturated, the truth is that every day we get new customers,” said Aleyda Bonilla, marketing representative for Diursa.

“There’s still a large market. Competition is healthy. People are looking for quality offices. Only a few office centers meet the needs of serious investors. There’s room for growth.”

Zamora agreed there would always be a market for quality offices. “IT’S important to have a clear idea of what businesses need,” Zamora explained.

“There’s a difference between small Costa Rican firms and large multinational firms. It’s important to have the capacity, infrastructure and services necessary to satisfy the tastes and requirements of all types of companies.”

The success of office centers has also been beneficial for companies dedicated to property maintenance.

“Definitely, there’s been much growth,” said Ingrid Hynes, of property maintenance specialists Grupo L.A.

“Most office centers now call and request offers from us. Before, property maintenance was not a well-known concept.

Property maintenance is now very common and known. I believe we are going to continue growing,” she said.

FREE zones, known locally as Zonas Francas, are one of the most dynamic sectors of the Costa Rican economy. They are home to many of the country’s top exporters and receive an important part of the country’s foreign direct investment.

Costa Rican businesses planning to begin exporting and foreign firms looking to set up shop here have the option of moving into one of the many industrial parks that offer free-zone privileges located throughout the Central Valley.

A free trade zone is an area within a country designated as “outside customs territory.” Importers are allowed to bring foreign goods into the free zone without having to pay import duties or taxes, pending the goods will be processed, shipped or re-exported.

In Costa Rica, the free-zone regimen is granted to firms that propose an initial new investment of at least $150,000 or its equivalent in colones.

SMALL businesses (fewer than 20 employees) that associate to perform processing activities for exports which collectively reach the minimum amount of required investment can also apply for free-zone status.

The Foreign Trade Promotion Office (PROCOMER) is the institution in charge of awarding free-zone status to export firms.

Businesses operating in free zones benefit from 100% tax-exemptions on imports of raw materials, parts, machinery and equipment required for operation.

They also are exempt from paying sales and consumer taxes on the purchase of goods and services, and taxes associated with the export and re-export of products, taxes of net capital, property and real estate transfers and municipal licenses.

They are allowed to import work vehicles (pick-ups, trucks and vehicles with room for 15 or more people) duty-free.

FREE-ZONE companies involved in export processing industries and services are 100% exempt from paying taxes on profits during their first eight years in the country. During the following four years they must pay 50% of property taxes. After that they are required to pay regular taxes.

Trading companies receive a 100% exemption during their first four years and 50% exemption during the following two years. After the periods expire, the companies must pay regular taxes.

“The fiscal exemptions are very important,” said Timothy Scott, executive director of the Association of Costa Rican Free-Zone Businesses (AZOFRAS). “However, there are other elements such as the political and social stability, the geographic situation – particularly in the case of companies that export to North America, the trade policies the country has adopted that allow it to access a large number of markets with tariff benefits, and a highly qualified workforce capable of learning new processes rapidly.”

THE growing demand for space in free zones has fostered healthy competition between many of the country’s largest industrial parks. All parks offer 24-hour security, modern telecommunications infrastructure and other amenities.

UltraPark Free Zone and BusinessCenter (www.ultrapark.com, 293-3333) in Heredia, just three kilometers from JuanSantamaríaInternationalAirport, is one of the country’s largest and most modern free zones. In recent years, it has been dedicated primarily to serving the needs of science, information services and technology companies.

Offices range in size from 150 to 3,300 square meters. About 85% of the 14-acre complex is occupied. It is home to the regional offices of several large multinational firms including French telecom giant Alcatel, pharmaceutical companies Pfizer and Roche.

UltraPark expects to continue growing in the coming years and is in the process of constructing an eighth office building with 24,000 square meters of available office space.

“LAST year was a good year. A few U.S. and local companies moved into the park,” explained Monica Montoya of UltraPark. “We expect the situation to definitely improve this year. So far this year, we’ve seen a lot of movement from foreign firms attracted by the Costa Rican Investment Board (TT, Jan. 30).”

Global Park Free Zone and BusinessPark (www.globalparkcr.com, 209-5959), also located in Heredia across the street from Ultrapark, says it is attracting a great deal of business as well.

The 85-acre park is also home to many prominent firms including Costa Rican software developer Exactus, JuanSantamaríaAirport operation and construction concession holders Alterra Partners and pharmaceutical giant Abbot Laboratories and Sykes Enterprises’ call center, which recently moved into a new building there.

NEAR the airport, Saret Zona Franca (www.gruposaret.com, 443-0001) is a free zone geared primarily toward industrial production, including several textile firms.

Saret’s General Construction Division can be commissioned to construct custom offices for companies moving into the 26-acre industrial park.

Saret also runs a Free Zone industrial park in the western province of Puntarenas.

ForumOffice Park and Euro Plaza Diursa (see related story) also offer freezone privileges inside their office centers for companies that meet the requirements.

However, despite the recent growth in the number of free-zone parks, a shadow hangs over the sector. The fiscal exemptions and other benefits free zones receive are supposed to expire in 2009, once World Trade Organization agreements on the elimination of export subsidies go into effect.

WITHOUT these benefits, it is possible Costa Rica could become less attractive for foreign firms. Despite this, representatives of the free zones are confident a permanent solution will be found.

The original January 2003 deadline to eliminate export subsidies was already pushed back, and that might happen again.

“Free Zones are very important to the country,” Montoya said. “They are responsible for nearly 60% of exports. They can’t disappear.”