Costa Rica - poised for CAFTA at long last

Costa Rica is finally ready to join the Central American Free Trade Agreement with the U.S. The country had been the only straggler in Central America to join the pact, largely because signing on would mean significantly changing their revenue stream they obtain from imports. Traders I visited with this week here in Costa Rica were pleased with the development, noting that even though Costa Rica's fresh exports have enjoyed tariff free access to the U.S. because of extension of the Central American/Caribbean Basin Initiative. Now - when CAFTA is finalized - growers and packers in Costa Rica can buy U.S. machinergy, inputs and farm equipment for their operations at zero tariff. This, of course, is also a positive for U.S. fresh produce exports to Costa Rica. Here is the story from The Tico Times, the English language news in Costa Rica.



Costa Rica has cleared the last hurdle to joining the Central American Free-Trade Agreement with the United States (CAFTA).

Lawmakers this week passed the last bill required to enter the treaty, which also includes Nicaragua, Honduras, El Salvador, Guatemala and the Dominican Republic.

A Costa Rican delegation will meet with U.S. officials in Washington, D.C., this month to finalize the pact.

In addition to knocking down trade barriers, the treaty will strengthen intellectual property rights and open the state telecommunications and insurance monopolies.

Costa Rica signed CAFTA in May 2004. Voters approved it in a referendum in October 2007. It has been delayed by filibustering by opposition lawmakers.