Many Costa Ricans Still Favour CAFTA – Poll data saying that most Costa Rican would vote in favour of DR-CAFTA, though the number is still 45 percent with 23 percent undecided (which is up from 18 percent).

Catholic church worried DR-CAFTA will split the country – church leaders are calling for tolerance for those on both sides of what is a divisive issue for the country.

Costa Ricans worried about water privatisation – Via Prensa Latina, Costa Rican are worried about water becoming more of a commodity.

Costa Rica’s opposition leader wants renegotiation – Opposition leader Solis wants to renegotiate DR-CAFTA (at least Costa Rica’s part) in order to add Labour and Environmental standards.

Telecommunications, as noted in our report, is one of the central issues of DR-CAFTA. Costa Rica’s telecoms infrastructure is one of great pride for Costa Rica, and the idea of having it privatised brings up strong feelings.

Costa Rica’s citizens will be voting directly on whether or not to approve DR-CAFTA.

The Costa Rican press has been reporting on the unconstitutionality action brought by the Defensoría de los Habitantes (a citizen ombudsman), and 17 legislators from several opposition parties. The argument is that the existing text in CAFTA violates several constitutional norms, particularly with regards to the opening of the telecommunications market. The Costa Rican Constitutional Court (Sala IV) has voted to uphold the constitutionality of the agreement 5 votes in favour and 2 against (2007-09469). The Court’s full opinion has not been published yet, but the vote has been made available by the press. I will write a brief outline of the analysis as soon as it is published, as this may prove to be an extremely important and historic decision.

This ruling will green-light the referendum. The YES camp is consistently ahead in the polls, with roughly 50% of the voting population in favour of its approval.

• Sonia Picado, former Costa Rican Ambassador and President of the Inter-American Institute of Human Rights
• Todd Tucker, Research Director of Public Citizen’s Global Trade Watch
• Jose Carlos Quirce, Costa Rica’s Special Envoy for CAFTA in Washington
• Otton Solis, who ran against Oscar Arias in last year’s presidential election
• Alan Thompson, Partner at Bufete Thompson & Asociados in Costa Rica

Costa Rica: Yes to CAFTA?

The legislative and executive branches of Costa Rican government have been unable to reach a decision on ratification, and as a result, it has been decided that the people of Costa Rica will directly vote on the issue in a nationwide referendum to be held in September 2007.  Costa Rican president Oscar Arias Sánchez has been trying to gain approval of DR-CAFTA, which was a part of his presidential platform in the sharply contested 2006 elections.

It also has been reported that Costa Rica’s Constitutional Court has also announced that it will review the constitutionality of the agreement. Their findings are expected in June.

Costa Rica is the only country in the DR-CAFTA agreement which has signed but not ratified the agreement.  The other countries are Guatemala, El Salvador, Honduras, Nicaragua, the Dominican Republic, and the United States.  The agreement was originally negotiated without the Dominican Republic, who was added after the text was finalized and the agreement was renamed DR-CAFTA (or CAFTA-DR).  It has been ratified and has entered into force with all parties save Costa Rica.

Postscript: After a hiatus, this blog will return to regular updates (marking and other projects have taken their toll).

Source: La Nación.

The treaty is in [the Costa Rican] Congress, slowed down by a legal battle over whether President Oscar Arias can use a fast-track system to limit debate.

Smaller protests also took place across Costa Rica and several people were arrested when police broke through a protesters roadblock in the town of Siquirres.

Costa Rica is the only country among the DR-CAFTA parties not to have ratified the agreement. For the record, the others are:

• United States
• El Salvador
• Guatemala
• Honduras
• Nicaragua

Though there have been protests, the measure is expected to pass. This comment about the affects of the agreement caught my eye:

Some in Costa Rica worry the trade deal will lead to the privatisation of the state-run telephone company and hurt the social security system.

DR-CAFTA contains an entire chapter (13) that addresses telecoms regulation. Not only that, but there is a specific annex to chapter 13 that addresses Costa Rica. It contains section III 2. Gradual and Selective Opening of Certain Telecommunications Services which makes commitments to open up ‘private network services’, internet services, and mobile phone services on a certain schedule. This list specifically excludes public fixed line telephony, but issues concerning these areas are addressed further in the obligations for interconnection and use of physical infrastructure.

So while the state-run telephone company might not disappear, it will certainly have some competition. Will it, like BT here in the UK, lead to greater competition, and hopefully lower prices (and better quality) for consumers? This is what I see as the central issue, rather than simply wanting to preserve the state telephone system solely because they want a state telephone system.

It appears that the US is not convinced that the Dominican Republic has fully complied with DR-CAFTA requirements. [bilaterals.org].

New book out by several contributors to the International Economic Law and Policy Blog — Research Handbook in International Economic Law. If anyone gets a chance to review it, please post in the comments. I would very much like to give it a look-through in relation to the project. [Edgar Elgar].

More blogosphere news

From Global Voices comes a discussion on DR-CAFTA events in Costa Rica. Of particular relevance to this project is the part discussing moves by companies to provide broadband services once the markets are fully open. One private company is rolling out WiMax to meet the need. [Global Voices].

Daniel Ikenson over at Cato comments on imports and free trade in relation to the US President’s Trade Promotion Authority, which is due to expire this summer. [Cato].

The Trade Diversion blog doesn’t think much of the import arguments used by Ikenson in relation to DR-CAFTA. [Trade Diversion].

I must admit that I’m still torn. While it is clear that the agreement is good for the Costa Rican economy, I’m disgusted by the storng IP enforcement clauses that ave been included into the treaty.

Bush was briefed about the legislative process to approve CAFTA, and while he did not put any public pressure for the approval, he did mention that trade is one of the most important elements for development. Costa Rica is the largest economy in the CAFTA treaty, and its absence in the agreement would a tremendous blow for the free trade zone.

Bush also mentioned that he may look into condoning $104 million USD in debt that Costa Rica has with the USA in exchange for investment in health and education. Bush stated that those countries which invested in education and not in weapons should be rewarded in some form.

I must admit that when I heard that my irony meter broke and I could not continue listening to the press conference, so I don’t know if something else of importance was mentioned.