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### Viewing cable 05SANJOSE1940, COSTA RICA AND ASIA TRADE ISSUES IN THE MEDIA

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05SANJOSE1940 | 2005-08-19 21:09 | 2011-03-14 18:06 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-12/Investigacion/NotasDestacadas/Investigacion2711772.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasDestacadas/Investigacion2707705.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707712.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707716.aspx

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SAN JOSE 001940

    SIPDIS

    SENSITIVE

    WHA/CEN
    EB FOR WCRAFT, BLAMPRON
    E FOR DEDWARDS
    WHA/EPSC FOR KURS, LGUMBINER
    STATE PASS TO USTR FOR RVARGO, CPADILLA, AMALITO

    E.O. 12958: N/A
    TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
    SUBJECT: COSTA RICA AND ASIA TRADE ISSUES IN THE MEDIA

    ¶1.  (U) Summary.  In the midst of President Pacheco's 12-
    day trip to Taiwan and Japan, issues surrounding trade
    between Costa Rica and several Asian countries have been
    recent topics in the local press.  While in Taipei,
    President Pacheco discussed his intentions to pursue a free
    trade agreement (FTA) with Taiwan.  (Several months ago,
    Minister of Foreign Trade (COMEX) Manuel Gonzalez announced
    Costa Rica's intentions to pursue free trade talks with
    Japan.)  While in Tokyo, Japanese business representatives
    urged passage of the United States-Central American-
    Dominican Republic free trade agreement (CAFTA-DR).
    Despite not having official relations with China and being
    one of only two dozen nations to officially recognize
    Taiwan, trade with China is growing rapidly.  End Summary.

    ¶2.  (U) According to an August 17, 2005, article in "La
    Republica," Costa Rican exports to Taiwan have grown from
    USD 9.9 million in 2000 to USD 38.4 million in 2003, but
    decreased slightly last year to USD 34.8 million.  Pacheco
    stated that starting free trade negotiations with Taiwan is
    a strategic decision to penetrate Asian markets.  Costa
    Rican business people have criticized this decision and
    stated that greater attention should be placed on the more
    important markets of the U.S. and European Union (EU).
    These critics said that Pacheco's decision regarding an FTA
    with Taiwan shows a lack of vision and knowledge by the
    current administration.  "This is not the time to try to
    start negotiations with Taiwan when we cannot even move
    forward on the free trade agreement with the U.S.," said
    Sergio Navas, Executive Vice President of the Costa Rican
    Chamber of Exporters.

    ¶3.  (U) Press coverage has also been given to trade with
    China.  The aforementioned "La Republica" article revealed
    that Costa Rican exports to China have grown from USD 30.1
    million in 2000 to USD 300.1 million in 2004 (almost nine
    times the exports to Taiwan in 2004). "In the trade aspect,
    the potential of China is enormous and is more attractive,"
    said Mayi Antillon, Vice President of the Industry Chamber.
    Critics of President Pacheco state that "giving priority to
    an agreement with Taiwan would show a lack of clarity in
    the administration's trade policy."  A similar article
    covering the growth in exports to China appeared in the
    August 18, 2005 "La Prensa Libre."

    ¶4.  (U) An August 19, 2005 "La Republica" article revealed
    that Japanese business representatives stated that approval
    of CAFTA-DR would be seen as progress in the process of
    regional economic integration, and is considered essential
    in attracting increased investment to Central America.  The
    business representatives assured that CAFTA-DR will bring
    new economic opportunities to the region.

    ¶5.  (SBU)  Comment.  Costa Rica has a long history of
    diplomatic ties with Taiwan.  President Pacheco's
    announcement to pursue an FTA with Taiwan may be more
    public relations than anything else.  In addition, Minister
    Gonzalez, who has been working on finishing FTAs including
    CAFTA-DR that were started by his predecessor, may be
    motivated by his desire to make his mark in the FTA arena.
    COMEX has its hands full with implementing the recently
    approved FTA with the 12-Caribbean nation group CARICOM,
    and working on the numerous issues related to CAFTA-DR
    ratification.  The recent announcements of intentions to
    pursue FTAs with Taiwan, the EU, and Japan are lofty goals
    but may not reflect COMEX's current capabilities,
    especially given the departure of many key personnel over
    the last year.
    FRISBIE

`