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### Viewing cable 09SANJOSE862, PATHWAYS TO PROSPERITY: COSTA RICA PREPARES FOR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09SANJOSE862 | 2009-10-08 15:09 | 2011-03-14 18:00 | UNCLASSIFIED | 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

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHSJ #0862/01 2811509
    ZNR UUUUU ZZH
    R 081509Z OCT 09
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 1283
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

` `

    UNCLAS SAN JOSE 000862

    SIPDIS

    E.O. 12958: N/A
    TAGS: PREL ECON CS HO AMGT OPDC OVIP
    SUBJECT: PATHWAYS TO PROSPERITY:  COSTA RICA PREPARES FOR
    MINISTERIAL

    ¶1. SUMMARY.  Costa Rican officials are working diligently to
    prepare for a successful Pathways to Prosperity ministerial
    meeting in December, which they hope Secretary Clinton will
    attend.  In a meeting with visiting State Department
    officials, they undertook to coordinate efforts to improve and
    standardize the content of the draft working papers.  They
    also agreed on measures to continue involving only recognized
    Honduran officials in preparation for the ministerial.
    Meanwhile, the business community in Costa Rica has not heard
    about Pathways from the government but is interested in being
    involved.  END SUMMARY.

    ¶2.  WHA/EPSC Director Matt Rooney, EEB/TPP/BTA Director Bob
    Manogue, and WHA/EPSC officer Susan Garro visited Costa Rica
    September 16-17 to discuss Pathways to Prosperity with Costa
    Rican counterparts in preparation for the ministerial meeting
    in San Jose in December.  They held a productive joint meeting
    with officials from the Export Promotion Ministry (COMEX) and
    the Ministry of Foreign Affairs (MFA) and, separately, with
    the Chairs of the American Chamber of Commerce (AmCham) and
    the Chamber of Exporters of Costa Rica (CADEXCO).

    ¶3.  In the meeting with COMEX and the MFA, the delegation and
    their counterparts reached agreement on how to manage the role
    played by Honduras in Pathways.  Honduras is responsible for
    preparing one of four working papers to be presented at the
    December ministerial, and progress had been stymied since the
    assumption of power by the de facto government.  The group
    agreed that President Zelaya's Minister of Economy, Fredis
    Cerrato, would continue to coordinate the effort on this
    paper, while the technical work would be performed by staff of
    CENPROMYPE, an agency of the Central American Integration
    System that focuses on small and medium enterprises.  COMEX
    representative Esteban Aguero noted that, at a recent meeting,
    Central American foreign ministers had expressed openness to a
    solution of this nature.  The Costa Rican officials agreed to
    circulate to the governments participating in Pathways an
    updated e-mail addresses list that excluded officials in the
    Honduran de facto ministries and included CENPROMYPE.  This
    step was important, since technical level officials were
    communicating frequently via e-mail, and they inadvertently
    had been including Honduran officials who should not have been
    involved.

    ¶4.  Turning to the substance of the draft working papers,
    WHA/EPSC Director Rooney expressed concern that they were
    uneven, ranging from simply listing programs without analyzing
    lessons learned or highlighting successes, to laying out
    useful suggestions for sharing of best practices.  Aguero
    agreed and undertook to coordinate with the working group
    leaders and other interested countries to standardize the
    papers, ensuring they included appropriate analysis.  He
    suggested shifting the original planning schedule by a month,
    requiring the papers to be completed by late October or early
    November, and stressed that he wanted the declaration to be
    completed prior to the ministerial meeting.   He noted that
    the Inter-American Development Bank had offered assistance.

    ¶5.  The Government of Costa Rica (GOCR) was very hopeful that
    Secretary Clinton would attend the Pathways ministerial,
    Aguero emphasized.  He said President Arias and Foreign
    Minister Stagno planned to invite her when they met with her
    in New York on the margins of the UN General Assembly.  (Note:
    The conversation in New York ultimately focused mainly on the
    Honduras crisis, but the Secretary did express continued
    commitment to Pathways.  End note.)  Aguero noted that the
    Central American presidents would hold a summit in San Jose
    December 7 to 9.  Therefore, if Secretary Clinton came to the
    Pathways ministerial December 10 or 11, she could meet with
    them.  In addition, the GOCR could plan activities for her
    related to climate change, gender, youth, and/or development
    of small and medium enterprises.  Aguero made clear that Costa
    Rica was willing to adjust the dates of the ministerial to
    accommodate Secretary Clinton's schedule.  Rooney responded
    that perhaps more important than the dates was the expected
    outcome; there needed to be a good result to make it
    worthwhile for the Secretary to participate.

    ¶6.  The Costa Rican officials commended the USG's efforts to
    host in October a program fostering women entrepreneurs'
    access to international markets and finance.  Rooney suggested
    that Costa Rican officials host a follow-on event in San Jose
    to leverage the experience of the Costa Rican participants to
    a wider audience.

    ¶7.  EEB/TPP/BTA Director Manogue asked the Costa Ricans for
    their honest assessment of the value of Pathways to Prosperity
    for their country.  Aguero responded enthusiastically that
    Pathways opened the door to working with economic partners on
    social issues that arose in the context of trade agreements
    but were not addressed by them.  Manogue suggested that it was
    essential for each participating government to identify

    several specific objectives that they wished to accomplish
    through Pathways.

    ¶8.  In their meeting with the delegation, the CADEXCO and
    AmCham Chairs said they had not heard about Pathways from the
    GOCR.  However, they believed it could be a useful forum to
    address concerns about issues that were related to but not
    covered by trade agreements.

    ¶9.  Commenting that free trade was important but not enough,
    CADEXCO Chairwoman Monica Araya described the associations'
    efforts to prepare their members to compete.  She and AmCham
    Chairwoman Lynda Solar stressed that GOCR officials were not
    trained adequately to administer Costa Rica's free trade
    agreements (FTAs).  As an example, she described a case in
    which GOCR officials had given a business export permits for
    three containers of perishable merchandise.  However, when the
    product arrived in the Dominican Republic, Dominican officials
    halted the shipment, because it lacked appropriate paperwork
    from Costa Rica.  The business owner had to fly to the
    Dominican Republic, and she and CADEXCO spent days resolving
    the problem.  Araya said the trade associations have compiled
    a book that analyzed the performance of the GOCR institutions
    involved in FTAs.  She underscored that the GOCR must invest
    in training personnel in order to be able to manage the FTAs
    effectively.  Rooney said the trade associations' book could
    be of interest to the Pathways working group on
    competitiveness and cross-border movement of trade chaired by
    Panama.  Manogue stressed that specific issues arising from
    the implementation of CAFTA should be dealt with in the
    mechanisms provided for by CAFTA, while agreeing that Pathways
    would be a useful tool for sustaining the political commitment
    to needed reforms.

    ¶10.  Araya and Solar thought it would be important for private
    sector representatives to participate in the Pathways
    ministerial.  Rooney welcomed their interest.  At the same
    time, he explained some private sector participants in other
    international fora had found the discussions sterile, and
    Pathway organizers wanted to avoid that dynamic.  Solar asked
    whether CAFTA trade capacity building funds could be directed
    to Pathways projects.  Rooney responded that Pathways did not
    involve assistance projects but worked at a policy level in
    parallel to those programs.

    ¶11.  COMMENT:  Costa Rica's Export Promotion Ministry
    officials are truly enthusiastic about Pathways and will do
    everything possible to make the ministerial a success.  That
    said, they have not yet been able to articulate concrete
    outcomes that they would like to see from Pathways.  We will
    continue to encourage them to try to identify specific
    objectives.  Without that vision, Pathways will have limited
    impact on the lives of Costa Rican citizens.  END COMMENT.
    The delegation cleared this message.
    BRENNAN

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