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### Viewing cable 09SANJOSE256, EU/CENTAM FTA MARKETED AS A "COOPERATION" ACCORD, BUT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09SANJOSE256 | 2009-03-31 13:00 | 2011-03-14 19:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose
Appears in these articles: http://www.nacion.com/CustomerFiles/nacioncom/Generales/Subsitios/Investigacion/2011/WikiLeaks/bin-debug/ZoomWiki.html http://www.nacion.com/2011-03-13/Investigacion/NotasDestacadas/Investigacion2709043.aspx

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHSJ #0256/01 0901300
    ZNR UUUUU ZZH
    R 311300Z MAR 09
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 0696
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHBS/USEU BRUSSELS

` `

    UNCLAS SAN JOSE 000256

    SENSITIVE
    SIPDIS

    DEPT FOR WHA/CEN; WHA/PPC; WHA/EPSC; EEB/TPP; EUR and H
    PLEASE PASS TO USTR FOR DOLIVER AND AMALITO

    E.O. 12958: N/A
    TAGS: ETRD ECON PGOV PREL CS EUN
    SUBJECT:  EU/CENTAM FTA MARKETED AS A "COOPERATION" ACCORD, BUT
    DOUBTS PERSIST IN COSTA RICA

    ¶1. (SBU) SUMMARY.  On March 2, the Costa Rican Ministries of Foreign
    Affairs (MFA) and Foreign Commerce (COMEX) hosted a seminar on the
    Agreement of Association between Central America and the European
    Union (Spanish acronym, AACUE).  Cabinet ministers and other
    speakers touted the AACUE as a welcome departure from "other trade
    agreements" negotiated in the region (read: CAFTA-DR).  Speakers
    emphasized the AACUE's focus on "cooperation" and "political
    dialogue" and lauded EU aid commitments embedded in the agreement.
    Privately, however, some GOCR contacts seem less impressed.  The
    Costa Rican Ambassador to the EU opined that the AACUE's focus on
    "dialogue" and "feedback" is just "marketing."  Other contacts
    question whether the EU will come through on the 34 million Euros in
    aid earmarked for Costa Rica, and worry about strings that may be
    attached.  END SUMMARY.

    --------------------------------
    GOOD VIBRATIONS AND HIGH PRAISES
    --------------------------------

    ¶2. (U) COMEX Minister Marco Vinicio Ruiz opened the conference with
    a theme that would be repeated by each speaker:  The AACUE is more
    than a trade agreement; its goal is the overall well-being of the
    Central American region.  He noted that the AACUE's three pillars -
    commerce, cooperation, and political dialogue  - set it apart from
    other trade agreements to which Costa Rica has recently been a party
    (a clear, if unstated, reference to CAFTA-DR).

    ¶3. (U) Minister of Planning Roberto Gallardo went further in
    contrasting the AACUE and CAFTA.  Unlike "other trade agreements,"
    Gallardo noted, "the AACUE expressly focuses on cooperation and
    dialogue."  Gallardo stated that this approach makes sense given
    Costa Rica's and Europe's social and political affinities.  He
    reminded the audience that, while the "superpowers were using the
    nations of Central America as pawns," the EU supported the Central
    American peace plan proposed by Costa Rican President Oscar Arias.
    Because of this, Gallardo said, "no one is protesting in the
    streets" over the AACUE.  Gallardo welcomed the AACUE as a chance
    for "the EU to return to political influence in the region."

    ¶4. (U) In a similar vein, Roberto Echandi, Costa Rican Ambassador to
    the EU and lead AACUE negotiator, emphasized that the AACUE will
    allow broader sections of society to have a voice.  In addition to
    traditional administration-level trade talks, the AACUE contemplates
    an "inter-parliamentary commission," formed under the auspices of
    PARLACEN, and a "civil society commission," drawn from the labor,
    business, and NGO sectors.  These commissions will give feedback on
    the implementation process and conduct dialogue with counterpart
    groups on the EU side.  Echandi also unveiled a website through
    which private citizens can comment on or suggest development
    projects.  (http://www.aacue.go.cr/).

    ---------------------
    PROCESS VS. MARKETING
    ---------------------

    ¶5. (SBU) On the margins of the conference, Ambassador Echandi said
    these dialogue groups will have no real role in negotiating or
    implementing the AACUE.  Rather, they are an opportunity for
    interested parties to gather, comment, and feel like they are "part
    of the process."  Echandi candidly described these mechanisms as
    "marketing."

    ---------------------------------------------
    THE MUCH ANTICIPATED EU COOPERATIVE BANDWAGON
    ---------------------------------------------
    ¶6. (U) Ambassador Echandi also focused on the "cooperation" prong of
    the AACUE.  He announced that the EU is pledging 34 million Euros to
    Costa Rica for development projects through 2013.  Part of this
    money, Echandi said, will be provided "on demand," meaning Costa
    Rica will be able to use it "without regard to the priorities of the
    donor."  Echandi listed several projects already in the pipeline,
    including programs to assist Costa Rican producers to reach EU
    quality control and sanitation standards; education projects;
    programs to encourage women-owned businesses; and community policing
    and other "bottom up" security plans.

    --------------------------------------------- ------
    BUT THE COOPERATIVE BANDWAGON MAY HAVE AN EU DRIVER
    --------------------------------------------- ------

    ¶7. (U) Speakers from the EU brought a measure of realism to the
    seminar.  Estefano Sannino, Director for Central American Relations
    at the EU, emphasized the complexity of the AACUE negotiations.  He
    said "the last issues will be the most difficult" but hoped to
    complete the next round of negotiations by the end of March.
    Christina Martins, lead negotiator for the EU, reminded the audience
    that the EU considers Costa Rica a "middle income" country which

    will not receive the same level of aid as others in the region.  She
    also cast doubt on Ambassador Echandi's statement regarding "on
    demand" funding.  Martin mentioned that, while recipient countries
    will propose development projects, such projects will be reviewed by
    the EU and "jointly planned" by the EU and the recipient country.

    --------------------------------------------- -
    SKEPTICISM REGARDING THE COOPERATIVE BANDWAGON
    --------------------------------------------- -

    ¶8. (SBU) Several days after the conference, we asked a key
    senior-level contact at COMEX about the prospective cooperative
    assistance under the AACUE, specifically the 34 million Euro
    commitment.  The contact doubted whether the EU would actually make
    that amount available and believed that, at a minimum, it would be
    tied to various controls, benchmarks, and reporting requirements.
    Our source went further, questioning the EU's motives for promising
    the assistance.  In an interesting contrast to the "anti-CAFTA" tone
    of the seminar, the contact recognized that CAFTA-DR actually
    cleared the way for the AACUE to proceed.

    ¶9. (SBU) We heard similar comments from a contact at Chemonics, a
    USAID contractor working on trade capacity building (TCB) issues in
    Costa Rica.  This contact also questioned the EU's promised level of
    assistance and the EU's motives.  The contact maintained that EU
    assistance is more appropriate for less developed countries.  The
    contact also reported an exchange with a Costa Rican colleague who
    asked, "Does the EU think that we are in diapers?"

    ------------------------------------------
    ONTO THE 7TH ROUND. . .WITH LITTLE DETAILS
    ------------------------------------------

    ¶10. (U) The seminar provided few details about the progress of
    substantive negotiations.  Costa Rican Foreign Minister Bruno Stagno
    stated that Costa Rica hopes to complete negotiations by May 2009,
    to allow six months for legal review, and to present the texts for
    ratification at the beginning of the Spanish presidency of the EU in
    ¶2010.  (This timing would also nicely cap President Oscar Arias'
    term in office, which ends May 1, 2010.)  Minister Ruiz stated that
    the sixth round of negotiations has now been completed, and that a
    seventh round will soon begin in Tegucigalpa.

    -------
    COMMENT
    -------

    ¶11. (SBU) The notably high-powered seminar appears to be part of a
    strategy to portray the AACUE as a "kinder, gentler" trade
    agreement, as distinguished from CAFTA.  The seminar focused almost
    entirely on the "cooperation" and "dialogue" aspects of the deal and
    ignored the status of substantive trade issues.  The GOCR no doubt
    wants to avoid a repeat of the protracted and contentious domestic
    political debate provoked by CAFTA (and to clear the way for the
    next potentially controversial FTA, with China).  The risk will be
    if the ministers (and the public) believe the "marketing campaign"
    promoting the AACUE.

    ¶12. (SBU) The private, more candid comments by the GOCR and
    Chemonics interlocutors remind us that all is not rosy between Costa
    Rica and Europe.  Tough trade issues remain, as would be expected in
    a comprehensive agreement like this, and a notable level of distrust
    exists on the Costa Rican side, specifically within the GOCR
    negotiation team.  Despite these behind-the-scenes realities, the
    seminar successfully conveyed to the public and the media the
    perception of the AACUE as inclusive and collaborative.  A lesson
    learned for the USG (which we are applying here) is to "market"
    CAFTA-DR in a more comprehensive manner, emphasizing the
    collaborative nature of the Agreement, its shared benefits to all
    member countries, and the "inclusive" aspects of our CAFTA trade
    capacity building assistance for Costa Rica and the region.

    CIANCHETTE

`