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### Viewing cable 05SANJOSE1713, COSTA RICAN REACTION TO CAFTA-DR APPROVAL IN THE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05SANJOSE1713 | 2005-07-28 22:30 | 2011-03-03 16:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-03/Investigacion/NotasDestacadas/Investigacion2697430.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotaPrincipal/Investigacion2697496.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697489.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697532.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697535.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2701964.aspx
http://www.nacion.com/2011-03-03/Investigacion/Relacionados/Investigacion2701965.aspx

`

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

` `

    UNCLAS SECTION 01 OF 02 SAN JOSE 001713

    SIPDIS

    SENSITIVE

    WHA/CEN
    EB FOR WCRAFT
    E FOR TSMITHAM
    WHA FOR WMIELE
    WHA/EPSC FOR KURS
    H FOR JHAGAN
    STATE PASS TO USTR FOR JYOUNG, CPADILLA, AMALITO

    E.O. 12958: N/A
    TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
    SUBJECT: COSTA RICAN REACTION TO CAFTA-DR APPROVAL IN THE
    U.S. CONGRESS

    REF: (A) SAN JOSE 01587

         (B) SAN JOSE 01636
         (C )SAN JOSE 01693
         (D) SAN JOSE 01455

    ¶1. (U) Summary.  After passage of the CAFTA-DR implementing
    legislation in the late evening hours (in Costa Rica) by
    the U.S. House of Representatives, GOCR officials, private
    business persons, and labor leaders offered their
    reactions.  Local media coverage of the ratification
    process in the U.S. has been intense, and the approval in
    the U.S. made front-page headlines in almost all of the
    major national daily newspapers.  At this time, it appears
    that approval in the U.S. did not change the overall
    opinions of these Costa Ricans, but it has brought
    increased focus on CAFTA-DR and a sense of urgency to some
    regarding the need to start formal discussions of this
    issue in the Legislative Assembly.  End Summary.

    ¶2.  (U) Local media have been following the U.S. House of
    Representatives' vote closely.  As an example of the high
    profile of this event, the vote was carried live on CNN en
    espanol on cable systems.  Daily newspapers, "La Nacion,"
    "La Republica," and "La Prensa Libre" made the CAFTA-DR
    issue front-page news, and interviews of key CAFTA-DR
    personalities filled the airwaves offering their reactions
    to the approval in the U.S. Congress.

    ¶3.  (U) Minister of Foreign Trade (COMEX) Manuel Gonazalez
    was quoted as stating that "the approval of CAFTA yesterday
    fills us with optimism.  However, Costa Rica will continue
    its process of analysis on its own timetable."  These
    statements are consistent with his and President Pacheco's
    previous lukewarm and conflicting comments about the
    ratification process in Costa Rica (Refs A and B).  COMEX
    is the governmental organization that negotiated CAFTA-DR
    and is responsible for production and implementation of the
    complementary agenda for CAFTA-DR (Ref C).

    ¶4.  (U) Oscar Arias, former president of Costa Rica and
    front runner in the next presidential election, stated that
    he is very happy with the vote in the U.S. and that "it is
    an opportunity to boost development, to increase investment
    that will create employment opportunities.".  He goes on to
    state that he hopes that the current administration will
    decide to send CAFTA-DR to the Legislative Assembly.  He
    added that to not do so would have a negative effect on the
    country.

    ¶5.  (U) Gerardo Gonzalez, President of the 57-member
    Legislative Assembly, told the press that he would like the
    President to send CAFTA-DR to the Assembly as soon as
    possible to allow discussions to begin on this important
    issue.  He stated that "the country is falling behind . and
    it is urgent that we start discussion [of CAFTA-DR] in the
    Assembly." He added that he is against the President's
    condition of requiring approval of the Fiscal Reform (tax
    increase) bill prior to sending CAFTA-DR to the Assembly
    for ratification (Ref D).  Gonzalez is opposed to the
    Fiscal Reform bill in its current form because special tax
    treatment that some Assembly members have proposed in over
    1000 amendments to the bill.

    ¶6.  (U) Those opposed to CAFTA-DR tried to minimize the
    approval vote of the U.S. Congress.  Albino Vargas,
    President of the approximately 15,000-member National
    Association of Private and Public Employees (ANEP),
    continued to voice his opposition to the agreement and
    stated that approval in the U.S. did not change his or the
    organization's stance on CAFTA-DR, and that it has nothing
    to do with ANEP's labor agenda.  He stated that
    "independently of what the U.S. decides, the struggle of
    those in Costa Rica who oppose CAFTA-DR continues
    unaltered.  There is a large part of the citizenry that
    will take to the streets when CAFTA-DR is sent to the
    Assembly."

    ¶7.  (U) In a discussion with Poloff, Rodrigo Aguilar,
    president of the 90,000-member labor union federation Rerum
    Novarum, expressed his disappointment that CAFTA-DR was
    passed by the House of Representatives, but holds out hope
    that Pacheco's Commission of Eminent Persons will return a
    negative recommendation (Ref B).  He acknowledged that
    Pacheco will come under increasing pressure from commercial
    interests to present the treaty but believes Pacheco will
    wait for the Commission's report, which will be available
    no sooner than September 17, 2005.  Aguilar reconfirmed his
    labor organization's determination to participate, if not
    organize, anti-CAFTA-DR demonstrations upon its
    presentation to the Legislative Assembly.  When asked
    whether he had considered possible uses for labor
    enforcement funds attached by the U.S. Senate, he admitted
    he had not thought of this, but agreed it could have
    positive impact.

    ¶8.  (U)  In "Al Dia," Epsy Campbell, head of the left-
    leaning Citizens' Action Party (PAC) Assembly members,
    expressed that "we will do everything possible to ensure
    that [CAFTA-DR] is not approved in Costa Rica.".  She
    believes that the country deserves something better and
    acknowledges that increased pressure will come to pass
    CAFTA-DR, not only from the U.S., but also from the local
    business sector.

    ¶9.  (U) Many local business representatives see the
    approval in the U.S. as a very positive sign, and
    acknowledge that there is now a sense of urgency in the
    ratification process in Costa Rica.  Miguel Schyfter, owner
    of a clothing manufacturing company, stated that "we must
    hasten the [ratification] process because there are
    thousands of textile workers who will see their jobs move
    to other Central American countries if investment
    conditions are not clarified [via implementation of CAFTA-
    DR] in Costa Rica."  Bart De Lange, an exporter of
    ornamental plants, stated that "investment in Costa Rican
    business is paralyzed because of the delay with the
    ratification process of CAFTA-DR.  Ratification in the U.S.
    puts us up against the clock."  Other business
    representatives said that every day that passes without
    CAFTA-DR in effect is a lost opportunity to take advantage
    of the benefits of the trade agreement.

    ¶10.  (U)  Luis Guillermo Solis, a noted political analyst,
    stated that "the approval of CAFTA-DR in the U.S. has
    increased the pressure to start the discussions in Costa
    Rica.  However, the current political setting for this
    discussion is not the best.  It would be irresponsible to
    discuss this issue in the middle of an electoral campaign."
    He implies that, since the entire Assembly and
    Administration will change, this issue should be left to
    the next Legislative Assembly and Administration which will
    take office in May 2006.

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    COMMENT
    -------

    ¶11.  (SBU)  The process of passage of the implementing
    legislation by the U.S. House of Representatives has not
    yet had a noticeable effect on the GOCR.  President Pacheco
    has painted himself into a corner by publicly and
    repeatedly stating that he will not send CAFTA-DR to the
    Assembly until (1) the Commission of Eminent Persons
    delivers its report to the President; and (2) the Assembly
    passes the Fiscal Reform bill.  The former task will not be
    completed, at the earliest, until mid-September, and it is
    doubtful that the latter task will ever be completed in his
    administration.  The one thing that is certain is that
    President Pacheco's administration will have to live with
    more pressure from those favoring CAFTA-DR and those
    against.
    KAPLAN

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