The owner will rent the textile plant to a cooperative formed by the 300 employees who have been laid off.
The textile industry in Costa Rica has been in decline for the last eight years due to loss of international competitiveness, which has now been compounded by a fall in the dollar's value. These are the same reasons put forward by Michael Borg, owner of the textile company Borkar, on closing its operations in the country.
Textile companies had invested millions of dollars in creating new plants here in the hope of exporting clothing tariff-free into the Unites States.
That was before the Supreme Court’s Constitutional Chamber (Sala IV) decided that the lawmakers had missed a step in procedure and sent back the environmental law that had been passed only weeks before. Twelve similar CAFTA-enablement laws had been passed and are on the books, not without bitter debate and some difficulty, including the strenuously contested one to open telecommunications and another striking down the government insurance monopoly.