While President Solis prepares to attend the summit in Chile without having a definite position, nine private unions have formed a Business Council to promote adhesion to the trade bloc.
The Chamber of Industries of Costa Rica explains that"... this mechanism of coordination of efforts between private sector entities will promote the Pacific Alliance within the business community and maintain an open and continuous dialogue with the Government and with political organizations and representatives of civil society, in order to present and submit recommendations and suggestions for the proper conduct of the process of integration and economic and trade cooperation between Costa Rica and the other countries who are members of the Pacific Alliance. "
After two years of government, the Solis administration remains indecisive and has still not resolved this vital issue, which even though it is opposed by several productive sectors of the country, needs urgent resolution.
The country's entry into the commercial alliance composed of Chile, Colombia, Mexico and Peru would represent a very significant change for the economy of Costa Rica, a change that sectors producing goods and services would have to integrate into their strategic plans, which is why they need clear signals regarding the direction to be taken.
The National Rice Corporation states that adhering to the regional initiative blights what has been achieved in bilateral agreements with each country in the Alliance.
The Costa Rican agro industry has closed ranks against the country's accession to the Pacific Alliance. Both producers and the minister himself, Luis Felipe Arauz, have stated that the agreement is unfavorable for products such as rice, coffee, swine, beef cattle, ornamental flowers and strawberry growers.
They argue that joining the bloc offers growth potential for commercial partners who to date represent only 4% of total exports.
Enrique Egloff, president of the Chamber of Industries of Costa Rica provided support for this with figures which show that in 2015 Costa Rica's exports to the countries in the Pacific Alliance totaled $377 million and imports $1.786 billion.
Once again the Presidency has spoken out to calm investors denying the insinuations of a Deputy Minister related to opening up the discussion on the free trade zone regime.
According to an article in Crhoy.com, the Deputy Minister of Labour, Harold Villegas, mentioned in the framework of the International Forum of Social Solidarity Economy that "as a society we should discuss the activities that should or should not be tax-free and although free zones functioned well in a moment of history, it's time to move towards a system of greater tax justice and for a more open discussion to take place. "
The government started selling pork from local producers to industrialists who normally prefer to import it from Chilean producers at lower prices.
EDITORIAL
A section of the Solis administration is still implementing protectionist concepts that are in conflict with the development model which is open to foreign trade reflected so far in multiple FTAs.
The government is waiting for more technical studies and analyzing the effects it would have on local production if entry of goods and services from Chile, Peru, Mexico and Colombia were fully liberalized .
Although the previous Chinchilla administration had taken firm steps to join the trade bloc, the current President Solis, has cooled down the process, which in order to continue must wait for the Ministry of Foreign Trade to complete further studies on commercial sensitivity, and later present them for public consultation.
The government has announced the opening of a consulate in Shanghai and other efforts to open others in cities where there is high purchasing power in an effort to attract people to the Costa Rican tourism sector.
From a statement issued by the Government of Costa Rica:
Tourism is one of the axes that form part of the strategic partnership relations between Costa Rica and China, with concrete actions leading to an increase in visits by tourists , the beginning of efforts to establish a direct flight and contact made by tour operators.
Citing the old concepts of food sovereignty, protection is being given to the inefficient production of the few while the consumption capacity of the poorest is punished.
EDITORIAL
As expected, the government of Luis Guillermo Solís has decided to apply the safeguard measure requested by rice farmers, increasing the tax paid on imports of milled rice from 35% to 62%, which in practice only applies to rice bought in Argentina and Uruguay.
The Solis administration has signed a memorandum of understanding with the Chinese government to begin studying the feasibility of setting up a special economic zone in Costa Rica for enterprises from China.
As part of the agreement signed between the two governments, feasibility studies will be started along with defining where the zone will be sited.
An announcement has been made that operation permits will be extended to 18 companies already operating under the scheme and licenses granted to four new firms who will enter the scheme in the short term.
According to indications made by the president Luis Guillermo Solis to AmeliaRueda.com, 22 decrees have been signed which "... relate to expanding and awarding new licenses to these companies ...
Making it clear that their international trade policies will be more protectionist than those of previous governments, the Solis administration has poured cold water on the accession to the group formed by Mexico, Colombia, Peru and Chile.
Editorial
This theme marks the differences within the government of President Luis Guillermo Solis. While the Minister of Foreign Trade (COMEX) Alexander Mora would be inclined to maintain the openness to the world that has characterized Costa Rica in recent years, Luis Felipe Arauz, Minister of Agriculture and Livestock (MAG), publicly expressed opposition to entering the block of nations under the current conditions.
The Santa Fe Bridge, built in Nicaragua over the San Juan River, 5 kilometers from the border with Costa Rica, will not be opened as long as the confrontation between the two governments continues.
362 meters long and 40 meters high, the Santa Fe Bridge required a $30 million investment donated by the Government of Japan.
At the same time as constructing the bridge, Nicaragua also built a road along the south coast of the river ending up on the border with Costa Rica, which will facilitate exports from the central region travelling to Puerto Limon in Costa Rica and also help the flow of Nicaraguans entering and exiting the border with their southern neighbor.
The presidential candidate Luis Guillermo Solis announced he will strengthen intraregional trade if he wins on April 6th.
In a meeting with representatives from the Costa Rican Chamber of Food Industry (Cacia), Luis Guillermo Solís, presidential candidate of the Citizen Action Party, said that a new government would strengthen trade with Central America and the Caribbean.
While the outgoing administration rushes through entry to the Pacific Alliance, one of the two possible next presidents is opposed to new treaties.
In a meeting with the Chamber of Exporters, Luis Guillermo Solís, presidential candidate of the Citizen Action Party, said that if he wins the Presidency of the Republic in April, he will slow the signing and negotiation of new FTAs.
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