Between 2 and 9 July, the Ministry of Foreign Trade of Costa Rica will be consulting different sectors who have already expressed their opposition to the move.
Representatives from businesses and industrial food sectors announced their stiff resistance to negotiations on a free trade agreement whose first round begins July 30 in Colombia, revealing that they will request the exclusion of various products from the agreement.
Beyond the dubious benefits of an FTA itself, what Costa Rica is aiming to do is to complete the requirements to become a full member of Pacific Alliance.
The presidents of Costa Rica, Laura Chinchilla, and Colombia, Juan Manuel Santos, launched negotiations for an FTA between both countries in San Jose today.
Costa Rica already has existing free trade agreements with Mexico, Peru and Chile, which together with Colombia make up the Pacific Alliance, a club that besides being a commercial arena in itself, is also a tool for better conditions in trade negotiations with the Asian Pacific countries.
The government of the Asian power has an interest in negotiating a free trade agreement with the entire region seen as one market.
In the near future, a matter of months, South Korea wants to begin negotiating a free trade agreement with Central American countries, said the South Korean ambassador in Nicaragua, Soon Tae Kim.
"My government is currently studying with Central American countries in this regard (the feasibility of an FTA).
While Costa Rica, Panama and Honduras continue to negotiate a trade agreement with the European countries who are not part of the EU, Guatemala has ruled out participating.
Three Central American countries were to begin on Monday in Panama the second round of negotiations for the European Free Trade Association (EFTA) comprising of Iceland, Lichtenstein, Norway and Switzerland, to sign a Free Trade Agreement (FTA), reported the Diario de Centro America.
Costa Rican agricultural employers are demanding from the state better management of FTAs that ensure reciprocity in the application of sanitary and phytosanitary rules.
There is no agreement between the arguments given by the government authorities and demands posed by members of the National Chamber of Agriculture and Agribusiness (CNAA).
According to the Ministry of Foreign Trade, agriculture is one of the sectors that most benefits from the free trade agreements negotiated. On this issue, the Deputy Minister Fernando Ocampo told Nacion.com, "that the administration of the treaties is far more complex than it sounds and involves multiple entities, with the aim of reducing costs for exporters and importers therefore improving competitiveness."
Following the ratification of the Free Trade Agreement (FTA) by the Peruvian government, in order for it to enter into force, the only thing needed is approval from the Legislative Assembly of Costa Rica.
A statement from the Ministry of Foreign Trade of Costa Rica reads:
Government of Peru Ratifies Free Trade Agreement with Costa Rica
Agricultural producers have pointed out that the Colombian economy is in direct competition with the Costa Rican one in terms of production, and they see no profit in a trade agreement.
The agricultural and agribusiness sectors of Costa Rica joined the national industrial sector in opposing a possible FTA with Colombia because of its economy’s highly competitive position in relation to Costa Rica.
Negotiations for an agreement could begin within months, despite opposition from industry.
The Costa Rican Minister of Foreign Trade, Anabel Gonzalez, said that formal negotiations for an FTA with the South American country could be started within months, even though exchanges of analyzes and studies have already been done.
"We are increasingly ready to move forward and consolidate this relationship," Gonzalez told Nacion.com.
The elimination of nontariff barriers is the main request being made by Costa Rican businessmen negotiating updates to the trade agreement.
Although access to the Canadian market is wide open, Costa Rican exporters are still facing many non-tariff related barriers. These obstacles are related to technical, phytosanitary and sanitary issues, labeling, origin of primary products, etc.
Costa Rican industrialists fear a trade agreement with Colombia will be detrimental to the local industry which is not competitive enough.
In light of an announcement by the Ministry of Foreign Trade to explore the possibility of an FTA with Colombia in 2012, Costa Rican business chambers are opposed to the move and warned against what they believe would be negative consequences of such an agreement for the local industry.
COMEX has launched an exploratory phase that will determine the opportunities for trade and investment relations with India, with a view to boosting Costa Rica’s trade and political agenda in Asia.
A press release from the Ministry of Foreign Trade of Costa Rica (COMEX) reads:
Costa Rica has submitted a proposed investment promotion treaty to the Government of India.
Until now Mexico has had a separate bilateral treaty with Costa Rica, Nicaragua and the Northern Triangle consisting of El Salvador, Guatemala and Honduras.
The Unified Free Trade Agreement (FTA) will be signed today, November 22 in San Salvador, said El Salvador’s finance minister.
"The agreement provides a common legal framework for the conduct of trade in goods and services between parties, as well as the establishment of investment in the region, he said in his announcement", reported Prensa Latina.
The European Free Trade Association (EFTA), comprising of Switzerland, Norway, Iceland and Liechtenstein, will negotiate a free trade agreement with Costa Rica, Honduras and Panama.
The announcement was made by the Swiss Minister of Economics, who said that EFTA member states agreed on the need to deepen relations with Central American states.
"The opening of free trade negotiations was set for November 14, 2011 in Geneva, during EFTA’s ministerial conference", indicated the Association.
Technical teams from Costa Rica and Canada have this week begun the first round of negotiations to upgrade the FTA between the countries, which has been in force since 2002.
This process will streamline the regulatory part of the agreement and make adjustments to actually fit current production, and in this way it is hoped that greater opportunities for exporters and importers will be afforded.