The Costa Rican government will try a second time to renegotiate the terms of the free trade agreement with Canada to include services in the list of sectors with preferences.
The FTA was signed 12 years ago, therefore the government of Costa Rica considers it necessary to revise and update it with the idea of emulating the models of recent agreements made with Europe and other countries.
In answering whether Costa Rica should compensate Industrias Infinito in the Crucitas mine case, the minister in charge of the issue said, "they shouldn't be paid or it should be minimal. "
EDITORIAL
In an article in Prensalibre.cr the Minister of Environment and Energy René Castro answered the question by saying "We believe that Costa Rica should not give any compensation to Industrias Infinito because there was never actually a concession."
Although both parties have expressed interest in renewing the agreement negotiations have been stalled since May.
The parties have opposing positions and this led to the current situation where no agreement has been reached. The renegotiations were started in late 2011, as the treaty did not include modern standards regarding services and conflict resolution.
Last week concluded the V round of the modernization process of the Free Trade Agreement between Costa Rica and Canada.
A press release from the Ministry of Foreign Trade of Costa Rica reads:
Modernization of Costa Rica and Canada FTA enters its final stage.
San Jose, September 3, 2012. Friday saw the conclusion of the V round of the modernization process for the Free Trade Agreement between Costa Rica and Canada.
The countries have begun the fourth round of negotiations in the modernization of the existing free trade agreement between the two countries.
From a press release from the Costa Rican Ministry of Foreign Trade:
San Jose, June 11, 2012. Costa Rica and Canada began today in San Jose, the fourth round of negotiations in the modernization of the existing free trade agreement between the two countries.
Costa Rica has emphasized the importance of achieving preferential access for exports from free zones and having more flexible rules of origin for textiles.
From a press release from the Ministry of Foreign Trade of Costa Rica:
Ottawa, April 20, 2012. The third round of negotiations of the modernization process of the Free Trade Agreement with Canada ended today.
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.
Technical teams from Costa Rica and Canada will start the second round of negotiations this week in order to upgrade the FTA which has been in place since 2002.
Costa Rica hopes to negotiate an agreement to allow non-discriminatory access to the Canadian market to Costa Rican service providers. It also seeks the elimination of tariffs on digital products transmitted electronically.
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.
By the end of the year the countries are scheduled to meet in order to include services, intellectual property and public sector contracts in their Free Trade Agreement (FTA).
These topics are not included in the current FTA negotiated in 1999 and in force until 2002 but are part of the DR-CAFTA.
Costa Rica's Minister for Trade, Anabel González, told Elfinancierocr.com that, "standardizing both agreements and also the one with Mexico will give importers and exporters greater ability to make the most of the agreements' benefits".
Both countries will study broadening their FTA to include telecommunications and insurance.
The Free Trade Agreement(FTA) signed in 2002 didn't foresee the opening of the telecomm and insurance markets in Costa Rica.
Michaëlle Jean, Canada's General Governor, remarked that "both countries will also study the possibility of establishing direct flights, as a way to foster the arrival of Canadian tourists to Costa Rica.
The Countries consider that it is opportune to review the scope of the FTA in order to expand it into different areas.
Issues such as market services, new product exchanges and investment will be analyzed, looking to improve and expand the offerings available.
Karina Alpízar Corella reported statements by Canadian Chancellor, Peter Kent: "Canadian companies take pains to invest in projects that promote social development, are in sync with the environment and that especially follow the legal framework and guidelines of each country. The Chancellor said that his country has increased investment to such an extent that there are about $100 million on the American continent and our country is no exception. Specifically, the Canadian firm Cambior Project and Construction Group are working hand in hand with Industrias Infinito SA. They are working in Las Crucitas mining project with an investment of about $50 million."