Costa Rica

CAFTA in the hands of Costa Ricans….well, almost.

By teletico ⋅ April 14, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

In their CAFTA Update entitled "Green Light for Binding Referendum on CAFTA" the Tico Times reports that the legislation responsible for recent public debate and controversy may have its fate decided by the voters of Costa Rica.

The Central American Free Trade Agreement (CAFTA) seeks to establish a free trade zone similar to the one established by NAFTA which encompasses the U.S., Canada, and Mexico. CAFTA would essentially eliminate a substantial number of tariffs on U.S. goods sold in Costa Rica as well as El Salvador, Guatemala, Honduras, and Nicaragua included in the agreement.

Supporters of CAFTA claim tax cuts and employment opportunity due to the movement of U.S. corporations and companies directly into the Costa Rican economy. Opposition to the legislation claim that it threatens the economic well being of small, local businesses who may not be able to keep up with the new competition. Others are concerned with the individual rights of the laborer as well as the environment with the onset of growth and development.

The issue is of particular significance in Costa Rica due to the fact that all countries involved in this agreement have already ratified the pact and are ready to begin implementing the new legislation within the next two years, Costa Rica being the exception. CAFTA was approved by the International Affairs Commission in December, 2006. It has been waiting on the agenda for discussion in the Legislative Assembly since then.  The Supreme Elections Tribunal of Costa Rica issued a ruling this week that petition signatures may be acquired to send CAFTA to a binding referendum, before legislators are able to accept or reject the trade pact.

The Tico Times reports that in order to send the trade agreement to a vote, 130,000 signatures are needed (5% of the voting population). If the referendum is prepared and presented before the deadline for CAFTA ratification, the people of Costa Rica will have the opportunity to decide the best course of action for the future of development in Costa Rica with respect to its position in Central America and the international community. For the vote to be binding, 30%-40% of the population must cast a vote (this number depends on the number of legislator votes required approve the agreement).

E4 Initiatives recognizes both sides of the CAFTA debate. We recognize the need for growth and expansion with regard to tourism, technology, health & science and other industries. Our opinion is that this growth and expansion must be done responsibly. Whatever the means or methods may be the outcome should always benefit all parties involved without bringing socio economic harm or oppression to any group participating. In this case, E4 is most concerned with the rights of the common laborer and the poor. These are groups that need opportunities to grow and expand upwards along with Costa Rica, not suffer negative effects from the system they are literally helping to build.

It is our opinion that CAFTA might benefit from some revisions that consider, care for, and protect groups that potentially may be at risk for suffering any negative affects manifested by CAFTA approval and implementation.  It is out understanding that the current version of legislation is not open for revision or change.

It will be interesting to see what happens in the coming months with respect to CAFTA and the potential for a binding referendum. E4 will feature the CAFTA issue in our podcast series as well as keep readers updated through the blog as we receive new information. Feel free to use our blog as an open discussion for this issue. We are always interested in the thoughts and opinions of our readers.

This post was written with reference to "Green Light for Binding Referendum on CAFTA" (Tico Times Staff April, 2007)