

Currently released so far... 12478 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AU
ASEC
AE
AF
AORC
AEMR
AMGT
ABUD
AFFAIRS
APER
AS
AMED
AY
AG
AR
AJ
AL
AID
AM
AODE
ABLD
AMG
AFIN
ATRN
AGAO
AFU
AN
AA
ALOW
APECO
ADM
ARF
ASEAN
APEC
AMBASSADOR
AO
ASUP
AZ
AADP
ACOA
ANET
AMCHAMS
ACABQ
ASECKFRDCVISKIRFPHUMSMIGEG
APCS
AGMT
AINF
AIT
AORL
ACS
AFSI
AFSN
ACBAQ
AFGHANISTAN
ADANA
ADPM
AX
ADCO
AECL
AMEX
ACAO
ASCH
AORG
AGR
AROC
ASIG
AND
ARM
AQ
ATFN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
BL
BR
BO
BA
BD
BM
BK
BG
BU
BB
BH
BTIO
BY
BEXP
BP
BE
BRUSSELS
BF
BIDEN
BT
BX
BC
BILAT
BN
BBSR
BTIU
BWC
BMGT
CA
CASC
CVIS
CM
CH
CO
CU
CD
CWC
CI
CS
CY
CMGT
CF
CG
CR
CB
CV
CW
CE
CBW
CT
CPAS
COUNTERTERRORISM
CJAN
CODEL
CIDA
CDG
CDC
CIA
CTR
CNARC
CSW
CN
CONS
CLINTON
COE
CROS
CARICOM
CONDOLEEZZA
COUNTER
CL
COM
CICTE
CIS
CFED
COUNTRY
CJUS
CBSA
CEUDA
CLMT
CAC
COPUOS
CIC
CBE
CHR
CTM
CVR
CITEL
CLEARANCE
CACS
CAN
CITT
CARSON
CACM
CDB
CAPC
CKGR
CBC
EC
EG
EPET
ECON
ETRD
EFIN
EIND
EMIN
ENRG
EAID
EAGR
EUN
ETTC
EAIR
ENIV
ES
EU
EINV
ELAB
ECIN
EFIS
ELTN
EWWT
ECPS
ECONOMIC
ENGR
EN
EINT
EPA
ELN
ESA
EZ
ER
ET
EFTA
EINVECONSENVCSJA
EUMEM
ETRA
EXTERNAL
EI
EUR
EK
ERNG
ENGY
ETRDEINVECINPGOVCS
ENERG
EINVEFIN
ENVR
ECA
ELECTIONS
ETC
EUREM
ENNP
EFINECONCS
EURN
ECINECONCS
EEPET
EXIM
ERD
ENVI
ETRC
ETRDEINVTINTCS
ETRO
EDU
ETRN
EAIG
ECONCS
ECONOMICS
EAP
ECONOMY
EINN
EIAR
EXBS
ECUN
EINDETRD
EREL
EUC
ESENV
ECONEFIN
ECIP
EFIM
EAIDS
ETRDECONWTOCS
EUNCH
EINVETC
IZ
IT
IR
IS
IN
IC
IAEA
IO
ICAO
IWC
ID
IV
ISRAEL
IAHRC
IQ
ICTR
IMF
IRS
IDP
IGAD
ICRC
ICTY
IMO
IL
INRA
INRO
ICJ
ITU
IBRD
INMARSAT
IIP
ITALY
IEFIN
IACI
ILO
INTELSAT
ILC
ITRA
IDA
INRB
IRC
INTERPOL
IA
IPR
IRAQI
ISRAELI
INTERNAL
ISLAMISTS
INDO
ITPHUM
ITPGOV
ITALIAN
IBET
INR
IEA
IZPREL
IRAJ
ITF
IF
KDEM
KU
KPAL
KNNP
KCRM
KZ
KN
KS
KJUS
KTFN
KSCA
KV
KISL
KPAO
KPKO
KIRF
KTIA
KIPR
KFLO
KFRD
KTIP
KAWC
KSUM
KCOM
KAID
KE
KTDB
KMDR
KOMC
KWBG
KDRG
KVPR
KTEX
KGIC
KWMN
KSCI
KCOR
KACT
KDDG
KHLS
KSAF
KFLU
KSEO
KMRS
KSPR
KOLY
KSEP
KVIR
KGHG
KIRC
KUNR
KIFR
KCIP
KMCA
KMPI
KBCT
KHSA
KICC
KIDE
KCRS
KMFO
KRVC
KRGY
KR
KAWK
KG
KFIN
KHIV
KBIO
KOCI
KBTR
KNEI
KPOA
KCFE
KPLS
KSTC
KHDP
KPRP
KCRCM
KLIG
KCFC
KTER
KREC
KTBT
KPRV
KSTH
KRIM
KRAD
KWAC
KWMM
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KOMS
KX
KMIG
KRCM
KVRP
KBTS
KPAONZ
KNUC
KNAR
KPWR
KNPP
KDEMAF
KNUP
KNNPMNUC
KERG
KGIT
KPAI
KTLA
KFSC
KCSY
KSAC
KTRD
KID
KOM
KMOC
KJUST
KGCC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KO
KNSD
KHUM
KSEC
KCMR
KCHG
KICA
KPIN
KESS
KDEV
KCGC
KWWMN
KPAK
KWNM
KWMNCS
KRFD
MOPS
MCAP
MPOS
MARR
MO
MNUC
MX
MASS
MG
MY
MU
ML
MR
MILITARY
MTCRE
MT
MEPP
MA
MDC
MP
MAR
MASSMNUC
MARAD
MAPP
MZ
MD
MI
MEETINGS
MK
MCC
MEPN
MRCRE
MAS
MIL
MASC
MC
MV
MTCR
MIK
MUCN
MEDIA
MERCOSUR
MW
MOPPS
MTS
MLS
MILI
MTRE
MEPI
MQADHAFI
MAPS
NO
NATO
NL
NP
NZ
NSF
NI
NH
NG
NAFTA
NU
NASA
NR
NATOPREL
NSSP
NSG
NA
NT
NW
NK
NPT
NPA
NATIONAL
NPG
NSFO
NS
NSC
NE
NGO
NDP
NIPP
NRR
NEW
NZUS
NC
NAR
NV
NORAD
OTRA
OPCW
OVIP
OAS
OREP
OPIC
OIIP
OPRC
ODIP
OEXC
OPDC
OSCE
OIC
OSCI
OECD
OFDP
OFDA
OMIG
OPAD
OFFICIALS
OVP
OIE
OHUM
OCS
OBSP
OTR
OSAC
ON
OCII
OES
PGOV
PREL
PHUM
PTER
PINS
PINR
PREF
PK
PROP
PA
PARM
PBTS
PMAR
PM
PGIV
PE
PRAM
PHUH
PHSA
PL
PNAT
PO
PLN
PAO
PSA
PHUMPGOV
PF
PEL
PBIO
POLITICS
PHUMBA
PAS
POL
PREO
PAHO
PMIL
POGOV
POV
PAK
PNR
PRL
PG
PREFA
PSI
PINL
PU
PARMS
PRGOV
PALESTINIAN
PAIGH
POLITICAL
PARTIES
POSTS
PROG
PORG
PTBS
PUNE
POLICY
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PP
PS
PY
PTERE
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PRELP
PSEPC
PGOVE
PINF
PNG
PGOC
PFOR
PCUL
POLINT
PGGV
PHALANAGE
PARTY
PGOVLO
PHUS
PDEM
PECON
PROV
PHUMPREL
RS
RU
RELATIONS
RW
RO
RM
RP
ROOD
RICE
RUPREL
RSO
RCMP
REACTION
REPORT
REGION
RIGHTS
RF
RFE
RSP
RIGHTSPOLMIL
ROBERT
SU
SCUL
SNAR
SOCI
SF
SA
SHUM
SENV
SP
SR
SY
SANC
SC
SMIG
SZ
SARS
SW
SEVN
SO
SEN
SL
SNARCS
SNARN
SI
SG
SN
SH
SYR
SAARC
SPCE
SHI
SCRS
SENVKGHG
SYRIA
SWE
STEINBERG
SIPRS
ST
SNARIZ
SSA
SK
SPCVIS
SOFA
SIPDIS
SAN
TC
TI
TBIO
TH
TSPL
TRGY
TSPA
TPHY
TU
TW
TS
TAGS
TK
TX
TNGD
TZ
TF
TL
TV
TN
TD
TIP
TR
TP
TO
TT
TFIN
THPY
TERRORISM
TINT
TRSY
TURKEY
TBID
US
UK
UNGA
UP
UZ
UNMIK
USTR
UNO
UNSC
UN
UNESCO
UNAUS
UNHRC
UY
UG
UNHCR
UNCND
USOAS
USEU
UNICEF
UNEP
UV
UNPUOS
UNCSD
USUN
UNCHR
UNDC
USNC
UE
UNDP
UNC
USPS
USAID
UNVIE
UAE
UNFICYP
UNODC
UNCHS
UNIDROIT
UNDESCO
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 09SANJOSE1140, Costa Rica: National Trade Estimate
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09SANJOSE1140.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09SANJOSE1140 | 2009-12-15 20:03 | 2011-03-21 16:30 | UNCLASSIFIED | Embassy San Jose |
VZCZCXYZ0002
RR RUEHWEB
DE RUEHSJ #1140/01 3492004
ZNR UUUUU ZZH
R 152003Z DEC 09
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC 0119
INFO RUEHSJ/AMEMBASSY SAN JOSE
UNCLAS SAN JOSE 001140
SIPDIS
STATE PASS TO OPIC
STATE PASS TO USTR FOR DOLIVER AND AMALITO
STATE PASS TO EXIMBANK FOR XCREQUE
DEPT FOR WHA/CEN,WHA/EPSC:SGARRO, EEB/TTP/BT:RMANOGUE AND DGROUT
E.O. 12958: N/A
TAGS: ECON ETRD EINV PREL PGOV CS
SUBJECT: Costa Rica: National Trade Estimate
REF: 09 STATE 105978; 09 SANJOSE 954
-------------
TRADE SUMMARY
-------------
¶1. U.S. goods trade surplus with Costa Rica was $1.7 billion in
2008, an increase of $1.1 billion from $639 million in 2007. U.S.
goods exports in 2008 were $5.7 billion, up 24.0 percent.
Corresponding U.S. imports from Costa Rica were $3.9 billion, down
0.1 percent. Costa Rica is currently the 38th largest export market
for U.S. goods.
¶2. The stock of U.S. foreign direct investment (FDI) in Costa Rica
was $3.5 billion in 2007 (latest data available), up from $3.3
billion in 2006. U.S. FDI in Costa Rica is concentrated largely in
the manufacturing and wholesale trade sectors.
---------------
IMPORT POLICIES
--------------------
Free Trade Agreement
--------------------
¶3. On August 5, 2004, the United States signed the United States
-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR
or Agreement) with five Central American countries (Costa Rica, El
Salvador, Guatemala, Honduras, and Nicaragua) and the Dominican
Republic (the Parties). Under the Agreement, the Parties are
significantly liberalizing trade in goods and services. The
CAFTA-DR also includes important disciplines relating to: customs
administration and trade facilitation, technical barriers to trade,
government procurement, investment, telecommunications, electronic
commerce, intellectual property rights, transparency, and labor and
environmental protection.
¶4. The Agreement entered into force for the United States, El
Salvador, Guatemala, Honduras, and Nicaragua in 2006. The CAFTA-DR
entered into force for the Dominican Republic on March 1, 2007, and
for Costa Rica on January 1, 2009.
¶5. In 2008, the Parties implemented amendments to several
textile-related provisions of the CAFTA-DR, including, in
particular, changing the rules of origin to require the use of U.S.
or regional pocket bag fabric in originating apparel. The Parties
also implemented a reciprocal textile inputs sourcing rule with
Mexico. Under this rule, Mexico provides duty-free treatment on
certain apparel goods produced in a Central American country or the
Dominican Republic with U.S. inputs, and the United States will
provide reciprocal duty-free treatment under the CAFTA-DR on
certain apparel goods produced in a Central American country or the
Dominican Republic with Mexican inputs. These changes will further
strengthen and integrate regional textile and apparel manufacturing
and create new economic opportunities in the United States and the
region.
-------
Tariffs
-------
¶6. As a member of the Central American Common Market, Costa Rica
agreed in 1995 to harmonize its external tariff on most items at a
maximum of 15 percent with some exceptions.
¶7. Under the CAFTA-DR, about 80 percent of U.S. industrial and
consumer goods now enter Costa Rica duty free, with the remaining
tariffs on these goods phased out by 2015. Nearly all textile and
apparel goods that meet the Agreement's rules of origin now enter
Costa Rica duty-free and quota-free, creating economic
opportunities for U.S. and regional fiber, yarn, fabric, and
apparel manufacturing companies.
¶8. Under the CAFTA-DR, more than half of U.S. agricultural exports
now enter Costa Rica duty free. Costa Rica will eliminate its
remaining tariffs on virtually all agricultural products by 2020
(2022 for chicken leg quarters and 2025 for rice and dairy
products). For certain agricultural products, tariff-rate quotas
(TRQs) will permit some immediate duty-free access for specified
quantities during the tariff phase out period, with the duty-free
amount expanding during that period. Costa Rica will liberalize
trade in fresh potatoes and onions through expansion of a TRQ,
rather than by tariff reductions.
------------------
Nontariff Measures
------------------
¶9. Under the CAFTA-DR, Costa Rica committed to improve transparency
and efficiency in administering customs procedures, including the
CAFTA-DR rules of origin. Costa Rica also committed to ensuring
greater procedural certainty and fairness in the administration of
these procedures, and all the CAFTA-DR countries agreed to share
information to combat illegal transshipment of goods.
¶10. The establishment of the Information Technology Customs Control
(TICA) system has significantly improved a traditionally complex
and bureaucratic import process. Under the TICA system, the Costa
Rican customs authority has changed its focus from the verification
of goods to the verification of processes and data. Customs
officials now have up to four years to review the accuracy of
import declarations, which allows customs to facilitate the free
flow of goods while gathering necessary documentation. Costa Rica
launched the TICA system in mid 2007 for imported goods in all
ports of entry. For exported goods, Costa Rica initiated TICA in
early 2009 in all ports. The Free Trade Zone and "perfection of
goods" regimes are the only import/export categories that are not
yet covered under TICA and they are scheduled to be included during
the first half of 2010.
--------------------------------------------- --
STANDARDS, TESTING, LABELING, AND CERTIFICATION
--------------------------------------------- --
¶11. Please see San Jose 954 for our submission on Standards,
Testing, Labeling, and Certification and Sanitary and Phytosanitary
Measures.
----------------------
GOVERNMENT PROCUREMENT
----------------------
¶12. The CAFTA-DR requires that procuring entities use fair and
transparent procurement procedures, including advance notice of
purchases and timely and effective bid review procedures, for
procurement covered by the Agreement. Under the CAFTA-DR, U.S.
suppliers are permitted to bid on procurements of most Costa Rican
government entities, including key ministries and state-owned
enterprises, on the same basis as Costa Rican suppliers. The
anticorruption provisions in the Agreement require each government
to ensure under its domestic law that bribery in matters affecting
trade and investment, including in government procurement, is
treated as a criminal offense or is subject to comparable
penalties. Costa Rica is not a signatory to the WTO Agreement on
Government Procurement.
----------------
EXPORT SUBSIDIES
----------------
¶13. Tax holidays are available for investors in free trade zones,
unless tax credits are available in an investor's home country for
taxes paid in Costa Rica.
¶14. Under the CAFTA-DR, Costa Rica may not adopt new duty waivers
or expand existing duty waivers that are conditioned on the
fulfillment of a performance requirement (e.g., the export of a
given level or percentage of goods).
---------------------------------------------
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION
---------------------------------------------
¶15. The country's record of protecting IPR is mixed primarily due
to varying levels of commitment by different institutions and
branches of the government. The Attorney General of Costa Rica (a
semi-autonomous member of the Judicial Branch) generally does not
prosecute IPR violations. He asserts that he cannot allocate
scarce resources to IPR issues and places higher priority on
prosecuting other types of criminal behavior such as organized
crime. The Executive Branch has generally been strongly supportive
of IPR enforcement. Yet neither that focus nor the training of
judges and prosecutors on IPR laws has produced significant
improvements in the prosecution of IPR crimes. The Executive
Branch has failed to obtain the Legislative Assembly's approval of
the final IPR-related CAFTA-DR law that it committed to have in
place by the end of 2009.
¶16. In terms of process, Costa Rica has taken significant steps in
recent years to improve the protection and enforcement of IPR.
Costa Rica strengthened its legal framework for the protection of
IPR by substantially modifying its IPR laws and regulations in
preparation for the entry into force of the CAFTA-DR. The CAFTA-DR
provides for improved standards for the protection and enforcement
of a broad range of IPR, which are consistent with U.S. and
international standards, as well as with emerging international
standards, of protection and enforcement of IPR. Such improvements
include state-of-the-art protections for patents, trademarks,
undisclosed test, and other data submitted to obtain marketing
approval for pharmaceuticals and agricultural chemicals, and
digital copyrighted products such as software, music, text, and
videos and further deterrence of piracy and counterfeiting.
¶17. The government increased the budgets of the patent and
trademark office and the copyright office and is currently building
a new Intellectual Property building for those offices on the
grounds of the National Registry. The copyright office tripled in
personnel from 2006 and upgraded equipment. Patent registration
continues to experience a considerable backlog of applications
waiting for a patent examiner, although the number of patents
examined increased through the use of contracted examiners. The
patent office plans to continue and expand the use of contracted
examiners while also contracting five in-house patent examiners
with industry-competitive salaries. These positions were posted
for hiring in 2008, but the National Registry has not filled the
positions due to pending confirmations for the position salary
levels. The number of patents registered annually during the last
several years significantly increased:
¶18. Attribute 2006 2009
Industrial Registry Payroll 26 60
Registered Patents 9 84 (through Nov 30)
Registered Trademarks 9,191 10,282 (through Nov 30)
¶19. As part of the CAFTA-DR entry into force, Costa Rica agreed to
institute a special prosecutor's office in the Office of the
Attorney General. The Attorney General designated a person to
specialize in IPR crimes. However, the position has not evolved to
function as a separate entity or office outside of the
Miscellaneous Crimes office. The government restarted the
previously dormant IP Interdisciplinary Commission which the
Ministry of Justice leads and consists of representatives from the
Ministries of Foreign Trade, Public Security, and Science and
Technology, National Registry of Copyrights and Trademarks,
Industrial Property Registry, Customs, Office of the Attorney
General, and the Judicial School. The Commission operated
informally until December 1, when the president issued a decree
formally establishing it.
-----------------
SERVICES BARRIERS
-----------------
¶20. Under the CAFTA-DR, Costa Rica granted U.S. services suppliers
substantial access to its services market, including financial
services. Costa Rica committed to provide improved access in
sectors like express delivery and to grant new access in certain
professional services that previously had been reserved exclusively
to Costa Rican nationals. Costa Rica also agreed that portfolio
managers in the United States would be able to provide portfolio
management services to both mutual funds and pension funds in Costa
Rica. Mutual funds originating in the U.S. are reportedly
available now in Costa Rica but are receiving little investment
capital; tax issues and unfavorable perceptions of U.S. markets
appear to have made such mutual funds an unattractive investment.
¶21. In 2008 and 2009 Costa Rica made significant changes in its
legal and regulatory framework intended to implement its CAFTA-DR
commitments on insurance and telecommunications.
The newly-established insurance regulator SUGESE (still operating
under the wing of the Pensions Superintendent SUPEN), authorized
six insurance companies to compete with the former monopoly state
insurance provider and will accept applications from other
interested insurers. These new competitors are expected to start
operating in the market in January 2010. U.S. insurance suppliers
are now permitted to provide most forms of insurance, with the
remainder of the market to be opened by 2011. U.S. insurance
suppliers are able to operate as a branch or a subsidiary.
¶22. Under the CAFTA-DR, Costa Rica agreed to open three important
segments of its telecommunications market: private network
services, Internet services, and mobile wireless services.
Previously, Costa Rica's entire telecommunications market also was
reserved for the state monopoly, the Costa Rican Electricity
Institute (ICE). The telecommunications regulator SUTEL and the
telecommunications vice-ministry within the Ministry of
Environment, Energy and Telecommunications (MINAET) are
progressively opening the markets in private network and Internet
services. Both organizations are struggling with the challenges of
starting anew in an emerging wireless market. The mobile wireless
market has the necessary regulatory framework in place but is
dependent upon a successful auction of frequencies that is expected
to take place mid-2010, which would then set the stage for the
first new cell phone market entrants in early 2011.
-------------------
INVESTMENT BARRIERS
-------------------
¶23. The CAFTA-DR establishes a more secure and predictable legal
framework for U.S. investors operating in Costa Rica. Under the
CAFTA-DR, all forms of investment are protected including
enterprises, debt, concessions, contracts, and intellectual
property. U.S. investors enjoy, in almost all circumstances, the
right to establish, acquire, and operate investments in Costa Rica
on an equal footing with local investors. Among the rights
afforded to U.S. investors are due process protection and the right
to receive fair market value for property in the event of an
expropriation. Investor rights are protected under the CAFTA-DR
through an impartial procedure for dispute settlement that is fully
transparent and open to the public. Submissions to dispute panels
and dispute panel hearings will be open to the public, and
interested parties will have the opportunity to submit their views.
¶24. The Costa Rican regulatory environment can pose significant
barriers to successful investment in Costa Rica. One common
problem is that municipal government and central government
institutions at times disagree in their treatment of specific
projects, leaving the investor in limbo. Even when dealing only
with central government institutions, an investor may follow the
technical advice of one institution only to find himself accused of
illegal behavior by another institution. Several large investors
have faced the related problem that the central government's
approach towards a specific project has changed significantly over
the years, stranding the investor. Though the law protects land
owners against squatters, in practice illegal occupancy of property
looms as a threat to investors through coercion and/or illegal
changes of ownership on property titles.
¶25. Many U.S. investors cite the slow pace of Costa Rica's judicial
system as a barrier. A related concern is the frequent recourse to
legal challenges before Costa Rica's constitutional court to review
whether government authorities have acted illegally or to review
the constitutionality of legislation or regulations. Some U.S.
investors believe that such challenges have been used at times to
thwart investments or hinder the quick resolution of disputes.
-------------------
ELECTRONIC COMMERCE
-------------------
¶26. The CAFTA-DR includes provisions on electronic commerce that
reflect its importance to global trade. Under the CAFTA-DR, Costa
Rica has committed to provide nondiscriminatory treatment of
digital products, and not to impose customs duties on digital
products transmitted electronically.
--------------
OTHER BARRIERS
--------------
¶27. Under the CAFTA-DR, Costa Rica agreed to modify its dealer
protection regime to provide more freedom to negotiate the terms of
commercial relations and to encourage the use of arbitration to
resolve disputes between parties to dealer contracts. In December
2007, Costa Rica enacted legislation intended to implement this
commitment.
------------
DISTRIBUTION
------------
¶28. We will send a Word document with paragraphs 1 through 27 above
via e-mail to the Office of the United States Trade Representative
(USTR) as specified in reftel.
BRENNAN