

Currently released so far... 12553 / 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
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
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
APECO
ASEC
AMGT
AFIN
APER
ACABQ
AORC
AEMR
AF
AE
AR
AGMT
AU
AY
ABLD
AS
AG
AJ
APCS
AX
AM
AMEX
ATRN
ADM
AMED
AFGHANISTAN
AZ
AL
ASUP
AND
ARM
ASEAN
AFFAIRS
AQ
ATFN
AMBASSADOR
AODE
APEC
ACBAQ
AFSI
AFSN
AO
ABUD
AC
ADPM
ADCO
ASIG
ARF
AUC
ASEX
AGAO
AA
AER
AVERY
AGRICULTURE
AIT
AADP
ASCH
AORL
AROC
ACOA
ANET
AID
AMCHAMS
AINF
AMG
AFU
AN
ALOW
ASECKFRDCVISKIRFPHUMSMIGEG
ACS
ADANA
AECL
ACAO
AORG
AGR
BEXP
BR
BM
BG
BL
BA
BTIO
BO
BP
BC
BILAT
BK
BU
BD
BRUSSELS
BB
BF
BBSR
BIDEN
BX
BE
BH
BT
BY
BMGT
BWC
BTIU
BN
CA
CASC
CFED
CO
CH
CS
CU
CE
CI
CM
CMGT
CJAN
COM
CG
CIS
CVIS
CR
CKGR
CHR
CVR
COUNTER
CIA
CLINTON
CY
CPAS
CD
CBW
COUNTERTERRORISM
CITEL
CDG
CW
CODEL
COUNTRY
CLEARANCE
COE
CN
CARICOM
CB
CONDOLEEZZA
CWC
CACS
CSW
CIDA
CIC
CITT
CONS
CL
CACM
CDB
CDC
CAN
CF
CJUS
CTM
CBSA
CARSON
CT
CLMT
CBC
CEUDA
CV
COPUOS
CTR
CROS
CAPC
CAC
CNARC
CICTE
CBE
ECON
ETRD
EIND
ENRG
EC
ELAB
EAGR
EAID
EFIS
EFIN
EINV
EUN
EG
EPET
EAIR
EU
ELTN
EWWT
ECIN
ERD
EI
ETTC
EUR
EN
EZ
ETC
ENVI
EMIN
ET
ENVR
ER
ECPS
EINT
EAP
ES
ENIV
ECONOMY
EXTERNAL
EINN
EFTA
ECONOMIC
EPA
EXBS
ECA
ELN
ETRDEINVECINPGOVCS
ENGR
ECUN
ENGY
ECONOMICS
ELECTIONS
EIAR
EINDETRD
EREL
EUC
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
ENERG
EFIM
EAIDS
EK
ETRDECONWTOCS
EINVETC
ECONCS
EUNCH
ESA
ECINECONCS
EUREM
ESENV
EFINECONCS
ETRC
ENNP
EAIG
EXIM
EEPET
EINVECONSENVCSJA
EUMEM
ETRA
ERNG
ETRO
ETRN
EINVEFIN
ICTY
IN
IS
IR
IC
IZ
IA
INTERPOL
IAEA
IT
IMO
IO
IV
ID
IRAQI
IEA
INRB
IL
IWC
ITU
ICAO
ISRAELI
ICRC
IIP
IMF
IBRD
ISLAMISTS
ITALY
ITALIAN
ILO
IPR
IQ
IRS
IAHRC
IZPREL
IRAJ
IDP
ILC
ITF
ICJ
IF
ITPHUM
INMARSAT
ISRAEL
IACI
IBET
ITRA
INR
IRC
IDA
ICTR
IGAD
INRA
INRO
IEFIN
INTELSAT
INTERNAL
INDO
ITPGOV
KWMN
KSCA
KDEM
KTFN
KIPR
KCRM
KPAL
KE
KPAO
KPKO
KS
KN
KISL
KFRD
KJUS
KIRF
KFLO
KG
KTIP
KTER
KRCM
KTIA
KGHG
KIRC
KU
KPRP
KMCA
KMPI
KSEO
KNNP
KZ
KNEI
KCOR
KOMC
KCFC
KSTC
KMDR
KFLU
KSAF
KSEP
KSAC
KR
KGIC
KSUM
KWBG
KCIP
KDRG
KOLY
KAWC
KCHG
KHDP
KRVC
KBIO
KAWK
KGCC
KHLS
KBCT
KPLS
KREL
KCFE
KMFO
KV
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KVPR
KTDB
KSPR
KIDE
KVRP
KTEX
KBTR
KTRD
KICC
KCOM
KO
KLIG
KDEMAF
KMRS
KRAD
KOCI
KSTH
KUNR
KNSD
KGIT
KFSC
KHIV
KPAI
KICA
KACT
KHUM
KREC
KSEC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCMR
KPIN
KESS
KDEV
KNAR
KNUC
KPWR
KENV
KWWMN
KWMNCS
KPRV
KOM
KBTS
KCRS
KNPP
KWNM
KRFD
KVIR
KTBT
KAID
KRIM
KDDG
KRGY
KHSA
KWMM
KMOC
KSCI
KPAK
KX
KPAONZ
KCGC
KID
KPOA
KIFR
KFIN
KWAC
KOMS
KCRCM
KNUP
KMIG
KNNPMNUC
KERG
KTLA
KCSY
KJUST
MOPS
MARR
MASS
MNUC
MX
MCAP
MO
MR
MI
MD
MK
MA
MP
MY
MTCRE
MOPPS
MASC
MIL
MTS
MLS
MILI
MAR
MU
MEPN
MAPP
MTCR
MEPI
MZ
MEETINGS
MG
MW
MAS
MT
MCC
MIK
ML
MARAD
MV
MERCOSUR
MTRE
MPOS
MEPP
MILITARY
MDC
MQADHAFI
MUCN
MRCRE
MAPS
MEDIA
MASSMNUC
MC
NZ
NZUS
NL
NU
NATO
NP
NO
NIPP
NE
NH
NR
NA
NPT
NI
NSF
NG
NSG
NAFTA
NC
NDP
NEW
NRR
NATIONAL
NT
NS
NASA
NAR
NV
NORAD
NSSP
NK
NPA
NGO
NSC
NATOPREL
NW
NPG
NSFO
OPDC
OTRA
OIIP
OREP
OVIP
OSCE
OEXC
OIE
OPRC
OAS
OPIC
OTR
OMIG
OSAC
OFFICIALS
OECD
OSCI
OBSP
OFDA
OPCW
ODIP
OFDP
OES
OPAD
OCII
OHUM
OVP
ON
OIC
OCS
PHUM
PREL
PGOV
PINR
PTER
PARM
PREF
PM
PE
PINS
PK
PHSA
PBTS
PRGOV
PA
PORG
PP
PS
PGOF
PL
PO
PARMS
PKFK
PSOE
PEPR
PAK
POL
PPA
PINT
PMAR
PRELP
PREFA
PALESTINIAN
PBIO
PINF
PNG
PMIL
PFOR
PUNE
PGOVLO
PAO
POLITICS
PHUMBA
PSEPC
PTBS
PCUL
PROP
PNAT
PNR
POLINT
PGOVE
PROG
PHALANAGE
PARTY
PDEM
PECON
PROV
PHUMPREL
PGOC
PY
PCI
PLN
PDOV
PREO
PGIV
PHUH
PAS
PU
POGOV
PF
PINL
POV
PAHO
PRL
PG
PRAM
POLITICAL
PARTIES
POLICY
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PGGV
PHUS
PSA
PHUMPGOV
PEL
PSI
PAIGH
POSTS
PBT
PTERE
RS
RU
RW
RM
RO
RP
REGION
RSP
RF
RICE
RCMP
RFE
RIGHTS
RIGHTSPOLMIL
ROBERT
RUPREL
RELATIONS
ROOD
REACTION
RSO
REPORT
SENV
SNAR
SCUL
SR
SC
SOCI
SMIG
SI
SP
SU
SO
SW
SY
SA
SZ
SAN
SF
SN
STEINBERG
SG
ST
SIPDIS
SNARIZ
SNARN
SSA
SK
SPCVIS
SOFA
SAARC
SL
SEVN
SARS
SIPRS
SHUM
SANC
SWE
SHI
SYR
SNARCS
SPCE
SYRIA
SEN
SH
SCRS
SENVKGHG
TRGY
TSPL
TPHY
TSPA
TBIO
TI
TW
THPY
TX
TU
TS
TZ
TC
TH
TT
TIP
TO
TERRORISM
TRSY
TINT
TN
TURKEY
TBID
TL
TV
TNGD
TD
TF
TP
TFIN
TAGS
TK
TR
UNSC
UK
UNGA
UN
US
UNHRC
UG
UP
UNMIK
UNHCR
UE
USTR
UNVIE
UAE
UZ
UY
UNO
UNESCO
USEU
USOAS
UV
UNODC
UNCHS
UNFICYP
UNEP
UNIDROIT
UNDESCO
UNDP
UNPUOS
UNC
UNAUS
USUN
UNCHC
UNCHR
UNCND
UNICEF
UNCSD
UNDC
USNC
USPS
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 08SANJOSE294, SCENESETTER FOR AUSTR EISSENSTAT'S VISIT TO COSTA RICA
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. #08SANJOSE294.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08SANJOSE294 | 2008-04-22 21:48 | 2011-03-02 16:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose |
Appears in these articles: http://www.nacion.com/2011-03-02/Investigacion.aspx |
VZCZCXYZ0000
PP RUEHWEB
DE RUEHSJ #0294/01 1132148
ZNR UUUUU ZZH
P 222148Z APR 08
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 9616
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
UNCLAS SAN JOSE 000294
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR WHA/CEN, WHA/EPSC, WHA/PPC AND EEB
PLEASE PASS TO USTR DOLIVER/AMALITO
MANAGUA FOR DAVID KRZYDA:PLEASE PASS TO AUSTR EISSENSTAT
E.O. 12958: N/A
TAGS: CS ECON ETRD PGOV PREL
SUBJECT: SCENESETTER FOR AUSTR EISSENSTAT'S VISIT TO COSTA RICA
REF: A. SAN JOSE 0232
¶B. SAN JOSE 288
¶C. SAN JOSE 263
¶D. 07 SAN JOSE 1926
¶1. (SBU) SUMMARY: Embassy San Jose warmly welcomes AUSTR Everett
Eissenstat. His visit to Costa Rica is timely, and will help us keep
the pressure on the GOCR to complete CAFTA implementation. The Arias
administration remains deeply committed to CAFTA, and is making
progress, but slowly. Although all the major parties in the
legislature have agreed to move ahead on CAFTA, the government's pro-
CAFTA coalition remains fragile. The legislature (Asamblea) has also
been distracted by other issues including domestic security, an
investigation into allegations of FARC ties to Costa Rica, and the May
1 leadership elections. Six of 12 CAFTA-related bills have been
completed; six others remain in work, including those covering
controversial IPR and insurance issues, and one more remains to be
introduced. Whereas the entry-in-force (EIF) extension granted on
February 27, Commerce U/S Padilla's February 28-29 visit (Ref A) and
WHA DAS Madison's March 31-April 3 visit (Ref B) described the red
lines on the schedule for implementation (no later than October 1),
this visit can set the red lines on substance. See snapshot of pending
issues, para 11. END SUMMARY.
===================
THE CAFTA SCORECARD
===================
¶2. (U) As of April 21, the Asamblea has completed half the CAFTA-
legislation (six of 12). Of these, three are law (covering foreign-
owned firms, penal code reforms and UPOV compliance), and three are
pending signature and publication as law (the Budapest Treaty, the UPOV
convention and a bill governing certain patent and trademark reforms).
A seventh and eighth bill (ratifying the International Trademark Treaty
and opening the telecom sector) are pending the Asemblea's second and
final vote. A ninth bill (on IPR reforms) was bounced by the Supreme
Court for constitutional questions (see para 6 below). Three bills (on
modernizing telecommunications, opening the insurance market, and
making additional IPR changes) are in varying stages of action. Of
note and new to this process, there will be a 13th bill, according to
the Ministry of Foreign Trade (COMEX), which will ratify various CAFTA
amendments accepted by the other parties. To summarize:
COMPLETED BY ASAMBLEA:
Signed into law: 3
Pending signature: 3
IN WORK BY THE ASAMBLEA:
Returned by Supreme Court: 1 (Asamblea to correct and vote again)
Pending final vote: 2
Under debate: 3
To be introduced: 1
TOTAL 13
====================
THE CAFTA CHALLENGES
====================
¶3. (SBU) This Asamblea had made more progress on CAFTA legislation in the four months from November-February than its predecessor had in the previous four years, but momentum dissipated after the EIF extension was granted. The leaders of the 38-seat pro-CAFTA coalition well understand the need to keep moving, but have found this challenging.
¶4. (SBU) Their first challenge: keeping all 38 coalition members (the
G38) together. This is important because a two-thirds majority
(precisely 38) is needed to form a quorum, to set rules and to manage most legislation. From time to time, various members of the coalition have tried to parlay their "38th vote" into support for pet causes.
Christian Unity Party (PUSC) member Bienvenido Venegas, for example, has stubbornly refused to support the CAFTA legislation until his home province (Puntarenas) received more attention and resources from the central government. Despite a parade of senior officials to Puntarenas in late March-early April, including President Arias, Venegas's support has remained elusive. His thinly-veiled true motive: to back ex- President Rafael Calderon (PUSC), a CAFTA opponent who is hoping to overcome corruption charges to run again for the legislature in 2010.
¶5. (SBU) Their second challenge: the opposition, led by the Citizens
Action Party (PAC), a steadfast opponent of CAFTA even after the
October 7 referendum ratified the agreement. PAC's reluctance to
cooperate blocked quorum on a number of occasions, and stalled the legislation. PAC leaders insisted there was no hurry to pass the
bills, and reveled in the pro-CAFTA coalition's internal wrangles.
However, under relentless pressure from the GOCR and a private sector ad campaign that criticized them for ignoring the will of the people as expressed in the referendum, PAC finally reached an agreement with the pro-CAFTA parties. They would no longer block debate on remaining CAFTA bills as long as the Arias administration would permit debate on PAC-supported legislation creating a social development bank, reforming electoral laws and other initiatives. The GOCR-PAC agreement has helped circumvent problematic legislators like Venegas, but it is only temporary, lasting until the new legislative year begins on May 1.
¶6. (SBU) Their third challenge: the Supreme Court, specifically the
Constitutional Chamber (Sala IV), which reviews most legislation
between the required first and second votes of the Asamblea. The
opposition has ensured that all CAFTA bills are reviewed by the Sala
IV, delaying the legislative process, but only one bill has been
bounced for corrections to date. By unanimous vote on April 4, the
Sala IV found the penalty provisions of the IPR bill
"disproportionate," and in violation of the principle of "reasonable
penalty." By the same vote, the Sala IV also ruled that the provision
which permitted seizure of items produced in violation of IPR
protections contravened the right to private property. The Asamblea is
to begin action on these corrections as soon as the final text of the
Sala's ruling is available.
¶7. (SBU) Their fourth challenge: political distractions. A special
committee is to begin taking testimony the week of April 21 on
allegations by the previous Minister of Public Security that the
Colombian FARC had ties to some political figures, including
legislators, in Costa Rica. This stemmed from information discovered after the Colombian March 1 raid which killed FARC leader Raul Reyes in Ecuador. The ex-minister was to testify on March 31, but was removed from office the day before so he could not speak in an official capacity (Ref C). His sudden removal only fueled speculation that he was going to "name names." (COMMENT: We do not believe there is any hard evidence linking Costa Rican political figures actively or recently to the FARC. END COMMENT.)
¶8. (SBU) In addition, political maneuvering is under way, even among
the pro-CAFTA coalition, for leadership positions during the
legislative year which begins May 1. Complicating the political dog
fighting this time: the president of the Asamblea who takes office on
May 1 will likely become the next VP of Costa Rica, when the incumbent,
Laura Chinchilla (whom Eissenstat will meet), resigns as expected (and as required by law) in early 2009 to campaign for the presidency. Both the special FARC investigation and the electioneering have slowed action on the CAFTA bills.
====================================
THE CAFTA COMMITMENT, WITH A CAVEAT?
====================================
¶9. (SBU) Despite these challenges, the Arias Administration remains
committed to completing the legislation and implementing CAFTA. Citing
the newly-cooperative attitude of the PAC party, Arias himself told
visiting WHA DAS Kirsten Madison on April 1 that the CAFTA laws should
be completed in the next three months (i.e., by the end of June).
Arias (and by implication, his pushing to complete CAFTA) remains
popular. He received a 50 percent good or very good rating in a UNIMER
poll released March 24 with the lowest negative rating (14 percent)
since taking office. The public and most political parties are tired
of the protracted CAFTA debate and want to close this chapter and move
on to other important issues, such as tougher laws on domestic
security, which tops the polls as the public's chief concern.
¶10. (SBU) Because of these challenges, GOCR interlocutors including VP
Laura Chinchilla, Minister of the Presidency (and the President's
brother) Rodrigo Arias and COMEX Minister Marco Vinicio Ruiz may press
AUSTR Eissenstat for "political" solutions to the most difficult
pending CAFTA issues on IPR, insurance and biodiversity. We do not
expect them to ask for more time to implement CAFTA; they understand
that the extension to October 1 was a one-time exception. They may ask
for more "understanding" and political room to maneuver to wrap up the
remaining legislation (and regulations). In response, Eissenstat can
affirm the USG's positions on the pending issues, in effect,
establishing red lines on substance while urging continued progress.
=============================================
THE CAFTA CONTENT: PENDING PROBLEMATIC ISSUES
=============================================
¶11. (SBU) The pending issues include:
- On IPR, the issue is dangerously fluid as the legislators do not
always follow COMEX's counsel; COMEX responds by advocating for
leniency from USTR. Although graduated penalties were included in the
legislation and passed, legislators from all parties agreed with the
Sala IV's "disproportional" ruling, and the generic drug industry
continues to pressure select G38 members to soften the IPR legislation
in their favor;
- On insurance, the GOCR reacted favorably to USTR's new phrasing on
the issue of a government guarantee. Timing is the problem as the
insurance bill matriculated in the Asamblea to a point where it now
cannot be amended. The GOCR needs to develop a legislative tactic for
introducing an insurance amendment;
- On biodiversity, the GOCR wants its existing biodiversity law to
remain intact, claiming "it was progressive in its time," although it
is in conflict with legislation required for CAFTA compliance. The
GOCR desires to paper over the difference by asserting that
international treaties have priority over domestic law without having
to change the law;
- On the patent law, legislators acted independent of COMEX's counsel
and changed wording which now makes the law non-compliant with CAFTA.
Though the intent was not to undermine CAFTA, the results of the change
create a new problem;
- On the regulations, USTR needs to review all of the regulations well
in advance of October 1, and Essenstat will want to reinforce this
message. For telecommunications, the GOCR must develop a solution to
unravel the coordination problems between ICE (the state
telecommunications and energy utility), MINAE (Ministry of the
Environment and Energy), and ARESEP (Regulatory Authority of Public
Services); and
- On the amendments, the Asamblea needs to pass the CAFTA amendments
which are about to be introduced.
¶12. (SBU) Having come so far on CAFTA, and increasingly focused
on/distracted by other priority issues, it is tempting for Costa Rican
legislators to assume that implementation is inevitable. As the recent
challenges indicate, however, political focus and discipline are still
required to get the job done. This would be another useful message from
Eissenstat. His interlocutors will also be interested in the "view
from Washington" on the Colombian FTA, and the general (anti-trade)
tone in the Congress and in the U.S. presidential campaign.
=====================================
THE CAFTA CONTEXT: WHAT IS AT STAKE?
=====================================
¶13. (U) Without CAFTA, the textile and the tuna sectors are at risk due
to the short-run possibility of the loss of Caribbean Basin Trade
Promotion Act (CBTPA) trade preferences on October 1 and the long-run
risk that Costa Rica will not have permanent, tariff-free access to the
U.S. market. For Costa Rica, both risks would portend a competitive
disadvantage with its CAFTA neighbors. Business leaders predict 20,000
jobs in the tuna and textile sectors are at stake. Since DAS Madison
visited a leading tuna cannery to underscore this risk during her
visit, we plan to have AUSTR Eissenstat visit an at-risk textile plant.
¶14. (U) In the intensely competitive textile industry, buyers want
price certainty which Costa Rican companies currently cannot provide.
Indicative of the uncertainty, the industry contracted from $730
million in 2002 to $557 million in 2006. The Costa Rican textile
industry is heavily reliant on the U.S. market and the preferential
treatment it receives under the CBTPA (Ref D). The U.S. accounted for
86 percent of its total textile exports in 2006 and CBTPA lowers the
U.S. tariff from 18 percent to zero for most textile products.
Thus, without an implemented CAFTA, industry uncertainty has
reached critical levels as producers openly talk about moving
production outside of Costa Rica. Eissenstat will also be able
to discuss these issues further with AMCHAM members during his visit.
HENIFIN