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Viewing cable 05SANJOSE2952, ASIAN MARKETS LEAD 2005 COSTA RICAN EXPORT GROWTH

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Reference ID Created Released Classification Origin
05SANJOSE2952 2005-12-29 21:05 2011-03-14 18:00 UNCLASSIFIED Embassy San Jose
Appears in these articles:
http://www.nacion.com/2011-03-12/Investigacion/NotasDestacadas/Investigacion2711772.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasDestacadas/Investigacion2707705.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707712.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707716.aspx
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SAN JOSE 002952 
 
SIPDIS 
 
WHA/CEN 
EB FOR WCRAFT, BMANOGUE 
E FOR DEDWARDS 
WHA FOR WMIELE 
WHA/EPSC FOR KURS, LGUMBINER 
H FOR JHAGAN 
STATE PASS TO USTR FOR RVARGO, NMOORJANI, AMALITO 
 
E.O. 12958: N/A 
TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
SUBJECT: ASIAN MARKETS LEAD 2005 COSTA RICAN EXPORT GROWTH 
 
REF: SAN JOSE 1940 
 
1.  Summary.  The Costa Rican Trade Promotion Corporation 
(PROCOMER) has reported that Costa Rican exports this year 
through October 2005 reached USD 5.77 billion, an increase 
of ten percent over the same period last year.  The biggest 
increases were realized in exports of agricultural and 
technology products.  Asia continues to be the fastest 
growing market as evidenced by the region's 64 percent 
increase in demand for Costa Rican products.  Most notable 
is that in mid 2005 Hong Kong replaced the Netherlands as 
the number two destination for Costa Rican exports.  China 
is also an important market for Costa Rica at position 6, 
while Taiwan occupies position 16.  End Summary. 
 
2.  Costa Rican exports no longer are limited to two or 
three agricultural crops as was the case only a generation 
ago when coffee and bananas were the principal Costa Rican 
exports.  Now 1,800 companies export more than 3,600 
products.  While overall agricultural exports grew 5.6 
percent, performance was uneven among different crops.  In 
fact, banana exports, which remain Costa Rica's most 
important agricultural export, declined 13.4 percent. 
Manufacturing sector exports grew 12.7 percent led by a 25 
percent increase in shipments of electronic integrated 
circuits and microassemblies. 
 
3.  Export growth to Asian markets was most pronounced 
during the period; as a result, 14.4 percent or USD 829 
million of Costa Rican exports were destined for Asia 
through October 2005.  This marked a growth of 64 percent 
over the same period last year.  Based on more recent data 
through November 2005, Hong Kong led the pack as demand 
there for Costa Rican products grew 267 percent to USD 421 
million, supplanting the Netherlands as the number two 
destination for Costa Rican exports.  Hong Kong remains a 
distant second to the U.S. as an export destination; the 
U.S. purchased 40.3 percent of Costa Rican exports during 
the period in question.  However, growth of exports to the 
U.S. market through that period was 0.4 percent to USD 2.6 
billion. 
 
4.  Through November 2005, exports to China grew 61 percent 
to USD 226 million, and to Taiwan 140 percent, to USD 78 
million.  Top exports to Asia included semiconductors, 
modular and integrated circuits, and radiographic 
telecommunications equipment. 
 
5.  Costa Rica registered double-digit export growth to 
several other countries and regions through November,  as 
follows:  31 percent to the Netherlands (the number three 
destination with a value of USD 405 million); 60 percent to 
Canada (an FTA partner but only the twentieth largest 
destination for Costa Rican goods, at USD 49 million); a 
13.8 percent increase to the other CAFTA-DR countries 
(excluding the U.S.) to just over USD 1 billion, and 12.3 
percent to the Caribbean region. 
 
6.  COMMENT:  To put the current share of Asia's demand for 
Costa Rican goods in perspective, it is interesting to note 
that if taken together as a trading bloc, CAFTA-DR 
countries excluding the U.S. would constitute the number 
two destination for Costa Rican exports, more than double 
that of Hong Kong and approximately quadruple that of 
China.  END COMMENT. 
FRISBIE