Costa Rica Counts for 40 Percent of CAFTA Exports to the U.S.
Costa Rica Counts for 40 Percent of CAFTA Exports to the U.S.
CAFTA has helped Costa Rica to diversify its exports and attract foreign investment from the U.S., said World Bank's Director for Central America Felipe Jaramillo at AS/COA’s San Jose conference.
Looking back on the previous five years after the passing of the Dominican Republic-Central American Free Trade Agreement (CAFTA-DR), Costa Rica and the United States are enjoying the biggest fruits from the then-controversial free trade agreement, according to a World Bank report presented on Monday.
Costa Rica accounts for 40 percent of CAFTA’s exports to the United States, far outpacing its Central American neighbors. Thanks in part to CAFTA, Costa Rica has significantly diversified its exports, including computer processors and medical supplies, as well as more traditional goods like coffee, bananas and pineapple, valued at just under $4.5 billion in 2012, according to statistics from the Foreign Trade Ministry.
“The growth and development of a country like Costa Rica is inexorably tied to its integration in the global economy. That’s why we should continue working hard to eliminate obstacles both foreign and domestic that restrict our capacity to compete,” Foreign Trade Minister Anabel González said.
During the conference, hosted by the Americas Society/Council of the Americas in Escazú, World Bank's Director for Central America Felipe Jaramillo said that CAFTA found “fertile ground” in Costa Rica, celebrating the country’s ability to attract foreign direct investment from the U.S., diversify its exports and increase its competitivity.
Jaramillo said that Costa Rica’s policy of “smart globalization,” investing in its human capital, has allowed it to succeed under the once-controversial trade agreement.
Costa Rica ratified CAFTA-DR, a free trade agreement with the United States, El Salvador, Honduras, Guatemala, Nicaragua, and the Dominican Republic, in 2007. A national referendum at the time passed with 51 percent voting “yes” after a protracted national debate. The vote was similarly close in the United States, where the House of Representatives voted 217-215 in favor of the regional free trade agreement....
