Daily Edition: San José, Costa Rica, January 27,  2003

AND THEY ARE OFF! Zoellick (center) and C.A. trade ministers start CAFTA talks today; protests expected. -AFP/TT

CAFTA Talks Start Today
Eagerly anticipated and highly controversial, the first of nine rounds of scheduled free-trade negotiations between the United States and the five Central American countries begins today in the Hotel Real Intercontinental, west of San José.
(Click for more)

Pacheco Defends Pay Increase
President Abel Pacheco yesterday
defended his administration's decision to grant all public employees who earn a monthly salary of less than ˘1 million ($2,630) a flat salary raise of ˘5,200 ($13.70) each.
(Click for more)

Immigration Raids Continue
Immigration and police authorities last weekend detained another 50 "illegal" foreigners, including a British woman who has been considered an international fugitive from justice since 1994, according to government press releases.
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British Film Festival
Presents: Raining Stones, Mon., Jan. 27; Beautiful People, Tues., Jan. 28; A Merry War, Wed., Jan. 29; The Luzhin Defence, Thurs., Jan. 30; The Pillow Book, Fri., Jan. 31; Croupier, Sat., Jan. 1-2, all at Sala Garbo, schedule not yet available.

Democrats Abroad of Costa Rica Meeting
Guest speaker Gail Nystrom, founder of the "Costa Rican Humanitarian Foundation" at their monthly meeting, Today, Jan. 27, at the Gran Hotel Costa Rica, with a business meeting at 11 a.m., a buffet lunch at noon and speaker at 12:45 p.m., For information and required lunch reservations (˘3,000 for members and ˘3,500 for guests), contact Dorothy Sagel at 249-1856 or Jerry Karl at 232-7048.

Literary Discussion "Poetry in Costa Rica:"
Featuring poets Carlos Bonilla, Helena Ospina, Milton Zárate and moderator and literary critic Carlos Porras, at 7 p.m., Mexico Institute, Los Yoses. Info: 283-8891.

Learning by playing
"Introduction to forms and colors – funny games on the subject," exercises for parents with children 3-10 years, events in "Caballito del Mar Azul," 300 m. south of Multiplaza, Escazú,every Monday a new subject. Info: 288-8713, 292-5609.

CAFTA Talks Start Today
By David Boddiger
dboddiger@ticotimes.net

Eagerly anticipated and highly controversial, the first of nine rounds of scheduled free-trade negotiations between the United States and the five Central American countries begins today in the Hotel Real Intercontinental, west of San José.

Trade ministers from Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua will meet with U.S. Trade Representative Robert Zoellick and his free-trade team to discuss eliminating tariffs and other trade barriers, while protecting intellectual property rights.

The regional free-trade pact (known as CAFTA) negotiations are viewed as a first step toward the eventual hemispheric Free Trade Agreement of the Americas, slated for completion in 2005.

While President Abel Pacheco has promised that an eventual agreement will result in greater access to the U.S. market for smaller Costa Rican producers, leaders of labor groups and civil sectors have promised to greet the four-day talks with protests today.

Members of Costa Rica's civil sector fear the talks may lead to privatization of the country's state-run services, including telecommunications, health, water and petroleum.

Pacheco, however, promises no deal will be struck that considers the opening of these sectors (TT, Jan. 24).

Talks begin at 8:30 a.m.

Pacheco Defends Pay Increase
By Tim Rogers
trogers@ticotimes.net

President Abel Pacheco yesterday defended his administration's decision to grant all public employees who earn a monthly salary of less than ˘1 million ($2,630) a flat salary raise of ˘5,200 ($13.70) each.

The flat raise, which will affect more than 210,000 public employees, is being blasted by union leaders who were demanding higher pay increases.

Pacheco, however, claims his administration offered union leaders three different proposals for salary increases, and all were rejected.

"During the last month, we spoke with [union leaders], but they remained inflexible in their demands for salary increases that are more than the government can afford," the President said during his weekly Sunday address to the nation.

Pacheco maintains that the ˘5,200 raise is fair because it more than surpasses last semester's inflation total.

"It is a responsible adjustment because it will allow [workers] to compensate for last year's loss of salary value (due to inflation), while maintaining a fragile balance between government spending and income," he said.

According to Ministry of Labor statistics, the salary increase will translate into a 3.5 - 6.2% raise for public sector workers, depending on their base salary.

The President stressed that all public employees making over ˘1 million a month -- including himself and his cabinet members -- will not receive the raise.