The Tico Times Online Daily Page

Daily Edition: San José, Costa Rica, March 5, 2004

TOUGH customers: Costa Rican Foreign Trade Minister Alberto Trejos (not pictured) met with top European officials in Brussels this week. Trejos and European Agricultural Commissioner Franz Fischler (left) discussed agricultural subsidies and banana quotas. Getting stalled World Trade Organization talks back on track was the main issue discussed during Trejos' meeting with European Trade Commissioner Pascal Lamy (right).
TT Photo/AFP

Trejos Discusses
Trade in Europe
Foreign Trade Minister Alberto Trejos was in Brussels, Belgium, this week to discuss a range of trade-related issues with top European trade and agriculture officials.
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March 5

Concert by Guadalupe Urbina
Singing performance, Fri., March 5, 8 p.m., at the Children's Museum, end Ca. 4, Av. 9 in San José. Info: 258-4929, ext. 131, 146.

Show About Villalobos Investors
Canada's CTV W5 television program (similar to CBS's 60 minutes) will be airing its program on the Villalobos Brothers story on nationwide Canadian
television Sat. March 6 at 7 p.m. Toronto time. In Costa Rica it can be viewed on high-speed Internet at www.ctv.ca.

Charity Night Concert
By "The Clayfoot Strutters," famous for their "Contra Dance, Zydeco and Waltz" music, Sat., March 6, 8 p.m. at Hotel Villas Zurquí on the road to Guápiles. Info: 228-4285.

Dog Festival
Festival features dog adoptions, rabies vaccinations, raffles and food, sponsored by the United Association of Animal Rescue, Sun. March 7, 10 a.m. at Plaza Roosevelt in San Pedro.

Coast to Coast Challenge Race
Adventure race across the country, Sun.-Thurs., March 7-11, from Limón to Dominical. Info: 280-8054.

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Trejos Discusses
Trade in Europe

Foreign Trade Minister Alberto Trejos was in Brussels, Belgium, this week to discuss a range of trade-related issues with top European trade and agriculture officials.

The main issues discussed were how to revive stalled World Trade Organization (WTO) multilateral trade negotiations (TT, Sept. 19, Oct. 17, 2003), the results of the Cairns Group ministerial meeting held last week in San José (TT, Feb. 17), the possibility of starting free-trade negotiations between Central America and the European Union (EU), proposed changes to the EU's banana quota system and the current status of the Generalized System of Preferences (GSP) under which most of Costa Rica's agricultural exports enter Europe (TT Daily Page, Jan. 15, 23, 28; Feb. 10, 23; Apr. 9; Apr. 10, 2003; Jan. 31, 2004).

During his meeting with Trade Commissioner Pascal Lamy, Minister Trejos reiterated Costa Rica's support for the Doha Round of WTO negotiations. He stressed the urgent need for WTO member countries to reach an agreement that will make it possible to put negotiations back on track before the middle of this year.

During his meeting with Agriculture Commissioner Franz Fischler, Trejos reiterated the Cairns Group's message, requesting Europeans further open their markets to foreign agricultural products, eliminate agricultural export subsidies and take steps to "substantially" reduce domestic farm supports.

Trejos also expressed concern over changes to the EU's banana import, sale and distribution regimen that could take place when the EU expands from 15 members to 25 later this year.

Trejos also expressed concerns over European plans to eliminate the banana quota system in 2006. Under the regimen, bananas from all over the world would be able to enter Europe paying a standard tariff, instead of being subject to a limited yearly quota as they are today.

Costa Rica argues the proposed 75 Euro ($91) tariff for banana shipments is too steep and could make it difficult for the country's bananas to compete.

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Mother and Son Arrested
On Charges of Selling Drugs

Drug Control Police yesterday announced the arrest of a mother and son they suspect of running a small drug-selling operation in the Pacific port town of Puntarenas.

Agents reported they discovered inside the family's furniture five doses of crack, nine bits of marijuana, three doses of compressed marijuana, one instance of cocaine residue and ¢11,000 ($26) in cash.

In the case of crack, a single dose is one "rock," whereas in the case of marijuana, a dose is the amount used to make one "joint," according to Public Security Ministry officials.

The 40-year-old woman and her 19-year-old son, both identified by police with the last name of Bravo, were remitted to the control of the local prosecuting attorney's office, where they will face charges of local drug trafficking.

The bust was made after police received various calls about the pair at the hotline 800-DROGA-NO, according to a statement released by the Public Security Ministry yesterday.

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Financial Sector Will Pay Higher
Taxes If Fiscal Reform is Approved

If the Legislative Assembly approves the government's proposed Permanent Fiscal Reform Package, financial service entities would pay significantly higher taxes, according to the Finance Ministry.

Last December, after 15 months of debate, a mixed commission that included representatives from every legislative faction, business chambers and other groups unveiled what was believed to be the final version of the tax plan. The government adopted the plan and submitted it back to the Legislative Assembly as a bill on Jan. 19 (TT, Dec. 5, 2003).

A nine-member legislative commission was created Feb. 5 to study the tax plan so it could be voted on. The commission was given until Feb. 26 to make last-minute changes (TT, Feb. 13, 20).

However, last week legislators and President Abel Pacheco agreed to extend the final deadline for the completion of last-minute changes to the plan until March 6. After that, the reformed bill will be sent to the floor of the Assembly to be voted on.

Under the tax plan, Costa Rican financial entities would cease to benefit from the special treatment they receive when paying taxes on profits generated from securities investments. The tax they pay would increase from the current 8% to a maximum of 30%, according to acting Finance Minister Roy González.

The tax plan would also dramatically increase the tax the country charges banks operating offshore financial operations -- entities located in foreign countries chosen for their low tax rates and often more lax regulations, González said.

The tax on offshore entities would increase from $125,000 a year now to $300,000. Financial entities also would be required to file income taxes on revenues generated by offshore subsidiaries.

"The bill not only increases the special tax charged to these entities by more than 100%, but also states the dividends financial groups receive from offshore subsidiaries will be required to pay income taxes, under the principle of global income," he explained.

González defended the tax plan from recent criticism by legislators, who have described it "poorly thought out."

The acting minister also noted that banks contribute to the government through several "para-fiscal" obligations. All banks are required to pay a 5% tax on revenues to fund the National Commission of Loans for Education (CONAPE). State banks are required to dedicate 10% of their revenues to fund the National Institute for the Promotion of Cooperative (INFOCOOP).

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Region's Ombudsmen Propose Abolition
Of Corporal Punishment Against Children

The Ombudsmen of the Central American countries want physical punishment against children to be prohibited. Such was the request made before a meeting Wednesday of top officials in charge of assuring the security of children in Central America.

Corporal punishment and the trafficking of children were the main topics of study and analysis during the meeting of child protection officials. The objective of the week's conference, held in San Rafael de Heredia north of the capital, is to establish a common agenda for all of Central America with the hope of making an impact on each country, particularly in the legal environment, officials said.

The ombudsmen, joined by Save the Children in the request, said that styles of communication and discipline, along with example, are what construct the identity of a person when they are young. While parents should establish limits of behavior with their children, this discipline should not include anything that puts minors at risk, they said.

Physical punishment is defined as the intentional use of force, with or without injuries, which causes pain to a child with the goal of correcting or controlling conduct, according to the ombudsmen.

The Costa Rican Ombudsman's Office has already presented a bill outlawing the practice of corporal punishment against children in Costa Rica, currently pending in the Legislative Assembly.

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Wednesday October 26, 2005