Former Trade Minister
Recaps His Time in Office
By Fabián Borges
Tico Times Staff
fborges@ticotimes.net

Former Foreign Trade Minister Alberto Trejos on Tuesday stressed the benefits of the Central American Free-Trade Agreement (CAFTA) with the United States, and recapped his two-year term as minister, which he described as “successful.”

“Trade is necessary, given the country's size – to specialize in producing what it is most efficient at, to sell to markets larger than its own, to complement its savings with the savings of other countries through investment,” Trejos said during a luncheon organized by the Costa Rican Chamber of Commerce in San José.

Since 1994, Costa Rica has signed and implemented four free-trade agreements – with Canada, Chile, Dominican Republic and Mexico – all of which have succeeded in increasing the country's exports to those countries, Trejos said.

Trejos heralded Costa Rica's efforts in the World Trade Organization (WTO), aimed at getting stalled Doha Development Round of multilateral trade negotiations back on track. Costa Rica has “played a role much larger than its size” in the WTO, he said.

He called CAFTA and the recently signed free-trade agreement the 14-member Caribbean Community (CARICOM) “great opportunities” for the country.

The United States is Costa Rica's largest trading partner – the destination of 50% of its exports and the source of 50% of its imports – and the source of most of the country's foreign direct investment.

An agreement that further strengthens the rules that govern trade and investment between Costa Rica and the United States, such as CAFTA, will only help the country continue to grow, Trejos said.

The Caribbean is one of the few closed markets left in the world and a potentially profitable destination for Costa Rica's exports. CARICOM is an importer of agricultural products, and Costa Rica is one of the world's largest per-capita exporters of agricultural products, he said.

The Legislative Assembly's Permanent Commission on International Relations last month unanimously recommended the CARICOM free-trade agreement be ratified (TT, Sept. 24).

Trejos said the challenges that remain for his replacement, Manuel González, include strengthening ties with countries “in our neighborhood.” Costa Rica should resume stalled free-trade negotiations with southern neighbor Panama and continue to deepen its integration with its northern Central American neighbors.

The approval of CAFTA, he said, presents both challenges and opportunities for Costa Rica. However, CAFTA challenges do not end with its approval by Costa Rica's Legislative Assembly and the U.S. Congress. The country also must approve a complementary agenda aimed at making the country's more competitive and better able to face the challenges and take advantage of the opportunities it will create, he concluded.