Costa Rica to Vote on DR-CAFTA
Costa Ricans will go to the polls on Oct. 7 to vote on whether the country should join DRCAFTA, the free-trade agreement between the United States and Central America.
Costa Rica is the only Central American country that hasn’t ratified the pact, known as the Dominican Republic–Central American Free Trade Agreement, which has been in effect for more than one year.
The U.S. Congress approved the agreement in 2005. The following year, the legislatures in El Salvador, Honduras, Nicaragua and Guatemala gave their approval. The Dominican Republic didn’t sign it until March 1, 2007. That leaves Costa Rica as the last country to approve the measure.
Meanwhile, Central America and the European Union (EU) are getting ready to start free-trade agreement talks in September and October. A free-trade agreement would eliminate tariffs and quotas on hundreds of items exchanged between the two regions.
Costa Rica could join the European talks later if it approves DR-CAFTA. Panama would also be added if it joins the System of Central American Integration, which promotes social and economic integration in the region.
The EU is Central America’s second most important trading partner after the United States. Europe accounts for 12 percent of total trade in the Central American region, while the United States makes up 46 percent of trade.—D.B.
