Identifier
Created
Classification
Origin
05SANJOSE1720
2005-07-29 22:38:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy San Jose
Cable title:  

CHORUS OF VOICES SINGING SEND CAFTA-DR TO THE

Tags:  ETRD ECPS ECON PREL PGOV SOCI CS 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 SAN JOSE 001720 

SIPDIS

SENSITIVE

WHA/CEN
EB FOR WCRAFT
E FOR TSMITHAM
WHA FOR WMIELE
WHA/EPSC FOR KURS
H FOR JHAGAN
STATE PASS TO USTR FOR JYOUNG, CPADILLA, AMALITO

E.O. 12958: N/A
TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
SUBJECT: CHORUS OF VOICES SINGING SEND CAFTA-DR TO THE
COSTA RICAN ASSEMBLY

REF: A. (A) SAN JOSE 01713


B. (B) SAN JOSE 01636

C. (C) SAN JOSE 01455

UNCLAS SECTION 01 OF 03 SAN JOSE 001720

SIPDIS

SENSITIVE

WHA/CEN
EB FOR WCRAFT
E FOR TSMITHAM
WHA FOR WMIELE
WHA/EPSC FOR KURS
H FOR JHAGAN
STATE PASS TO USTR FOR JYOUNG, CPADILLA, AMALITO

E.O. 12958: N/A
TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
SUBJECT: CHORUS OF VOICES SINGING SEND CAFTA-DR TO THE
COSTA RICAN ASSEMBLY

REF: A. (A) SAN JOSE 01713


B. (B) SAN JOSE 01636

C. (C) SAN JOSE 01455


1. (U) Summary. The second day after the U.S. Congress
approved the CAFTA-DR implementing legislation, many Costa
Ricans are expressing the urgent need for President Pacheco
to send the agreement to the Costa Rican Legislative Assembly
for ratification (Ref A). Those asking the administration to
hasten the process include many of the 57-member Assembly,
including its president, Gerardo Gonzalez, at least four
candidates in the upcoming presidential election,
representatives of business, and many members of the
President,s own party, the Social Christian Union Party
(PUSC). Statements from the administration remain consistent
with its previous position; that the President will send
CAFTA-DR for ratification at the time he deems appropriate.
End Summary.


2. (U) The amount of media coverage given to the status of
CAFTA-DR in Costa Rica has increased since the U.S. Congress
approved it on July 27, 2005 (local time). This coincides
with a definite growing intensity of the debate about the
status of CAFTA-DR ratification. Local media coverage has
shifted its focus from the vote in the U.S. to the GOCR,s
plan and timetable to ratify CAFTA-DR. The daily La Nacion
not only placed this issue on the front page but
also dedicated its first 8 pages to it. The call for
President Pacheco to send the agreement to the Assembly as
soon as possible was the common theme of many articles.
Those advocating this position, among many others, include,
Gerardo Gonzalez, a PUSC Assembly member (deputy) and
President of the Assembly, Oscar Arias, ex-president of the
country and front-runner in the next presidential election,
and Alberto Trejos, the ex-Minister of Foreign Trade (COMEX).
Of course, there are still those who oppose the agreement
and who have made their opinions known in the media.

-------------- ---
THE CHORUS SINGS SEND CAFTA-DR TO THE ASSEMBLY
-------------- ---


3. (U) On July 28, deputies from the National Liberation
Party (PLN),the Libertarian Movement Party (ML),and the
National Renovation (RN) Party requested the president to
send CAFTA-DR to the Assembly so that the deputies could
start studying it in preparation for the ratification
process. The PLN, in a letter to the President wrote, we
find ourselves in a critical situation where the country
cannot delay a decision on this issue. You cannot continue
to ignore Costa Rican society,s right to debate and decide
its future on an issue this important(. The PLN
representatives specifically stated that they would like
President Pacheco to introduce CAFTA-DR by August 1, 2005.
Rolando Lacle, a PUSC deputy who is President of the
Assembly,s International Relations Commission, recommended
that President Pacheco not delay in this matter because the
country could suffer consequences.


4. (U) Gerardo Gonzalez, the PUSC Assembly President,
believes that this issue is so important that he is exploring
Assembly rules and regulations to determine if it is possible
for a deputy to introduce CAFTA-DR to the Assembly if
President Pacheco will not. Gonzalez stated that if it is
permitted, he will present the agreement in September 2005.
(Note: Most political observers and legal scholars agree that
only the President can introduce a treaty for ratification.)


5. (U) Five of the top presidential candidates in the next
election, including front-runner Oscar Arias (PLN),Ricardo
Toledo (PUSC),Otto Guevara, (ML),Antonio Alvarez
Desanti(UPC),and Jose Manuel Echandi (UN),also expressed
the need for President Pacheco to take action. Oscar Arias
stated, I call upon the Administration and Assembly to
start discussions of CAFTA-DR as soon as possible. Ricardo
Toledo, the PUSC presidential candidate and a fellow
party-member of President Pacheco, stated that the country is
lagging behind, and he is worried because the necessary
legislation to prepare for CAFTA-DR has not been presented.


6. (U) Ex-Minister of COMEX, Alberto Trejos, warns that it
would be devastating for the country to remain outside
CAFTA-DR. When asked what he would recommend to President
Pacheco, he stated that he would recommend that he send the
agreement to the Assembly immediately. The President is the
author of this agreement, he gave instructions on its
negotiation, he authorized the initiation of the
negotiations. He was consulted and gave recommendations; it
was presented to him. We have an excellent agreement because
of this; he played his role.


7. (U) Local business leaders are concerned that they may
begin to lose their competitive edge because of the GOCR,s
delay in the CAFTA-DR ratification process. The many
business chambers are looking for ways to increase pressure
on the Administration, the Assembly, and the Commission of
Eminent Persons (Ref B),all of whom are to make decisions
about CAFTA-DR. Jack Liberman, the manager of Costa Rican
Mills, said that there is a lot at stake here and the only
forum in which to discuss this issue democratically is in the
Assembly. Samuel Yankelewitz, president of UCAAEP, an
association of business chambers, and General Manager of the
plastics company Yanber, said that the discussions about
CAFTA-DR will be a long process ) they will last a minimum
of six or 8 months in the Assembly. For this reason, it is
urgent to send the agreement now in order to have an adequate
debate.


8. (U) In an official press release, the pro-
CAFTA-DR, Costa Rican-business-backed group, Por Costa Rica,
stated the 13,886 partners of our organization are
convinced that the time has arrived to have a serious and
responsible debate about CAFTA-DR. The Coalition for
Development Initiatives (CINDE) made clear its position
regarding implications of the current situation on foreign
direct investment (FDI): Our relation with the United
States is vital. In 2004 more that seventy percent of total
FDI ($446.3 million or $617.3 million) came from U.S.
sources. Even more, in the last three years 78.9 percent of
new business in Costa Rica originated with investment from
the U.S.

--------------
THE BEAT OF A DIFFERENT DRUMMER
--------------


9. (U) Those who oppose even sending CAFTA-DR to the
Assembly continue to voice their opinions. Albino Vargas,
President of the approximately 15,000-member National
Association of Private and Public Employees (ANEP),stated
that if the agreement is sent to the Assembly, it would be
taken as a declaration of war. We will use all of our
available resources, including those that we have never used
before, to defeat CAFTA-DR. Prominent trade union leader
Fabio Chavez was equally emphatic: If CAFTA-DR goes to the
Assembly, there will be a general strike, marches, and civil
disobedience never before seen in this country. Otton
Solis, the presidential candidate for the left leaning
Citizens, Action Party (PAC) still pursues the idea of
renegotiating CAFTA-DR. He said that (this agreement is
not good for Costa Rica and we should renegotiate
bilaterally. It shouldn,t be sent to the Assembly until
after it is renegotiated.

--------------
THE ADMINISTRATION,S VOICE
--------------


10. (U) President Pacheco maintains his lukewarm support
for the agreement by saying that we will move at a slow but
sure pace on CAFTA-DR. He further stated that I will not
decide to approve or reject (CAFTA-DR). I will send it to
the Assembly at the right moment which is my duty as
President. In an interview with La Nacion, Manuel
Gonzalez, the Minister of Foreign Trade (COMEX),admitted
that Costa Rica is the country farthest behind in the
ratification process of CAFTA-DR, but he goes on to say that
what is most important is that those who have to make the
decision to approve or reject CAFTA-DR are the deputies who
need to weigh the consequences of saying yes or no to the
agreement. I, at least, am doing an analysis, and see the
balance much more in favor of yes.


11. (U) When asked if he had spoken with the President about
this issue since the U.S. House of Representatives, vote,
Gonzalez stated that he had, and that the President,s
position is that the approval in the U.S. was expected and is
a positive and important step. Minister Gonzales further
stated that my objective is to present CAFTA-DR to the
Assembly, let them discuss it and approve it. When asked
if this was also the Government,s objective, Minister
Gonzalez reportedly laughed and said, I believe that it is,
and it continues to be an aspiration of the Executive branch.
It is the goal that I have always shared with the President,
and I have never received any indication otherwise, nor have
I received any instruction to work in another direction(.

--------------
COMMENT
--------------


12. (SBU) The U.S. House of Representative,s vote approving
the CAFTA-DR implementing legislation was heard loud and
clear by those who support CAFTA-DR and those who do not.
The tone of the discussions about the status in Costa Rica
has definitely sharpened. The strength of voices of those in
favor of sending CAFTA-DR to the Costa Rican Assembly is
growing, with support from Assembly members, business people,
and presidential candidates. The Administration of President
Pacheco is maintaining its go-slow approach, still fearful of
the threats from CAFTA-DR opponents.
KAPLAN