COSTA RICAN VIEWS ON ECUADOR WTO CASE ON BANANAS

UNCLAS SAN JOSE 002649

SIPDIS

SIPDIS

GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ETRD EAGR ECIN ECON CS
SUBJECT: COSTA RICAN VIEWS ON ECUADOR WTO CASE ON BANANAS



1. Vice Minister for Foreign Trade Amparo Pacheco gave the
following answers to us when we inquired about whether the GOCR
planned to join Ecuador's WTO case against the EU on bananas.


2. Question: Will Costa Rica join Ecuador in the arbitration panel
against the European Union?

Answer: No, Costa Rica has decided to continue negotiating since
Costa Rica considers that negotiation is the best way to reach the
necessary agreements to protect the national interests on this
subject. Last Friday the Doha Round resumed deliberations,
precisely in the agricultural field, and tomorrow Thursday, the
Trade Negotiations Committee will gather, making it possible to
re-launch banana negotiations in that context.


3. Question: Could Central American countries joining Ecuador in
this process against the European Union have any effect on the start
of the negotiations of an economic association agreement between
Central America and the European Union?

Answer: There will be Central American countries that will join the
case and there will be others that will not. Costa Rica will respect
each country's decision and we know that they will respect ours,
because what motivates each of us are our specific commercial
interests and not simply regional solidarity. Costa Rica has been
an active and successful country in WTO litigation, but in some
cases it is not litigation but negotiation that is the best way to
proceed, and the Costa Rican banana sector and this ministry believe
that this is the case in this matter. On the other hand, we are
aware of statements by European authorities affirming that they
would not start a negotiation process with a region where there were
countries that have started an arbitral process against them.
FRISBIE