KEY DEPUTIES POINT TO VOTING ON CAFTA-DR AFTER NEW

UNCLAS SAN JOSE 000091

SIPDIS

WHA/CEN
EB FOR WCRAFT, BLAMPRON
E FOR DEDWARDS
WHA FOR WMIELE
WHA/EPSC FOR KURS, LGUMBINER
H FOR JHAGAN
STATE PASS TO USTR FOR RVARGO, NMOORJANI, AMALITO

E.O. 12958: N/A
TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
SUBJECT: KEY DEPUTIES POINT TO VOTING ON CAFTA-DR AFTER NEW
CONGRESS TAKES OFFICE

REF: SAN JOSE 02942


1. On January 11, 2006 Representative Dan Burton (R-IN)
and Ambassador met with key members of the Costa Rican
Legislative Assembly to discuss the status of ratification
of the Central America-Dominican Republic-U.S. Free Trade
Agreement (CAFTA-DR). Rolando Lacle, Chair of the
Assembly's International Relations and Trade Committee,
which has responsibility for conducting hearings on the
agreement, said the most optimistic schedule is that his
Committee would finish its work prior to ending its tenure
when the current Assembly is replaced in whole on May 1,

2006. So far the Committee has heard only from the first
of 32 witnesses. Lacle expressed doubt that the current
Assembly would be able to conduct a first of two required
ratification votes prior to handing over their seats to the
new Assembly members (deputies) who will be elected on
February 5, 2006.


2. Also present at the meeting were Lacle's fellow Social
Christian Unity Party (PUSC) deputies Liliana Salas, leader
of the PUSC faction, and Mario Calderon, another PUSC
deputy. All appeared to be in agreement on several points
including that President Pacheco waited too long to send
CAFTA-DR to the Assembly to start the ratification process,
and that there is little time left for the Committee to
progress on this issue. However, Lacle said he would ensure
that the Committee, under his leadership, would proceed with
the hearings when they return after the holiday and election
break with the goal of concluding its work and conducting a
Committee vote to send CAFTA-DR to the entire Assembly. He
stated that six of the nine Committee members are expected
to vote in favor of the agreement and send it to the floor
for a vote, more than simple majority needed to do so.


3. Lacle doubted that there would be sufficient time or
political will for the Assembly to conduct the first vote
prior to May 1. He also talked about the relatively
cumbersome process that he will have to manage while the
issue is discused in the Committee. In these proceedings
any deputy, even if not a member of the Committee, has the
right to be present, speak, and ask questions of those
persons providing testimony before the Committee. Lacle
said that time limits are usually not imposed on deputies.
He noted that if he imposed too strict limitations on debate
the Constitutional Court could later overturn the
ratification process, and it would be necessary to start
over. This could, therefore, lengthen the Committee
hearings and put in jeopardy Lacle's goal of completing his
work prior to leaving office.


4. Referring to other complementary legislation necessary
for implementing Costa Rica's CAFTA-DR commitments,
Calderon stated frankly that he did not believe the current
Administration would deliver these bills to the Assembly.
Even if it were to do so, there is probably not enough time
for the Assembly to act.

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


5. The current International Relations and Trade
Committee's completion of its work prior to May 1 would be
a very positive step in the ratification process. However,
based on Lacle's frank comments, meeting this goal is by no
means a certainty. Either way, the bulk of the
ratification process will be left to the incoming Assembly
and Administration. Thus, most of the work involved in the
ratification and implementation of CAFTA-DR in Costa Rica
likely will extend well into the second half of 2006, if
not later.


5. Representative Burton did not clear on this cable.
LANGDALE