COSTA RICA: 14TH CAFTA-DR BILL PASSAGE LIKELY NOT UNTIL

UNCLAS SAN JOSE 001226 SIPDIS DEPT FOR EEB/TPP/BTA DGROUT AND RMANOGUE, WHA/EPSC SGARRO, EEB/TPP/IPE LHUG HES AND JURBAN PLEASE PASS TO USTR AMALITO AND DOLIVER PLEASE PASS TO TREASURY SRALSTON AND ENEPHEW PLEASE PASS TO COMMERCE E.O. 12958: N/A TAGS: ECON ETRD KIPR CS PREL PGOV SUBJECT: COSTA RICA: 14TH CAFTA-DR BILL PASSAGE LIKELY NOT UNTIL FEBRUARY REF: SAN JOSE 1194 SUBJECT: COSTA RICA: FINAL CAFTA-DR BILL PASSAGE LIKELY NOT UNTIL FEBRUARY ¶1. Costa Rica's Legislative Assembly adjourned for the year on December 22 and plans to re-convene on January 18. The committee handling the 14th CAFTA-DR bill-addressing three technical intellectual property rights (IPR) corrections that USTR requires-closed the final round for accepting amendments. The bill now has over 100 amendments which the committee will evaluate when it returns to work. ¶2. In early December, opposition parties appeared willing to acquiesce to the bill's quick passage. At the last moment, the spirit of cooperation evaporated. Prospects for final approval of the bill in January are dim. Even if the bill receives the first of two general plenary votes during the last week of January, the bill will likely be referred to the constitutional court for a thirty day review. Assuming the bill passes constitutional review, late February to early March is the likely time frame for final passage in the Assembly. ¶3. The consequence of the process of the 14th bill dragging on is that Costa Rica will delay receiving its 2010 CAFTA-DR preferential sugar quota. Costa Rica lost this CAFTA-DR benefit when it failed to pass the bill before December 31 (reftel). BRENNAN