Costa Rica, China Seal
Trade Deal
By Oscar Nunez Olivas (AFP)
China and Costa Rica said Wednesday they had
reached the framework of a free trade
agreement, sealed within months after the
Central American nation snapped longstanding
ties with rival Taiwan.
The deal paves the way to lift almost all
tariffs on Costa Rican meat, fruit, juice
and other produce to China, which is already
the second biggest commercial partner with
the country after the United States.
"We have completed a free trade agreement
with the world's third largest economy,
without doubt a milestone in Costa Rica's
trade policy," Marco Vinicio Ruiz, the
minister of foreign trade, said after three
days of talks.
He said the agreement, negotiated over 14
months, would open "enormous opportunities"
to boost exports to the billion-plus nation
along with investment from the fast-growing
Asian economy.
"We have strengthened our involvement in the
Asian continent," Ruiz said. "There is no
doubt that the United States and Europe are
fundamental for our economy, but obviously
it is also fundamental to have a presence in
Asia."
Costa Rica also recently concluded
negotiations on a free trade agreement with
Singapore.
In brief remarks, Yi Xiaozhum, China's vice
minister of commerce, hailed the conclusion
of negotiations and voiced hope that the
agreement will be formally signed soon "for
the benefit of both our peoples."
Officials said the two countries hoped to
sign the accord before Costa Rican President
Oscar Arias leaves office on May 8. Latin
America's oldest democracy on Sunday elected
Arias ally Laura Chinchilla as his
successor.
Central America is a key diplomatic support
base for Taiwan, which has sealed similar
free trade agreements with most of Costa
Rica's neighbors.
China considers Taiwan, where the mainland's
defeated nationalists fled in 1949, to be a
province awaiting reunification and strongly
opposes any foreign recognition of its
government.
China launched free trade talks in earnest
with Costa Rica in 2007 after it became the
first nation in Central America to recognize
Beijing, ending its decades-old relationship
with Taiwan.
The free trade deal gives priority to Costa
Rican exports to China.
Some 99.6 percent of Costa Rican goods would
have immediate, duty-free access to the
Chinese market, while 58 percent of Chinese
goods would get the same treatment, said
Fernando Ocampo, Costa Rica's chief trade
negotiator.
Costa Rican agricultural products stand to
benefit most, with more of the nation's
fruit juice, decorative plants, leather,
pork, beef and coffee likely to wind up on
Chinese shelves.
"The only product that's not covered under
the treaty is sugar. We tried, but couldn't
get China to agree," Ocampo said.
Nonetheless, he said: "In terms of market
access, the balance is very favorable."
Costa Rica would also open its doors to more
Chinese products including electronic parts
and agricultural produce.
China would set up a reserve of 10,000
metric tons of beans, which would flow
duty-free into the Costa Rican market at
times of the year when local production does
not meet domestic demand.
The deal moved ahead despite concerns in
parts of the world about the quality of
Chinese goods. In 2008, Chinese milk laced
with the industrial chemical melamine led to
the deaths of six babies and sickened
300,000 others.
China, along with other major Asian
economies such as Japan and South Korea, has
been seeking free trade deals amid a long
deadlock in the Doha round of global trade
liberalization talks.
A free trade agreement took effect on
January 1 between China and the 10-member
Association of Southeast Asian Nations
(ASEAN). In Latin America, China has trade
pacts with resource-rich Chile and Peru.
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