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Costa Rica Wins More Time To Implement CAFTA,
by Mike Godfrey, Tax-News.com, Washington
Wednesday, October 01, 2008
Costa Rica has been given an additional three months to complete the legislative
process that will enable the country to join the Central American Free Trade
Agreement (CAFTA).
The news that Costa Rica's CATFA partners had granted the extension was announced
by President Oscar Arias following his meetings with fellow Central American leaders and the US President
George W. Bush in New York last week.
Although CAFTA was ratified by Costa Rican voters almost a year ago, the Constitutional
Court ruled that the Legislative Assembly should not have passed legislative
changes affecting the country's intellectual property regime without consulting
indigenous groups.
While the legislative assembly has completed work on a dozen other pieces of
enabling legislation, ratification cannot be completed until the IP provision
is redrafted and approved, a process which could take between 6 weeks and three
months from the date of the Constitutional Court's judgment on September 11.
It marks the second occasion that Costa Rica has been granted an extension
to the deadline for ratification of CAFTA, having been granted an extra six
months to complete the legislative process in February 2008. Arias is nonetheless
optimistic that ratification can be completed prior to the US presidential election
on November 4. However, this depends on the final bill passing through the assembly
without another appeal to the Constitutional Court, which could delay the process
further still.
Costa Rica remains the only signatory to the trade pact not to have completed
ratification.
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