Cablegate: Coalition of Deputies Urge President to Move

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 SAN JOSE 002038

SIPDIS

SENSITIVE

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

E.O. 12958: N/A
TAGS: ETRD ECPS ECON PREL PGOV SOCI CS
SUBJECT: COALITION OF DEPUTIES URGE PRESIDENT TO MOVE
FORWARD ON CAFTA-DR

REF: (A) San Jose 01828
(B) San Jose 01455
(C) San Jose 01692
(D) San Jose 02008

1. (U) Summary. On August 29, 2005, thirty-eight of the
57 members (deputies) of the Costa Rican Legislative
Assembly signed a letter to President Pacheco urging him to
send the United States-Central American-Dominican Republic
Free Trade Agreement (CAFTA-DR) to the legislative body
immediately. Assembly members from the President's Social
Christian Unity Party (PUSC), the National Liberation Party
(PLN), the Libertarian Movement Party (ML), and two
independent deputies signed the letter. This effort was
spearheaded by the Assembly President, Gerardo Gonzalez
(PUSC). The letter expressed the deputies' concerns about
delaying the ratification process of the agreement that
could "forge the development of the country." In a related
story, the Administration on the same day officially
submitted its complementary agenda to the Assembly. End
Summary.

2. (U) The letter was signed by all but three of the 19
PUSC deputies. Ricardo Toledo, the PUSC presidential
candidate for the February 2006 elections, said he
supported the letter but could not sign because he was
absent from the legislative session. All 15 of the PLN
members signed the letter, as well as all five of the ML
deputies, and two independents. The theme of the letter
was the vital need to move ahead on CAFTA-DR by allowing
the deputies to officially start discussions on the
agreement.

3. (U) Gerardo Gonzalez is still discussing the
possibility of a deputy introducing the agreement to the
Assembly instead of waiting for the President to submit it.
Various dailies on August 29, 2005, reported that Gonzalez
was preparing to investigate this option with the
Constitutional Court if the President does not respond to
the deputies' written request. (Note: Most constitutional
and political experts believe that only the President or a
Minister of his Administration has the constitutional right
to present such an international agreement to the
Assembly.)

--------------------------------------------- -------
COMPLEMENTARY AGENDA OFFICIALLY SENT TO THE ASSEMBLY
--------------------------------------------- -------

4. (U) In a related issue, the Administration officially
presented its complementary agenda to the Assembly on
August 29, 2005 (Ref C). The complementary agenda is
mainly funded through loans. (Note: The Assembly is
required to approve all new state debt, and as such has
effective control over when and if this essential part of
the CAFTA-DR package advances.) Reportedly, the
Administration had planned to presented the complementary
agenda in a formal public ceremony. However, due to the
inability to coordinate various Ministers' schedules, the
public event was cancelled. Gilberto Barrantes, Minister
of the Economy and Chair of the President's Economic
Council, addressed the press on this issue.

5. (U) Minister Barrantes did not provide much more
detail than was previously released about the complementary
agenda. In general, the complementary agenda is planned as
a series of coordinated projects over the next five years
to increase the global competitiveness of Costa Rican
businesses so that they can take advantage of the
opportunities presented by CAFTA-DR. Improving rural roads
and highways, increasing efficiency of small- and medium-
size businesses, streamlining of governmental processes,
implementing educational initiatives, and helping promote
sustainable agriculture are some of the projects integral
to the complementary agenda. Funding will be provided by
loans from the Inter-American Development Bank (IADB)
(loans of USD 117 million and USD 15 million), the World
Bank (USD 30 million), and the Central American Bank of
Economic Integration (BCIE)(USD 47 million). The GOCR will
contribute USD 136 million towards these projects.

---------------------------
COMMENT - BUILDING PRESSURE
---------------------------

6. (SBU) It is clear that a strong majority of the
deputies feel a sense of urgency to start the long process
of ratifying CAFTA-DR in Costa Rica. We believe that the
number of deputies signing the letter (precisely two-thirds
of the Assembly) is a measure of the level of support in
the Costa Rican legislature and indicates that CAFTA-DR
will be passed eventually. Press coverage of the U.S.
Congress's approval of CAFTA-DR was intense and focused
attention on the lack of progress in the ratification
process in Costa Rica. The recent approval by the Senate
of the Dominican Republic seems to have refocused attention
on inertia here. The sending of the complementary agenda
to the Assembly is a step in the right direction. However,
the Administration is still lagging behind in sending the
implementation agenda, i.e., the legislation necessary to
comply with the terms of the agreement such as providing
for the gradual opening of the telecommunications and
insurance markets. Post doubts that this increased
pressure will be sufficient to move the Administration to
action before the Eminent Persons Group studying the
agreement releases its report o/a September 16 (see
septel).
FRISBIE

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