US embassy cable - 05SANJOSE2202

UNCLAS SECTION 01 OF 02 SAN JOSE 002202 
 
SIPDIS 
 
SENSITIVE 
 
WHA/CEN 
EB FOR WCRAFT, BMANOGUE 
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: COSTA RICA: PRESIDENT PACHECO AND COMMISSION OF 
EMINENT PERSONS HOLD PRESS CONFERENCE (CORRECTED COPY) 
 
REF: SAN JOSE 02181 
 
1.  (U) Summary.  On September 20, 2005, after meeting with 
his cabinet and the five-member Commission of Eminent 
Persons, President Pacheco held a press conference to discuss 
the Commission's report on the United States-Central 
American-Dominican Republic Free Trade Agreement (CAFTA-DR). 
The President was accompanied on the stage by the Commission 
members, Foreign Trade Minister Manuel Gonzalez, and Vice 
President Lineth Saborio.  Each member of the Commission 
briefly made comments on aspects of CAFTA-DR that were 
neutral-to-positive, and consistent in the theme that the 
complementary agenda and implementing legislation are very 
important to the success of CAFTA-DR.  President Pacheco did 
not state when he would send CAFTA-DR to the Legislative 
Assembly to start the ratification process.  He did say that 
he would meet with various administration advisers throughout 
the week and would again discuss this topic with government 
councils and his cabinet on September 27, 2005 to determine 
next steps.  End Summary. 
 
2.  (U) A consistent message from all five members of the 
Commission was that their report must be taken as a whole and 
in context.  Franklin Chang, Chair of the Commission, 
explained to the press the methodology that the Commission 
used to complete its report, which is available on-line in 
Spanish at www.casapres.go.cr.  Chang stated that the 
Commission met 34 times in the past 60 days and talked to 30 
different persons about specific aspects of the agreement. 
He noted the Commission members were not trade experts and do 
not pretend to be.  He also stressed the report was 
unanimous.  He stated that the most important part of the 
report deals with telecommunications. 
 
3.  (U)  The other four members of the Commission, Alvaro 
Antillon, former Ministry of Foreign Affairs (MFA) official, 
Father Guido Villalta, the Roman Catholic Church's 
representative, Gabriel Macaya, ex-provost of the University 
of Costa Rica, and Dr. Rodrigo Gamez, President of the Costa 
Rican Institute of Biodiversity (INBio) all expressed the 
need for implementation of a robust complementary agenda to 
take advantage of the benefits that CAFTA-DR may bring and to 
ensure that all Costa Ricans realize these benefits. 
 
4.  (U) Antillon was the only member to specifically discuss 
details of the agreement, effectively and methodically 
explaining away three common myths.  First, he explained that 
under the Vienna convention, both treaties and agreements 
bind countries with equal force.  Second, he said that the 
constitutional court will review all aspects of the 
agreement, including questions about sovereignty, so it is 
unnecessary now to speculate if any parts of the agreement 
violate the constitution.  Third, he explained that any party 
could withdraw from the agreement with six months notice per 
article 22.7. 
 
5.  (U)  Father Villalta stated that profound changes in the 
social, political, and infrastructure systems will be 
required.  He further stated that CAFTA-DR will not decrease 
poverty or increase employment unless these changes are made. 
 Sensitivity to ensuring the well-being of all was also a 
consistent theme.  Gamez referred to the reality of Costa 
Rica's situation -- that the U.S. is Costa Rica's largest 
trading partner, and that the GOCR must find ways of taking 
advantage of its geographic proximity to the world's largest 
market. 
 
6.  (U)  Minister Gonzalez said Costa Rica had lost its sense 
of urgency and that it needs to focus on its priorities.  He 
cited the need to balance Costa Rica's increased integration 
into the world economy with maintaining the solidarity and 
well-being of its citizens, but stated that Costa Rica must 
move forward on CAFTA-DR.  Gonzalez cautioned that not all of 
the many changes that Costa Rica should make can be 
incorporated into the complementary agenda, but that a 
long-term strategy was necessary to ensure a better future 
for all Costa Ricans. 
 
7.  (U)  When the press specifically asked President Pacheco 
when he would send CAFTA-DR to the Assembly, he first 
deferred the question to Vice President Saborio who stated 
that they plan to meet with various advisers this week and to 
discuss next steps at the next cabinet meeting on September 
27, 2005.  She gave a spirited defense for the linkage of 
CAFTA-DR to fiscal reform.  When pressed again on the same 
issue, President Pacheco stated that his position has not 
changed -- it is his responsibility to send CAFTA-DR to the 
Assembly and he will do that, declining to say when.  Many 
times throughout the press conference, President Pacheco, 
Saborio, and Gonzalez stated that fiscal reform is still an 
Administration priority and is needed to help pay for a 
robust complementary agenda. 
 
-------- 
COMMENTS 
-------- 
 
8.  (SBU)  While the Commission members (with the exception 
of Antillon) offered no specifics, their tone could be 
characterized as neutral-to-positive.  At this point the only 
thing that is clear is that President Pacheco will discuss 
this issue further with other GOCR officials next Tuesday, 
September 27, 2005, and may make further comments at that 
time.  CAFTA-DR remains in the President's hands, and he is 
still reluctant to act.  (Note:  We are reviewing the text of 
the Commission,s report and will provide feedback septel. 
End Note.) 
FRISBIE