The TLC: A Gringo’s Viewpoint

October 7 will be a momentous day for Ticos. This is the day of the national referendum for the TLC, the trade agreement with the United States. Costa Rica is the only country in Central America that has not signed onto the agreement. The latest polls show that public sentiment in almost equally divided between the Si’s and the No’s. There are many good (and bad) arguments on both sides of the issue. The agreement will, among other things, eliminate the tariffs on goods and services that Costa Rica exports to the U.S., as well as providing the same favorable treatment for goods and services imported by the U.S. into Costa Rica. A good source of information (in Spanish…but the effort to translate is worth it) is the pamphlet by Comex (Ministerio de Commercio Exterior de Costa Rica) entitled, “Lo Mas Importante sorbre el TLC.” The pamphlet can be downloaded at the Comex web site.

To be honest I am a little divided. Actually, not being a naturalized citizen, I really have no right to express an opinion, but I will anyway (at least to the readers of my blog and The Costa Rica Zine). I believe the TLC is important for potential investors because, among other things, it can have an affect on the regulation of land use in Costa Rica. There in lies part of the problem for me. Although I am a fan of foreign investment in Costa Rica, much of which has come (and will continue to come) in the form of property development, I am more of a fan of preserving its rich natural resources. Costa Rica is an environmental crown jewel and it must be protected. As I read about certain aspects of the agreement (or treaty) I am concerned that Costa Rica may be giving up some of its sovereign right to enact and enforce laws that protect its environment in order to foster more open foreign investment. It is an undeniable fact that there is a delicate balance between the benefit foreign investment can bring to the economy of Costa Rica and the detriment unregulated property development can wreak on the environment. It concerns me that the TLC, an agreement not written specifically with Costa Rica in mind, might cede some power to regulate away from Costa Rica and to some international tribunal or arbitration panel. That being said, however, I do have confidence in our president, Oscar Arias. I don’t want to be so naïve as to simply say, “well, if Oscar Arias supports it, then so do I,” but it does calm my fears that he has been such a staunch supporter of this agreement. Other provisions of the agreement, such as those that open up competition in areas like telecommunications, I am completely in favor of.

One thing is for sure, the method by which Costa Rica has decided to decide is one that should make every Costa Rican proud. The referendum that will take place Sunday, October 7, will be a great example for the world of true democracy in action. Costa Rica has been a shining star amongst its neighbors of this fact for many decades and I am sure for many more to come.

Pura Vida!