Costa Rica 2013 Blog: Welcoming Remarks and World Bank Report on Five Years of CAFTA-DR

By
Carin Zissis

Following welcoming remarks, World Bank's Director of Central America Felipe Jaramillo gave a presentation on what CAFTA-DR has meant for the Costa Rican economy.

Speakers:

  • Anabel González, Minister of Foreign Trade of Costa Rica
  • Ragnhild Melzi, Senior Director, Public Policy Programs and Corporate Relations, Council of the Americas
  • Felipe Jaramillo, Director of Central America, World Bank (Download his presentation)

Trade Minister Anabel González opened AS/COA's second conference in Costa Rica by saying the country's growth is directly tied with that of the global economy, and that partnerships like the Pacific Alliance and Trans-Pacific Partnership help tie into and boost that growth. AS/COA's Ragnhild Melzi followed, giving some specific examples of how Costa Rica's economy expanded in the years since the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) went into effect there. For example, in the past two years, Costa Rica has addedd 90,000 jobs and seen the lowest inflation in 40 years. Moreover, Costa Rica accounts for 40 percent of CAFTA-DR members' total sales to the United States, while in 2012, U.S. foreign direct investment (FDI) to Costa Rica totaled $965 million.

The World Bank's Felipe Jaramillo delivered a presentation on how the CAFTA-DR agreement transformed Costa Rica and the Central American region.

Jaramillo explained that since CAFTA-DR went into effect, commercial flows with the United States show a tendency of growth while Costa Rica has shown a facility for attracting U.S. investment. What attracts investors to Costa Rica? Jaramillo gave three reasons: a perception that personnel is more qualified than in other Latin American countries, geographic location, and the CAFTA-DR agreement.

He summarized the principal results of CAFTA-DR, saying it led to the increase of and more sophisticated commercial flows, the growth of FDI with the United States and other CAFTA-DR countries, an improved insurance market, and the fast growth of telecommunications in terms of access and price. 

Watch the remarks (en español):
(Video starts at 7:35)