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Weekly Report - 16 June 2011 (WR-11-24)
COSTA RICA: Chinchilla chalks up China deal
Exactly four years after Costa Rica caused ructions in Central America by switching its allegiance from Taipei to Beijing, President Laura Chinchilla ratified a free trade agreement (FTA) with China. Chinchilla said the FTA, which was approved by congress on 31 May and will take effect in July, would help boost trade and investment, create more job opportunities and stimulate national production. Most domestic producers are more cautious. On the one hand, they fear an influx of cheap Chinese goods, while on the other hand exporters are worried that the current exchange rate is reducing their competitiveness.
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