Bush clears way for Costa Rica to join CAFTA

Reuters ^ | 23 Dec 2008 | Doug Palmer

[1rudeboy]

If you look at it from Belize's perspective, then I can see how it might not be a good thing. Belize's exports to the U.S. were entering duty-free under the CBI. Now, essentially the same thing applies to the CAFTA-DR countries.

In other words, if you are an exporter (to the U.S.) located in Belize and compete with exporters (to the U.S.) located in, for example, Costa Rica then your competition just received a "boost."

[mick]

Costa Rica and Panama are members of the CBI. CAFTA was meant to replace CBI, I believe.

When I was shipping assembled parts back to the US, they went in duty free because of CBI. From what I recall it was essentially a one way benefit to the small countries in the Caribbean region to have access to Big Sam in the North to keep the commies at bay. And one of the reasons there was much opposition in CR and Panama is that it was going to allow more US agriculture goods in. It leveled the playing field somewhat in our favor. But, as usual, the deal is too complex for the average Joe or Jose to understand fully.

But I'm out of there for a few yrs now so I have lost touch with the full impact of what it all means.

[mick]

FYI

Caribbean Basin Initiative

The trade programs known collectively as the Caribbean Basin Initiative (CBI) remain a vital element in the United States’ economic relations with its neighbors in Central America and the Caribbean. The CBI is intended to facilitate the economic development and export diversification of the Caribbean Basin economies. Initially launched in 1983 through the Caribbean Basin Economic Recovery Act (CBERA), and substantially expanded in 2000 through the U.S.-Caribbean Basin Trade Partnership Act (CBTPA), the CBI currently provides 19 beneficiary countries with duty-free access to the U.S. market for most goods.

CBTPA entered into force on October 1, 2000 and continues in effect until September 30, 2008 or the date, if sooner, on which the FTAA or another free trade agreement as described in legislation enters into force between the United States and a CBTPA beneficiary country.

There are currently nineteen countries that benefit from the CBI program and, therefore, may potentially benefit from CBTPA. These countries are: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Netherlands Antilles,Panama, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago.

[Joe Boucher]

Not too sure what that competition may be. Other than specialty woods,
Sure there is some though, banana?

[1rudeboy]

Costa Rica is pretty much known for coffee, bananas, pineapples, flowers, and textiles (and the specialty wood stuff). My guess is that Belize is pretty much the same.