Prime Minister P.J. Patterson and Dr. Abel Pacheco (right), president of the Republic of Costa Rica on their way to the signing of a free trade agreement between the Caribbean bloc and Costa Rica on Tuesday.
-Junior Dowie photo
John Myers Jr., Staff Reporter
PRIME MINISTER P.J. Patterson, in his capacity as chairman of the Caribbean Community (CARICOM), signed a free trade agreement with Costa Rica Tuesday to facilitate trade on certain goods between the parties.
Mr. Patterson in his address to the contingent of government representatives of both parties, Edwin Carrington, the CARICOM Secretary-General and private sector representatives, described the agreement as an engine for growth and development for the economies of the region.
He said it was indicative of a response to the challenges faced by small economies to promote growth, and prosperity for its people.
The establishment of the CARICOM and Costa Rica free trade area will create a combined market of 10 million people, said Jamaica House. Costa Rica has a population of almost four million.
"The establishment of a CARICOM and Costa Rica FTA will create opportunities to build new markets for our products, promote investment and create jobs and bring new and exciting opportunities for growth and development to the peoples of the region," Prime Minister Patterson said at the Jamaica House signing.
FREE ACCESS
As agreed under the FTA, countries within CARICOM, the Organisation of Eastern Caribbean States (OECS) and Belize, while enjoying duty free access to Costa Rica, are not required to grant similar access to Costa Rican products.
In the meantime, a limited number of products including some agriculture products and milk will continue to attract duty when traded under the agreement, while the duty on some others will be phased out by January 2007.
As a result, 90 per cent of goods will receive duty free access immediately upon the implementation of the agreement, which the parties say takes effect as soon as the paperwork is signed.
With regard to agricultural products, the CARICOM chairman said special agreements have been put in place to facilitate the trading of produce for periods when production within a particular country is low.
Mr. Patterson said the agreement was "testimony to the hard work and dedication of our negotiators and our shared commitment to the deepening of the relations between our Community and Costa Rica."
REVIEW OF DEVELOPMENTS
The agreement also permits a review of developments in relation to trade in services, investment, competition policy and Government procurement, with provision for other disciplines in those areas to be considered within two years of the implementation of the agreement.
Mr. Patterson said it was now up to the farmers and manufacturers, entrepreneurs and workers of the region to take advantage of the opportunities created by the agreement to ensure that it creates the growth and development promised.
