Pacific Alliance would put 500,000 Costa Rica jobs in jeopardy, agro leaders say

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Banana Farm Costa RicaSome 500,000 jobs in Costa Rica could be at risk should the country decide to move forward with plans for full membership in the Pacific Alliance, a Latin American trade bloc which currently consists of its four founding member states: Chile, Colombia, Mexico, and Peru, agro leaders warned Tuesday.

Costa Rica began the process of accession to become the Alliance’s fifth full member state in 2014 during the administration of former president Laura Chinchilla.

The current administration of president Luis Guillermo Solis however has since postponed incorporation into the alliance indefinitely, pending consultations by the administration’s economic council.

During a Tuesday press conference, Costa Rica’s National Agriculture Alliance (ANA) urged the administration to permanently abandon any plans to join the trade bloc, saying the deal would put some 500,000 direct and indirect jobs at risk.

The ANA is composed of the National Chamber of Agriculture and Agribusiness (CNAA), the National Union of Small and Medium Agricultural Producers (Upanacional), the National Council of Cooperatives (Conacoop) and the Union of Independent Producers (UPIAV).

Juan Rafael Lizano, president of the CNAA, said that the country’s agricultural sector would be at a serious disadvantage compared to member states Chile, Colombia, Mexico and Peru.

Guido Vargas of the National Union of Small and Medium Agricultural Producers warned that local producers “will not survive” under the terms of the Alliance.

Small producers of vegetables, such as cabbage, potatoes, and onions would be especially hard-hit under the terms of the Alliance, agro leaders warned. The further liberalization and tariff removal of trade in sugar and coffee would also harm the sector, producers warn.

The Pacific Alliance countries have a combined gross national product (GNP) of over $2 trillion, which accounts for 36 percent of the entire GNP of Latin America.

Collectively, the four countries account for 50 percent of Latin America’s trade and 26 percent of its foreign investments, totaling over $70 billion.

Costa Rica’s trade with Alliance countries more than tripled between 2002 and 2012 from US $775 million to more than US $2.2 billion.

In addition to its goals of free trade and economic integration amongst member states, the Pacific Alliance’s other goals include visa-free travel, a common stock exchange and common diplomatic representation.

 

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