Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, Diario Extra, San José, Costa Rica
”Now More Than Ever the Path to Prosperity is Through Trade”

Spanish

This is a time of dramatic change in the United States, the Western Hemisphere and the world. I will be leading a trade mission here from the United States next week because it is more important than ever that we expand our partnership with allies and friends like Costa Rica.

For the United States, trade has increasingly been a source of growth. Of the 3.3 percent growth last quarter in the U.S. economy, half was a result of exports. Exports are a larger portion of our economy than ever before. While the United States is facing economic challenges, exports continue to be a bright spot. A similar story can be told here in Costa Rica, with trade and exports a driver of last year’s 7.3 percent economic growth.

It is therefore critical that we take the next step in our relationship by moving forward with our free trade agreement. When Costa Rica completes implementation requirements, all seven countries that are party to the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will have the agreement in force. That will be good for Costa Rica, the United States and for free societies throughout the hemisphere.

This agreement will eliminate the vast majority of tariffs in our $8.5 billion bilateral merchandise trading relationship immediately upon entry into force. But it is about much more than lowering tariff barriers. It also enhances the rule of law, increases transparency and bolsters protections for workers, investors and the environment.

Democracies like ours with a history of political stability, social progress and a commitment to human rights will benefit the most from free trade and increased investment. Costa Rica is already attracting American and global businesses, with American investment flows increasing from $328 million in 2002 to more than $1 billion last year. This includes companies such as Intel and Wal-Mart’s Centroamerica’s Hortifruti subsidiary, which I will visit this week.

Today, tens of thousands of Costa Ricans work for U.S. companies, yet even more American companies will want do business here and more Costa Ricans will participate in the U.S. market with a free trade agreement in place. We have seen these mutually reinforcing positive trends elsewhere in CAFTA-DR where trade both with the United States and between the other CAFTA-DR members is growing.

Good public policy can help create an environment that can catalyze the private sector to expand, create jobs and keep our economy moving in the right direction.

By passing this free trade agreement and making it easier for our companies to do business we will go a long way towards creating an environment that will allow our economies and people to prosper in the global economy.