GOVERNMENT is moving forward with the full implementation of Jamaica’s participation in a free trade agreement between Caricom and Costa Rica.

Signed in 2004, the Caricom/Costa Rica Free Trade Agreement provides for free trade or preferential access for a wide range of products between Caricom member states and the Central American country. Jamaica is the only Caricom member that has to date not participated fully in the initiative, but Minister of Foreign Affairs and Foreign Trade Dr Kenneth Baugh announced yesterday that the Government has decided to bring it into full force.

“We are well aware that the objective of increasing exports cannot be achieved without significant growth in investments… One of the things that we have to do is to make sure that in the countries that are involved in these trade agreements, capacities exist for us to take advantage of the marketplaces to which we have gained access,” said Baugh, speaking at a meeting between Jamaican and Costa Rican private sector companies to discuss opportunities, at the Spanish Court Hotel in Kingston.

“The Caricom/Costa Rica Free Trade Agreement was intended to do just that, and despite not formally implementing the agreement, Jamaica has in good faith been applying it on a provisional basis and now has taken a decision to implement it,” added the minister.

Baugh said that cabinet recently endorsed the issuing of instructions for the drafting of amendments to the Customs Act to facilitate the agreement.

The minister noted that the goal is to balance trade between Jamaica and Costa Rica, for which he said the Central Americans enjoy a massive surplus — Baugh said recent statistics showed that Jamaica had imported goods valued at US$50 million from Costa Rica compared to exports valued at just US$700,000, but he didn’t specify over what time period.

“The Jamaican business community is urged to explore opportunities in the Costa Rican market,” he said, adding that Government is also looking to build a strong partnership in renewable energy, in which Costa Rica has a lot of experience (80 per cent of Costa Rica’s energy needs are supplied with hydro and geothermal power).

Junior Minister for Foreign Affairs and Foreign Trade Marlene Malahoo-Forte noted that the agreement could bring short-term challenges in the form of revenue fallout and competitiveness, but she was optimistic that Jamaica has more to gain in the long run.

“There are issues that are of concern on both sides,” said Malahoo-Forte. “The consequences will be positive and not so positive but at the end of the day we are looking for a win-win situation.”

Costa Rican foreign trade minister Anabel González noted that the two countries shared a lot in common, including size, geogaphy and resources.

“We have an ample window of opportunity before us …there is much room for growth,” said González.

Costa Rica has one of the highest literacy rates in the Western Hemisphere, at 96 per cent. The economic stability of the country is partly attributed to its decision in 1948 to abolish its army and improving its standard of living, education and health of its citizens. A sizeable amount of Costa Ricans are of Jamaican descent, located mostly in the area of Puerto Limon.

The trade talks involved eleven Costa Rican companies and numerous local firms, including GraceKennedy.