VZCZCXYZ0018
PP RUEHWEB

DE RUEHSJ #0762/01 0971540
ZNR UUUUU ZZH
P 071540Z APR 06
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 4699
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY

UNCLAS SAN JOSE 000762 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN JASON MACK 
 
E.O. 12958: N/A 
TAGS: ETRD PHUM PGOV CS
SUBJECT: HUMAN RIGHTS OMBUDSWOMAN SLAMS CAFTA-DR 
 
 
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SUMMARY 
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¶1.  Costa Rica's Human Rights Ombudswoman, Dr. Lisbeth 
Quesada, released a report on March 30 criticizing the 
U.S.-Central America-Dominican Republic Free Trade Agreement 
(CAFTA-DR).  Comparing the relative bargaining power of the 
U.S. and Costa Rica to "a wild tiger vs. a captive rabbit," 
the report identifies the Ombudswoman's concerns with the 
agreement, but refrains from specifically recommending 
rejection of the treaty.  While Costa Rica's negotiating team 
races to refute Dr. Quesada's criticism, local CAFTA-DR 
opponents had a field day, crowing that the report confirmed 
their arguments against ratification.  End summary. 
 
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A BULLY PULPIT WITHOUT EQUAL 
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¶2.  Elected by the Legislative Assembly for up to two 
consecutive four-year terms, the Human Rights Ombudsman is 
given the broad mandate of protecting the rights of all 
residents in Costa Rica, regardless of nationality.  The 
Ombudsman's office has over time become a bully pulpit and 
has built a reputation for being outspoken and opinionated on 
controversial topics, such as a former Ombudsman's successful 
suit to declare unconstitutional President Abel Pacheco's 
support for the U.S.-led coalition in Iraq. 
 
¶3.  Current Ombudswoman Lisbeth Quesada, a pediatrician and 
former professional actress, began her tenure in August 2005. 
 Relatively quiet for the first few months of her tenure, Dr. 
Quesada has recently unleashed a wave of opinions on 
government institutions, corruption and foreign policy.  Her 
most recent target is CAFTA-DR.  Likening the relative 
bargaining power of the U.S. and Costa Rica to a "wild tiger 
vs. a captive rabbit," Dr. Quesada launched a highly 
publicized criticism of the treaty at a press conference on 
March 30.  The press conference coincided with the release of 
her office's analysis of CAFTA-DR, which details more 
completely her concerns with the agreement. 
 
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OPPOSITION DELAYED, BUT NOT UNEXPECTED 
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¶4.  While she has publicly withheld her stance on CAFTA-DR 
until now, Dr. Quesada has made no secret of her opposition 
to the agreement in meetings with Embassy officials and 
Ambassador Langdale.  She has expressed on numerous occasions 
that CAFTA-DR by itself will not be a panacea for Costa 
Rica's or Central America's economic woes, and expressed 
doubt that those countries where CAFTA-DR had already entered 
into force would close the development gap between them and 
Costa Rica.  Dr. Quesada has demurred on the question of 
whether she intends to challenge the constitutionality of 
CAFTA-DR. 
 
¶5.  While the report does not call explicitly for the 
rejection of CAFTA-DR, it asserts that the treaty will be 
detrimental to the country unless it is accompanied by 
sweeping social reforms in the form of a long-delayed 
complementary agenda.  Further, Dr. Quesada stated her belief 
that the Legislative Assembly must include "interpretive 
clauses" in its ratification of the treaty, giving the GOCR 
more flexibility in breaking up government service monopolies. 
 
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COMPREHENSIVE CRITICISM 
----------------------- 
 
¶6.  Identified in the report as the Ombudswoman's primary 
areas of concern were: 
 
--Telecommunications: CAFTA-DR will require Costa Rica to 
strip the Costa Rica Electricity Institute (ICE) of its 
monopoly status for cellular, Internet and data services. 
Dr. Quesada asserts that, without these businesses to 
subsidize ICE's continued monopoly for less profitable 
land-line services, prices for terrestrial phone service are 
certain to increase, and favors requiring new Internet and 
cellular service providers to help subsidize terrestrial 
services. 
 
--Sovereignty: The Ombudswoman's report asserts that CAFTA-DR 
imposes restrictions on the Legislative Assembly's ability to 
legislate, and that Costa Rica will be obliged to adopt 
implementation criteria developed by "other states," and 
prevents the GOCR from resolving trade disputes in its own 
courts. 
 
--Labor Standards: While acknowledging that CAFTA-DR provides 
some opportunities for improving enforcement of existing 
labor laws within member countries, Dr. Quesada asserts that 
countries with higher labor standards will be placed at a 
competitive disadvantage.  (Note: She is comparing labor 
standards in Costa Rica with what she perceives to be the 
lower standards of other Central American countries.  End 
note.) 
 
--Environment: Despite CAFTA-DR's built-in requirements for 
environmental protection, Quesada maintains that Costa Rica 
will be unable to enforce its stricter-than-average 
protections against multinational corporations. 
 
--Distribution of wealth: Quesada acknowledges that CAFTA-DR 
will bring increased investment and national income.  She 
argues, however, that very little of that income will benefit 
lower-income citizens.  Of particular concern are small 
farmers and rural residents. 
 
--Agricultural inequity: Dr. Quesada asserts that Costa 
Rica's farmers will be unable to compete with subsidized U.S. 
agriculture, and that the country has no anticipated plan for 
dealing with the potentially negative effect of the treaty on 
small farmers.  (Note: The Minister of Agriculture challenged 
Quesada on this point, noting that 80 percent of farmers 
support CAFTA-DR.  End note.) 
 
¶7.  Reactions to the report from both sides in the CAFTA-DR 
debate were swift and predictable.  Labor unions, the 
country's most vocal opponents to the free trade deal, 
applauded Dr. Quesada's report and pledged to support the 
Ombudswoman.  CAFTA-DR's supporters, on the other hand, 
disagreed with Quesada.  The day after the report was 
released, a pro-CAFTA-DR attorney in private practice asked 
the Prosecutor General to bring criminal charges against 
Quesada for illegally attempting to "create disorder in the 
streets and chaos in the country."  Marco Vinicio Ruiz, the 
incoming Minister of Foreign Trade, defended CAFTA-DR, 
reiterating that its benefits far outweigh any potential 
problems.  He stated that when he heard Dr. Quesada's 
statements, he thought that her efforts were misdirected and 
that she should instead focus on protecting the "500,000 jobs 
that depend on exports." 
 
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COMMENT 
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¶8.  All of Dr. Quesada's arguments against CAFTA-DR have long 
since been debated and addressed.  They are given added 
weight, however, by her position as protector of the poor and 
marginalized.  She will undoubtedly raise these issues again, 
likely challenging the constitutionality of CAFTA-DR if it is 
voted favorably by the Legislative Assembly. 
LANGDALE