VZCZCXYZ0000
RR RUEHWEB

DE RUEHSJ #0970/01 3470233
ZNY CCCCC ZZH
R 120233Z DEC 08
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC 0350
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0157
RUEHSG/AMEMBASSY SANTIAGO 0456
RUEATRS/DEPT OF TREASURY WASHINGTON DC

C O N F I D E N T I A L SAN JOSE 000970 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN AND WHA/BSC; TREASURY FOR OTA 
 
E.O. 12958: DECL: 12/11/2018 
TAGS: PREL PGOV PARM ECON ETRD APECO CI CS
SUBJECT: COSTA RICA: BACHELET VISIT DEMONSTRATED CLOSE, 
LIKE-MINDED BILATERAL RELATIONSHIP 
 
Classified By: DCM Peter M. Brennan for reason 1.4(d). 
 
¶1. (C) SUMMARY: Chilean President Michelle Bachelet's 
first-ever state visit to Costa Rica October 28-29 produced 
one new accord and a joint presidential declaration that 
clearly manifested a close bilateral relationship based on 
shared 
political, social and economic values.  The GOCR accepted 
Chile's offer to advise and train negotiators in anticipation 
of Costa Rica's upcoming FTA negotiations with China 
(septel).  Beyond the official documents, Arias' 
public and press statements demonstrated his almost fervent, 
devoted admiration of the "female Chilean champion of free 
markets, human rights and social development," and of the 
Chilean model for Latin America.  Bachelet's stop, en route 
to the Ibero-American Summit in El Salvador, reciprocated 
Arias' visit to Santiago in October 2006, one of his first 
during his administration.  The visit showed Arias' and 
Bachelet's vision and support for hemispheric economic 
development through free-market economies with strong social 
institutions, in contrast to the Bolivarian "alternatives" in 
the region.  END SUMMARY. 
 
¶2. (C) The MFA's Foreign Policy Director Christian Guillermet 
told us earlier this year that the GOCR had learned from 
CAFTA-DR and EU trade negotiations and was planning to 
incorporate more "political" aspects into the Chilean and 
future FTAs.  According to his deputy, Alejandro Solano, the 
Association Accord ("Acuerdo de Asociacion") signed with 
Chile on October 28 did just that, by committing to build 
upon the relationship that the two countries had enjoyed 
since the Chilean-Costa Rican FTA took effect in 2002. 
 
¶3. (SBU) The Costa Rica-Chile Accord establishes an 
"Association Council," (a binational commission) which will 
meet biennially.  (The first meeting actually took place 
before Bachelet's visit, at the senior working level, to 
sketch out the 20 cooperative projects on the two countries' 
agenda.) The Accord also pledges to increase political 
dialogue, mutual assistance and educational/cultural 
exchanges, social development, and commercial cooperation. 
The presidential declaration highlighted those themes and 
others, including mutual support of an international arms 
trade treaty (ATT, an Arias Administration priority), Chile's 
Observer status in SICA, the two countries' commitment to 
UNSC reform, Chile's support of Costa Rican APEC membership 
(another Arias priority), and environmental cooperation.  The 
full text of the accords is available in the "News" section 
of the MFA's website, www.rree.go.cr. 
 
¶4. (SBU) Though not part of the formal accords, Chile offered 
to help Costa Rica with its upcoming FTA negotiations with 
the Chinese.  The MFA's Solano told us that Chile would 
provide technical assistance, such as training and advice, as 
Chile has done during the GOCR's negotiations with the EU. 
 
¶5. (U) Domestically, Arias used Bachelet's visit and Chile's 
success with more than 50 FTAs to promote passage of the 
remaining CAFTA-DR implementation bill in the National 
Assembly, which was finally approved on November 11 and 
enacted into law on November 26.  Citing the Chilean example, 
Arias described FTAs as major tools to promote development. 
For her part, Bachelet publicly urged Costa Rica to construct 
an "array" of FTAs that benefit various economic sectors. 
Thus far, however, the Chilean-Costa Rican FTA has run in 
Chile's favor, according to Solano.  In 2007, for example, 
Costa Rica imported USD 184 million in goods from Chile and 
exported USD 26 million.  Costa Rican exports are on the 
rise, though; 2007 exports to Chile showed an increase of 78 
percent over 2006. 
 
¶6. (U) Arias and Bachelet also spoke at the opening of a new 
wing (funded by Norway) of the Inter-American Court of Human 
Rights.  In his remarks, Arias called Bachelet the "epitome 
of those who raise their voices against oppression and human 
rights violations" and the "dream woman" for which Costa Rica 
had "shouted and cried" in Chile's name when Chile was muted 
by dictatorship.  In an October 31 op-ed, Arias referred to 
Bachelet as the leader of the "most advanced nation in Latin 
America," and called on Chile and Costa Rica to continue 
working for "development, peace, 
democracy and liberty."  Arias also hinted that Costa Rica, 
like Chile, should elect a female president, a veiled 
reference to one of his party's 2010 presidential candidates, 
Laura Chinchilla, who stepped down from her dual posts of 
Vice President and Minister of Justice in October to begin 
her campaign. 
 
 
¶7. (C) COMMENT:  In contrast to the Bolivarian world view, 
Arias and Bachelet's visit pointed to the "other" Latin 
America that shares a vision of progressive and 
forward-looking growth founded in free trade and democratic 
ideals.  His hyperbole aside, Arias' and Costa Rica's 
admiration for Chile could yield tangible, positive benefits 
if both countries follow through on the commitments in their 
latest accord.  This is a partnership that could be good for 
the region and U.S. objectives as well as for both countries. 
 One idea we are considering, working with Treasury's OTA 
team here, would be to tap the U.S.-Chile Infrastructure 
Finance Experts Corps (IFEC) to offer the GOCR technical 
advice to improve and streamline the concessions process. 
This is crucial for Costa Rica to attract the private 
investment needed to help modernize its ailing national 
infrastructure. 
CIANCHETTE