Costa Rica News - May 03, 2005

Costa Ricans Wary of Free Trade Agreement

Support among Costa Ricans for the Tratado Libre de Comercio (TLC) - the Central American Free Trade Agreement - with the United States fell from 57 percent in 2004, to 41 percent in April according to a poll published by the Universidad de Costa Rica (UCR) on Friday.

Those undecided about the trade pact rose from 10 percent to 21 percent, according to the poll by the university's Institute for Population Studies.

The level of opposition to the pact among the 600 people interviewed increased from 32 percent to 38 percent. The most frequently cited concerns were possible closures of local firms, an increase in social problems or environmental damage.

The poll had a margin of error of 4 percent.

Trade unions will take the opportunity today- Labour Day - in Costa Rica to take to the streets to protest the TLC. Protestors are expected to march to Legislative Assembly where inside President Abel Pacheco will give the legislative deputies his annual report.

Union leaders have vowed to paralyze the country to let the politicians know how Costa Ricans feel, though have said over and over, all demonstrations will be peaceful.

More Dollars

The amount of dollars locally bought by Costa Rican banks increased drastically the first four months this year, since the amount surpassed by us$750 million that of the dollars sold.

Bank sources said that the difference for the same period had been us$254 million in 2003 and us$187 million in 2004, therefore the unexpected figure.

This was one of the reasons for the reserves of the Banco Central de Costa Rica (BCCR) - Central Bank of Costa Rica - to reach an unprecedented us$2.2 billion last April 22, according to official sources.

A GOLDEN OPPORTUNITY
Central American Countries Lure U.S. Retirees.
Add this to the gift list for new retirees: a Spanish- English dictionary.

As legions of baby boomers prepare to retire and relocate to warmer climates, a widening range of Central American countries are vying to be their new home. While places like Costa Rica and Belize have long lured U.S. retirees with pristine beaches and cheap living, prices in those countries have risen sharply during recent years.

As a result, a new breed of intrepid retirees is branching out to such countries as Panama, Honduras and Nicaragua. These countries, in turn, are rolling out the welcome mat in an attempt to snare Americans' retirement dollars.

In Panama, the hilltop town of Boquete now has a population of about 300 American retirees. Dozens live in the new real estate development, Valle Escondido, which has a nine-hole golf course, high- speed Internet access and a 24-hour manned security gate.

On the island of Roatan in Honduras, retirees have snapped up beachfront property and are taking advantage of "pensionado" visas that allow noncitizens to live in Honduras income-tax free if they can prove they have an income of $1,500 a month.

And while Nicaragua may conjure up images of civil war, real estate agents are offering entire islands off the Caribbean coast for less than the cost of a condo in Florida.

No one tracks the total number of Americans retiring abroad, but there are sizable settlements springing up.

Costa Rica, for instance, is home to between 20,000 and 30,000 Americans, according to the U.S. embassy there. Overall, in 2002, 242,128 American retirees had their Social Security benefits sent to foreign countries, according to the Social Security Administration. That is up slightly from the 219,504 who listed a foreign address in 1999. Those numbers don't represent all of those retiring overseas, since many people keep a U.S. mailing address.

The move by retirees to more remote destinations is being driven partly by rising prices in the more traditional hot spots. Home prices in San Miguel de Allende, a Mexican colonial hill town that is home to more than 10,000 Americans, have risen 8 percent to 11 percent a year for each of the past three years.

Annie and Michael LaFoley moved to Boquete, Panama, from Colorado in 2000, after deciding against Costa Rica. Instead, they plunked down $144,000 for six acres of land in Panama that include a working coffee plantation. They built a main house, a guesthouse and a greenhouse for Annie LaFoley's orchids.

The quality of life, the cost of living is a lot better" than in the United States, says Michael LaFoley, 56, who owns a shopping center in Massachusetts.

"Business & Beyond" to feature CINDE

"Business & Beyond" to feature CINDE, Costa Rican Investment Board Platinum Television Group will feature the Costa Rican Investment Board, CINDE, for its innovative, educational television series, Business & Beyond. It will be featured in a segment on "Economic Development--Investment Opportunities Abroad."

The Costa Rican Investment Board (CINDE) assists foreign investors in establishing their operations in Costa Rica. A private, nonprofit organization, CINDE has an expert staff that will provide complete, updated economic and business information, prepare customized visits to the country, assist in making initial contacts with suppliers and professionals, and do any follow-up required to establish the operation. All of these services are part of their free assistance.

For example, recently CINDE announced that Intel had invested $110 million in Costa Rica for the manufacturing of "chipset" in addition to its already successful operation in the country, because it has found good prospects in Costa Rica's investment climate conditions.