In the Costa Rican News - July 07

State of Emergency!

This week the executive branch declared a state of emergency in parts of the Caribbean and Northern Zone due to intense and devastating flooding throughout. Luckily there were no fatalities due to the flooding, although some 1300 homes and 2000 kilometers of roads, bridges and critical water infrastructure were damaged or destroyed. It has been estimated that to repair the current damage, over $10 million will be needed according to the National Emergency Commission.

Presidency Minister Rodrigo Arias spoke out about the flooding, calling it a 'disaster of immense magnitude' and then went on to sign the emergency decree which allows the country to dedicate more of its spending to repairing the damages and providing emergency relief to the victims of this tragedy. It also allows contracts for equipment and reconstruction to be expedited.

“The damage is seriously alarming,” National Liberation Party (PLN) legislator Jorge Méndez told a local newspaper. Méndez is the main representative of the worst hit areas and is anxious to get the situation under control as soon as possible.

The clean up and repair work has begun, although many are worried about the sheer magnitude of the task at hand, with more than 130 bridges in the region damaged and 20 collapsed altogether which are seen as being the most difficult jobs.

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CAFTA decision close, EU Treaty to follow??

With the 3 year saga, that is the Central American Free Trade Agreement with the US, or CAFTA as it is more commonly known finally nearing its conclusion, the EU has revealed its own proposal for a free trade agreement with the area. However, it is thought that this new agreement will largely hinge on the decision of Costa Rica in its current discussions over the CAFTA agreement.

If Costa Rica end up rejecting CAFTA, this could stop the new EU proposal from reaching the shores of Central America. This is because, according to a spokes person for the EU, they wish to deal with the region as a block. Effectively eliminating any national monopolies, such as the Costa Rican Electrical Institute, and allowing all goods and services to flow freely between nations, much like in the EU at present.

Some people have asked why Costa Rica couldn't just be excluded from the agreement, and have the system in place between the rest of central America. Well quite simply it is not in the EU's best interests, as Costa Rica accounts for almost 60% of goods that are exported to the EU from Central America, which obviously makes them the major player in the agreement.

At the moment, the fate of the EU treaty is just speculation, as it is still unknown as to what Costa Rica are likely to do when the referendum on CAFTA takes place on October 8th. More news is set to follow as the situation develops further.

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July Exchange Rates

The Exchange rates below are not accurate on a daily basis but just an approximation for your benefit. For more up to date exchanges rates please visit your local bank or online with a currency seller.

Costa Rican Colon

1034.19 700.002

516.65

US Dollar

2.028 1.376 1.00

 

Usually in Costa Rica US Dollars or Costa Rica Colones can be used. in popular areas and in larger shops US dollars will be more widely accepted. However in small towns and locally run stores only Colones will be accepted.

This news was written by Paul Smith a specialist Consultant for Holidays in Costa Rica.

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