Costa Rican Congress approves new Free Trade Zone Law
- Sector has 53,000 employees and expects to generate more jobs
- Reform encourages facilities in lesser developed areas
The approval of the new Free Trade Zone Law with the support of an overwhelming 44 congressman, allows Costa Rica to comply with a World Trade Organization (WTO) agreement that will take effect in 2015.
A Free Trade Zone is an area defined within a country that enjoys tax benefits, such as withholding of import duties and some other local and national taxes.
With the newly approved law, companies will have greater legal certainty when investing, and industry representatives agreed to the Costa Rican Coalition for Development Initiatives (CINDE).
This greater certainty –according to some of the companies- will result in an increase in employment in the services, electronics and medical devices sectors.
“With this achievement, we expect that 2010 to bring better results for the country” were the words almost euphoric Vanessa Gibson, director of Post Establishment Care at CINDE.
Karla Blanco, manager of corporate affairs at INTEL was very positive on the news. She reported that the parent company in California “has already been notified and received the news with great joy”.
INTEL is the largest exporter in Costa Rica. Its sales account for 20% ($ 1.9 billion in 2008) of total exports of the country.
With its 3,000 direct employees, Intel is one company that particularly advocated for this law to be voted affirmatively. Not long ago the company decided to do an investment in Vietnam that with the approved law, may have been done in Costa Rica.
“Although the company is not evaluating a new investments, the approval of this bill puts us in a stronger position in the future” added Blanco, who thanked “the early Christmas gift to the Costa Rican people” from Congress.
Roy Rojas of Bridgestone, said from their perspective the country now has “capabilities and strengths to keep growing”.
Source: La Nacion
