Costa Rica: Background and U.S. Relations

Publication Date: February 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Costa Rica

Abstract:

Costa Rica is considered the most politically stable and economically developed nation in Central America with a tradition of political moderation and civilian government. The current president, Abel Pacheco of the Social Christian Unity Party (PUSC), was inaugurated in May 2002 to a four-year term. Costa Rican leaders across the political spectrum support liberalized trade, and Pacheco has been a leading advocate of the U.S.-Central American Free Trade Agreement (CAFTA). Costa Rica has been an attractive environment for foreign investment.

Relations with the United States have traditionally been good, although some friction arose during CAFTA negotiations. The U.S. Congress must still ratify the free trade agreement, with consideration expected in 2005 For additional information, see CRS Report RL32322, Central America and the Dominican Republic in the Context of the Free Trade Agreement (DR-CAFTA) with the United States, by K. Larry Storrs, and CRS Report RL31870, The United States-Central American Free Trade Agreement (CAFTA): Challenges for Sub-Regional Integration, by J.F. Hornbeck. This report will be updated as events warrant.