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China, Costa Rica to talk free trade

(China Daily)
Updated: 2008-11-19 07:45

President Hu Jintao waves to the press after meeting with his Costa Rican counterpart Oscar Arias in San Jose on Monday. AFP

SAN JOSE: China and Costa Rica will launch free trade talks in January and hope to seal a deal by 2010, President Hu Jintao said on Monday.

After meeting with his Costa Rican counterpart Oscar Arias during his first visit to a Central American country, Hu said: "The development of cooperation and friendship between China and Costa Rica meets the fundamental interests of our people and will also support different sectors of our societies."

The talks on free trade area (FTA) will start on January 19 in Costa Rica's capital San Jose and end before Arias leaves office in May 2010.

By doing so, Costa Rica will become the third Latin American country to negotiate a free trade deal with China, after Chile and Peru, which may conclude its accord during Hu's visit later this month.

Costa Rica's Foreign Trade Minister Marco Vinicio Ruiz said a free trade accord with China means "there will be many sectors that benefit, especially those tied to agricultural and meat products".

Costa Rica last year exported $848 million worth of goods to China and last year's bilateral trade amounted to $2.8 billion, a 33 percent increase on the previous year.

Hu and Arias, who visited China last year, also witnessed the signing of 11 deals, from setting up Chinese language institutes to opening a line of credit for $40 million from China.

They agreed to set up a joint venture including China's National Petroleum Corporation to help modernize Costa Rica's state-owned oil refinery, with an investment of up to $1.2 billion.

China also agreed to help Costa Rica build a national sports stadium.

"We would like to see an increase in Costa Rican imports and we invite Costa Rican companies to explore the Chinese market," Hu said.

Noting the fast growth in bilateral ties over the past year, Hu said the two countries have also carried out fruitful cooperation in international and regional affairs.

"Facts have proven that the establishment of diplomatic ties between China and Costa Rica conforms to the fundamental and long-term interests of both countries," Hu said.

The two countries established diplomatic ties in June 2007 after Costa Rica broke off its relationship with Taiwan.

"China is ready to work with Costa Rica to open up a bright future for bilateral ties characterized by mutual respect, equality, mutual benefit, sincere cooperation and friendship for generations to come," Hu said.

The Chinese government will also support pragmatic cooperation between enterprises of the two countries in such key areas as infrastructure, agriculture, telecommunications and energy, he added.

Arias said Costa Rica hopes to strengthen cooperation with China in port construction and development of hi-tech parks, as well as Chinese language teaching.

Arias added that he also hoped the two countries would establish a dialogue mechanism at a higher level so as to further promote the development of bilateral ties.

Hu also met with Francisco Pacheco, president of the Costa Rican Legislative Assembly, on Monday.

China Daily - Agencies

(China Daily 11/19/2008 page6)