Costa Rica has Huge Trade Opportunities with China

A change from Chinese tea?

Costa Rican President starts China tour
www.chinaview.cn 2007-10-22 09:21:30

BEIJING, Oct. 22 (Xinhua) -- Oscar Arias Sanchez, president of Costa Rica arrived here on Monday morning, kicking off an one-week state visit to China at the invitation of Chinese President Hu Jintao.

During Arias's stay in Beijing, Hu will hold talks with him. Chinese top legislator Wu Bangguo and Premier Wen Jiabao will meet him respectively.

Besides the capital Beijing, Arias will also visit northwestern city of Xi'an and China's commercial hub Shanghai.

This is the first time for Arias to visit China since he took office in 2006. He had visited China in 1968 and 2004 respectively.

China and Costa Rica posted 1.56 billion U.S. dollars of bilateral trade in the first seven months of this year, up 61.3 percent year-on-year. The Chinese side predicted that trade for the whole of 2007 will reach 3 billion U.S. dollars, up from 2.16 billion U.S. dollars reported last year.

Costa Rica President Arias in China

Plenty of customers in San Jose

Arias Wants China to Build Oil Refinery in Costa Rica

President Oscar Arias traveled to China Saturday for a visit aimed at promoting Costa Rican exports and enticing the Chinese to invest here in projects including an oil refinery, according to the daily La Nación.

The President said such a refinery could meet the country's oil needs and supply oil to other Central American nations. During his visit to China, which is scheduled to include stops in Pekín, Xi'an and Shanghai, he plans to meet with representatives of the Chinese National Petroleum Corporation.

Arias also mentioned the possibility of seeking a free-trade agreement with China to expand the market for Costa Rican goods to this growing Asian giant.

“One of my government's objectives is to grow our exports at a rate of 18% per year. And this is a realistic goal taking into account the potential of the Chinese market for Costa Rican products,” he said, according to a statement from Casa Presidencial. “For Chinese companies, Costa Rica is a very attractive market, not just because of the level of education of our work force, but also because of the potential to export to the United States tax-free.”

Arias' visit comes four months after China and Costa Rica established diplomatic relations (TT, June 8). He is accompanied by Presidency Minister Rodrigo Arias, Foreign Minister Bruno Stagno, Foreign Trade Minister Marco Vinicio Ruiz, Vice-Minister of the Presidency José Torres, Casa Presidencial Protocol Director Ana María Herrera and his personal assistant María Angel Solera.

Costa Rican President Heads to China

Oct. 19, 2007, 1:03PM


By MARIANELA JIMENEZ Associated Press Writer
© 2007 The Associated Press
Houston Chronicle

SAN JOSE, Costa Rica — President Oscar Arias is looking for investment and trade opportunities as he heads to Costa Rica's newest ally, China, on Saturday.

The visit comes four months after Costa Rica switched its diplomatic recognition from Taiwan to China. Since then, other Central American nations have reconsidered their close ties with Taiwan, although none have broken off ties completely with the self-ruled island.

Arias' trip also follows his country's vote to join the Central American Free Trade Agreement with the U.S.

"For Chinese businesses, Costa Rica is a very attractive market, not only because of the education level of its workers, but also for the potential to export to the United States tax-free," Arias said in a statement.

China is Costa Rica's second-biggest trading partner, behind the U.S., with US$1 billion in sales to the Asian powerhouse and US$618 million in imports last year.

Arias is expected to meet with Chinese President Hu Jintao during his weeklong trip. The two men have already agreed to explore the possibility of a free trade agreement between the two nations.

China and Taiwan split amid civil war in 1949. China continues to claim sovereignty over Taiwan, and opposes anything that appears to back the island's separate status from mainland _ including formal diplomatic ties with other countries.

China Coming to Costa Rica

China talks up Costa Rica tourism BBC

Costa Rica's rainforest are home to many species
Chinese tourists are being encouraged by their own government to visit the Central American nation of Costa Rica. The recommendation comes nearly four months after Costa Rica broke 60 years of ties with Taiwan and established diplomatic relations with Beijing.

Costa Rica's tourist board said China's move was a huge boost for the sector.

It is estimated 200m Chinese are able to afford overseas travel. Last year just 1,545 people from China visited Costa Rica, local media said.

The Costa Rican government is currently negotiating with several airlines and tourist agencies to open routes and enable easier travel between China and Costa Rica.

China's announcement is hugely important for Costa Rica and Central America, according to Geoffrey Lipman, assistant secretary general of the World Tourism Organisation.

"Anything China does is important because it is a world power," Mr Lipman told the BBC's Spanish Americas website.

Natural parks and reserves cover about 25% of Costa Rica

"In time, China will have an enormous influence on tourism - it is a huge generator of tourists, if I can put it that way."

The Chinese government's move would have an impact both in the long and the short term, Mr Lipman said.

It sent a message to millions of Chinese people and would encourage investment in Costa Rica's tourism sector, he said.

"Tourism of the future is eco-tourism, environmental tourism. Costa Rica has a record of developing this type of tourism."

Tourism is one of the most important sectors for Costa Rica's economy, generating some $1.6bn (£800m) a year.

Its tropical forests are home to a profusion of flora and fauna, and about 25% of its territory is covered by national parks and reserves.

The country has based much of its marketing on its environmental credentials, including its certification programme that rates businesses for sustainable tourism and conservations projects.

Factors include:

• the extent to which flora and fauna are protected

• the way waste is disposed of

• energy and water-saving measures

• customers' participation in sustainable tourism

• impact on local communities

In June, when the decision to switch ties to Beijing was announced, Costa Rican President Oscar Arias said his country needed to develop closer links with China in order to attract foreign investment.

Taiwan and China have been governed separately since the end of a civil war in 1949. Both often accuse each other of using "cheque book diplomacy" to attract allies.

Other tourism destinations in Latin America recommended by China include Mexico, Chile and Peru.

New Luxury Condominiums, Tambor Costa Rica.

Coming soon, a new Condominium Complex of one hundred luxury mid-rise condominiums. When sales are to be offered, there will be generous pre-construction discounts for early buyers. The two and three bedroom units will start at $219,000. All units will have mahogany windows and doors, ten-foot ceilings and generous balconies, concierge services and security. Investors will be able to offer their units for rental if they so desire. Details will be announced shortly.

Costa Rica Residence and Liability for Taxation

Costa Rica Residence and Liability for Taxation

In Costa Rica the taxation of individuals is based on the principle of territoriality meaning that all personal income which has a foreign source is tax exempt. Only that proportion of revenue earned by an individual within Costa Rica is subject to an assessment by the tax authorities. However, this may change if the Costa Rican legislature manages to pass the long awaited fiscal reform package.

The principle of territoriality is perhaps the most significant aspect of the country's fiscal regime. Costa Rica does not discriminate between the taxes payable by residents and non residents The main taxes affecting an individual are income tax, employee social insurance, withholding taxes, capital transfer tax and selective consumption tax. There are relatively minor municipal taxes, and there is a tax on vehicles.

Income tax is levied on both employment source income and non-employment source income. While residents and non-residents pay the same income tax on employment source income there is a slight distinction between how a resident and a non-resident are assessed on their non-employment source income but the distinction is driven by pragmatic considerations and is not discriminatory.

The selective consumption tax, equivalent to a VAT, and levied at 13% has a major impact on the standard of living.

One of the key components of the Fiscal Reform Bill would be a switch from the sales tax to a Value Added Tax system; taxes payable by Free Zone companies would also be increased over a period of time, and it's possible that the territorial basis of personal taxation would be abandoned in favour of world-wide income taxation.

There is no capital gains tax in Costa Rica. Whilst gains made by businesses on the sale of capital assets may be subject to business income tax, capital gains made by a resident or non-resident individual on the sale of a capital asset are exempt from any form of income tax.

No credits are granted in Costa Rica for taxes paid in a foreign country.

Costa Rica, Surfing is a Sustainable Industry.

Environment News

What is a Wave Worth?

Surfersvillage Global Surf News, 17 February, 2007 : - - Quality surfing waves have an enormous social and economic value that is often underestimated by political leaders and businesspeople. The surf apparel industry alone represents annual sales in excess of $8 billion dollars a year. What was once considered a sport for beach bums and dirtbags has become a major industry, with a demographic that has completely changed since its early years.

These days, professionals from all walks of life take to the water, bring their families to the beach, and spend top dollar to travel to exotic locations around the world to enjoy the waves. In the United States there are currently over 2 million surfers, according to Action Sports Retailers, twice as many as there were 20 years ago.

Certain places in the world have been smart enough to capitalize on their surfing resources. Destinations like Puerto Escondido in Mexico, Bali and the Mentawai Islands in Indonesia, and the Hawaiian Islands in the US, have all experienced huge boosts to their tourism revenues by catering to the surfing crowd. .

Located in Central America, the country was once as impoverished as its neighbors. In the 1980’s and 1990’s surfers began to travel to Costa Rica in droves, due to its multitude of high quality waves, warm water, and proximity to what was then the world’s biggest surf market - the United States. Costa Rica used the image of surfing to promote itself to the world, and now boasts the healthiest economy and highest standard of living in the entire region. Here are some statistics from Costa Rica’s Government Tourism Board:

Surfers Visiting Costa Rica in 2006: 100,278
Average Stay: 17 days
Average Spent per Day: US $122
Approximate Revenue Per Person: US $2074
Approximate Revenue for Costa Rica: US $207,900,000
Population of Costa Rica: 3,000,000

The lesson for governments and developers around the world is: don’t mess with the waves. They are a natural resource that should never, ever be sacrificed. In the words of Yvon Chouinard, founder of Patagonia, Inc., “natural surf breaks should be treated as world heritage sites, and should never be destroyed no matter what the reason".