Saturday 8 May 2021

Biden to bring benefits to Costa Rica

US respect for multilateral organizations, such as the WTO, will be very important for small economies such as Costa Rica's, economic specialists agree.

QCOSTARICA – The arrival of Joe Biden to the White House in January will imply, for the world economy, the return of the United States to respect and strengthen multilateral entities such as the World Trade Organization (WTO).

Supporters of president-elect Joe Biden celebrate victory in front of the White House in Washington D.C. Photo: AFP.

The shift to the policy established by the Donald Trump administration will be beneficial for small economies, such as Costa Rica, which depends on international rules to protect itself from unilateral decisions, agreed economic specialists speaking to La Nación.

- Advertisement -

For Alberto Trejos, former head of the Ministry of Foreign Trade (Comex), the Biden government represents the opportunity to once again strengthen the spirit of international cooperation.

“Global organizations are necessary for the proper functioning of the world economy, and to face problems that are, in their nature, also global, such as the pandemic or climate change,” said Trejos.

He added that the skepticism shown, in the last four years, strongly damaged multilateral rules and institutions.

“It is expected that in the Biden Administration that impact will be reversed,” Trejos emphasized.

- Advertisement -

Alexander Mora, also a former Comex chief, agreed that the United States will leave the unilateral confrontation behind.

“A return to multilateralism is a great benefit for Costa Rica. A small country is one of the most benefited from respect for trade rules and international law,” said Mora.

The former official stressed that in trade matters the Trump administration did not imply a setback for Costa Rica.

“Recovering from the pandemic will require the use of all commercial and economic tools. Within that logic, the country gains peace of mind knowing that multilateralism will be where problems will be solved and the next steps to be negotiated to move forward,” said former Minister Mora.

Both Trejos and Mora agreed that there will be a clear change in the way the United States engages with the rest of the world.

However, some actions such as nearshoring, that is, the decision to bring back to the Americas region activities of American companies that moved to Asia, could go ahead.

- Advertisement -

“I believe that the opportunity that nearshoring represents for our region is going to occur, and that it will depend on what we Costa Ricans do to be more competitive, whether or not we can materialize it,” said Trejos.

Costa Rica’s commercial relationship with the United States is very relevant, since it is the country’s main commercial partner.

Until last September, Costa Rica exported US$3.89 billion dollars in goods to the US market, that is, 43% of total sales abroad, according to data from the Foreign Trade Promoter (Procomer).

The weight of the US in International Foreign Investment (FDI) directed to Costa Rica is also very relevant.

Last year, Costa Rica received US$2.59 billion in FDI, of which US$182 billion came from the United States, that is, 70% of the total, according to data from the Banco Central (Central Bank).

Biden’s victory over Trump will also bring stability to international stock markets.

Analyst Douglas Montero, international investors anticipated Biden’s arrival to the White House.

“Trump gave a boost to the economy, but his rhetoric has been very divisive, confrontational, he has fought with his allies, he has fought with the whole world. So it is contradictory, because the Republicans have always promoted trade,” said Montero.

He stressed that the United States’ relations with the European Union (EU) and China will improve, which will help the economy.

“I don’t think there should be such strong rhetoric that everything has to be America. It is okay for you to defend your country, but in a globalized world, you cannot think you are alone. With Biden, there will be openness and dialogue. The stock markets have always rewarded more strongly the Democratic governments than the Republicans,” highlighted Montero.

The decisions of the Biden Administration will have opportunities for Costa Rica in attracting foreign direct investment and positioning in environmental policy issues highlights an analysis by Mercado de Valores.

“We see a more positive mandate from Biden for Costa Rica. We do see opportunities for the country in environmental matters and the return of supply chains for large US companies, which leaves the country in a very good position to attract this foreign investment,” said Silvia Jiménez, Manager of Inversiones de Mercado de Valores.

Translated from La Nacion’s ‘Triunfo de Biden fortalecerá el comercio mundial y traerá beneficio a Costa Rica, coinciden especialistas‘. Click here to read the original.


- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Daniel Ortega Among “Worst Leaders” During the Pandemic

TODAY NICARAGUA – Calling people into the streets for a festive...

Costa Rica Not Invited to US Led Summit On Climate Change

QCOSTARICA - United States President Joe Biden invited 40 world climate...


Canada approves BioNTech-Pfizer vaccine for young teens

QCOVID DIGEST - Canada's health regulator has authorized the Pfizer/BionTech coronavirus vaccine for children between 12 and 15 years old. Dr. Supriya Sharma, the...

“Ciudad Gobierno” would give a new face to capital with a gigantic complex of buildings

QCOSTARICA - With a mega-complex of more than 153,000 square meters (1.65 million square feet), comprised of 16 ministries would be located in eight...

Costa Rica received the largest to date batch of covid-19 vaccines

QCOSTARICA - A new batch with 124,020 doses of the covid-19 vaccine landed on national soil this Tuesday night, as part of the weekly...

Airport Police apprehend American carrying crocodile head

QCOSTARICA - Authorities from the Air Surveillance Service (SVA) - airport police - apprehended an American named Dale, who was in possession of an...

Puerto Viejo, Limon, Costa Rica

  Photo by digitaltravelcouple, "In Puerto Viejo we were located on the sunrise side of Costa Rica so we watched (sic) as many sunrises as...

Will the new wave of COVID-19 infection threaten Costa Rica tourist recovery?

QCOSTARICA - Will the current wave of covid-19 infections cost Costa Rica's recovery of its already battered tourism? Will the wave of infections and scarcity...

Improvements begin at Quepos airport

QCOSTARICA - With the objective of boosting connectivity, regional tourism and the economic reactivation of the area, work started this Wednesday on the improvements...

Colombia’s Protests Against President Duque Explained

QCOLOMBIA – Nineteen people have died and hundreds more have been injured in protests in Colombia against President Iván Duque Márquez’s tax bill, aimed...

Swiss City Wants to Send Homeless to Other European Cities

Q REPORTS - Switzerland, a country with the highest density of millionaires, a high density of billionaires, and its economy one of the world's...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.