If president-elect of the United States Donald Trump keeps his promises, Costa Rica would have problems attracting more foreign investment into the country and it would also have a disincentive for the transnational companies to expand.
That is economist Alberto Trejos’ opinion, who analyzed the region’s future economy under the light of the electoral results in the United States.
If the US changes the fiscal rules to force companies to operate less internationally, some key sectors from the Mexican and Costa Rican economies could be significantly affected,
said the expert.
Trump was also emphatic in his interest in denouncing the North American Free Trade Agreement (NAFTA), an action that could be repeated with other current agreements, such as CAFTA (Free Trade Agreement with Central America and the Dominican Republic) and the Andean Community.
The weakening of these pacts could lead to greater obstacles to cross-border trade.
It could also have consequences for the United States. According to Trejos, extreme protectionism has a cost over a country’s quality of life, the cost of living and the economic growth.
For example, the possibility of trading, outsourcing and offshoring give US companies the possibility of being competitive and limiting these activities would affect the country. According to the economist, the global and local financial situation do not allow to expand the deficit as suggested by Trump’s proposals.