Costa Rican president, Luis Guillermo Solís, said that he’s not setting conditions on Costa Rica’s incorporation to the Pacific Alliance, but the only way to do it is by having fiscal sustainability.
I will not be the irresponsible person who makes a decision without a fiscal reform,
said Solís.
Even when president Solís knows the benefits of the Pacific Alliance, because it helps a very dynamic sector of the economy, the impact of an additional opening can be damaging for some groups. If there are no resources to increase their competitiveness, they can be greatly affected.
The Cámara Nacional de Agricultura y Agroindustria, the Unión Nacional de Pequeños y Medianos Productores Agrícolas (UPA NACIONAL), and the Corporación Arrocera Nacional Sectors already expressed their disagreement.
The Pacific Alliance has four member states: Mexico, Colombia, Peru and Chile and it managed to become the sixth largest economy in the world, accounting for almost 52% of the region total trade and 36% of Latin America’s GDP.
Solís stated that fiscal matters are more than numbers. Fiscal matters rely on a more subjective factor: trust.
In Costa Rica, fiscal issues are being evaluated since rating agencies are studying if they can be trusted after 15 years of great efforts. They are also studying Costa Rica chances of getting loans with appropriate interest rates in international organizations such as the World Bank, the International Monetary Fund, and the Inter-American Development Bank.
Fernando Rodríguez, Revenues deputy minister, said that Mexico, Chile, Colombia and Peru are already making some reforms. The fact that investors have trusted them, puts more pressure on Costa Rica.