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1 (February 10, 2005)

handle is hein.crs/crsuntaairg0001 and id is 1 raw text is: Order Code RS21943 Updated February 10, 2005 CRS Report for Congress Received through the CRS Web Costa Rica: Background and U.S. Relations Connie Veillette Analyst in Latin American Affairs Foreign Affairs, Defense and Trade Division Summary Costa Rica is considered the most politically stable and economically developed nation in Central America with a tradition of political moderation and civilian government. The current president, Abel Pacheco of the Social Christian Unity Party (PUSC), was inaugurated in May 2002 to a four-year term. Costa Rican leaders across the political spectrum support liberalized trade, and Pacheco has been a leading advocate of the U.S.-Central American Free Trade Agreement (CAFTA). Costa Rica has been an attractive environment for foreign investment. Relations with the United States have traditionally been good, although some friction arose during CAFTA negotiations. The U.S. Congress must still ratify the free trade agreement, with consideration expected in 2005 For additional information, see CRS Report RL32322, Central America and the Dominican Republic in the Context of the Free Trade Agreement (DR-CAFTA) with the United States, by K. Larry Storrs, and CRS Report RL31870, The United States-Central American Free Trade Agreement (CAFTA): Challenges for Sub-Regional Integration, by J.F. Hornbeck. This report will be updated as events warrant. Political Situation Costa Rica is a politically stable and economically developed country, relative to its neighbors in Central America. Since its independence in 1848, Costa Rica has developed a tradition of political moderation and civilian government despite having had some interludes of military rule. A brief civil war that ended in 1948 led to the abolition of the Costa Rican military by President Jose Figueres, and there have been continuous civilian governments since then. The Constitution prohibits the creation of a standing army, although there exists a police force, Border Guard, Rural Guard, and Civil Guard. Costa Rica scores well according to commonly used indicators of socio-economic development. The United Nations' Human Development Report for 2004 ranks Costa Rica 45th out of 175 countries based on life expectancy, education, and income levels. This puts the country far ahead of its Central American neighbors. Life expectancy at birth is 77.9 years. Costa Rica's population, 4 million in 2003, is the best educated in Central America, with a literacy rate of 95%. Congressional Research Service **o The Library of Congress

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