Coffee or Microchips? Costa Rica Faces Tough Decision

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


The United States’ war on Latin American populism has been around for decades, but this time it is being played out in the last place that the U.S. could have predicted: Costa Rica. This peaceful (they don’t have an army) and U.S.-friendly country voted Sunday on whether or not to ratify the Central American Free Trade Agreement. Costa Rica is the only country in the region that has not done so.

The country is divided. President Oscar Arias won the general election last February based on a platform supporting the referendum, although he doesn’t have much of a mandate; Arias beat his opposition by only 2 percent. Costa Ricans are split almost evenly between those who wish to ratify this neo-liberal agreement and those who side with the rising tide of leftist politics in Latin America. Last weekend, 100,000 Costa Ricans opposed to the agreement marched in the capital of San Jose.

The arguments for each side mirror the ideological arguments surrounding the issue in both North and South America. Supporters, including the president, say that the pact is necessary in order to create jobs and expand its fledgling technology sector. Opponents fear that it will make the rich richer, the poor poorer, and saturate the market with cheap imports from multinationals, hurting local business.

This is an ideological battle on the most general grounds as well, between privatization and nationalization. As part of the Act, the United States is demanding that Costa Rica privatize its nationalized telecommunications and insurance sectors. This might seem like a somewhat innocuous political battle in a tiny country that has little to no influence on the global economy, but symbolically this is an incredibly important decision. Costa Rica is now centrally positioned not only geographically but as a battlefield in the opposing ideologies of North and South America.

—Andre Sternberg

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate