by Rod Hughes

The European Union has set the requirement that Costa Rica join a customs union with the rest of Central America before its 27 members will even start to talk with this country about favorable trade conditions. Honduras, Guatemala, El Slavador and Nicaragua signed this pact June 26 but this country held off until the results of the Oct. 5 referendum on the CAFTA free trade treaty was approved.

Once Costa Rica signs the customs agreement, the way will be open to negotiations for a free trade treaty and other commercial issues. One bone of contention will be the European Union’s tariff on banana imports, which raises the price of the fruit over the same comodity from Europe’s ex-colonies in Africa, Asia and the Caribbean. Currently the EU tax is 127 Euros per metric ton of bananas.

With all the country representatives and their aides present, the negotiations promise to be a mob scene of 500 persons. Panama will send at least one observer with an eye to joining an agreement farther down the line.