Ambassador Cianchette’s Inaugural Speech The American Chamber of Commerce

San Jose- August 13, 2008

“CONTINUED PARTNERSHIP”

Thank you very much for your kind introduction. It’s a great pleasure for me to be here today. AmCham has always been a close partner of the U.S. Embassy. It is fitting that you are the first broad audience with whom I share my thoughts on our bilateral relations, our many shared accomplishments, and the challenges ahead.

CHANGE AND CONTINUITY

Becoming the U.S. Ambassador to Costa Rica this year has brought a great deal of change for me and my family. With the election of a new President, this will be a year of change for the United States as well. In 1796, when George Washington retired from public life and voluntarily gave up the power that historians believe he could have held for as long as he wished, the truly breathtaking precedent of a peaceful transition of government in the United States was established.

Our 44th President – whether Senator McCain or Senator Obama – will bring his own perspective to the Oval Office and establish his own goals and objectives. However, no matter who is elected, the basic tenets of U. S. policy in this hemisphere will not change. We will continue to strengthen our partnerships: for prosperity, for security, for democracy, and for opportunity.

And those partnerships are solidly based on our continuing engagement in the region. President Bush, for example, has met with more Latin American and Caribbean leaders (including President Arias) than any other U.S. president. During this administration, ten Free Trade Agreements have been negotiated in this hemisphere, covering two-thirds of the region’s GDP. Foreign direct assistance to the region has doubled. Working with the international financial institutions, this Administration has forgiven $19 billion in debt for the region. This engagement is all the more impressive when we consider the strategic challenges that have faced U.S. interests around the world since the beginning of this administration.

And I expect that commitment to continue, no matter what the outcome in November. It is clearly in our interest to remain engaged. This is a dynamic and challenging neighborhood, and one that is critical to the future peace and prosperity of the United States. Factors such as an ever-increasing mobile society, globalization and rapid advances in technology are constantly forcing change, and are drawing our region together. Democracy and free markets are the best mechanisms for harnessing that change. We know we need to “keep up with our neighbors” in this hemisphere or risk being left behind.

Our policies and our partnerships -- whether in trade, foreign assistance, or security -- are increasingly focused on helping the democratic governments in this region deliver the goods for their people. We have learned that social justice in our societies, and the success of democracy and markets in this hemisphere, are a vital national security concern for the United States. Given the illusion of democracy offered by some governments in this hemisphere, we know that it is increasingly important that true democracies, like Costa Rica, continue to succeed.

So, we are working now to lay a foundation for overall continuity in U.S. policy, but continuity that can evolve and cope with change. New bilateral agreements, new regional initiatives and continued multilateral engagement are all essential elements for that foundation. My own appointment as Ambassador reflects this commitment and engagement. The President did not want a lengthy vacancy between ambassadors in San Jose. This was no reflection on the dedicated and experienced embassy staff here, but rather an indicator of the importance of being fully engaged with a close regional ally at this time.

OUR POSITIVE PARTNERSHIP

Our partnership with Costa Rica has been, and will continue to be, positive and productive. This is possible because we share similar values and we are committed to similar ideals. In this year’s State of the Republic address, President Arias laid out a vision for Costa Rica very much like ours for the region – rooted in security, prosperity and opportunity. Both our governments want the best for Costa Rica. To achieve that goal, we will continue to focus our cooperation on a wide range issues. We will also provide capacity-building, training and equipment to help Costa Rica take full advantage of opportunities in a global economy.

Total U.S. assistance to Costa Rica was substantial in 2007, and will only increase this year as we work together to address regional security challenges under the Merida initiative, which was recently passed by the U.S. Congress. Merida dramatically increases our joint efforts with Costa Rica, the other governments of Central America, and Mexico, to fight organized crime and drug-trafficking that endangers the future of the Americas.

PARTNERSHIP FOR PROSPERITY

The last time the U.S. Ambassador to Costa Rica stood at this podium, he talked a lot about CAFTA, with the hope that full implementation of the treaty was not far away. As I stand before you today, I am confident that we are indeed close. You all know better than I that it has been a long, hard road. In fact, someone suggested to me that they were afraid the road to Caldera might be complete before CAFTA was implemented. I’d like to see them both get done. As partners in this process, you should take considerable pride in the Chamber’s determination and contributions to making CAFTA a reality. Your commitment and partnership were key to that success and will continue to be important in the days ahead.

The question about CAFTA has now shifted from process and potential, to reality and opportunity. We’ve all begun to consider post-CAFTA life. While we can't predict what will happen with every sector and every product, history and experience with other free trade agreements show that such agreements produce more competition and more offerings in the market, leading to lower prices and greater access to goods and services. It also shows that free trade agreements produce significantly higher levels of overall trade and greater market opportunities for all partners.

The proof, as they say, is in the pudding. From 2003 to 2006, the trade relationship between Chile and the US grew by almost $5 billion, an increase of almost 50 percent. Closer to home, El Salvador’s exports to the U.S. are up 14 percent in the second year since implementation, while Nicaragua’s exports to the U.S. are up 30 percent. Never was there a more important time for Costa Rica to lock in the benefits of free trade with the United States – benefits that guarantee access to one of the largest markets in the world; benefits that are shared by only 14 other countries in the world. A truly special opportunity.

PARTNERSHIP FOR SECURITY

But lasting prosperity is not possible without security. In fact, the security challenges facing Costa Rica and the region are undermining prosperity; even jeopardizing governability. This is why helping Costa Rica and the region deal with these challenges is a U.S. priority, and is among the Embassy’s top strategic objectives.

You all know the situation better than I do. The CID-Gallup poll released last week tells a familiar but unfortunate story: in one of every five Costa Rican households surveyed, at least one person had been the victim of a crime in the last four months. In a slightly expanded view, a recent report on violence in Central America shows it to be one of the most violent sub-regions in the world, with an average annual homicide rate of 36 per 100,000 residents. For your reference, in Iraq, the ratio is 26 per 100,000. While Costa Rica is fortunate to have a much lower rate of crime than the region as a whole, it is obvious that violence is a shared problem, with many root causes, and one that must be addressed comprehensively.

You may have seen La Nacion’s recent story, reporting over 100,000 arrests for crack cocaine use nationwide so far this year. Minister of Public Security Del Vecchio rightly calls this a “national emergency.” Costa Rica is not alone in facing this international criminal challenge. Drug trafficking and criminal activity have become the primary threat to security from Panama to Mexico. As much as 940 metric tons of cocaine may have moved through the region from Colombia to Mexico and the United States in 2007; mostly by sea, including Costa Rica’s territorial waters. Increasing amounts of drugs remain in Costa Rica and other countries as payment for trafficking. There is a direct connection between the narco-traffickers operating with impunity throughout this region and the young crack-heads on the streets of San Jose, assaulting law abiding citizens, as well as tourists. The traffickers are well-financed and well-equipped, and they prey on and corrupt all levels of society.

Clearly no country can face a threat of this magnitude alone. That is why we are working to strengthen our security partnership with Costa Rica, and build a broader regional partnership with all Central America under the Merida initiative. That partnership has already generated results, with Costa Rican authorities making record seizures of illicit drugs, often with U.S. law enforcement participation. One recent example was a joint operation involving U.S. aircraft and Coast Guard and Costa Rica’s Air Surveillance Unit and their Coast Guard, which netted nearly one metric ton of cocaine on July 23. Over the last two years, the U.S. government has contributed to Costa Rica’s success by providing over $1.3 million in security-related equipment and training.

And the Costa Rican efforts and successes are well noted. Two weeks ago, Minister Del Vecchio and her senior staff, along with Ambassador Dueñas and I visited U.S. Southern Command in Miami, and the Joint Inter-Agency Task Force in Key West. Both are key to our collective public security efforts in this region. These visits were significant. The Government of Costa Rica appreciates the assistance we provide. By the same token, the U.S. Government recognizes Costa Rica’s efforts, and that it can make even greater security contributions with targeted assistance and training. So in Miami and Key West, we were able to discuss in detail how to improve our security partnership.

THE MERIDA INITIATIVE

Our trip was also well-timed because of the Merida initiative, which will soon provide more robust security assistance to Mexico and all the governments of Central America. Although the figures are not yet finalized, Costa Rica stands to gain over $4 million this year and over $9 million next year. Additional funding is expected in 2010 and perhaps beyond. The initial assistance for Costa Rica will better equip the Coast Guard and Fuerza Publica; increase law enforcement information-sharing between Costa Rica and its neighbors; enhance security along Costa Rica’s borders; and look for ways to improve judicial management.

But more significant than the Merida money is what Merida means. For the first time, the Presidents of Mexico and the Central American countries concluded that drug trafficking and transnational crime present serious regional threats that can only be addressed with regional solutions. Under the aegis of the Central American Integration System (SICA), each country, including Costa Rica, determined its needs and how it could contribute. Backed by Congress, the U.S. agreed to do its part, not only in providing more assistance to the region, but in doing more at home to reduce domestic demand for drugs and better control money laundering and the flow of illegal weapons. Merida is truly an historic multi-year, multi-country, multi-dimensional security partnership.

Even with Merida assistance, Costa Rica needs the right legal tools to keep people safe, and the Asamblea is now considering some of those tools in the Seguridad Domestica laws. As concerned corporate citizens in Costa Rica, I hope you will encourage the government to make sure tough, appropriate laws are in place and enforced to fight local and transnational crime.

PARTNERSHIP FOR THE ENVIRONMENT

Although I’ve only been here a few months, my family and I have had the opportunity to see some of the incredible natural beauty of this country. Costa Rica has a well-deserved reputation for cherishing and protecting its environmental resources. The U.S. Government is pleased to collaborate with Costa Rica in efforts like the debt-for-nature swap announced last year, the largest ever under this program. Under the Tropical Forest Conservation Act, Costa Rica will use these funds that would otherwise have gone to service debt to the United States, to reinvest $26 million in the environment.

There’s no question of Costa Rica’s management of the green issues. The same sort of sharp focus that earned Costa Rica its eco-friendly reputation needs to be directed towards long-term planning and infrastructure needs. Well-maintained roads and bridges, complete waste stream management, responsible land use, and water issues of all kinds require urgent attention. Costa Rica has the potential to be a model of effective and responsible resource management, with appropriately paced development, but that requires the right infrastructure and the enforcement of established laws.

PARTNERSHIP FOR OPPORTUNITY

Education is a key ingredient for opportunity, and Costa Rica’s investment in education is deservedly a matter of national pride. Free public education offers real opportunities for growth and development, opportunities that are key to success in the current and future global economy. The U.S. and Costa Rica want to ensure that economic necessity does not force students out of the classroom and into the workforce without the tools necessary to reach their full potential. Reducing the drop-out rate and ensuring an educational experience of the highest quality are also common challenges. In my recent meeting with Minister Garnier, he pointed out that the quality of the educational experience for Costa Rican students in the public school system is directly related to the quality of community involvement and support. I couldn’t agree with him more.

We are involved in our own “community” here in Costa Rica. During the last year, the Embassy assisted in putting a roof over an outdoor multi-purpose area for one school in Pavas. A donation planned for next month will provide custom-designed chairs and other equipment for special needs students at a school in Heredia. U.S. Southern Command assistance is also helping build new schools in Laurel [law-REL] and los Lobos. U.S. military engineers helped build bridges in Parrita and Talamanca, giving children safe paths to school.

I cite these examples because I am proud of our contributions and humbled by the difference these simple things make in the lives they touch. They also serve as a reminder of the value of partnership and the immeasurable return on investments made in our own communities.

Another vital part of education in Costa Rica is the initiative to dramatically raise English proficiency among both teachers and students, so that Costa Rica can truly become a bilingual nation. This is not only a noteworthy educational goal, but critically important to the multinational companies in Costa Rica that must have a bilingual workforce. Make no mistake – this is an enormous task, and one that will require an investment by all concerned. But I would argue that it is an investment that will pay huge dividends. I commend the Government of Costa Rica for recognizing the need and putting a plan in motion to meet it. The U.S. Embassy has and will continue to actively support English language teaching and learning programs, with workshops, speakers, and scholarships.

PARTNERSHIP WITH THE PRIVATE SECTOR

So, what part do you play in all of this? An integral one, I would argue. Directly or indirectly, the private sector has an interest in, and a role to play, in all the partnerships I’ve mentioned, whether for prosperity, security, democracy or opportunity. Nearly 100,000 Costa Ricans are working for U.S. companies and thousands more for multinationals. Your firms provide some of the best jobs and employ some of the best workers in Costa Rica. The two-way trade impact of the U.S.-Costa Rican relationship is $8.5 billion, or about one fifth of all total trade between the U.S. and Central America, including the Dominican Republic. Over the last five years, our bilateral trade relationship grew by 36 percent. As our Independence Day celebrations over the last several years have highlighted, U.S. companies have made wide-ranging and positive contributions in communities and neighborhoods throughout Costa Rica. Although I haven’t had the pleasure of visiting each of your businesses yet, I’d be willing to bet that similar outreach programs are a regular part of each of your business plans.

I have had the opportunity to wear many hats in my professional life – as a businessman, a community activist, a legislator, and now, an ambassador. Whatever the role, the key to success has always been – and I believe always will be – about building and strengthening relationships and creating collaborative partnerships. That’s also how I view diplomacy: Gaining trust; earning respect; and looking for win-win outcomes on an international level. As Ambassador, and with your assistance, I hope to help deepen and strengthen the outstanding partnership between our two nations.

I thank you for the opportunity to speak with you today.

back to top ^