OECD Investment Policy Reviews.

266 Pages·2013·1.781 MB·English

by  OECD

OECD investment Policy Reviews
COsta RiCa
Contents OECD investment Policy Reviews
Executive summary
Assessment and recommendations COsta RiCa
Chapter 1. The role of FDI in Costa Rica’s economic development
Chapter 2. Costa Rica’s investment regime and the OECD National Treatment Instrument
Chapter 3. Costa Rica’s policy framework for investment
Chapter 4. Costa Rica’s adherence to the OECD Guidelines for Multinational Enterprises
Chapter 5. Costa Rica’s policy framework for green investment
Annex. Costa Rica’s exceptions to the National Treatment Instrument
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20 2013 09 1 P

OECD Investment
Policy Reviews:
Costa Rica
2013
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FOREWORD
Foreword
O
n 30September2013 CostaRica became the 45th adherent to the OECD
DeclarationonInternationalInvestmentandMultinationalEnterprisesinrecognition
of the country’s progress in fostering investment liberalisation, deepening its
internationalintegrationandpromotingresponsiblebusinessconduct.
As an adherent to the Declaration, CostaRica commits to providing national
treatmenttoforeigninvestorsandpromotingresponsiblebusinessconduct.Inturn,it
benefitsfromsimilarassurancefromotheradheringgovernmentstotreatCostaRican
investorsabroadfairlyandtoencouragetheirmultinationalenterprisesoperatingin
CostaRicatocontributetoeconomic,socialandenvironmentalprogress.Inaccordance
with the OECD Guidelines for Multinational Enterprises, an integral part of the
OECD Declaration, CostaRica has committed to establish a National Contact Point
chargedwithpromotingprinciplesandpracticesembodiedintheGuidelines,handling
related enquiries in the national context and supporting mediation and conciliation
procedures. As an adherent, CostaRica will participate in the work of the OECD
InvestmentCommitteerelatedtotheDeclaration.
This Investment Policy Review is based on the report supporting the
examinationbytheOECDInvestmentCommitteeinviewofCostaRica’sadherenceto
the OECD Declaration. It includes a special chapter on CostaRica’s investment
frameworkinsupportofgreengrowth,focusingonthecountry’spoliciesregulations
and institutions to facilitate and promote green investment. Representatives of
OECDcountries joined the OECD mission in San José in April2013 to finalise the
report.TheexaminationofCostaRica’sinvestmentpoliciestookplaceinJune2013at
the OECD headquarters in Paris in the presence of a CostaRican delegation led by
ForeignTradeMinisterAnabelGonzález.
ThereviewwaspreparedinclosecooperationwiththeCostaRicanauthoritiesby
Marie-Estelle Rey, Alexandre de Crombrugghe, Fernando Mistura and Dambudzo
Muzenda from the Investment Division, Nariné Nersesyan from the Centre forTax
Policy andAdministration, and CristinaTébar Less, External Consultant, under the
supervision of Pierre Poret, Counsellor in the OECD Directorate for Financial and
Enterprises Affairs. The review received financial support from the government of
CostaRicaandtheInter-AmericanDevelopmentBank.
OECDINVESTMENTPOLICYREVIEWS:COSTARICA2013©OECD2013 3

TABLEOFCONTENTS
Table of contents
Acronymsandabbreviations...................................... 9
Executivesummary.............................................. 15
Assessmentandrecommendations................................ 19
TheroleofFDIinCostaRica’seconomicdevelopment ............ 19
CostaRica’sinvestmentregimeandtheOECDNationalTreatment
instrument.................................................. 20
CostaRica’spolicyframeworkforinvestment.................... 22
CostaRica’sadherencetotheOECDGuidelinesforMultinational
Enterprises................................................... 28
CostaRica’spolicyframeworkforgreeninvestment .............. 30
Chapter1.TheroleofFDIinCostaRica’seconomicdevelopment ...... 33
Introduction ................................................ 34
OverviewoftheCostaRicaneconomy .......................... 35
TheroleofFDIinCostaRica’sdevelopment ..................... 40
Notes ...................................................... 49
References.................................................. 49
Chapter2.CostaRica’sinvestmentregimeandtheOECDNational
Treatmentinstrument........................................ 51
MainfeaturesofCostaRica’sinvestmentregime................. 53
ExceptionstotheNationalTreatmentinstrumentnotified
byCostaRica................................................ 60
MeasuresnotifiedundertheNationalTreatmentinstrument
byCostaRicafortransparency................................. 66
Rationalefortheexistingrestrictionsandplansforphasingthem
out......................................................... 68
CostaRica’spositionundertheinstrumentoftheOECDDeclaration
onInvestmentIncentivesandDisincentives......................... 70
CostaRica’spositionundertheinstrumentoftheOECDDeclaration
onConflictingRequirements..................................... 70
FDIRegulatoryRestrictivenessIndexforCostaRica.................. 71
Notes ...................................................... 74
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TABLEOFCONTENTS
Chapter3.CostaRica’spolicyframeworkforinvestment.............. 77
Investmentpolicy............................................ 79
Investmentpromotionandfacilitation.......................... 101
Tradepolicy................................................. 122
Competitionpolicy........................................... 134
Humanresourcedevelopment................................. 138
Infrastructuredevelopment ................................... 145
Financialsectordevelopment.................................. 155
Publicgovernanceandanti-corruption.......................... 168
Notes ...................................................... 177
References.................................................. 183
Chapter4.CostaRica’sadherencetotheOECDGuidelines
forMultinationalEnterprises................................... 187
EstablishmentofaNationalContactPoint ...................... 189
Generalpoliciesforpromotingresponsiblebusinessconduct
inCostaRica................................................ 191
CostaRica’spoliciesinspecificareascoveredbytheGuidelines..... 195
Notes ...................................................... 213
References.................................................. 216
Chapter5.CostaRica’spolicyframeworkforgreeninvestment ........ 219
ChallengesandopportunitiesforgreengrowthinCostaRica ...... 221
CostaRica’scommitmenttogreengrowth ...................... 225
Policiesinsupportofgreeninvestment......................... 234
Incentivesandaccesstofinanceforgreeninvestment............ 243
Promotinggreenbusinessconductandstakeholderparticipation
ingreengrowth.............................................. 248
Notes ...................................................... 253
References.................................................. 256
AnnexA.CostaRica’sexceptionstotheNationalTreatmentinstrument 259
Tables
1.1. PercentageofrealGDPpersector............................ 36
3.1. Internationalintellectualpropertyrightstreatiesratified
byCostaRica ............................................. 84
3.2. BITssignedandratifiedbyCostaRica........................ 95
3.3. FTAswithinvestmentprovisionsratified,signedandunder
negotiationbyCostaRica................................... 96
3.4. IncentivesundertheFZR................................... 112
3.5. CostaRicaFTAsandcoveredmerchandisetrade .............. 126
3.6. CostaRica’scompetitivenessindicatorsforinfrastructure........ 145
3.7. Maintransportinfrastructureprojects(ongoingandplanned) ... 149
6 OECDINVESTMENTPOLICYREVIEWS:COSTARICA2013©OECD2013
TABLEOFCONTENTS
3.8. CasesofcorruptionprocessedbythePublicProsecutor,
notifiedtothePEP......................................... 176
3.9. ComplaintsreceivedbytheOfficeofthePublicEthics
Prosecutor,2007-11........................................ 176
5.1. CostaRica’sprogrammesandpoliciesinsupportofsustainable
development.............................................. 225
5.2. EnvironmentalprovisionsinBITsandFTAssignedbyCostaRica.. 232
5.3. Climatescope2012:CostaRica’sperformanceonclimatechange
investmentparameters .................................... 237
5.4. RenewableenergypotentialinCostaRica..................... 238
5.5. CostaRica’sPerformanceonTravelCompetitiveness ........... 241
5.6. GreeninvestmentincentivesinCostaRica.................... 244
Figures
1.1. Structureofindustrialexportsbyintensityintheuseoffactors
ofproduction ............................................. 37
1.2. FDIinflowstoCostaRica,1990-2012.......................... 41
1.3. FDIinflowsasapercentageofGDPinCostaRicaandLAC
forselectedyears.......................................... 42
1.4. CumulativeFDIinflows(2000-12)bycountryoforigin .......... 44
1.5. CumulativeFDIinflows(2000-12)bysector.................... 44
2.1. OECDFDIRegulatoryRestrictivenessIndex,asofDecember2012 72
2.2. OECDFDIRegulatoryRestrictivenessIndexbysectors,2012..... 73
3.1. Easeofdoingbusiness:regionalcomparison.................. 80
3.2. CostaRica’srankinginDoingBusiness2013................... 80
3.3. PolicydialoguewithinCINDE’soperationalfunctions........... 108
3.4. Bankcredittotheprivatesector(%ofGDP,2010)............... 156
3.5. CostaRica’sfinancialsystem................................ 157
3.6. Financialsectordollarization(2005-12)....................... 163
3.7. EvolutionofCostaRica’sEquityMarket....................... 165
5.1. CostaRica’sRenewableEnergyGenerationProfile,2012......... 235
5.2. Privateparticipationinrenewableenergygeneration........... 237
OECDINVESTMENTPOLICYREVIEWS:COSTARICA2013©OECD2013 7