Caribbean & Central America - November 2014 (ISSN 1741-4458)

The new centre-left Partido Acción Ciudadana (PAC) government led by President Luís Guillermo Solís is facing unrest on various fronts. Dock workers in the Atlantic port city of Limón began a strike on 22 October following a supreme court decision to award the concession for a new terminal to a foreign firm. When President Solís ordered the docks to be reopened, police arrested 68 people who were blocking ships from unloading at the Limón and Moín terminals, resulting in violent clashes. Meanwhile Costa Rica’s main union, Asociación Nacional de Empleados Públicos y Privados (Anep) is up in arms over attempts to cut the 2015 State budget proposal which it warns will impact public spending.

The 9 October supreme court upheld a decision to grant a US$1bn concession to the Dutch firm APM Terminals for the construction and operation of a new terminal at Puerto Limón/Moín complex, which currently comprises two docks either side of the city. The complex handles around 80% of Costa Rica’s maritime trade. Under the terms of the agreement, APM Terminals has the exclusive rights to handle container traffic at the port for the next 33 years. According to World Bank data, Costa Rica has some of the worst-rated port infrastructure in the region.

The dockers’ union, the Sindicato de Trabajadores de Japdeva (Sintrajap), claims that the contract, signed in 2011 under the previous Laura Chinchilla administration (2010-2014), is unconstitutional, as it would create an “illegal monopoly”. However the Solís government is clear that the project will go ahead, arguing that the expansion plan would quadruple the amount of cargo the port can handle.

On the morning of 22 October, Sintrajap successfully paralysed both the Limón and Moín docks, but later that same day they were ejected by the police, who made a large number of arrests. The following day, the docks reopened with foreign contracted labour under a police guard. The public security minister Celso Gamboa said the police would remain for as long as necessary to ensure the port’s continued operation. Sintrajap’s leader, Ronaldo Blears, said the dockers would not be intimidated and the union would take legal action against Gamboa for the evictions.

At the time of writing Solís had yet to show any signs of backing down. On 23 October he released a statement reiterating that Costa Rica would respect the terms of the contract as a “country that long ago opted for the rule of law and peace.” Solís said that his administration would commit financial resources and training for workers who may lose their jobs at the port. Over the weekend of 25-26 October, dozens of protesters blocked roads throughout Limón with burning tires and other debris. Police in riot gear who attempted to remove the barricades came under attack. In one reported incident, the police came under fire from an automatic weapon, though no one was injured.

Other unrest

The dockers’ union is not the only unhappy one. On 20 October, Anep members demonstrated in the streets of San José over plans to cut the national budget. The legislative finance committee wants to cut the C$9.7trn (US$14.5bn) budget by a further 1%, on top of the 2.8% cuts announced by Solís to try to tame Costa Rica’s rising budget deficit, which is projected to reach 6% of GDP this year.

Anep argues that the proposed cuts would affect public services and exacerbate inequality. The protests were backed by the left-wing opposition party, Frente Amplio, which, with nine seats, has the third largest presence in the 57-member unicameral national legislature. Solís, whose party has 13 seats in congress, is personally against further budget cuts. In a speech on 19 October he acknowledged the need to tackle the deficit, but insisted that essential public services, such as health, education and security must be protected. The budget must be approved by the legislature by 30 November.

• Fuel prices to drop

On 27 October Costa Rica’s Autoridad Reguladora de los Servicios Públicos (Aresep), the public services regulatory authority, decreed a cut in fuel prices, following the fall in international oil prices. This is the fourth consecutive fuel price decrease.