Costa Rica remains one of the safest and most attractive countries for foreign investment in Latin America. The Costa Rican government maintains a very pro- free market and pro-U.S. stance towards foreign investment in combination with the enforcement of the Rule of Law. The government has learned that this is required in order for foreigners to take advantage of Central America's highly educated and disciplined workforce.

The World Bank has given Costa Rica an excellent bill of overall political and economic health. At its annual conference in El Salvador this year, the bank lauded the country as possessing "one of the most stable and robust" democracies in Latin America. It went on to praise Costa Rica's "healthy economic growth rate" and "some of the best social indicators" on the continent.

Costa Rica is one of the most vocal supporters of continental free trade, and already has its own agreement with Mexico and other countries of the region. They offer benefits such as exemption from import duties on raw materials, capital goods, parts and components; unrestricted profit repatriation; tax exemption on profits for eight years and a 50 percent exemption for the following four years.

Bear Stearns says in its latest Central America and Caribbean Report, released in January that "Fiscal discipline, favorable economic results and no new issuance in the near term should also do their part to support the [Costa Rican] bonds." In addition, Bear Stearns points out that the policies implemented by the outgoing administration of president Abel Pacheco has enabled it to record a lower deficit, thus offsetting the larger-than-planned central bank deficit. Oscar Arias, a supporter of CAFTA and new President, will likely implement market-friendly policies. "We would view this outcome as positive," Bear Stearns said.