Number: RS21943 Title: Costa Rica: Background and U.S. Relations Authors: Colleen W. Cook and Connie Veillette, Foreign Affairs, Defense, and Trade Division Abstract: Costa Rica is considered the most politically stable and economically developed nation in Central America with a tradition of political moderation and civilian government. Former President Oscar Arias (1986-1990) of the National Liberation Party (PLN) was once more inaugurated as President on May 8, 2006. Fiscal reform legislation and ratification of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will likely be the major focus of the first six months of President Arias's administration. Every country but Costa Rica has now approved the agreement. Relations with the United States have traditionally been good, although some friction arose during CAFTA negotiations. Pages: 6 Date: June 5, 2006