G/STR/Q1/CRI/2  
 
19 June 2017  
(17-3242) Page: 1/3 
Working Party on State Trading Enterprises  Original: Spanish  
 
STATE TRADING  
QUESTION POSED1 BY THE EUROPEAN UNIO N REGARDING  
THE NEW AND FULL NOT IFICATION OF COSTA R ICA2 
The following communication, dated 9 May 2017, is being ci rculated at the request of the 
delegation of Costa Rica . 
 
_______________  
 
 
Further to the 21 October 2016  meeting of the Working Party on State Trading Enterprises,  
relating to the "New and  full n otification pursuant to A rticle XVII:4(a) of the GATT 1994 and 
Paragraph 1 of the Understanding on the Interpretation of Article XVII"  for the period  2014–2016, 
submitted by Costa Rica on 2 August 2016 (G/STR/N/16/CRI), the European U nion submits the 
following written question : 
 
Question  
 
The EU thanks Costa Rica for its notification and would like to receive additional 
information on the Costa Rican Pe troleum Refining Company  (RECOPE) . 
 
According to the notification, RECOPE has the exclusive right to manage the State 
monopoly on the importation, refining and wholesale distribution of crude oil and 
derivatives in order to satisfy domestic demand. It is a dded that the importation and 
marketing of fuels is a strategic national interest as the State intervention guarantees 
effective control over fuel price policies.  
 
Could Costa Rica elaborate further how can the State guarantee effective control over 
the fu el prices and, at the same time, acting in a manner consistent with the general 
principles of non -discriminatory treatment?  
 
Answer  
 
While RECOPE ha s the mandate  under Law No.  7356 to manage the monopoly on the importation, 
refining and wholesale distribut ion of fuel, any enterprise ma y engage in retail distribution activity.  
 
Both bulk and retail distribution constitute a public ser vice regulated by the Regulatory Authority 
for Public Services (ARESEP). Article  5 of Law No.  7593 ("ARESEP Law") provides as follows:  
 
"In the public services defined in this article, the Regulatory Authority shall set  prices and 
rates; in addition, it shall monitor  the implementation of standards pertaining to quality, 
quantity, reliability, continuity, punctuality and optimum supply of such services, in 
accordance with Article  25 of this law. The aforementioned public services are: […] 
(d) Supply of hydrocarbon fuels, which include: (1) petroleum products, asphalt, gas and 
naphtha to meet domestic demand in distribution centres  and (2) petroleum products, gas 
and naphtha for the end consumer. The Regulatory Authority shall set transport tariffs to be 
employed for national provisioning ". 
 
                                                
1 G/STR/Q1/CRI/1  
2 G/STR/N/16/CRI  G/STR/Q1/CRI/ 2 
 
- 2 - 
 
  ARESEP determines fuel prices on the basis of the principle of service at cost, so as to ref lect only 
the costs incurred in providing the service and a competitive remuneration to ensure suitable  
development of the activity. The prices are set following  the procedure approved in 
Resolution  RJD-230-2015.  
 
Law No.  7593 also prohibits discrimination  in the provision of p ublic services. Article  12 stip ulates 
that: " Suppliers may not exercise  any form of discrimination against a given group, sector, 
category or individual consumer ". Article  14, for its part, lays down that: " Suppliers have the 
followin g obligations: […] (k) Provide the service to their customers on an equal footing and 
charge them a fair and reason able price for the service rend ered". 
 
Meanwhile, fuel imports RECOPE obtains in order to meet domestic demand are regulat ed by the 
compan y's own Procurement Rules and revisions thereto, published in Official Journal No.  215 of 
9 November 2011 and Supplement No.  271 of 25  November 2016. Said procurement complies 
with the principles enshrined in the Government Procurement Law, including: equity,  free 
competition and publicity. International tenders are open to enterprises registered in the register 
of suppliers.  
 
Links to the cited regulatory texts are attached  in annex . 
 
Costa Rica remains fully available to respond to any request for clarificat ion or additional question 
on this matter.  G/STR/Q1/CRI/ 2 
 
- 3 - 
 
  ANNEX  
LINKS TO REGULATORY TEXTS  
 
Law N o. 7356 – Del Monopolio Estatal de Hidrocarburos Administrado por RECOPE  [State 
hydrocarbon monopoly managed by RECOPE ], 24 August 1993.  
http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=N
RTC&nValor1=1&nValor2=15089&nValor3=16180&strTipM=T C 
 
Law No. 7593 – Ley de la Autoridad Reguladora de los Servicios Públicos (ARESEP)  [Law on the 
Regulatory Authori ty for Public Services (ARESEP)] , 9 August  1996.  
http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=N
RTC&nValor1=1&nValor2=26314&nValor3=107000&param2=1&strTipM=TC&lResulta do=5&strSim
=simp  
 
ARESEP Resolution  No. RJD-230-2015 – Metodología Tarifaria Ordinaria y Extraordinaria para Fijar 
el Precio de los Combustibles Derivados de los Hidrocarburos en Planteles de Distribución y al 
Consumidor Final  [Ordinary and extraordinary tariff methodology for setting the price of 
hydrocarbon fuels in distribution c entres and for the end consumer] , 30 September 2015.  
https://www.imprentanacional.go.cr/pu b/2015/10/30/ALCA89_30_10_2015.pdf  
 
Reglamento de Contrataciones de RECOPE  [RECOPE Procurement Rules] , 25 October 2011.  
https://www.recop e.go.cr/wp -content/uploads/2012/11/Reglamento_de_Contrataciones -de-
RECOPE_9_11_11.pdf  
 
Law No. 7494 – Ley de Contratación Administrativa  [Government Procurement Law] , 2 May 1995.  
http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=N
RTC&nValor1=1&nValor2=24284&nValor3=107542&param2=1&str TipM=TC&lResultado=9&strSim
=simp  
 
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