Costa Rica Says Yes On Trade Deal With USff

A referendum on a free trade pact with the United States appeared to be heading toward approval late Sunday, according to partial results.

The deal has sharply divided Costa Ricans - supporters say it is key to national prosperity, but critics fear it could hurt farmers and small businesses.

With ballots counted from 89 percent of polling places, 51.7 percent voted in favor of the pact. Of the valid ballots, 746,503 were cast for the agreement and 697,798 were against.

Costa Rica is the only one of the six Latin American signatories to the trade deal, known as CAFTA that has yet to ratify it. The pact is in effect in the Dominican Republic, Guatemala, Honduras, Nicaragua and El Salvador.

Ahead of the vote, U.S. officials and Costa Rica’s president appealed for voters to back the deal. The White House on Saturday said if Costa Ricans vote against joining the agreement, the Bush administration will not renegotiate the deal and it urged people to recognize the treaty’s benefits.

The pact would “expand Costa Rica’s access to the U.S. market, safeguard that access under international law, attract U.S. and other investment and link Costa Rica to some of the most dynamic economies of our hemisphere,” White House press secretary Dana Perino said in a statement.

U.S. officials also suggested they may not extend trade preferences now afforded to Costa Rican products – such as canned tuna - and set to expire next September.

Source: Associated Press