Neighbors Watch Costa Rica Free Trade Vote

Oct 08, 02:01 AM

Current Headlines: Cuba kept a close watch on a referendum on the CAFTA-DR free trade agreement in Costa Rica Sunday, a report says.

The agreement would establish largely free trade between Costa Rica, other central American countries and the United States.

Proponents of the agreement say it will give the country better access to U.S. markets, and ensure the continued foreign aid, Prensa Latina reported.

That argument was bolstered by a Bush administration warning issued Saturday that said the United States may not extend trade preferences for the country that are set to expire next year.

But the agreement's opponents say it will lead to corporate takeovers of government-owned industries, and deal a blow to unions and small farmers.

Initially, public opinion favored the agreement, but by the day of the vote polls said the majority of likely voters were against approval.

If the country votes no, Costa Rica -- normally considered open to free trade -- will join the likes of Venezuela, Bolivia and Cuba, which have opposed the U.S. push for free trade.