While Costa Rica already boasts major investments from key companies like Intel (above) and HP, it is expected to draw even more with CAFTA in place. (Photo: Intel)
With CAFTA passed, Costa Rica now must approve several key laws to comply with the free trade accord.
BY CHRONICLE STAFF
Foreign investors and Costa Rican exporters breathed a sigh of relief after the results of Sunday's CAFTA referendum in Costa Rica. Despite several polls showing a majority against the treaty, in the end it passed. With 98.4 percent of the votes counted, supporters of CAFTA boasted 51.6 percent, while opponents had 48.4 percent.
"We view DR-CAFTA ratification...as very good news for the credit and expect the positive referendum outcome to elicit a favorable near-term market response," Bear Stearns analyst Franco Uccelli said today.
The approval also opens the way for Costa Rica to continue to negotiate an Association Accord with the European Union (EU) alongside other Central American countries, Global Insight analyst Marion Barbel said in a commentary Monday.
The EU had postponed the start of talks until after Costa Rica's vote. Negotiations will start...
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From: Oak, Vancouver WA Hi, gosh where to begin. On voting day activists for Yes vote distributed copies of a statement by the White House in which the Bush administration threatened commercial reprisals if CAFTA was voted down. Dole threatened their workers they would lose their jobs by leaving the country. US ambassador Langdale visits textile factories threatening closure and job loss. Demasa threatens to leave, goodbye jobs. 9 months of ads and outspent 500 to 1. Power of $$$ wins again. Costa Rica will be sorry.
From: William Rodríguez, Heredia, Costa Rica Only history will tell if the result of the vote was right or wrong. Sixty years ago Costa Ricans fought for freedom, and democracy. Today, we have lost our battle. In a few years, we will know if the outcome is what the "Yes, Bush" voters expected.
From: Juan, NYC On negotiations with the EU, why is Panama allowed to engage while the DR, a CAFTA member, is not? Any ideas?
Political Problems? What Problems?