Latin Business Chronicle: Costa Rica & CAFTA: approval opens the way for Costa Rica to continue to negotiate an Association Accord with the EU

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Costa Rica & CAFTA: approval opens the way for Costa Rica to continue to negotiate an Association Accord with the EU

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.

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 in two weeks - October 22 - in Costa Rican capital San Jose. (The EU talks also include Panama, which is not a member of CAFTA, while excluding the Dominican Republic, which is.). A rejection of CAFTA in Costa Rica would likely have complicated negotiations with the EU, which generally prefers to negotiate with larger groups instead of individual countries.