Recount Ordered In Costa Rica's Free Trade Referendum

October 8, 2007 4:18 p.m. EST

San Juan, Costa Rica (AHN) - The people of Costa Rica voted Sunday to join the Central American Free Trade Agreement between its neighbors and the U.S., according to the country's Electoral Tribunal. In the first ever public referendum on a trade agreement, 51.6 of Costa Ricans voted in favor of joining DR-CAFTA and 48.4 percent voted against it. The narrow margin illustrated just how contentious the issue is in the country, and indeed in much of the developing world.

Costa Ricans also handed a victory to incumbent President Oscar Arias, who made the trade pact the centerpiece of his presidential campaign, saying it would boost economic growth, create jobs and alleviate poverty.

The anti-CAFTA vote received the majority in most rural regions, where many fear the pact would hurt small farmers.

The presumed victory was a surprise, as most polls leading up to the vote had shown widespread opposition.

On Monday, organizations against DR-CAFTA contested the referendum results, claiming that President Arias, with the media's complicity, violated the Costa Rican Electoral Code, which prohibits distributing any type of campaign materials for the two days preceding a referendum. A statement issued by the "No" campaign Monday said, "The national media became channels for the [President] Arias administration and treaty promoters." The statement also denounced a widely publicized threat made by U.S. Trade Representative Susan Schwab on Saturday, warning that the country would lose the benefits of the Caribbean Basin Initiative if the population rejected the accord.

A manual recount has already been scheduled to begin Tuesday.

A rejection of the accord would have marked the first time a free-trade deal with the U.S. was refused by any country. The governments of El Salvador, Honduras, Nicaragua, the Dominican Republic and Guatemala have already approved the agreement.

In 2003, clashes between Guatemalan police and anti-CAFTA demonstrators led to dozens of arrests and at least one fatality.