US will not renegotiate Costa Rica free trade deal : USTR
WASHINGTON (AFP) — The United States is not willing to renegotiate a free trade deal with Costa Rica if it is rejected by voters in a referendum set for Sunday, US Trade Representative Susan Schwab said Thursday.
"The United States respects the sovereign right of the citizens of Costa Rica to choose whether to approve the free trade agreement with the United States, Central America, and the Dominican Republic. But, I hope whatever decision is made is based on the facts," she said in a statement.
"There has been speculation that the United States would simply renegotiate the terms of the current agreement or negotiate a new bilateral trade agreement with Costa Rica if our current agreement is rejected. That is not the case," Schwab warned.
"The agreement we reached with Costa Rica is a balanced agreement that is strongly in the national interests of both of our countries. It was concluded only after lengthy and difficult negotiations involving five of Costa Rica's neighbors, which already are enjoying the benefits of the agreement," she said.
"It is difficult to imagine any US administration renegotiating the current agreement or negotiating a new trade agreement with Costa Rica if this agreement is rejected. The opportunity for Costa Rica to enjoy the benefits of regional free trade is now," said Schwab.
While some have questioned whether trade preferences for the US market set to expire next year would be renewed, Schwab said "the fact is, the United States has never faced a situation where one of our trading partners rejects a reciprocal trade agreement with the United States, but continues to seek unilateral trade preferences."
President George W. Bush's administration touted CAFTA as an economic gain for the United States and a foothold for free-market capitalism in Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.
Backers also argued that the trade measure was a way to fend off the threat of Chinese textile exports by spurring further integration of US yarn and textile producers with low-cost garment makers in the Central American and Caribbean nations.
