By Brian Harris and John McPhaul
SAN JOSE, Costa Rica (Reuters) - Costa Rica, one of the few Latin America countries still with a state-run telephone sector, is expected soon to open to big foreign players as part of a trade deal with the United States.
Costa Rican President Oscar Arias told the Reuters Latin America Investment Summit late on Wednesday that foreign telephone firms are poised to enter the Central American country but that national operator ICE will continue to play a key role in the industry.
"The (government) will be very careful to listen to the offers of companies that want to come here to compete with the state firm, which will be the dominant firm without a doubt," Arias said.
Opposition lawmakers in recent weeks have backed off earlier attempts to block final passage of laws to open key sectors of the economy after Costa Ricans voted in favor of a regional free trade deal with the United States last year.
Costa Rica narrowly approved the U.S.-Central American Free Trade Agreement, or CAFTA, in a referendum in October, and lawmakers have been haggling over the details of its implementation since then.
Among other legal changes, the deal requires Costa Rica to open parts of its telephone industry and its insurance business to open to private and foreign competition.
Because those industries contribute heavily to the nation's social services budget, critics worry about moving them into the free market. Lawmakers dragging their heels forced an extension to CAFTA's ratification in February.
Since then, opposition legislators have pledged to end parliamentary maneuvers to block passage of laws necessary for the trade deal to take effect. He said Costa Ricans would benefit from the telephone industry's privatization. Continued...
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