Try, try again.

Costa Rica took a bold and unexpected stance during the final negotiating round of the U.S.-Central America Free Trade Agreement, refusing to conclude talks by the mid-December deadline and requesting up to three more months to finalize the terms of the US$23 billion regional trade pact. The sticking point: insurance. U.S. Trade Representative Robert Zoellick previously had warned Costa Rica that it must open its services markets to be included in the Central American deal. "If reaching an agreement forces us to sacrifice our dignity, there will be no agreement--it's that simple," says Costa Rican President Abel Pacheco. Costa Rica had agreed to a partial opening of the state-run telecom monopoly, but the government apparently hoped that the United States would forget about the insurance issue. When U.S. negotiators reminded their Central American counterparts at the 11th hour. Costa Rica was unprepared to agree to the terms without first developing a technical plan for opening the sector. The holdout was applauded in Costa Rica. where lawmakers and union leaders had asked for a moratorium on the entire pact. Yet most observers believe a deal is inevitable. Costa Rica represents the wealthiest and most attractive of the Central American economies for U.S. investors. U.S. trade leaders say they remain hopeful Costa Rica will join the pact before negotiations start this month to include the Dominican Republic in the deal.