Labour Party unseats Dominica Government

Dominica Labor Party supporters celebrating victory

The Caribbean island of Dominica is to have a new president after the Labour Party ousted the government in a closely contested parliamentary election.

Incoming leader Rosie Douglas said he would halt the Caribbean nation's program of raising money by selling passports to foreigners.

Sullied reputation

The policy played centre stage during the campaign, with Douglas' party claiming it sullied the island's reputation.

Labor's narrow victory will force it into a coalition - already discussed before the vote - with one-time rivals from the conservative Dominica Freedom Party.

"I thought we would have done even better," Douglas said.

Ousted Dominica Premier Eddison James

Freedom Party leader Charles Savarin said he was negotiating with Mr Douglas on Tuesday to form a government "as quickly as possible".

Preliminary results gave Labour 10 seats - up from five - in the 21-seat parliament.

The outgoing United Workers' Party, led by Eddison James, won nine seats, while the Dominica Freedom Party won two seats. Official results were expected Tuesday. Some 60,000 people were registered to vote.

Smuggling ring

Douglas said his government would immediately halt and review the passport-selling programme.

His party said repeatedly during the campaign that the program has hurt Dominica's image.

Islanders became concerned after Canada arrested several Chinese people carrying Dominica passports on suspicion that they were involved in an immigration smuggling ring run by Chinese gangs.