Panama suffers FTA setback at the hands of a "Tax Evader"

It seems the on again off again FTA agreement is still being hung up by the same old same old. The Chairman of the house ways and means committee, the infamous Charlie the tax cheat Rangle, says Panama must do more in the areas of labor and banking transparency.  I doubt if the labor changes he wants are those we harp about on this blog as much as they are to strengthen unions and provide more control by the state. His continuing to carp at the banking industry seems disingenuous considering he is under investigation for cheating on his taxes.  Just one of his lack of reporting incidents is a high dollar rental property in Punta Cana. WJS: First he blamed his wife for the oversight because he said she was supposed to be managing the property. Then he blamed the language barrier. “Every time I thought I was getting somewhere, they’d start speaking Spanish,” Mr. Rangel explained. Equally interesting is his claim that he didn’t know that the developer of the Dominican Republic villa had converted his $52,000 mortgage to an interest-free loan in 1990. That would seem to violate House rules on gifts, which say Members may only accept loans on “terms that are generally available to the public.” Try getting an interest-free loan from your banker.

From La Prensa:

Panama has outstanding issues that must be resolved before the free trade agreement before the U.S. Congress will ratify it.

That's according to a statement made recently in a press release by Chairman of the Ways and Means Committee Charles B. That's according to a statement made recently in a press release by Chairman of the Ways and Means Committee, Charles B. Rangel, in which he mentions specific actions that the country must take, including applying International Labor Organization standards and working on bringing greater transparency to its banking industry. Rangel, In which he mentions specific actions that the country must take, including applying International Labor Organization standards and working on bringing greater transparency to its banking industry.

Rangel added that the Panamanian government and the country's ambassador to Washington, DC Federico Humbert have already been apprised of the committee's demands. Rangel added that the Panamanian government and the country's ambassador to Washington, DC Federico Humbert have already been apprise of the committee's demands. He added that he would expect Panamanian authorities to take swift action to correct these issues so as not to postpone negotiations. He added that he would expect Panamanian Authorities to take swift action to correct these issues so as not to postpone negotiations.

That news dampened some of the hope for the rapid approval of the treaty raised by the Obama administration earlier this month when it issued a report promising to deal with the agreement “relatively quickly.” Following that report, several meetings held last week between trade officials from both countries were left with the impression that Congress could ratify the treaty as early as June. That news dampened some of the hope for the rapid approval of the treaty raised by the Obama administration earlier this month when it issued a report promising to deal with the agreement "relatively quickly." Following that report, several meetings held last week between trade officials from both countries were left with the impression that Congress could ratify the treaty as early as June.

The Panamanian Minister of Trade and Industry, Gisela Porras, said she preferred to withhold comment on the issue until she knew the context in which Rangel's statements were made. The Panamanian Minister of Trade and Industry, Gisela Porras, said she preferred to withhold comment on the issue until she knew the context In which Rangel's statements were made.

Panama has often appeared on international “black lists” for its reputation as a tax haven, an issue that was discussed yesterday at the Annual Conference of Business Executives in the capital (CADE 2009). Panama has often appeared on international "black lists" for its reputation as a tax haven, an issue that was discussed yesterday at the Annual Conference of Business Executives in the capital (CADE 2009). During the conference, former deputy economy minister Domingo Latorraca referred to Rangel's statements, arguing that the country's banking industry should not be at issue in the trade talks. During the conference, former deputy economy minister Domingo Latorraca Referred to Rangel's statements, arguing that the country's banking industry should not be at issue in the trade talks.