Panama president Ricardo Martinelli has written an editorial piece for The Hill, a Washington news source. He expounds on our similarities and the benefits that will arise from a trade pact between the U.S. and Panama.
I see the trade agreement as a two edged sword. Panama wants the benefits of additional trade it believes will develop, but for the U.S. an agreement represents in trade just a few hours of their yearly GDP. I believe the U.S. only wants the agreement in order to foist its agenda on Panama. Many of the recent reforms that have taken place have been to placate the U.S.. As we see the U.S. using strong arm tactics against foreign banks to disclose information on U.S. citizens with accounts, it is clear that a trade agreement will make it even easier for the U.S. to apply pressure to its "partner". Do this or we will pull out of our trade agreement. What leverage does Panama have in this partnership? I am beginning to question the real benefits Panama will see from an agreement with the U.S..
Last week in a speech before the U.S. Export-Import Bank’s Annual Conference, President Barack Obama made impassioned remarks about the vital role of trade in growing economic opportunity and international cooperation. I share his support for this vital principle, as do members of both political parties in Congress. However, many critics insist on perpetuating a misperception that could actually serve as a barrier to living up to that principle. Some have argued recently, including in this newspaper, that pending trade deals like the current U.S.-Panama Trade Promotion Agreement do not uphold U.S. values, which has delayed U.S. ratification of these agreements. Since Panama has already ratified the trade agreement we signed with the U.S., the implication is that a significant difference exists in the values our two countries embrace.
One way we prove our commitment to these shared values is by shouldering much of the burden of addressing the threats that menace them in our hemisphere.
Our common interests are at risk from many of the same dangers — political instability, North America-bound narco-trafficking and the broader perils of widespread poverty — but Panama has to confront them directly whereas the U.S. has the respite of distance.
We are undertaking a significant effort on our own to strengthen our economy, creating good jobs for Panamanians while offering our trading partners a greater return on their commitment to our country and our people.
Our efforts include reforming our tax code to help international companies support employees in Panama. We’re also modernizing immigration laws to establish a business-friendly visa regime that accommodates the travel demands of international commerce in the 21st century. Finally, we are creating an ambitious nationwide wireless broadband capability, providing access to high-speed Wi-Fi in all public buildings by April of this year.
This concentration on making Panama open for business includes a dramatic expansion of the Panama Canal. Adding a new channel to the canal to accommodate the largest and most modern cargo ships will facilitate expanded global trade and mean significant new opportunities for U.S. ports.
These actions clearly demonstrate Panama’s commitment to a set of common values with the U.S. Unfortunately that commitment has been met so far by an unwillingness to act on one of the most significant, and mutually beneficial, elements of our partnership: the U.S.-Panama Trade Promotion Agreement.
Rather than highlighting a difference in values, the agreement our two countries negotiated, signed, and which our country ratified, is a practical application of the values we both profess to share. The U.S. should ratify it immediately so both countries can begin to enjoy the benefits of increased trade that President Obama has broadly described.
I know there are some in the United States who still have concerns about this agreement. I respect their views because Panama also did not get everything we wanted. But the Trade Promotion Agreement should be the beginning of a new phase in our economic relationship rather than the end.
Upon U.S. ratification of TPA, our two nations should also immediately begin working together on additional negotiations to identify new opportunities for combined job creation and economic growth. These talks would be a useful venue to continue work on those issues still outstanding from our original TPA negotiations.
Martinelli is the president of the Republic of Panama.
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