A public relations piece appeared today from the President of Panama urging the U.S. House Ways and Means committee to act on the free trade agreement that has been languishing for so long under the Obama administration. Along with the expected "Panama is great theme", the president also makes reference to the Tax Information Exchange agreement as another carrot Panama has committed to in order to get the FTA. If you recall, the TEA was negotiated and sighed by both parties in November, but not yet ratified by the Panama Assembly. I believe they are waiting to see if Panama gets the FTA, in which case there will be many who hope they don't. The agreement basically throws everyone who bought into Panama's promise of privacy under the bus for a Free Trade agreement that many don't see the benefit of for Panama. See my take on this here.
Here is the press release.
Statement by President Ricardo Martinelli on House Ways & Means Hearing on Panama Trade Agreement
WASHINGTON, Jan. 25, 2011 /PRNewswire-USNewswire/ -- The following is a statement by President Ricardo Martinelli on House Ways & Means Hearing on Panama Trade Agreement:
"I extend my thanks to the Members of the U.S. House Ways & Means Committee for giving the Panama Trade Promotion Agreement priority attention by holding a hearing so early in the new Congress.
"As the rest of the world's economies struggle with the global recession, Panama's economy is not only humming along – it's practically roaring. The IMF estimates that Panama will have the fastest growth rate in the Latin America and Caribbean region by 2015. The policies my administration is implementing and the improvements we are undertaking will create prosperity for our people and deliver on the promise of Panama.
"These same policies also make the Trade Promotion Agreement with the U.S. an even better deal than ever before for both countries. The $13.6 billion infrastructure investment plan we are implementing now will create incredible opportunities for American firms once the TPA is approved to compete in selling everything from heavy equipment to engineering services.
"Because of Panama's growing prominence as a global leader in trade and logistics, TPA would also create new opportunities for U.S. companies – especially small and medium enterprises -- that usually only export to one country. Through a TPA with Panama, these American firms could have access to an entire region through Panama's logistical network and free zone legislation. Panama's strategic position could become a platform for American firms to reach many other countries and markets with no tariff barriers.
"Late last year, Panama also signed a Tax Information Exchange Agreement with the U.S. to further demonstrate our commitment to transparency and global financial standards – and to do what is necessary to make this Trade Promotion Agreement a reality.
"I strongly urge Congress and the president to follow-up on this important hearing by passing the U.S.-Panama Trade Promotion Agreement as soon as possible. As a long-standing friend, ally and trading partner of the United States, we believe doing so would be a vital tool for saving and creating jobs in both countries."
Distributed by HDMK, LLC on behalf of the Republic of Panama. Additional information is on file at the Department of Justice, Washington, D.C.
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