Panama Trade Deal Finally Enacted

By CnAgri2012-11-01 19:12:25 Print

A U.S. free trade agreement with Panama went into force on Wednesday, five years after it was originally negotiated, opening the way for increased U.S. exports as the Central American country continues its canal expansion project. According to Reuters, Senior U.S. lawmakers and business groups welcomed implementation of the agreement, which was signed in June 2007.

"This trade deal will guarantee access to Panama's $20.6 billion services market and more than $15 billion in infrastructure projects," said Senate Finance Committee Chairman Max Baucus of Montana. "That is the type of boost our economy needs right now."

Congress approved the pact last year after President Obama's administration negotiated side agreements with Panama to address concerns raised by many congressional Democrats about Panama's labor protections and tax haven laws.

The United States is already Panama's largest trading partner and the two countries share a long and sometimes rocky history, linked to the Panama Canal.

About 10 percent of U.S. imports and exports of goods pass through the Panama Canal, and that percentage could rise as Panama completes its $5.3 billion canal expansion project.

The free trade pact immediately eliminates Panama's tariffs on 86 percent of U.S. consumer and industrial goods, including autos, chemicals, electrical equipment, information technology and medical technology.