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Race to the Finish Line for Panama-U.S. Free Trade AgreementJune 29, 2007 Dear Panama First Alert Reader,
U.S. and Panama trade representatives announced in December 2006 that they had concluded negotiations on the comprehensive FTA, but the Democrat-controlled U.S. Congress expressed reservations about certain issues-particularly labor and environmental. Negotiators were later able to reach agreement on these issues. Under the amended FTA, Panama is committed to adopting and enforcing laws as per standards outlined by the International Labor Organization. Panama is also prohibited from lowering labor standards and must abide by seven major multilateral environmental agreements. The new FTA draft also facilitates access to inexpensive generic drugs for low-income Panamanians. As with any FTA, there are many organizations that oppose the agreement. Panama groups such as the National Front in Defense of Economic and Social Rights (FRENADESO) protested in Panama City today, saying that the FTA is one-sided and that the Panamanian people have not had access to a complete copy of the agreement in Spanish. Protesters are demanding a national referendum before the FTA is sent to the Panama National Assembly for approval. WANTED: Adventurers Willing to Travel to Far Away Shores Hours--your choice, Money--as much as you can handle, Sound too good to be true? It's not. In fact, it's easier than you think...Fnd out Complete freedom and a handsome paycheck is just one click away. Panama groups in favor of the FTA include the National Workers Central (CNT), The Union Confederation (CG) and Unionist Federation (FS), each of which sent representatives to attend the signing ceremony in Washington. These groups say the agreement will help strengthen the economy. U.S. proponents say the agreement will generate export opportunities for U.S. farmers and ranchers, create jobs in the U.S., and offer U.S. consumers both savings and greater choice. The FTA eliminates tariffs and barriers to trade in manufacturing, services, and other sectors. Nearly 90% of U.S. consumer and industrial exports and over 50% of farm exports to Panama will become duty-free immediately, with remaining tariffs to be phased out over 10-15 years. The FTA seeks to encourage legal and business reforms in Panama to foster investment, protect intellectual property rights, and increase transparency. Due to previous agreements, many Panama goods for export to the U.S. already enjoy duty-free status. As for the Panama Canal expansion mega-project, the FTA provides U.S. companies preferred access while guaranteeing Panama construction firms at least 10% of the contracts in the $5.25 billion project. Panama Minister of Trade Alejandro Ferrer and U.S. Trade representative Susan Schwab signed the FTA at 1:25 p.m. yesterday at the Organization of American States (OAS) offices in Washington, D.C. It is expected that the U.S. Congress and the Panama National Assembly will ratify the FTA. We'll let you know as soon as this happens. Best Regards, Jessica Ramesch P.S. The Panama Canal expansion and pending FTA are but two of the exciting projects taking place in Panama. Each month, Panama Insider reports on up-and-coming regions, the latest big projects, and important issues for prospective expats like you. Every place has its pros and cons and Panama Insider gives you the good and the bad news about your new prospective home. Find out all you need to know here. |
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