United States Panama Trade Promotion Agreement

Since the first exploration by the Spanish at the turn of the 16th century, interest in Panama has focused on its unique geographical characteristic: the thin distance between the Atlantic Ocean and the Pacific Ocean (see Figure 1). Because of the transit opportunities it offered (for the first time for Peruvian gold and other colonial exchanges), Panama was a natural crossroads for the trade movement, a strategic position that grew as the world traveled and became more integrated. Indeed, the free trade agreement would create a Trade Capacity Building Committee (TCB) to help Panama move to freer trade with the United States. In general, the committee`s mission is to provide technical assistance and coordinate funding to accelerate the transition period, in the hope of increasing trade while minimizing adjustment costs. The TCB Committee would help coordinate technical assistance to U.S., regional and multilateral organizations to help Panama meet its obligations under the free trade agreement. As with the FTA`s working chapter, the amendments made in the May 10, 2007 agreement, in line with the ideas outlined in the May 10, 2007 agreement, reflect a bipartisan meaning in this regard, although the text recognizes sovereign rights and responsibilities in natural resource management that trade and environmental policies must support each other and be devoted to the goal of sustainable development. The new language therefore reinforces obligations to environmental commitments and their application, and requires that each country where the United States imports relatively little from Panama, representing the U.S. trade surplus. Most imports are primary products; 21% are seafood, mostly fresh fish and shrimp.

Repair products account for one third of total imports from Panama30. Unlike Central American countries, where the United States is very sensitive to the textile and clothing trade, Panama does not act much in this sector. Panama`s agricultural exports, particularly sugar, were one of the most difficult to meet. Obligations to protect labour and environmental rights The TPA obliges both parties to adopt and maintain in their laws the five fundamental labour rights contained in the 1998 ILO Declaration on Fundamental Principles and the Right to Work. Both parties are also obliged – and should not repeal – to effectively enforce labour legislation with regard to fundamental labour rights.