Panama trade deal gets green light

United States Trade Representative Ron Kirk has given the Panama trade agreement a green light, paving the way for a congressional vote on the long-stalled deal within months.

Kirk notified Congress on Monday that Panama has cleared all the hurdles needed for passage of the U.S.-Panama trade agreement. He said technical discussions on implementing the legislation can now begin with Congress. 

{mosads}”On February 9, 2011, I testified before the Committee on Ways and Means of the House of Representatives that the President had directed me to intensify engagement with Panama to resolve the outstanding issues related to the United States — Panama Trade Promotion Agreement (the “Agreement”) as quickly as possible this year,” Kirk wrote in a letter to the Ways and Means and Finance committees. “Panama has now fulfilled its commitments regarding those actions.”
 
“I am pleased to report to you that the Office of the United States Trade Representative has completed its preparatory work on the Agreement and stands ready to begin technical discussions with Members of Congress on the draft implementing bill and draft Statement of Administrative Action,” Kirk said. 

The White House announced Monday that President Obama will meet Panamanian President Ricardo Martinelli on April 28 to discuss the FTA.

Panama’s vice president Juan Carlos Varela said he was pleased by the decision.

“The announcement by USTR is very welcome news and puts Panama and the United States on a clear path to finalize a trade agreement that will promote economic growth and development between our countries and expand job opportunities for Panamanian and American workers,” he said in a statement. 

The annoucement came after Ways and Means Committee Chairman Dave Camp (R-Mich.) and Trade subcommittee Chairman Kevin Brady (R-Texas) on Monday morning called on the Obama administration to begin technical work on the Panama trade agreement after Panama last week ratified a tax agreement with the United States. A U.S. trade official said that USTR notified Congress privately Monday morning before the Camp and Brady press releases.

Ratification of the Tax Information Exchange Agreement is the last hurdle for consideration of the trade pact, they argued, and work must begin now to meet the goal of passing the Panama deal along with the Colombia and South Korean trade agreements by July 1.

“In ratifying the U.S.-Panama Tax Information Exchange Agreement (TIEA), Panama has now addressed each and every issue considered outstanding by the Obama administration and cleared the path for immediate consideration of the U.S.-Panama Trade Promotion Agreement. I applaud Panamanian President Martinelli for moving the TIEA forward and for his strong commitment to U.S.-Panama relations,” Camp said.

“I look forward to working with the administration to ensure that all three of our pending trade agreements are considered by Congress by July 1. We are on the home stretch, and I welcome the opportunity to show the world that we once again have a market-opening trade agenda that creates U.S. jobs,” Brady stated.

Panama for years has had the reputation as a tax haven and under pressure over the trade agreement agreed to a TIEA with the U.S. last fall. The agreement allows U.S. tax investigators to access information on possible tax evasion using Panamanian banks.

The Obama administration has called for labor law changes in Panama, and Panama’s National Assembly has also passed these.

The Panama trade deal has languished before Congress since 2007, along with the other two deals. Auto issues have been resolved in the Korea deal, and the U.S. and Colombia are implementing an action plan to address anti-union violence there. Labor groups remain opposed to the deals.

Sen. Orrin Hatch (R-Utah), ranking member of the Senate Finance Committee, welcomed the Kirk message and called for USTR to clear the Colombia agreement as well.

“I appreciate the Administration notifying Congress that they are ready to begin the technical work on the implementing bill and believe they also must now act swiftly to notify Congress that they are ready to begin work on the implementing bill for the U.S.-Colombia Trade Promotion Agreement,” he said.

House Minoirty Whip Steny Hoyer (D-Md.) welcomed the move in a statement but also called on Republicans to renew the expired provisions of the Trade Adjustment Assistance program, which the GOP has held hostage to try to force votes on the three FTAs.

This post was updated at 3:30 pm. and 4:00 p.m.