Panama FTA Ready for Congressional Consideration

Tweet

April 21, 2011

On April 18, 2011, U.S. Trade Representative Ron Kirk announced that the U.S.-Panama Trade Promotion Agreement (Panama FTA) is ready for Congressional consideration. The announcement follows months of engagement between U.S. government officials and Panama’s government officials to address labor issues and tax haven concerns. To address these issues, Panama and the U.S. reached a Tax Information Exchange Agreement, and Panama’s government has issued executive decrees regarding misuse of subcontracting, strengthening collective bargaining rights and the right to strike, and preventing employer interference in union activities. Once implemented, the Panama FTA would immediately eliminate 87 percent of tariffs on U.S. exports of consumer and industrial products to Panama, with the rest phased out over ten years. The agreement also removes duties for 56 percent of U.S. agricultural exports to Panama, with the rest phased out over a fifteen year period.

House Ways and Means Committee Chairman Dave Camp (R-MI) has recently announced that he is confident that Colombia will act quickly to complete the list of labor related issues that the Obama Administration requires before submitting the Colombia FTA to Congress. Representative Camp has also stated that he is prepared to move quickly on all three pending free trade agreements. While House and Senate Republicans have largely indicated a willingness to pass the three FTAs together, the Democrats in Congress are more divided over the issue, particularly the Colombia FTA. Senators Max Baucus (D-MT) and John Kerry (D-MA) have both indicated their support for the Colombia FTA, while Congressman Mike Michaud (D-ME), Chair of the House Trade Working Group, has indicated strong opposition.

 

For further information, continue to visit www.barnesrichardson.com or contact a Barnes/Richardson attorney.