WASHINGTON, (Reuters) – A U.S. free trade agreement with Panama went into force yesterday, 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.
U.S. Secretary of State Hillary Clinton, in a statement, called enactment of the agreement an “historic milestone” that adds to existing U.S. free trade agreements in the Western Hemisphere with Canada, Mexico, Peru, Colombia, the Dominican Republic and five Central American countries.
“It’s an example of the Obama Administration’s commitment to economic statecraft and deepening our economic engagement throughout the world,” Clinton said.
Republican presidential challenger Mitt Romney has promised to focus more attention on boosting trade with Latin America if he defeats President Barack Obama in the Nov. 6 election.
Senior U.S. lawmakers and business groups also welcomed implementation of the agreement, which was signed in June 2007 when George W. Bush was still president.
“This trade deal will guarantee access to Panama’s $20.6 billion services market and more than $15 billion in infrastructure projects … That is the type of boost our economy needs right now,” Senate Finance Committee Chairman Max Baucus, a Montana Democrat, said.
Congress approved the pact last year after the Obama administration negotiated side agreements with Panama to address concerns raised by many congressional Democrats about Panama’s labor protections and tax haven laws.
“We must build off this success and continue to promote a robust and ambitious trade and investment agenda that will increase American prosperity and allow us to lead again,” House of Representatives Ways and Means Committee Chairman Dave Camp, a Republican, said in a statement.
Critics such as Lori Wallach, director of Public Citizen’s Global Trade Watch, said the pact, which locks in Panama’s current duty-free access to the United States, is expected to destroy more U.S. jobs than it creates.
