Obama Says U.S.-Panama Trade Pact Will Benefit Both Nations
U.S. President Barack Obama said a U.S.-Panama free trade agreement would benefit both countries and he expects it will be approved by Congress.
“We are confident now that a free trade agreement would be good for our country” by opening new markets and creating jobs, Obama told reporters in the Oval Office after a meeting with Panamanian President Ricardo Martinelli.
Martinelli said the agreement would “bring growth for the United States and Panama.”
Obama said that Martinelli has put in place “significant reforms in banking and taxation in Panama” and that the accord “would create jobs here in the United States, open up new markets with the potential for billions of dollars of cross border trade.”
Earlier this month, U.S. Trade Representative Ron Kirk announced that the trade agreement is ready for consideration by Congress.
A trade agreement with South Korea is also awaiting congressional approval, while a separate deal with Colombia is awaiting changes sought by the U.S. to boost union protections.
Trade benefits for U.S. exporters from the Panama trade agreement will be the most modest among the three, according to the U.S. International Trade Commission.
Trade Balances
The pending deal with South Korea may boost U.S. exports by as much as $10.9 billion, and one with Colombia may add as much as $1.1 billion to exports once the agreements are fully implemented, the agency said. For Panama, it said, the accord would have a “small positive impact on the U.S. economy” and would “increase U.S. exports.”
Panama’s exports to the U.S. totaled $379 million last year, while the U.S. sent $6.1 billion in goods to Panama, compared with $12 billion to Colombia and $38.8 billion to South Korea.
Senate Republicans have called for all three trade agreements to be submitted for congressional approval at the same time. Francisco Sanchez, undersecretary for international trade at the Commerce Department, said in an interview today in Rio de Janeiro that he expects lawmakers to act on the accords with Panama and Colombia this year.
To contact the reporters on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net; Kate Andersen Brower in Washington at kandersen7@bloomberg.net
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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