| Reinsch |
The National Foreign Trade Council and Retail Industry Leaders Association said the hearing represents an important step in moving forward on the FTA, which was signed in by two countries in June 2007 but has yet to be enacted.
'The NFTC applauds Senators (Max) Baucus (D-Mont.) and (Chuck) Grassley (R-Iowa) for scheduling today's hearing and beginning to lay the legislative groundwork for consideration of the Panama FTA,' said NTFC President Bill Reinsch.
'With each day that passes without the Panama agreement in place, the United States risks losing important opportunities that can help to grow U.S. exports, our economy and jobs,' added Chuck Dittrich, NFTC vice president for regional trade initiatives. 'The multibillion-dollar Panama Canal expansion project, which is slated for completion in 2014, and other projects present numerous opportunities for U.S. businesses in the equipment, financial services and transportation sectors. However, those opportunities could be lost to our competitors if we continue to delay.'
The NFTC said the deal would result in the duty-free trade of nearly 90 percent of U.S. consumer and industrial goods exports to Panama, with other tariffs being phased out over 10 years. In 2008, bilateral trade between the United States and Panama reached roughly $5.3 billion, with $4.9 billion coming from U.S. exports.
'Passage of the agreement would provide significant and direct benefits for U.S. retailers,' RILA said in a statement. 'An existing constitutional ban in Panama prevents U.S. retailers from establishing stores within the country. The agreement would remove that barrier, give retail companies strong investment protections, and expand product sourcing options.'
Both RILA and the NFTC also said progress must be made on two other free trade agreements — with Colombia and South Korea — that have been signed but have languished without Congressional approval.
'Progress on the Panama trade agreement, as well as agreements with Colombia and South Korea, is critical to maintaining America's leadership position in the global economy,' said Stephanie Lester, RILA's vice president for international trade. 'Progress on trade now sends a powerful message to our trading partners that even during difficult economic times, we must create new opportunities for trade rather than retreat to isolationist and defensive policies that are detrimental to our businesses and consumers.'
