opinion

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Gandásegui, Watch out for the Free Trade Agreement
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The country needs to be careful about a Free Trade Agreement

by Marco A. Gandásegui, hijo

Let me share with you this document from the office of the US Trade Representative in order to begin to have an idea of what the government of Panama negotiated with that northern country in the context that’s popularly called the Free Trade Agreement (FTA).

The government of President Torrijos has still not made the contents of the pact known. Nor will he invite Panamanians to a debate about the disadvantages that it represents for Panama. He’s very preoccupied with promoting the growth of economic bubble and forgets that the productive sector of our economy (agriculture and industry) shrank in absolute terms in 2006.

The US Trade Representative’s document, in the first place, very clearly presents the political benefits of what was negotiated for the United States. Second, it leaves the prejudices of what was agreed for Panama implicit:

1. The United States benefits its agricultural producers by opening the Panamanian market to the surplus production of their country: pork shoulders, chicken wings, etc. Moreover, it imposes its grain production, displacing national producers. Panama will not have access to neither the meat nor grain markets in the United States

2.    Also, it imposes their disregard for Panama’s plant and animal disease control institutions. These will not inspect the sanitary conditions of what the Americans dump on Panamanian consumers.

3.     The United States will benefit by its professionals being allowed to practice in Panama, without Panamanian control. There will be no reciprocity of any sort.

4.     In the agreement with the United States, Panama has committed to open its borders to American businesses to participate in the proposed Panama Canal expansion works of the coming years, favoring them over other countries.

5.  Panama will respect US intellectual property rules including when they prejudice the Panamanian people on matters of health (like with the patents derived from blood samples), education (publications and audiovisual materials) and housing and public works.

6.   American investors will be able to act in this country, whether they reside here or not, as if they were Panamanians. They won’t have to pay income taxes but will receive all of the benefits that the Panamanian state affords its citizens --- and what does this concept have to do with “free trade?”

7.   American corporations will be able to speculate with the Social Security pension fund (and private pension funds) from their computers in the USA.

8.    In exchange, Panama was able to get the United States to lift duties on its tailored textile products destined to that market if and when the raw material is American.

There is a high probability that the US Congress will reject this political-commercial pact with Panama for domestic political reasons. The Democrats who regained control of the congress of that country have strong commitments to labor unions, farmers and other sectors who understand these agreements as forms of transferring the wealth of their country from the middle class and the poor to the richest. They’ve been suffering this experience for 20 years. If the US Congress rejects the FTA it’s not a triumph for Panama. We’ve already been defeated by a gang of assailants --- encrusted in the government, the opposition and the misnamed “civil society” --- who will surely see other ways to continue enriching themselves at the expense of the Panamanian people.

Gandásegui, Watch out for the Free Trade Agreement
E. Jackson, Another "national debate" with undisclosed details?
Sirias, Infernal buses
Bond, Uncle Sam's favorite terrorist
Birns & Kellberg, Shannon inherits a foreign policy mess
Silié, Social exclusion radicalizes voters
Avnery, What makes Sammy run?
Baker, Yet more scandals in the pharmaceutical industry

N. Jackson, "Silent Majorities"

Gutman, Iraqis get revenge and Bush gets silence