United States Panama Trade Promotion Agreement

Panama has prioritized the needs of the TCB in its national trade capacity-building strategy. The primary objective is to formulate a strategy that would enable Panama to assume all the obligations arising from the free trade agreement as part of the country`s development needs. The national TCB strategy focuses on sectoral adjustment strategies and recognizes that some sectors are already internationally competitive (for example. B financial services), while others will need significant support in the face of increasing competition from the United States (for example. B agriculture). The focus is also on supporting existing and potentially new micro-enterprises, PETITES and Medium Enterprises, which may be in greatest need of support and a significant part of the Panamanian economy, as well as the government`s ability to manage trade-related activities71. is more influenced by countries` adoption of “governance standards” through cooperation through international agreements. Daniel W. Drezner, “Globalization and Policy Convergence,” International Studies Review, Vol. 3, No.

1 (Spring 2001), 75-78. The Panama National Assembly ratified the agreement on 11 July 2007. The U.S. Congress approved the agreement on October 12, 2011. On October 21, 2011, the President of the United States signed a law transposing the agreement. Panama has no formal restrictions on capital flows, does not discriminate between foreign and domestic investments, and maintains bilateral investment agreements with the United States and many European countries. However, critics have pointed out that the legal environment can be cumbersome and that relatively high labour costs (for the hemisphere) and rigid labour laws can be frustrated if not as an obstacle to U.S. direct investment.31 Nevertheless, U.S. companies are well represented in Panama, including the largest container port in the region. , several transport companies and production sites from different sectors. Like other countries that wish to enter into a free trade agreement with the United States, Panama is seeking to strengthen its ties with continuous direct iDi, which can result from a long-term, rules-based trade relationship with a major trading partner.

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