Although the U.S.-Panama Free Trade Agreement (FTA) was approved by the U.S. Congress on October 12, 2011, and ratified by the Panamanian National Assembly in 2007, legislative delays in both countries continue to stymie actual implementation of the trade pact. Both countries for months have been aiming at implementing the agreement on October 1, 2012. But, as this date draws nearer, there appears to be some possible bumps in the road in Panama.
Before the FTA can take effect, Panama’s National Assembly must approve four bills that were recently introduced. The bills contain certain additional provisions that are required to implement the FTA, as well as provisions to strengthen intellectual property rights protections. Similar to Colombia, Panama must ratify several international treaties relating to intellectual property rights. Panama also needs to pass trade capacity-building initiatives needed in certain areas, such as the administration of tariff-rate quotas.
According to Panama’s Minister of Trade and Industry Ricardo Quijano, Panama gave the United States in May 2012 the necessary documentation to address U.S. concerns on these issues. Unfortunately, as in the United States, Panama’s legislature has to act on the bills before final action can be taken. Certain observers speculate that Panama’s National Assembly will take up essential legislation in a more timely manner than will the U.S. Congress.
