Hensarling Pushes for Free Trade Agreement Between U.S. and Panama

Press Release

Hensarling Pushes for Free Trade Agreement Between U.S. and Panama

Congressman Jeb Hensarling today met with Panamanian Ambassador Humbert to discuss the proposed U.S.-Panama Trade Promotion Agreement which would, among other provisions, allow the duty-free importation of East Texas beef into the Central American country.

"I hope that my meeting with Ambassador Humbert will have a positive impact on passing the proposed U.S.-Panama Trade Promotion Agreement. Expanded trade will have a positive impact on communities and agricultural producers in East Texas and will increase our ability to export good Texas beef to Panama without the burden of tariffs," Hensarling said.

Negotiations on a free trade agreement between the United States and Panama began in the spring of 2004 and concluded on June 28, 2007, when U.S. Trade Representative Susan Schwab and Panamanian Minister of Commerce and Industry Alejandro Ferrer signed the pact signifying their agreement to the terms. Now, it is up to Congress to pass the trade agreement for it to be enacted.

The United States is Panama's largest trading partner which resulted in $3.1 billion in total trade in 2006. The U.S. experienced a goods trade surplus of $2.3 billion that year. The U.S.-Panama Trade Promotion Agreement will eliminate tariffs on American exports, such as East Texas beef, to Panama and will allow duty-free access for Panamanian imports to the U.S. This agreement will also help support the democratic and economic reforms currently underway in Panama.

Recently, Congressman Hensarling introduced the Trade Promotion Authority Extension and Enhancement Act of 2007 (H.R. 1072). This legislation would extend Trade Promotion Authority for 5 years and make it automatically renewable every five years thereafter. H.R. 1072 currently has 17 cosponsors.

"Expanding our nation's trading opportunities abroad is very important for families, small businesses, and agricultural producers throughout the 5th District. In addition to increasing competition in the marketplace, increased trading opportunities also play a major role in increasing U.S. exports, which in turn drives the job engine here at home. In fact, here in Texas, trade supports 2.2 million, or 1 out of every 6 jobs," Hensarling said.

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