OUR WEBLOG: EXCERPTS OF EXPORTS

Tuesday, September 04, 2007

A new canal in Panama … but a new trade agreement?

A few interesting events in Panama. First ground was broken for the expansion of the Panama Canal yesterday. The expansion, to be completed by the 100th anniversary of the Canal in 2014, will allow larger ships to pass through the locks.

These ships have more than twice the container capacity of ships that currently pass through the Canal. The shorter route will result in lower shipping costs thus lowering the cost of consumer goods for East Coast residents of the US.

The second event was the appointment of Pedro Miguel Gonzalez Pinzon as leader of the Panamanian legislature. While acquitted in Panama of murdering a US serviceman in 1992, Gonzalez still faces charges in the US.

A trade agreement between the US and Panama has been moving forward with the promise of a deal between the two countries.

Gonzalez’ election does not further that effort. Gonzalez has said that a trade agreement between the US and Panama is “a powerful tool for our (Panamanian) development.”

As such, he implied that he would step down from his position as leader rather than threaten negotiations of a trade agreement with the US.

So, I guess we will see what happens. Will trade talks go forward, what if Gonzalez steps down, what if he doesn’t. And in the end will Congress ratify a trade agreement with Panama. Time and events will tell.

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