Speeches 2003

August 12, 2003

Remarks by Ambassador Linda E. Watt U.S.- Panama Business Council (USPA) Friendship Dinner

It is an honor to be here tonight. I feel the theme of tonight's USPA dinner, "Friendship," is a particularly appropriate one. Let me say on a personal note that I very much appreciated, even before my arrival in Panama last December, USPA's hosting of a luncheon in my honor in Washington, as well as the reception here in Panama earlier this year. Both events were an opportunity for me to experience the warmth of the Panamanian culture, obtain your wise counsel, and understand the dynamic and important work you and your membership do to strengthen the ties between our two countries.

You have asked me to talk briefly about my view of the state of bilateral relations, which I believe to be in excellent standing. It is particularly appropriate to take stock of the relationship following the recent successful visit by President Moscoso to Washington and during this centennial year.

I believe the bilateral relationship is evolving from what was termed "a special relationship" into a "mature one." As Secretary Powell stated in his recent 4th of July address, "our mutual well-being depends, in no small part, on the close relationships we forge with one another. A strong and vibrant Panama is good for the Americas, good for the United States, and good for the world."

We are united together and we are friends. Since the transfer nearly 4 years ago of the ownership and administration of the Canal, Panama's efficient and professional management has disproved the fears of the nay-sayers at the time of the Canal turnover. As President Bush noted, this Panamanian asset has been successful because of the open, transparent, and honest manner in which it has been operated, and stands as a model for public administration.

In the political arena, Panama has been a strong ally in the fight against terrorism, illegal migration, and drugs, and we are working vigorously together to strengthen Panama's maritime security regime. All of these areas are critical not only for regional stability but for international security, as well as Panama's economic health and stability.

In the economic area, Panama and the U.S. continue to work together multilaterally, regionally, and bilaterally. Multilaterally and regionally, we continue to work together to advance the WTO and Free Trade Area of the Americas negotiations. Both negotiations are central to expanding prosperity and transparency both in the Americas and throughout the world trading system.

Bilaterally, we continue to discuss trade and investment issues and are working to deepen those discussions here in Panama through meetings of a bilateral Investment Committee, a mechanism between the Government of Panama and the U.S. Embassy, and in Washington DC through the Trade and Investment Council, a mechanism between U.S. government agencies and the Government of Panama. Although there is still work to be done, both mechanisms have helped resolve commercial and investment issues and have proven to be useful fora for progress on trade matters.

In the area of free trade, I recognize Panama's keen interest in having a Free Trade Agreement with the United States. This issue was at the top of President Moscoso's agenda when she met with President Bush. As a result of the meeting, both countries agreed to resolving current impediments to increased bilateral trade and investment, enhancing cooperation in the WTO and FTAA and looking at options for pursuing free trade.

It is important to emphasize that if you look at the recent Free Trade Agreements the U.S. has negotiated, the ones with Chile and Singapore, you will see that they entail serious obligations on the part of those countries. For example, they are comprehensive in nature. That means that they cover all sectors - including agriculture - and they also require strong protections for investors, strong protections for labor and environment, and in the case of Chile, strong transparency clauses in government contracting.

I feel optimist that the coming discussions between Panama and the United States, which will take place at the end of October, will take us further in the free trade process.

Lastly, I would like to add a personal observation. I have heard many in Panama say, "we are a small country." While this may be true geographically speaking, in terms of interests and obligations Panama is a global country. There are those in Panama who understand this and recognize for example that in the maritime sector Panama is a global player. Many of you here tonight have understood this message, and have worked to ensure that Panama is not buffeted by the forces of globalization and integration but more importantly, thrives and prospers from these developments.

USPA has been a leading force in strengthening the commercial, cultural and friendship ties between both countries. I want to thank you for your leadership, vision, and commitment. I am confident that with organizations such as USPA at the forefront, Panama and the United States can look forward to another century of partnership.