EXTRAORDINARY LEGISLATIVE SESSION TO CONSIDER

UNCLAS PANAMA 001152

SIPDIS

SIPDIS

STATE FOR WHA/CEN TELLO
STATE FOR WHA/EPSC
STATE FOR EB/TPP/BTA - LAMPOON
STATE PASS USTR - EISSENSTAT & SHIGETOMI
USDOC/MAC - GAISFORD

E.O. 12958: N/A
TAGS: ECON ETRD PM
SUBJECT: EXTRAORDINARY LEGISLATIVE SESSION TO CONSIDER
TRADE PROMOTION AGREEMENT

REF: A. PANAMA 1065


B. PANAMA 1095


1. (U) SUMMARY. President Martin Torrijos called an
Extraordinary Session of the National Assembly to consider
and vote on the U.S.-Panama Trade Promotion Agreement (TPA)
on July 4, 2007. This followed cabinet approval the TPA on
July 3. The Extraordinary Session will is scheduled to run
July 5-11. Approval of the TPA is expected. END SUMMARY.

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Call for Extraordinary Session - Vote By July 11
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2. (U) On July 4, 2007, President Torrijos called an
Extraordinary Session of the National Assembly to consider
and vote on the TPA. This happened five days after the TPA
signing and twelve days after Panama signed a free trade
agreement with Costa Rica.


3. (U) The Extraordinary Session began on July 5. The
Assembly will have until July 11, 2007, to deliberate and
vote on the TPA. As in the U.S., the Assembly will cast a
simple yes or no vote and cannot amend any provision of the
TPA. Procedurally, the TPA goes first to the Foreign
Relations Committee prior to debate before the full
Assembly. The TPA must go through three readings (one in
the Foreign Relation Committee and two in the general
Assembly) before a vote. First Vice President/Foreign
Minister Samuel Lewis stated that a week was sufficient time
to deliberate, but more time would be allowed if deemed
necessary. As part of the Assembly's deliberations,
approximately 60 civic groups were registered to address the
Assembly on the TPA as of the close of business on July 4.
Additional groups have since registered.

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Status Quo on Labor's Position
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4. (U) Panama's National Council of Organized Labor
(CONATO),Panama's labor central, voted to support the TPA
(see Reftel A). The 200,000 member Union of Construction
Workers and Similar Industries (SUNTRACS),a radical,
Cuban-inspired union, continued to oppose the TPA, claiming
the GOP was unduly pressuring for an early vote on the
matter. The union representing social security workers had
also come out against the TPA, claiming it would increase
drug prices.

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COMMENT
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5. (U) Easy and swift ratification of the TPA by the
Assembly is widely expected. Legislators have consistently
told EmbOffs that there is little doubt the TPA will be
ratified. The move by Torrijos to call for an
Extraordinary Session of the Assembly so quickly is
intended to demonstrate the GOP's strong support for the
TPA and to signal the GOP's seriousness to the U.S.
Congress. To date, TPA opponents have been unable to
muster any sustained, organized grassroots opposition to
the accord. END COMMENT.
Eaton