PANAMA PATIENTLY WAITING FOR TPA APPROVAL

C O N F I D E N T I A L PANAMA 000724 SIPDIS E.O. 12958: DECL: 08/25/2018 TAGS: ECON PGOV ECIN EINV ETRD SUBJECT: PANAMA PATIENTLY WAITING FOR TPA APPROVAL Classified By: Ambassador Barbara Stephenson for reasons 1.4 (b) and (d ). -------------- Summary -------------- ¶1. (C) Minister of Trade and Industries Carmen Gisela Vergara told the Ambassador that the government of Panama (GOP) is willing to take direction from the U.S. Government (USG) in promoting the Trade Promotion Agreement (TPA) in order to improve the chances for Congressional approval. The GOP is ready for the implementation phase of the TPA whenever the U.S. is ready. -------------- GOP's TPA Talking Points? -------------- ¶2. (C) During the Ambassador's August 26, 2008 courtesy call with Minister of Trade and Industries (MICI) Carmen Gisela Vergara, Vergara stated that the GOP respects the political process of the United States and understands and relates to political difficulties regarding the TPA. Vergara noted that the GOP is ready for the implementation phase of the TPA whenever the U.S. is ready - whether it be now, this fall, or after the U.S. elections. She stated the GOP has the same objective as the USG - passage and implementation of the TPA. Therefore, the GOP is willing to take direction from the USG in promoting the TPA in order to "not hinder" the chances for Congressional approval. -------------- IMPLEMENTATION -------------- ¶3. (C) Vergara noted that the GOP has moved forward to implement certain portions of the TPA that are good for the business climate and for transparency in government. Vergara illustrated this point by discussing an Internet-based system that allows exporters to gain permission for shipping goods instead of waiting for a clerk to process the request during normal business hours. -------------- TRANSPARENCY/INNOVATION -------------- ¶4. (C) Vergara discussed how the Torrijos Administration policies are driving transparency and innovation in Panama. In addition to reforms called for by the TPA, the GOP is also using the Office of the Secretary of Innovation to simplify government processes to improve transparency and the business climate. Examples are: the computerized system to track shipments in the Colon Free Trade Zone which was implemented this summer, the GOP's Internet-based procurement system (PanamaCompra),and the Internet-based business registration system (PanamaEmprende). According to Vergara, a business can now register on-line in twenty minutes and immediately print out the business license. Additionally, Vergara believes these new systems minimize the opportunities for corruption and increase transparency. STEPHENSON