U.S. Chamber Applauds U.S.-Panama Trade Deal

Caterpillar CEO Testifies that Trade Accord Will Help U.S. Workers Benefit from Canal Expansion

WASHINGTON, D.C.—The U.S. Chamber of Commerce welcomed today's Senate Finance Committee hearing on the U.S.-Panama Trade Promotion Agreement (TPA), a critical step in efforts to spur economic growth at home and abroad.

"This front-loaded agreement is an economic shot in the arm for both the United States and Panama," said Caterpillar Chairman and CEO Jim Owens, who testified at the hearing on behalf of the Chamber. "It will build on the foundation of U.S.-Panama cooperation laid a century ago at the building of the canal.

"Past trade agreements have increased Caterpillar exports dramatically, boosting our sales to our Latin American neighbors by two-, three- and four-fold," said Owens. "We're confident this accord will do the same."

The agreement opens Panama's fast-growing market to U.S. exports, providing U.S. companies with the same access that their Panamanian counterparts already enjoy in the U.S. The agreement will put bilateral trade on a mutually-beneficial, reciprocal footing by eliminating Panama's tariffs on U.S. products, which often soar into the double digits.

"For Caterpillar, the canal expansion is particularly exciting," added Owens. "It's one of the biggest public works project since the Three Gorges Dam in China. If we can sell our U.S.-produced products to Panama duty-free, it will provide us with a competitive edge over products made in other parts of the world."

"Panama is a reliable friend and partner for American businesses," said John Murphy, Chamber vice president for International Affairs. "The fact that we don't already have a trade agreement in place only puts American workers, farmers, and companies at a disadvantage. It's time to for Congress to fix that."

The complete testimony is available at: www.uschamber.com/issues/testimony/2009/090521_uspanama

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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