Panama, Trade, and Private Interests

A recent article in the Tico Times, a Central American English language newspaper, reported on Panama’s propensity for free trade agreements, the most recent with Guatemala (http://www.ticotimes.net/dailyarchive/2008_02/0227083.htm). The recent referendum in Costa Rica regarding it’s participation in CAFTA and Panama’s referendum about canal extension indicate the politically charged nature of trade oriented decisions in the region. Although these governments have taken the less risky route of letting the public decide on these two issues, Panamanian multiple free trade agreements have been made by the government independently. This leads us to question the influence of interest groups outside the government in influencing, or failing to influence, these neoliberal policy measures.

Panama has a unique position as a country who’s history is tied to its political and economic function as a nation that services the interests of other nations, most recently characterized by relations particular to the Panama Canal, the Colon Free Trade Zone, and the off-shore banking industry*.  Because of this scenario, it is fair to assume that Panama’s most powerful interest groups, like those in most countries, represent private enterprise in these sectors.

This marginalizes labor and environmental lobbies and the U.S. State Department’s 2005 Human Rights report questioned the extent of worker rights in Panama, particularly in export processing zones (EPZ’s).  For example, unions are not granted the right to strike in EPZ’s and Panama’s laws regulating the zones don’t include arbitration or labor dispute settlement guidelines.  Furthermore, the report noted that child labor is a problem in the country. This leads us to believe that neoliberal economic policy in Panama is developed out of private industry partnerships with politicians with little input from labor representation or other interest groups.

*Dougherty, Mary. A Study in Civil Society, Scales of Influence, and Corruption in Panama.  University of Pennsylvania, 2002.