The Bush administration negotiated the Panama free trade agreement without addressing Panama’s bank and corporate secrecy. Panama has little to “trade” with the U.S., so maybe leaving secrecy out of the agreement wasn’t an accident; it was the point. It provided a stamp of legitimacy and protections for “investors” moving their money to Panama.
Panama Trade Agreement
The Panama–United States Trade Promotion Agreement, negotiated by the Bush administration, was finalized by the Obama administration and went into effect in 2012. The U.S. Trade Representative (USTR) website promotes the agreement as removing “barriers to U.S. services, including financial services.” It removed some duties and tariffs on U.S. exports and phased out others, like agricultural goods and technology products. It provided “protections” for U.S. “investors.”
Panama gave up revenue collected on imports. So what did Panama get in exchange? And why did the U.S. really put all that effort into negotiating a special “trade” agreement with one small country?