US embassy cable - 04PANAMA584

UNCLAS PANAMA 000584 
 
SIPDIS 
 
 
SENSITIVE 
 
 
BUENOS AIRES PLS PASS TO AMB. ALLGEIER, USTR FOR JWOLFE 
 
 
E.O. 12958: N/A 
TAGS: ETRD, PM, ECONOMIC AFFAIRS 
SUBJECT: PANAMA (FTAA/TNC): STRONG SUPPORT FOR THE G-14 
PROCESS AND MOVING FORWARD ON THE PLURILATERAL 
 
 
REF: STATE 44578 
 
 
1. (U) This message is sensitive but unclassified, please 
treat accordingly. 
 
 
2.  (SBU)  Panamanian Vice Minister for Foreign Trade Romel 
Adames told Econ Chief on March 8 that Panama would strongly 
support the USG position within the G-14 and moving forward 
with agreement on procedures for plurilateral negotiations. 
Adames added that at the February TNC Panama was prepared to 
"sign on" to the plurilateral, but understood why things were 
not there yet. 
 
 
3. (SBU)  However, with regard to the plurilateral, he was 
clearly concerned about three aspects.  First, overlap with 
the upcoming U.S.- Panama FTA negotiations.  He noted that 
some in Panama are concerned that "if we go too far in the 
FTAA plurilateral there is no reason for the FTA," but added 
that everything would be open in the bilateral.  He was also 
not keen on having the possibility of "free riders" in areas 
such as government procurement.  Secondly, he expressed 
concern about a Caricom provision whereby that organization 
would receive an exclusion for certain EU subsidies, adding 
that this created a systemic problem if you make exceptions 
by name, but seemed open to putting such coverage in an 
annex. (Note: on the subsidies in question, he did not know 
what products they covered and requested clarification). 
Lastly, he expressed concern about a U.S. proposal whereby 
the U.S. would reserve the right to reimpose export subsidies 
if a country allowed product carrying export subsidies in. 
He said this would create a problem if Panama were to remove 
tariff barriers.  He added, "we understand your concerns, can 
you see ours?" 
 
 
4.  (SBU) VM Adames said that because of civil society 
outreach in Panama on the upcoming bilateral, he might not 
arrive in Puebla until March 19.  Nonetheless, the U.S. could 
count on Panama at the TNC meeting. 
WATT