I am honored to address this chamber sharing with you a few of my thoughts on some of the opportunities and challenges that Panama faces today.
It is impossible to live in this wonderful country without falling in love with its people, without admiring its natural beauty, and not becoming enthusiastic about the numerous possibilities on the horizon.During the last two years I have witnessed significant moments in the history of Panama: The referendum to approve the Panama Canal Extension, the signing of the Trade Promotion Agreement (TPA), and the initiation of the Canal expansion, to give some examples.
Also, Panama has achieved important fiscal and social security reforms to improve its public finances.The economy of Panama is the envy of many with a growth of almost 10 percent this year.Commerce, tourism, banking, and construction are on the rise. Unemployment has decreased in almost half to 7.3 percent. Panama has become one of the main hubs and service centers in the world. Passengers arriving in Tocumen marvel at the cosmopolitan profile of Panama City.This prosperity was not by chance. It was made possible thanks to the hard work of many Panamanians during the last seventeen years, who raised democratic institutions and strengthened political stability.
This opened the path for private investment, attracting a growing number of foreigners, including U.S. investors.Despite this encouraging panorama, I am very concerned.I am convinced that Panama now finds itself at a crossroads.There is a struggle for the wealth of opportunity in your beloved Panama.Currently, there are two types of investors watching Panama: those with good intentions and those with bad intentions.These are antagonistic forces. Eventually one side will win and will oust the other.Panamanians must decide which path to take that will attract the kind of investors you want.A stable nation is based in strong and effective democratic institutions, with the active participation of its electorate, whose demands are met through public policies.This includes expeditious and transparent justice for all, where legitimate businessmen can invest with confidence without fear of corruption or favoritism, where merit determines success, and everyone has the potential to advance.A weak nation relies on vestiges of the past; in anti-democratic forces that exploit fragile institutions to intimidate citizens.
Here personal interests give preference over those of the nation.This takes us to a place where a reduced number of people can manipulate markets, using personal connections and influence, or money of doubtful origin.This undermines the distribution of income and frustrates the hopes of the majority who aspire to a better future.A weak nation becomes a playground for drug traffickers, gangs, and all types of criminals.In this era of instant communications good news travels rapidly, but bad news does so even faster.When some foreign investors are victims of murky or arbitrary judicial process, it is only a matter of time before their bad experiences circulate.We have already seen some potential investors leave Panama. Once the good name of Panama has been tarnished, it will be difficult to restore.As demonstrated by recent events, judicial troubles can quickly become international headlines, something that worries investors and decision makers.The best way to strengthen Panama’s good name is to guarantee that the rule of law prevails and that there are just procedures and a level playing field.This way the private sector can create new jobs, which at the end of the day, is the best antidote for poverty.
All this requires the political will to modernize the judicial system.You may ask yourselves why I am telling you all this.
The answer is simple: because you are leaders in this nation. But you are not alone.You have many friends that want Panama to succeed.Our logo at the Embassy is “Estamos Unidos” (“We Are United!”).It reflects the spirit of many Americans and Panamanians that have joined to change the lives of our citizens for the better.
In today’s world, American and Panamanian businessmen have forged alliances to become more competitive.We remain united with the Panamanian people, supporting the true democrats who are forward looking and hope to improve people’s lives.
This in one of the reasons why we remain committed to ratifying the Trade Promotion Agreement (TPA) with Panama.The TPA will bring important economic benefits to both countries and strengthen our alliance.Beside opening markets, we hope that the TPA will:- Promote additional legal and economic reforms; - Promote investment;- Protect intellectual property rights;- Increase transparency; and- Strengthen protection of workers and the environment.Panama now finds itself in at a crossroads.
Today’s decisions will determine which of the forces in play – the well intentioned or the bad intentioned – will triumph.
You will decide.
Your leadership in support of necessary reforms is vital.I hope that you accept my comments today in the sprit of friendship and mutual respect in which I am delivering them.
As the representative of my country, I must speak with Panamanians on subjects that are of mutual interest and those that affect American investors.
Frank conversations between friends reflect a mature and true friendship.
I am optimistic that Panama will overcome today’s challenges, will take the necessary decisions to continue with success, and will choose the path to an even brighter future.
Thank you very much.
