(2016-0863-F) Trade with Panama

The materials in FOIA 2016-0863-F are a selective body of documents responsive to the topic of the FOIA. Researchers should consult the archivist about related material. Freedom of Information Act (FOIA) request 2016-0863-F was for records related to the Republic of Panama and trade. This request was for electronic records only and it was a subject line only search. This collection dates from 1993 to 2000. The Clinton Presidential Records to be opened consists of cables and e-mails. Specifically, Department of State Trade Act reports, agenda, correspondence, invitations to trade meetings and meeting summaries. Panama has long had one of the strongest economies in Central and South America. This is due in large part to the Panama Canal and a strong base of service industries. In June 2016 an expansion of the Panama Canal opened to traffic. The expanded locks allow for significantly larger ships to transit the canal with the potential of improving the service industry sector in Panama. Since the canal opened to traffic in 1914 over one million ships have transited the isthmus. In 2015, shipping through the canal amounted to approximately five percent of all international shipping. The construction of the canal and American operation, defense, and management of the canal for almost a century cemented the relationship between the United States and Panama. In November 1903, the United States recognized Panama’s newly gained independence from Columbia. In December that same year William Buchanan became the first United States ambassador to the Republic of Panama. There have been periods of political and military tension specifically 1931, 1949, 1964, 1968, and 1989. Yet Panama remains one of the United States’ closest allies in the region. Between 1950 and 1970, Panama’s Gross Domestic Product (GDP) grew at an average of 6.4 percent. Between 2013 and 2016 their GDP has averaged 6.1 percent; continuing to be one of the better performing economies in the world. Admittedly the late 1970s and 1980s were a period of unsteady, if not abysmal, economic performance. Under the military rule of Manuel Noriega money laundering and drug trafficking increased in Panama and brought U.S. embargos and ultimately military action. Economic growth was slow following Noriega’s removal. President Ernesto Balladeres was elected in 1994 put in place an economic reform program in 1996 that included privatization of industry, banking reform, and renegotiation of debt. Balladeres, a pro-free market, former banker, led Panama to accede to the World Trade Organization (WTO) in September 1997. He also worked carefully to further diplomatic ties with the United States. During this period (1989-1998) Panamanian GDP grew at about 5 percent per year. As of 2013 the United States was Panama’s largest trading partner amounting to almost 23 percent of their trade. By 2014 the European Union was Panama’s largest trading partner. In 2015 that amounted to $8.2 billion in trade.