In 1914, the Panama Canal was opened, allowing ships to import and export goods much faster than usual. Each year more than 14,000 ships pass through it carrying more than 203 million tons of cargo. The canal connects the Atlantic and Pacific oceans, making traveling through it a lot more convenient than in the past. In 2006, The Bush Administration met with the Panama President Martin Torrijos. They met in order to discuss an agreement with Panama on a bilateral free trade pact. Although an agreement was never reached, negotiations are going well, according to President Bush.
The fact of the matter is that the United States is an economic power house and would extremely benefit the lives of its people, as well as Panama , if they could just all work together for the sake of everyone. George Bush feels like the Democratic Party in America is another reason why no deal has been made. CAFTA, or The Central American Free Trade Agreement was recently ratified by congress, but it came on a narrow vote that required aggressive lobbying by the White House. Central America is proving to be on of Bush’s biggest success stories. CAFTA, in 2004 was renamed DR-CAFTA since its membership has gone up. It now includes the following countries: the United States, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and Dominican Republic. The goal of the agreement is the creation of a free trade zone, similar to the North American Free Trade Agreement (NAFTA) which currently encompasses the US, Canada, and Mexico.
The key players involved in this trading issue are the Bush Administration (US Government) and the President of Panama, Martin Torrijos (Panama Government). Some people who are influencing the decisions made are politicians in the United States and Panama , as well as the biggest Actor the Democratic Party of the United States . Both parties are working side by side to reach an agreement that would benefit everyone. One could also say that some other actors in this process could be any neighboring country around Panama that has any influence in it economic politics.
The major political economic issue here is should the United States even reach an agreement with Panama and is it even necessary? After all the United States is the largest user of the canal, anyways. And is the largest economic power house in the world. The question really isn’t the issue here. The issue here is do we want Panama to gain more economic power through the support of the United States by reaching an agreement. Let’s not forget Panama is not a part of FTAA, Free Trade Area of Americas. President Bush feels that it is critical to reach an agreement with Panama and make a trade deal as soon as possible. He has been arranging one on one meetings to help speed up the process.
The Bush Administration feels that without a trade agreement productivity will lack there of, so their objective in addressing this conflict is by reaching an agreement with Panama as soon as possible. They are also working with other South American countries in order to reach some kind of trade agreements. Both Regimes are working together closely to reach some kind of trade deal. Although, the summit ended with no agreement being reached by the parties, a bilateral trade pact is being worked on still. Bush ended the summit by saying, “We’re close to coming to an agreement.”
This major political economic issue can be viewed in several different ways. First, we are going to look at this issue through a realist point of view. A realist would say no agreement is necessary because we are the United States of America , the number one economic power house in the world. Let’s also not forget that we also use the Panama Canal more than any other country already. So, a realist would then say how much more do we need to use it? Another issue that would be brought up from a realist stand is since were already number one, that would only mean Panama (or whoever it is we are reaching trade agreements with) are the only ones that are really benefiting, not us. I kind of felt that the Democratic Party, who is in the way of Bush reaching this agreement, since they control the house, take this point of view.
Second, you can look at this political issue through an imperialist point of view. One could say that the Bush Administration is just trying to simply manage South America ( Panama ) through these trade agreements. After all, Imperialism is a policy of exerting effective and continuing control or authority over foreign entities as a means of acquisition or maintenance of empires. This is either through direct territorial conquest or settlement, or through indirect methods of influencing or controlling the politics of an economy. The Bush Administration has also been said to wanting to conquer the world, and this view allows you to see that much more clearly (via Iraq ).
I think the best way in explaining this economic political issue is through an imperialistic view because one has to ask themselves why is it so important to reach these agreements with South America , especially if we truly don’t need them economically. An imperialist view also tends to show the desire for one to control their surroundings through means of influence or economic policy. The Bust Administration is nothing but power hungry and looking for more ways to continue its world dominance and take over. The imperialistic approach also explains how powerful countries, such as the United States in this case, try to expand their power into less developed countries, Panama, in order to influence policy to their benefit.
In terms of resolving this conflict, it has been both a success and failure. It has been a success for the Bush Administration into engaging these trade talks and almost reaching an agreement. However, it has also been a failure because no agreements have been reached. This political issue does extend into South America , as well. After all, the Bush Administration is trying to get 34 countries who failed to sign the FTAA, to reconsider and sign it. While these talks are stalled, President Bush has set his eyes on individual countries that are eager to do business with the United States , such as Panama . So far the talk agreements have only been a failure, but the future does promise some success.
It seems to me that this issue on hand is only really trying to benefit the United States of America in the long run. The fact still remains that the United States is the biggest user of the Panama Canal and fourteen percent of U.S. exports and imports pass through it; as well as four percent of the world’s trade. The Canal authorities say its expansion of $10 billion would help it remain the fastest and easiest shipping route between the Pacific and Atlantic Ocean , and that is why the Bush Administration feels it necessary to imperialize it.
