Panama must adjust labor laws before US acts on trade deal, lawmaker says

By JIM ABRAMS | Associated Press Writer
3:01 PM CDT, March 11, 2009
WASHINGTON (AP) — Panama needs to adjust its labor laws to meet international standards before Congress will consider a free trade agreement with the Central American country, a House lawmaker in charge of trade policy said Wednesday.

Rep. Sander Levin, D-Mich., who chairs the Ways and Means subcommittee on trade, said certain Panamanian laws, such as one determining that a workforce of less than 40 employees has no right to form a union, "are clearly in violation of International Labor Organization laws."

Levin, in remarks prepared for a speech to the Washington International Trade Association, said Panama had expressed a willingness to address these issues. "They should now follow through with necessary changes before congressional consideration of the free trade agreement."

He said discussions are now under way about Panama's laws regarding tax havens, an issue raised by labor and consumer groups that have opposed past bilateral free trade deals.