Senate Finance Committee Chairman Max Baucus (D-MT) indicated today that he would like to approve the Panama Free Trade Agreement as soon as possible, according to Congressional Quartely.  In the first Congressional Hearing on the controversial legislation, Senator Baucus brushed off significant concerns from a growing number of Democratic members of the House and Senate who strongly believe that the trade agreement should not be implemented without addressing the issue of Panama as a tax haven. During the Senate hearing on Thursday, Baucus stated “I want to see progress on tax issues in Panama, but we can and should move ahead on a trade agreement right now.”

Baucus’s statement is significant given his powerful position as Chairman of the Finance Committee and his statement’s strong contrast to recent statements made by other powerful Democratic leaders to delay the pact.  Indeed the senator’s statement is in direct opposition to a letter sent to President Obama Wednesday from Senator Carl Levin (D-MI) and Representative Lloyd Doggett (D-TX), asking the President to delay submitting the pact to Congress until the issue of tax evasion in Panama had been seriously addressed.

It is disappointing to see that such an influential member of the Congress fails to realize the importance of addressing tax issues in Panama before agreeing to a trade pact with the Central American country.  With Panama itching to secure a trade pact, the United States is currently in a unique position.  Doggett and Levin have made a very strong point in highlighting that the US position to negotiate on tax issues has rarely been stronger.  If a meaningful bilateral tax exchange agreement is going to be signed, this would be the time to do it.

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