VZCZCXYZ0000
RR RUEHWEB

DE RUEHZP #0486/01 0752200
ZNR UUUUU ZZH
R 162200Z MAR 06
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 7603
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 2204
RUEHCV/AMEMBASSY CARACAS 0965
RUEHQT/AMEMBASSY QUITO 0842
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/JOINT STAFF WASHINGTON DC
RUEKJCS/OSD WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL//J5/J2/POLAD//

UNCLAS PANAMA 000486 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT ALSO FOR WHA/CEN, INL AND INR/B 
SOUTHCOM FOR POLAD 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINR PM
SUBJECT: PANAMA HOSTS CENTRAL AMERICAN PRESIDENTIAL SUMMIT 
 
 
SUMMARY 
------- 
 
¶1. (SBU) Seven presidents, one prime minister and one vice 
president met in Panama March 8-9 to sign a lengthy and 
wordy declaration calling for the negotiation of a Central 
America-Panama free trade agreement (FTA) and possibly FTAs 
with the European Union and CARICOM.  Panamanians mostly do 
not consider themselves part of Central America.  Many, if 
not most, of the declaration's ambitious-sounding goals will 
remain a dead letter in Panama.  End summary. 
 
SICA 
---- 
¶2.  (U) Since January 2006 Panama holds the "Pro Tempore" 
Secretariat --established in the Tegucigalpa Protocol in 
 
SIPDIS 
1991-- and hosted the March 8-9 technical, ministerial and 
presidential meetings.  Joining Panamanian President Martin 
Torrijos in the two-day Summit were Presidents Abel Pacheco 
(Costa Rica), Enrique Bolaos (Nicaragua), Manuel Zelaya 
(Honduras), Oscar Berger (Guatemala), Leonel Fernandez 
(Dominican Republic), Prime Minister Said Musa (Belize), and 
Vice President Ana V. de Escobar (El Salvador).  The purpose 
of the gathering was to discuss commercial, energy, 
transportation and telecommunications integration.  In 
addition, the Presidents agreed to coordinate positions for 
the May 2007 Presidential Summit between Latin American and 
Caribbean countries with the European Union (EU) in Vienna, 
where a potential free trade agreement (FTA) between the two 
blocks would be discussed. 
 
Does Panama belong or not? 
-------------------------- 
¶3.  (U) Despite Panama's membership in SICA, Panama does not 
belong to SIECA, SICA's equivalent for economic integration 
issues.  Panama has traditionally felt that its service- 
based economy is not compatible with the economies of the 
rest of Central America.  Also, Panama has not decided 
whether to join Central America or the Andean Pact countries 
for a potential FTA with the EU or whether it might even 
consider a bilateral agreement. 
 
¶4.  (U) The Central American Integration System (SICA) was 
established on December 13, 1991, by the governments of 
Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa 
Rica and Panama to promote Central American integration. 
The Dominican Republic and Taiwan have "observer" status at 
SICA.  SICA's priorities are to seek Central American 
integration for a peaceful, democratic and developed region; 
to strengthen free and democratic governments; to define a 
new regional security model and determine a means to 
overcome extreme poverty through sustainable development, 
environmental protection among others. 
 
The Panama Declaration 
---------------------- 
¶5.  (U) At the Panama Canal Miraflores Locks, the Chiefs of 
State and Government signed a 24-page "Panama Declaration", 
as a result of the technical and ministerial meetings held 
previous days at Panama's Foreign Ministry.  The declaration 
states that the presidents: 
 
-- reaffirm their interest in negotiating a Central America- 
Panama FTA; 
 
-- instruct Commerce Ministers to explore the possibility of 
an FTA with the CARICOM countries; 
 
-- declare the intention of launching negotiations for 
Central American-European Union FTA; 
 
-- highlight the importance of the democratic process in 
Haiti for Latin America and the Caribbean; 
 
-- congratulate the United Nations, the Organization of 
American States and the Group of Friends of Haiti for the 
strong support provided in favor of Haiti's democratic 
system; 
 
-- reconfirm the May 2006 Energy Summit in the Dominican 
Republic to study the possibility of a Central American 
refinery; 
 
-- strengthen the Central American integration process by 
increasing mobility among its peoples, including the 
potential elimination of immigration controls at border 
points; 
 
-- declare their satisfaction with the construction of the 
Guatemala-Panama electrical line; 
 
-- adopt by June 2006 an agreement to reconcile tax systems; 
 
-- commit to a future agreement for the creation of a 
Central American Customs Union; 
 
-- promote ratification of the protocol amending the Central 
American Court of Justice; 
 
Comment 
------- 
¶6.  (SBU) Most Panamanians do not consider themselves 
Central Americans.  Regardless of the efforts by this and 
previous GOPs to get closer to Central America, the average 
Panamanian does not care.  Last week's could be considered a 
"summit of illusions".  Besides a nice-looking group photo 
of the Chiefs of State and Government with the Canal locks 
as background, the local perception is that nothing 
substantive was achieved.  No one was surprised by the 
result: a mere wordy and extremely ambitious document that 
carries no weight. 
Eaton