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Bush discusses trade with Panama leader

PANAMA CITY, Panama — After meeting resistance during three days of Latin America trade talks, President Bush finally gets a chance to negotiate today with an enthusiastic partner in Panamanian President Martin Torrijos.

Thirty-four countries failed to reach agreement on the proposed Free Trade Area of the Americas, or FTAA, during a weekend summit in Argentina, but Bush's first visit to Panama represents what has been his multi-track strategy for opening up world markets.

While the FTAA is stalled and worldwide trade talks are embroiled in thorny issues of farm subsidies, the president has set his sights on individual countries that are eager to do business with the United States, the world's largest economic power.

Torrijos is a proponent of free trade and his country is in talks with the U.S. on a bilateral pact. Torrijos was a leader in trying to move along negotiations for the FTAA at the weekend talks.

Central America is proving to be one of Bush's biggest success stories. The Central American Free Trade Agreement, or CAFTA, was recently ratified by Congress in a narrow vote after tough lobbying by the White House.

Panama is not a part of CAFTA because Bush negotiated that pact with a pre-existing trading bloc of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic.

"CAFTA is important, and it makes sense for Panama to be considered to be a part of these trading agreements that are growing," Bush said last week in a preview of his trip.

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