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handle is hein.crs/govzox0001 and id is 1 raw text is: ongresstonal Research Service q legislative d~bato si ic~ 19 Updated May 6, 2019 Panama Panama's central location in the Americas (linking North and South America) and its transportation infrastructure- especially the Panama Canal, which connects the Atlantic and Pacific Oceans-make the country a global trade hub and a strategic partner for the United States. Political and Economic Environment In Panama's May 5, 2019, elections, Laurentino Nito Cortizo of the center-left Democratic Revolutionary Party (PRD) won a narrow victory in the presidential race with 33% of the vote in a seven-candidate contest, and will be inaugurated to a five-year term on July 1, 2019. Cortizo defeated R6mulo Roux, candidate of the center-right Democratic Change (CD) party of former President Ricardo Martinelli (2009-2014), who received 31%, and independent candidate Ricardo Lombana, who received 19%. Cortizo made inequality and poverty his main campaign issues, including making health care more accessible. Opinion polls had shown Cortizo comfortably winning the race, but support for Lombana, who as a political outsider ran on an anticorruption platform, more than doubled from opinion polls. Cortizo's PRD also won at least 29 seats in Panama's 71-seat Legislative Assembly, the most for a single party. Cortizo will succeed current President Juan Carlos Varela of the center-right Panameiista Party (PPa), elected in May 2014, who could not run since Panama's constitution does not permit consecutive reelection. Cortizo will head Panama's seventh civilian government since the December 1989 U.S. military intervention that ousted the military regime of General Manuel Antonio Noriega. The endurance of elected civilian democracy in Panama for almost 30 years is a significant departure from the country's previous history of military rule, including the populist rule of General Omar Torrijos (1968-1981) and the increasingly repressive rule of Noriega (1983-1989). Noriega died in May 2017; after the U.S. intervention, he served prison time on drug charges in the United States and France and then returned to Panama in 2011 to serve time related to charges for political killings. Current President Varela had served as vice president during the Martinelli administration and initially served as foreign minister for two years until Martinelli fired him, related to Varela's allegations of governmental corruption. Once in office, the Varela administration pursued numerous corruption cases against officials from the Martinelli government, including Martinelli himself, who has been investigated over irregularities in a public welfare program, illegal wiretapping, and illegal pardons. Pursuant to an extradition request from Panama, U.S. marshals arrested Martinelli in Florida in June 2017; he ultimately was extradited to Panama in June 2018, where he remains in prison awaiting trial for illegally wiretapping his opponents. During his term, Martinelli was criticized for his combative style of governing, but he remained popular in large part because of the strong performance of the Panamanian economy. Panama at a Glance Population: 4.159 million (2018, IMF). Area: 29,120 square miles, slightly smaller tha n South Carolina. GDP: $65 billion (20 18, current prices, IMF est.). Real GDP Growth: 5.3. (2Q17, IMF); 3.9 (2Q18, IMF est. Per Capita GDP: $15,679 (20 18, current prices, IMF). U.S. Trade: U.S. imports, $462 million (20 18); U.S. exports $6.88 billion (20 17) (U.S. Depazrtment of Commerce) Legislature: Unicamierail 71 -miember Naitionail Assembly. In 2016, Panama experienced several high-profile corruption scandals. In April, a group known as the International Consortium of Investigative Journalists revealed more than 11 million files of leaked confidential financial and legal records-the so-called Panama papers-from the Panamanian law firm Mossack Fonseca. The documents showed the use of Panama as an offshore tax haven by a wide range of celebrities, leaders, public officials, and criminals worldwide. In May, the U.S. Treasury Department imposed sanctions on an alleged trade-based money-laundering network associated with the prominent Waked family of Panama. The action highlighted long-standing concerns regarding Panama's efforts to combat tax evasion and money laundering. A third scandal in late 2016 involved the Brazilian construction firm Odebrecht and touched a dozen countries worldwide, including Panama; Odebrecht had paid bribes to secure public works contracts in Panama from 2010 to 2014. Panama's services-based economy has been booming since 2010, in large part because of the Panama Canal expansion and other large infrastructure projects, such as a metro system for Panama City; a third bridge over the canal (and a fourth one planned); and expansion of the country's airport, roads, and highways. The Panama Canal expansion was completed in 2016, and included adding a new set of locks and a new channel, which doubled the canal's capacity and allowed it to accommodate giant container cargo ships known as post-Panamax ships. According to the International Monetary Fund (IMF), Panama's economic growth averaged almost 6.9% from 2010 to 2017. Economic growth slowed to an estimated 3.9% in 2018, but the forecast for 2019 is for 6% growth, among the highest in the hemisphere. Strong economic growth and targeted social programs have contributed to poverty reduction. Nevertheless, although the World Bank https:!icrsrepo scong Cess.g(

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