I accept this Friendship Award with the understanding that what is being acknowledged this afternoon is not so much what I have done as an individual, but of how well Panama and the United States are doing as partners. At the dawn of this new century and new millennium, our two nations are truly becoming friends.

I joined former President Jimmy Carter in Panama last December 14th for the canal turnover ceremony. When President Carter handed the official signed document transferring control of the Canal to President Moscoso, with the words "It is yours," I knew I was present at history in the making.

The U.S.-Panama Business Council is helping to write that history. That’s because you are the principal link between the business communities of our two countries. And in this role, you are doing an outstanding job encouraging trade and investment. And trade and investment is what the U.S.-Panama Partnership will be mostly about in the 21st century.

When I spoke to you a year ago, the canal transfer was just two months away. Many were apprehensive about how this transition would affect the economic prospects for Panama. But like the "Y2K" crisis, which was also two months away at the time, both fears proved groundless.

I said then—and I will say again now—"Panama is well-positioned, both with respect to democracy and open markets, to succeed in the 21st century." After all, unlike many other nations in the region, Panama has already passed through the transition to a service economy, with a well-developed service sector that accounts for more than half of Panama’s Gross Domestic Product. And despite Panama’s relatively small size, when it comes to attracting U.S. investment dollars, Panama is a big winner—near the top of the list—ranking an impressive "Number Three."

However Panama’s long-term future like that of every other nation (including the United States) is increasingly shaped by forces beyond its borders—and beyond the unilateral control of any nation. And I would like to briefly talk about how two of those forces—globalization and regional integration—could affect the economies of both of our nations.

Globalization
President Clinton has called globalization "The central reality of our time." With good reason. The impact of globalization is enormous; the world economy today is fifteen times the size of 40 years ago. And transportation has played a major role in this trade-driven expansion because, without transportation, there is no trade. As the member of the President’s cabinet responsible for transportation, I am also acutely aware of the strains this unprecedented growth can put on our capacity to move people and products safely and efficiently to their destinations.

To take better advantage of the opportunities of globalization, as well as to learn how to deal more effectively with the impact of growth on environment and other issues, the U.S. Department of Transportation is holding an historic three-day International Transportation Symposium here in Washington this week. I have taken a break from the proceedings this afternoon, on the final day of the Symposium, to be with you.

Representatives from some 90 countries have been meeting since Monday to examine transportation’s response to global integration, and to develop a consensus vision for the future of transportation. We are attempting to reframe the way we think about, and plan for, the transportation systems of the future. When the symposium ends later this afternoon, we will issue a "Declaration of Common Principles" that governments and planning organizations, both public and private, can use to guide future transportation development.

The implication of globalization for Panama as well as the United States is obvious. What I said a year ago is just as true today. "Despite changing patterns and flows of trade, the Panama Canal will remain a vital transportation artery for the U. S. and hemispheric commerce for the foreseeable future."

Regional Integration
That conclusion leads me directly to the second trend I want to mention: regional integration. This week’s International Transportation Symposium is building on precedents established on a regional level in the Western Hemisphere, Africa, Asia and Europe. And the "seamless integrated transportation system" we seek for the world will almost certainly succeed on a regional basis, before it takes hold on a global basis.

Nowhere is the trend toward regional integration more advanced than here in the Western Hemisphere. In December 1998, the transport ministers of the Americas met in New Orleans, where we adopted a two-year action agenda to improve the quality of transportation throughout the region. Tonight and tomorrow I will be meeting with the transport ministers of the Americas to explore steps we might take to move on to the next stage in this effort.

One of the top items on our agenda for this meeting is a United States proposal to establish a Partnership for Safer Skies in the Western Hemisphere. As we begin the second century of aviation,’ safe as well as efficient air service is vital to the continued economic development of individual countries, including the small and island nations of the Caribbean. By providing links among nations in the region, and with the rest of the world, air travel stimulates trade and investment as well as business and leisure travel. As a measure of how important this is, know this: travel and tourism is already the world’s largest industry—and growing fast.

As I have met with individual transport ministers in the region during transportation and trade missions or at conferences, I have been encouraged by their positive responses to this proposal and I am looking forward to their response as a group tomorrow.

I am delighted to report that Panama is committed to improving aviation safety in the region. Establishing safer skies in the Caribbean and Central America can only benefit Panama, which already enjoys service provided by three U.S. airlines—American, Delta and Continental. Panama is already moving toward becoming an aviation hub. Adopting the Partnership for Safer Skies can only enhance this prospect. The Panama Canal and the terminus of the Pan American Highway System already assure Panama’s status as the premier intermodal hub of the region.

Again, I accept this Friendship Award with enthusiasm and with gratitude. I have great hopes for the future of the U.S.-Panama Partnership and for the prosperity it will bring to the people of both nations. And I know that my hopes are well grounded: with the U.S.-Panama Business Council working behind the scenes, the prospects for both of our nations couldn’t be better