Panama And Canada Sign Free
Trade Agreement
PANAMA - Panama's Minister of Commerce and
Industry Roberto Henrquez and Canada's
Minister of International Trade Van Loan
signed on Friday Free Trade Agreement and
parallel agreements on labor cooperation and
the environment.
"Our government's aggressive free trade
agenda is opening new markets within the
Americas, creating opportunities for
Canadian businesses and workers and, as we
recover from the global economic downturn,
securing future prosperity for Canadians and
our trading partners," said Van Loan.
The Canada-Panama Free Trade Agreement will
lower tariffs on goods and remove other
trade barriers to benefit a broad range of
sectors, creating new opportunities for the
Canadian construction, manufacturing and
agriculture industries.
The Free Trade Agreement will also expand
market access for Canadian service providers
in areas such as information and
communication technology, and engineering,
environmental, energy and financial
services.
Investment provisions in the Free Trade
Agreement provide greater protection for
Canadian investments in Panama, which are
mainly in banking and financial services,
and construction sector, and will ensure
greater transparency and security for
Canadian investors. In addition, the
agreement will secure access to the
government procurement market, including for
the 5.3-billion U.S. dollars project to
expand the Panama Canal and other
infrastructure projects.
The parallel agreement on the environment
requires both parties to ensure high levels
of environmental protection and the
effective enforcement of their domestic
environmental laws while encouraging trade
and investment.
The Labour Cooperation Agreement commits
Canada and Panama to respect the core labor
standards set out by the International
Labour Organization.
In recent years, Panama's economy has grown
at a rate comparable to the world's
fastest-growing economies, even in the face
of the global economic downturn. Its
merchandise exports to Canada almost doubled
in 2009 to 40.7 million Canadian dollars (
about 39.88 million U.S. dollars), which
included precious stones and metals, fruits
and nuts, and fish and seafood.
In the meantime, Canadian merchandise
exports to Panama totaled 91.4 million
Canadian dollars in 2009, which included
pharmaceutical products, machinery, vehicles
and vegetables, down 28.6 percent from
previous year.
The Panamanian government has plans to
invest 12 billion U.S. dollars over the next
five years in infrastructure projects, such
as the creation of metro system for the city
of Panama, the development of four
international airports, the building of new
highways and bridges, and the construction
of a convention center.
The conclusion of negotiations was announced
last August by Canada Prime Minister Harper
and Panama President Martinelli during
Harper's visit to Panama. |
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