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Eliminating the Barriers to $$$$ Growth: U.S./Panama Free Trade Agreement
Date: 12/20/2006Panama is once again the focus of international news media. This year has been the Central American nation’s most exciting ever—the Panama Canal expansion mega-project was approved via referendum, the country was awarded a temporary UN Council Seat, and now, a very long-awaited Free Trade Agreement (FTA) with the U.S. is about to become a reality.
U.S. trade representatives and Panama’s Minister of Trade and Industry announced yesterday – December 19 – that negotiations had concluded on the comprehensive FTA. The agreement will eliminate key tariffs and barriers to trade, while expanding trade between the two countries. Should the U.S. Congress pass the FTA next year, it is hoped that the agreement will promote economic growth, legal and business reforms, investment, and regulatory transparency in Panama.
The FTA labor scheme is still subject to further discussion, but most of the buzz has been about the upcoming Panama Canal expansion, as the FTA will open many doors for U.S. companies that want to participate. Panama’s economy is service-oriented (services account for about 80% of the nation’s economic activity) and the Panama Canal is the industry’s crowning glory.
The U.S. - Panama FTA negotiations commenced in 2004. Thanks to a long, healthy relationship between the two countries, the U.S. is already Panama’s largest trading partner, with total goods traded between the U.S. and Panama reaching $2.5 billion last year.
Best Regards,
Brandon Clogston
International Living / Panama
P.S. If you weren’t already chomping at the bit to see all Panama has to offer, I’m sure you agree that recent events are more than compelling. Don’t put off visiting until all the excitement has died down—start your adventure now. International Living’s Live & Prosper in Panama Seminar begins on January 30, 2007. Find out how you can be there and witness history in the making.
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