FTA with U.S. imperative for Panama says Vice Minister
The Free Trade agreement (FTA) with the United States is imperative to Panama’s continued economic growth said Panama’s Vice Minister of International Commercial a Negotiations, Alvarez de Soto at a recent American Chamber of Commerce breakfast meeting. {jathumbnail off}
He said that the U.S. is Panama’s principal commercial partner, with a market 100 times greater than that of Panama.
In fact, nearly 30% of Panama’s exports in 2010 were to the United States and the FTA would help Panama maintain its competitive position in the U.S. market versus other countries like Mexico, Chile, Peru and others in Central America.
The Vice Minister predicted that with the ratification of the agreement, U.S. foreign direct investment in Panama has a great potential for growth and said that In order for Panama to maintain its competitive edge regarding foreign direct investment the FTA with the U.S. must be signed.
The U.S. he said, is already a large importer of services from Panama with respect to industries such as transportation, travel, communications and financial services and the FTA benefits not only the United States, but represents a win-win for both countries and strengthens bi-lateral commercial relations.
Summing up, the vice-minister said the U.S.-Panama FTA will consolidate and grow businesses, level the playing field by removing barriers to trade, eliminate subsidies on agricultural exports to the U.S., establish rules and regulations regarding customs, apply standardized technical, and sanitary measures, and put in place mechanisms to protect Panama’s local service and goods markets from abuse, especially Panama’s agricultural and financial service industries.
