Panama and USA Entry Trade Promotion Agreement

Panama, Casco Antiguo, Casco Viejo

Big news today in Panama, day No. 1 of the new Trade Promotion Agreement with the United States.  As in many international agreements, its effects will be measured in the long term.  On the short term, Panama seems to be looking forward to lowering its food costs and welcoming American businesses.  According to an article in La Prensa today, the Panamanian government is trying to promote Panama as a logistic port connecting to countries in Central and South America.

According to the US Embassy website, this agreement is:

“U.S.-Panama FTA is a comprehensive free trade agreement that can result in significant liberalization of trade in goods and services, including financial services. It also includes important disciplines relating to customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronic commerce, intellectual property rights, and labor and environmental protection.

U.S. firms will have better access to Panama’s services sector than it provides to other WTO Members under the General Agreement on Tarrifs in Services. All services sectors are covered under the agreement except where Panama has made specific exceptions. Moreover, Panama agreed to become a full participant in the WTO Information Technology Agreement.”

If you would like to read more about it, here are some useful links:

BENEFITS OF THE AGREEMENT

TAX TRANSPARENCY AND THE AGREEMENT

LABOR AND THE AGREEMENT

 

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