Panama's Reasons and Colombia's Reasons for the FTA
The lack of agreement in the sixth round of negotiations shows how difficult it will be, especially in terms of exports from the Colon Free Zone.
Tuesday, March 19, 2013
The sixth round of negotiations for a Free Trade Agreement between Panama and Colombia in Medellin, closed last Friday without any agreement being reached, therefore each country will now consider the proposals line by line and take its position to the next round be held in late May in Panama.
On the issue of the Colon Free Zone, Surse Pierpoint, president of the Association of Members said that "in this climate it is impossible to move forward on a trade agreement which would validate the current negative effects on the trade of goods from Panama ".
The first Vice President of the Association of Users of the Colon Free Zone, Luis Germán Gómez, reiterated the urgent need to find a way of understanding so that Colombia lifts all restrictions on the entry of goods into the country from this zone, the Colombian market being one of its main destinations.
Gomez explained that once the measure was applied in early March, many Colombian buyers chose not to purchase goods from the Colon Free Zone waiting for a decision from their country, meaning that it has generated a lot of uncertainty.
In the view of the Counsel for the Association of Users of the Colon Free Zone, Leroy Sheffer, these are measures that affect the free flow of world trade and "we hope that this is how the Colombian government will understands it, it being their turn to evaluate this point" .
Following the signing of the trade agreement, the government of Panama has not provided information about Colombia's treatment of the exports from the Colon Free Zone.
Meanwhile, the Ministry of Commerce, Industry and Tourism of Colombia said that "the Colombian industry is the net winner" of this FTA, something that the Association of Users of the Colon Free Zone (CFZ) expressed its discontent over due to lack of information from the Panamanian authorities.
Although the subject of the Colon Free Zone remains an obstacle, next Tuesday will see the start of the seventh round of negotiations on the free trade agreement between the two countries.
Panama's interest in joining the Pacific Alliance forces it to close a FTA with each of its members, including Colombia.
The Free Zone, meat, coffee and milk are the most controversial topics in the sixth round of negotiations for a Free Trade Agreement between Colombia and Panama.
According to Luis Germán Gómez, vice president of the Association of Members of the Colon Free Zone, Panama is maintaining its position that Colombia should lift restrictions on the entry of goods from the zone.
Since March 1st Colombia has been charging a fee of 1% on textiles and footwear imported from the Colon Free Zone.
Since the 1st of March Colombia has been charging a tariff on imported textiles and footwear from the free zone in Panama, which according to the Association of Members of the Colon Free Zone puts them at a disadvantage and might hinder the FTA negotiations between the two countries.
×
ok
6931Government Procurement Opportunities in the region