Both nations will begin negotiations on a bilateral trade agreement as a step towards the incorporation of Panama into the Pacific Alliance.
From a press release by the Ministry of Economy of Mexico:
The governments of the United States of Mexico and the Republic of Panama have formally announced the decision to start negotiations for a Free Trade Agreement.
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.
After the sixth round of negotiations, held in Colombia in March, the Colombian delegation welcomed the progress on customs cooperation and mutual assistance, but the issue of the Colon Free Zone (CFZ) continued without an agreement between both parties.
Both countries have complied with the legal procedures for the entry into force of the trade agreement.
From a press release from the Ministry of Foreign Trade of Costa Rica (COMEX):
Today saw the exchange of notifications between Costa Rica and Peru, which confirmed mutual compliance with the legal procedures for the entry into force of the Free Trade agreement between Costa Rica and Peru, signed in the city of San Jose, Costa Rica, on May 26, 2011.
Negotiations for the signing of the trade agreement between the two countries may come to a conclusion in the seventh round to be held in Panama in late May.
This will happen regardless of the lawsuit that the Government of Panama intends to file against the World Trade Organization (WTO). "The FTA negotiations with Colombia have absolutely nothing to do with the WTO lawsuit challenging taxes imposed by the country on goods from the Colon Free Zone (CFZ), and it is not dependent on this issue being resolved," said the Minister of Trade and Industry, Ricardo Quijano.
Those countries who have not ratified the Association Agreement with the European Union are at risk of losing markets compared to other Central American nations.
In an interview in Siglo21.com.gt by Celso Solano, with the ambassador to the European Union in Guatemala, Stella Zervoudaki, the official explained that there will not be any sanctions if Guatemala fails to ratify the agreement on or before May 15, but the country faces other threats.
The inclusion of textiles, onions and potatoes are the most difficult issues in the trade agreement between the two nations.
These issues remain obstacles to the completion of negotiations to modernize the Free Trade Agreement (FTA), which came into effect on November 7, 2002.
"The main problem arose when Costa Rica requested improving access for textiles.
Since the entry into force in 2006 of the DR-CAFTA, the tip in favor of the U.S. in the trade balance has multiplied by 5.
"The Central America to which President Barack Obama is coming to visit on on Friday is a region that maintains multiple communication vessels with the United States, including a growing trade relationship which in 2012 amounted to $40 billion, although very much in favor of the American power," reported Prensa.com.
Costa Rica and Canada have recognized the equivalence of regulations governing the accreditation and certification of organic agricultural products in both countries.
This agreement "... allows free passage for Costa Rican exporters, dedicated to this subsector, to export to the U.S. market," noted an article in Elfinancierocr.com.
Rice, bananas, banana purée, cocoa, coffee, sugarcane, blackberries, oranges, noni, pineapples, aloe, legumes, vegetables, fruits and spices are some of the organic products that can enter the Canadian market.
The Honduras sugar guild expects that the delay in the approval of the Association Agreement with the European Union will affect exports.
Carlos Melara, president of the Association of Sugar Producers of Honduras said that sugar exports will only start in June.
"Although there were projections for exports of 19,464 metric tons, only half of that will be will possible because they only have six months in which to negotiate," noted an article in Latribuna.hn.
The reopening of customs and health controls at the Mexican border of Ciudad Hidalgo reduces logistics costs for Nicaraguan exporters.
Nicaraguan exporters no longer have to send their goods by boat through Manzanillo port (south), now they can do so through the border at Ciudad Hidalgo (north), Mexican authorities announced.
According to Rodrigo Labardini, Mexico's ambassador in Managua, the Nicaraguan insistence on the importance of logistics to ease trade between the region and the country, allowed the Government to respond, for example, with the rehabilitation of border offices of the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food of Mexico (SAGARPA).
Private entrepreneurs and economic analysts say that countries in the region are still working in isolation, despite trade agreements.
"Every country does its own thing in order to grow, but we must begin to see ourselves as a unified block because we do not have the ability to compete alone. We must unite regionally" said the manager of the economic section of the Salvadoran Foundation for Economic and Social Development (Fusades), Álvaro Trigueros.
The Inter-American Development Bank has launched a new version of the Intrade website with information on tariffs and trade agreements for companies and countries seeking new markets for their exports.
A statement from the Inter-American Development Bank (IDB) reads:
IDB launches new version of Intrade, the most complete business information system in the region.
To those who sleep less than others. To those who take risks. To those who have new ideas. To those who create wealth. To those who try to change the world every day ...
EDITORIAL
In some countries today is the "Day of the Businessman", others call it the "Day of the Free Enterprise".
As a means of business information, at CentralAmericaData.COM we believe in free enterprise, and we try to serve that end every day in our work.
There is a requirement to avoid duplicate collection of customs duties levied on imports in order to meet the provisions of the trade pact with the European Union.
The commissioner of Customs at the Superintendency of Tax Administration (SAT) in Guatemala, Oscar Funes, referred to the commitments made by the region in the signing of the Association Agreement between Central America and the European Union, signed on 29 June.
In Guatemala it is estimated that the return to power of the Partido Revolucionario Institucional (PRI), which has a more protectionist philosophy than the current government, will not generate any changes in trade between the two countries.
While at present Mexico is ruled by a political party with liberal tendencies and one conducive to the country's openness to international trade, the next one, emerging from the recent elections, has traditionally had a more protectionist stance.