Mexico - Panama FTA Now in Effect

Besides generating a predictable impact on trade between the two countries, the FTA brings Panama closer to the Pacific Alliance, a block which has already expressed its willingness to integrate the country.

Tuesday, April 21, 2015

It is estimated that this trade agreement will establish the foundation to create a commercial corridor that allows "... strengthening the position of both countries as privileged platforms for production and distribution of goods and services for both the Americas and for global markets. "

The Mexican authorities stated in an article on Laestrella.com.pa that "... This free trade agreement (FTA) has a special significance because Panama has been the most dynamic economy in the region over the past decade (average annual growth of 9.1% of GDP). In the past 10 years, trade between Mexico and Panama nearly doubled, totalling $1.009 billion in 2014, making the country the fourth largest trading partner in Central Mexico. "

"... With the backing of Mexico, Panama is closer to joining the Pacific Alliance (PA), a regional integration initiative created in 2011 and comprised of Chile, Colombia, Mexico and Peru, who have a free flow of goods, services, capital and people in favor of their development. These four nations together total 40% of the GDP of Latin America and the trade between the members is 4% a year. "

See the decree here



More on this topic

Costa Rica: Entry Into Pacific Alliance Under Consultation

October 2014

With opposition from agro-industry, the government has initiated the processes required to join the trade bloc, including a consultation period, which runs until the end of the year.

Entry into the block requires a greater commercial opening than that established in free trade treaties negotiated between Costa Rica and member countries, Mexico, Colombia, Peru and Chile, which is why productive sectors such as agriculture and industry oppose it.

Panama Gets Closer to Pacific Alliance

April 2014

The signing of a free trade agreement with Mexico puts Panama one step closer to the commercial bloc.

After the signing of the free trade agreement between the two countries, Panama could be the next country along with Costa Rica, to join the Pacific Alliance trade bloc.

Costa Rica: Pacific Alliance Divides Entrepreneurs

March 2014

The retail sector is looking favorably on accession to the bloc, but the agricultural and food industries are opposed to it.

The lack of information about how membership has been negotiated and sensitivities presented by some sectors and products in comparison to their peers in the Pacific Alliance are part of the arguments used by agriculture and industry to oppose, at least under the current conditions, the incorporation of Costa Rica into the Alliance.

Guatemala's Entry to Pacific Alliance Blocked

February 2014

Peru has requested to block Guatemala´s incorporation to the alliance due to a dispute over tariffs which started in 2013.  

Peru requested that Guatemala not be part of the Pacific Alliance because of a trade conflict between both nations which started in 2013. This Central American country complained to the World Trade Organization (WTO) the Peru established a band of income taxes for sugar according to variations in international prices, something that was not agreed to when the FTA was negotiated.

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