The Panamanian Assembly approved in third debate the bill 305, which ratifies the Free Trade Agreement between the Asian country and the Central American region.
Once President Cortizo Cohen approves this law and it is promulgated in the Official Journal, it is expected that the corresponding diplomatic notes will be exchanged as soon as possible so that the FTA can come into effect, informed the Panamanian government.
Because Guatemala is the only country in the region still negotiating an FTA with the Asian country, sugar producers estimate that they have stopped selling about 400,000 metric tons.
Months ago it was reported that Guatemalan authorities would travel to South Korea in the first week of October, with the aim of restarting the Free Trade Agreement (FTA) negotiations.
Guatemalan authorities announced that in the first week of October they will travel to South Korea, with the aim of restarting negotiations of the Free Trade Agreement between the two economies.
Guatemala is the only Central American country still negotiating the Free Trade Agreement (FTA) with South Korea, since El Salvador, Panama, Honduras, Nicaragua and Costa Rica signed it in February 2018.
It is the first Central American country to establish a date of entry into force of the Free Trade Agreement with the Asian nation, which is agreed for October 1, 2019.
It was announced that the National Assembly of South Korea ratified the Free Trade Agreement signed with Central America.
The announcement was made by Seok-hyun Lee, deputy of the Korean assembly, who reported on the evening of August 2: "... We, the Korean National Assembly last night ratified the FTA with the nations of Central America. I hope you will benefit each other."
Once the agreement approved by the Assembly enters into force, 80% of Costa Rican products will be able to enter the Korean market duty free.
The Free Trade Agreement between the Republic of Korea and the Republics of Central America was approved in the second debate, with 42 votes in favor. This trade agreement opens up export opportunities for the agricultural sector and addresses industry sensitivities, explained the Ministry of Foreign Trade.
In Guatemala, agricultural entrepreneurs insist that opportunities will be lost if the agreement is not signed, while industrialists propose analyzing the conditions in more detail.
The National Coffee Association believes that the Ministry of Economy has abandoned talks with the Korean government, which harms them since the Asian country is a growing market that recognizes the quality of the grain.
Opposition from industry and in particular from the metallurgical sector has forced the government to reject the possibility of signing the agreement in June.
In the view of the metalworking sector, the agreement constitutes a threat to the domestic industry.Estuardo Rivera, president of the Union of Metallurgy, told Prensalibre.com:"...'It is not that we are opposed to the agreement, what happened is that 7% of the products to be exchanged in the steel sector were killing off local industry'."
Both governments are trying to reach a consensus on issues regarding market access and rules of origin in the agreement which other Central American countries already signed in November 2016.
From a statement issued by the Ministry of Economy:
Guatemala and South Korea, told their Central American peers that they are continuing to make efforts to finalize bilateral FTA negotiations, seeking to respond to the interests of both countries.
Bilateral negotiations will continue in order to reach an agreement on an "appropriate balance of commercial interests" for both countries.
From a statement issued by Mineco:
Guatemala, November 16, 2016. Guatemala will continue the process of FTA negotiations with South Korea bilaterally. The other Central American countries plan to officially finalise negotiations in Managua, Nicaragua, during the meeting of Ministers and Secretaries in charge of foreign trade of each country.
In the VI round agreements were reached on the chapters on Government Procurement, Employment and Dispute Resolution, and the in next round they will define the final document for technical and legal review.
From a statement issued by the Ministry of Economy and Finance in Guatemala:
Guatemala, October 5, 2016.The teams negotiating the FTA between Central America and South Korea held a sixth round of negotiations from September 26 to 30 in Managua, Nicaragua with the conclusion of three more chapters.
Central American coffee will incur 0% tariff in 10 years, while bananas, vegetables and baby vegetables will be shielded from the entry into force of the agreement.
In the fifth round of negotiations which will be held in Seoul from August 8 to 12 it is expected that progress will be made on the definitions for the treatment of 9% of the universe of products that have not yet been analyzed.
Central American governments have now signed the General Framework agreement with China so that negotiations can start in October.
From a statement issued by the Ministry of Foreign Trade in Guatemala:
Guatemala, July 31, 2015. Central America is prepared to negotiate as a bloc, a Free Trade Agreement with South Korea. Therefore, the deputy ministers in charge of foreign trade and trade negotiations in the region met yesterday in San Salvador, and agreed to and signed the General Framework for this negotiation.
A free trade agreement between Central America and the Asian tiger has aroused interest in agriculture and suspicion in the food industry.
As South Korea is a net importer of fresh food, the agriculture sector hopes to seize opportunities arising from a possible trade agreement with China, the first round of negotiations of which is scheduled to take place before the end of the year.
The South Korean government has proposed to Central American countries that they resume negotiations to sign a free trade agreement.
During a meeting between officials of the Ministry of Foreign Trade of Costa Rica and the deputy minister, Moon Jaedo, of the Ministry of Commerce, Industry and Energy (Motie) of South Korea, it was requested "... that the Central American countries evaluate opening up a process of negotiation for a free trade agreement. "