Fifteen years after the first approach was made, the countries have not reached an agreement on the conditions of entry of products such as textiles, meat and sugar.
Since 2001, Guatemala and Canada have been trying to close negotiations to create a free trade area between the two markets. Besides pending negotiations related to phytosanitary issues, labor and environment, the definition of the terms of trade of products such as sugar, textiles, beef and pork has still not been made concrete, and there is no light at the end of the tunnel.
The main Panamanian products that will benefit from the agreement are dairy, beef and pork, smoked fish fillet with and some vegetables with seasonal preferential access.
From a statement issued by the National Assembly of Panama:
Ratification has been given by the National Assembly, of the trade agreement between Panama and Trinidad and Tobago, after its third reading, in order to expand and consolidate access of Panamanian agricultural and industrial products to the Caribbean.
The Costa Rican Congress approved on its first reading a Free Trade Agreement which makes 71% of the market for goods and services in Colombia duty free.
On Monday, the Legislative Assembly of Costa Rica approved on its first reading the Free Trade Agreement with Colombia. The entry into force of this trade agreement is needed in order to allow the Central American nation to join the Pacific Alliance.
While the outgoing administration rushes through entry to the Pacific Alliance, one of the two possible next presidents is opposed to new treaties.
In a meeting with the Chamber of Exporters, Luis Guillermo Solís, presidential candidate of the Citizen Action Party, said that if he wins the Presidency of the Republic in April, he will slow the signing and negotiation of new FTAs.
The Chamber of Industry perceives an "unusual secrecy" in progress toward an agreement that may seriously compromise the competitiveness of the sector.
The Chamber of Industries of Costa Rica (ICRC) has asked the Government to explain the scope of commitments made with the signing of the adherence to the Pacific Alliance.
From a press release issued by the Chamber of Industries of Costa Rica:
Colombia, Peru, Chile and Mexico approved the inclusion of Costa Rica to the Partnership Framework Agreement, the first step towards total integration into the block.
From a press release issued by the Presidency of Costa Rica:
Under the VIII Summit of Heads of State of the Pacific Alliance, the President of the Republic, Laura Chinchilla Miranda, along with her counterparts in Colombia, Juan Manuel Santos Calderón, Chile, Sebastián Piñera Echenique, Mexico, Enrique Peña Nieto and Peru, Ollanta Humala Tasso signed a Declaration on the Accession of Costa Rica to the Pacific Alliance.
The current $550 million from the annual sales of Guatemalan products and services to Mexico could double with the entry into operation of the unified FTA between that country and the Central Americans.
Guatemalans are hoping that exports to the Aztec nation will double with the entry into force of the agreement which unifies the Mexican FTA's that were held separately with Costa Rica, Nicaragua and the CA-3.
The current total amount of Mexican investment in Panama exceeds $2 billion, an amount that is expected to increase with the signing of the FTA for which negotiations have started.
From a press release by the Ministry of Commerce and Industry of Panama:
From July 30 to August 2 , the First Round of Negotiations in the subscription of a Free Trade Agreement between the Republic of Panama and the United Mexican States will be held at the Radisson Summit Hotel & Golf Panama Panama City.
An agreement between parliamentarians has pushed forward the ratification process, which was stuck due to the resistance of the sugar industry.
"The treaty affected the sugar business, which is the reasons why the agreement could not be approved," said one of the congressmen who requested anonymity.
An article in Prensalibre.com reports that "With 113 votes in favor, the Free Trade Agreement with Peru was approved, having been postponed since the last special session, due to the fact that there was an attempt to approve it as a matter of national emergency with less votes than required by law. "
The apparent impossibility of reaching agreements with Switzerland on agriculture and exclusions at the industry level, has stalled negotiations for a FTA with the European Free Trade Association.
Melvin Redondo, Undersecretary of Foreign Trade, confirmed that Honduras and Guatemala have halted negotiations with the European Free Trade Association (EFTA), comprising of Switzerland, Iceland, Liechtenstein and Norway.
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.