The Agricultural Bank of Peru is going to open a special credit line for the purchase of live cattle in Panama to supply the Peruvian domestic market.
The Comptroller General of the Republic revealed that up until August the value of exported cattle was $1.3 million, 37.6% less compared to the $2.1 million reported in the same period in 2012.
But this could be improved if Peru's plans to purchase cattle, taking advantage of existing FTA between the two countries, become firm, Negotiations are currently underway between the "Vice Ministry of Foreign Trade and the Embassy of Peru in Panama to establish financial facilities that will enable Peruvian livestock farmers to acquire cattle with high genetic quality from Panama to improve their herds and meet the demand for beef in their country " reported Capital.com.pa.
Services in Banking, finance, logistics, gourmet foods and beverages will be offered by Panamanian businessmen in Peru, on 15 September.
A trade mission will visit the country on 15th of September for business and institutional networking and to take advantage of the FTA between the two countries.
From a press release by the Ministry of Commerce and Industry of Panama:
Under the Free Trade Agreement (FTA) between their country and Panama, companies in the textile and metal manufacturing industry in Peru plan to settle in the free trade zone.
Textile companies and manufacturers of metals, like silver, are interested in settling in the Free Trade Zone of Colon in Panama, said general manager Leopoldo Benedetti.
Benedetti has met with representatives of these companies, reported the Andina News Agency.
The trade agreement begins to take effect on May 2nd and releases 99% of Panamanian products and 95% of Peruvian products.
Guillermo Russo, Ambassador of Peru in Panama, estimates that the FTA will increase the flow of investment and exchange of products which currently stands at about $800 million.
"Panama is the seventh largest foreign investor in Peru, doing business primarily in the sectors for energy, banking, hotels and others, for an amount of around one billion dollars, reports the embassy," according to Prensa.com.
A Free Trade Agreement (FTA) between Peru and Panama will be effective from April.
Carlos Posada, Deputy Minister of Foreign Trade and Tourism of Peru, made the announcement in a Peruvian newspaper. The procedure, in the hands of the Foreign Ministry, takes about a month the official said, meaning that it could be approved within the first fortnight of April.
The National Assembly unanimously approved on the third and final debate the free trade agreement with Peru, to be implemented in 2012.
A press release from the National Assembly of Panama reads:
Trade relations between Panama and Peru are to close this year with about 600 million dollars in transactions, said the South American country's ambassador, William Russo Checa, after a visit to the National Assembly president, Hector Aparicio.
The Ministry of Trade and Industry has reported that in September this year there will be a trade mission to Chile and Peru.
The Minister of Trade and Industry, Roberto Henriquez, reported that from the 5 to 9 September this year there will be a Trade Mission to Chile - Peru, with the participation of 15 domestic producers of fresh fruits, vegetables, fish, shrimp, processed food, housewares, toys, footwear, cooling services, logistic services and the Colon Free Zone.
With the agreement between the two countries trade could increase by 10% per year.
After six months of negotiations, the free trade agreement between Panama and Peru is ready to be implemented.
The agreement, which excluded certain sensitive products for both countries, states that within five years, 99.5% of Panamanian exports to the Andean country will be exempt from taxes.
Producers say it will be difficult to take advantage of the trade agreements that have been signed.
Negotiations with countries like Peru, Colombia and the eventual ratification of the treaty with the United States are worrying producers, who believe they are not prepared to compete under the new conditions.
Panamanian government representatives consider that in the case of the TPC with the U.S., the seven-year grace period to be given to the producers before it becomes effective will give producers time to finish preparing in order to compete in equal conditions.
With the exclusion of some 20 products deemed sensitive, the negotiation of the free trade agreement (FTA) with Peru has concluded.
During the fourth round of negotiations and after long sessions of work the negotiating teams of both countries agreed on all subjects of the FTA and now have a tool that will facilitate trade between the two countries.
Authorities from both countries will meet between June 22 and 25 for a preliminary negotiation round.
“Both countries want to discuss a possible Free Trade Agreement between Peru and Panama or between Peru and Central America”, said Roberto Henríquez, Panama’s Commerce Minister.
He commented that both countries have similarities: high economic growth and strong benefits for foreign investors.