Canada And Panama Sign Free Trade Agreement

by Mike Godfrey, Tax-News.com, Washington

13 August 2009

Canada and Panama have signed a free trade agreement, alongside new agreements on labor and environmental cooperation.

The Canada-Panama free trade agreement will eliminate tariffs on over 90% of Canada’s present exports to Panama, across a range of sectors, including industrial, agricultural, forestry, fish and other seafood. It will also expand market access for Canadian services providers in such areas as information and communication technology, and energy and financial services.

The Prime Minister of Canada, Stephen Harper, said that, while Canadian businesses and exporters would have greater access to the Panamanian market thanks to the agreement, he expressed his particular pleasure with Panama’s decision to re-open its market to Canadian beef exports for the first time since 2003.

“Reaching a free trade agreement with a key hemispheric partner like Panama is the logical next step in our policy of pursuing deeper integration and closer cooperation throughout the Americas,” said Stephen Harper. “I am pleased that strong labor and environmental standards are included in this deal. This agreement will open up new opportunities for people and businesses on both sides of the Canada-Panama trading relationship.”

Canadian merchandise exports to Panama, while small, totaled almost CAD128m (USD116m) in 2008, up more than 48% over the previous year.

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