Panama politics: Trade pact signed with Costa Rica
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[September 25, 2007]

Panama politics: Trade pact signed with Costa Rica

(EIU Viewswire Via Thomson Dialog NewsEdge)
COUNTRY BRIEFING

One of the main focuses of trade relations for Panama has been the goal to
conclude bilateral trade agreements with Central American neighbours ahead
of inclusion in negotiations towards a proposed regional trade agreement
with the EU. To this end, an agreement was signed in August by the Costa
Rican president, Oscar Arias, and Panama's president, Martin Torrijos,
that will lead to the phasing out of import tariffs over a period of 3-17
years depending on the product, eventually leading to the elimination of
tariffs on 94% of industrial imports and 84% of agricultural goods
imports.

Agreements have yet to be put in place between Guatemala and Nicaragua.
However, talks with the former are well advanced. The seventh round of
negotiations towards an FTA with Guatemala ended on September 1st with
agreement on the treatment of sweets, chocolates, soft drinks and
alcoholic beverages, milk products and flour products. Nevertheless, the
completion of an agreement is being held up by continued differences on
the tariff reduction schedules for coffee, soap, paints, paper and
cardboard, the only chapters still pending. Merchandise trade between the
two countries has been growing sharply in recent months, surpassing
US$100m in the first half of 2007, compared with just over US$120m in 2006
as a whole.

Copyright 2007 Economist Intelligence Unit

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