1 Answers
The Canada–Panama Free Trade Agreement is a free trade agreement between Canada and Panama that went into effect April 1, 2013. The agreement was concluded on August 11, 2009 by Canadian Prime Minister Stephen Harper and Panamanian President Ricardo Martinelli and signed by the two countries' trade ministers on May 14, 2010. The agreement was approved by both countries' parliaments by December 2012, allowing the agreement to come into effect. The agreement eliminates Panamanian tariffs on 90% of goods from Canada. The remaining 10% will be phased out within the next 10 years. Canada will remove 99% of its tariffs on goods from Panama. Canada will keep tariffs on some imports of sugar, poultry, eggs and dairy products. Panama will end its ban on beef from Canada which was initiated after cases of mad cow disease were found in Canada in 2003.
In 2008, bilateral merchandise trade between Canada and Panama totaled $150 million. Trade has increased by 48 percent from 2007. Canada made up $127.9 million of total trade between the two countries, while Panama made up the remaining $21.2 million.
Both countries parliament needed to approve the agreement before it could come into force. The Canadian opposition parties had considered stalling the agreement over the issue of Panama being considered a tax haven.
The agreement was negotiated over four meetings. The first negotiation started in October 2009. The negotiations followed two exploratory meetings over a possible agreement.