Notes on the Canada-Panama Free Trade Agreement

August 17, 2009

Washington’s diminishing interest in trade liberalization has served as an opportunity for Canada to pursue new markets and show world leadership on free trade. Prime Minister Harper marked the first official visit of a Canadian premier to Panama on August 11 and signed a free-trade agreement with recently inaugurated Panamanian President Ricardo Martinelli.
 
The culmination of 10 months of negotiations, this deal will open Canadian trade with one of Latin America’s fastest growing economies. Panama’s 2008 rate of growth of 9.2 percent is expected to increase as a result of the Panama Canal expansion project. When ratified, the pact will immediately eliminate 90 percent of tariffs on imports from Canada while incorporating labor and environmental protections. The deal expands market access for Canadian companies offering services in communication technology, environment, energy, and financial services. Restrictions on Canadian beef will also be lifted, giving beef exporters access to Panamanian market for the first time since 2003.
 
Panama marks the eighth country with which the Harper government has signed a bilateral free-trade deal. Following the negotiations, Prime Minister Harper stated: “Today’s historic agreement builds on our government’s record of aggressively pursuing trade liberalization with like-minded partners. In this hemisphere we have signed free trade agreements with Peru and Colombia, and we are currently pursuing free trade agreements with CARICOM, countries of Central America and Dominican Republic.”

Similar to the case of the recent Canada-Peru free-trade pact, implementation of the Panamanian accord requires passage in Canadian Parliament.


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