Panama & Schwab complete trade promotion agreement negotiations
20 Dec '06
3 min read
“The agreement will provide new economic opportunities for U.S. exporters, including significant opportunities to participate in the $5.25 billion expansion plan for the Panama Canal,” said Ambassador Schwab. The Panama Canal expansion is due to begin in 2008 and finish in 2014.
Panama is predominantly a services-based economy, with services accounting for about 80 percent of economic activity. The Panama Canal is the focal point of Panama's economy, with much of the country's economic activity tied to the canal's infrastructure and to the logistics and financing of international shipping.
The United States also achieved new openings for financial services suppliers in the insurance sector, including the establishment of brokerage firms and cross-border supply of insurance for maritime, aviation, and transportation.
Ground-breaking provisions on customs administration will enhance the transparency and efficiency of trade between the United States and Panama.
For example, the agreement establishes a monitoring program for Panama's free trade zones that will help guard against circumvention of customs rules.
Important provisions on trade security will facilitate secure and reliable trade in goods from all over the world that pass through Panama.
The agreement will eliminate nearly 90 percent of Panama's tariffs on industrial goods immediately, with remaining tariffs phased out over 10 years.
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