Mexican Senate Approves FTA With Panama


News from Panama / Tuesday, March 24th, 2015

free trade

The Mexican Senate on March 12, 2015, ratified the free trade agreement (FTA) between Mexico and Panama, according to the Ministry of Economy.

Negotiations on the FTA began in May 2013 and Panama approved the agreement in November 2014. The treaty will enter into force once the two countries have completed the necessary internal legal procedures.

Under the FTA, Mexico will immediately receive preferential tariff treatment for five years on 72 percent of agreed products, including copper, aluminum, steel, automobiles, auto parts, paints, cosmetics, and perfumes. Tariffs on the remaining products will be lowered gradually.

Over the past ten years, trade between Mexico and Panama nearly doubled, according to Mexico’s Ministry of Economy. In 2014 bilateral trade reached USD1bn.

It is expected that the FTA will pave the way for Panama to become a full member of the Pacific Alliance (PA) trade bloc, comprising Chile, Peru, Colombia, and Mexico.

The Mexican Senate on March 12, 2015, ratified the free trade agreement (FTA) between Mexico and Panama, according to the Ministry of Economy.

Negotiations on the FTA began in May 2013 and Panama approved the agreement in November 2014. The treaty will enter into force once the two countries have completed the necessary internal legal procedures.

Under the FTA, Mexico will immediately receive preferential tariff treatment for five years on 72 percent of agreed products, including copper, aluminum, steel, automobiles, auto parts, paints, cosmetics, and perfumes. Tariffs on the remaining products will be lowered gradually.

Over the past ten years, trade between Mexico and Panama nearly doubled, according to Mexico’s Ministry of Economy. In 2014 bilateral trade reached USD1bn.

It is expected that the FTA will pave the way for Panama to become a full member of the Pacific Alliance (PA) trade bloc, comprising Chile, Peru, Colombia, and Mexico.

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