In a seventh round of negotiations, an attempt will be made to lay the groundwork for an agreement that seeks to avoid damage to both countries.

If an agreement is not reached, Colombia will classify Panama as a tax haven, with a consequent increase in costs for bank transactions between the two countries, and exposing Columbia to the measures provided under Panama’s Law of Retaliation.

An article on Critica.com.pa reports that “… According to the Panamanian negotiators there are still differences, but during this period, some coming together was achieved though there are still some positions on some issues on which they are “opposed”. ”

In October 2014, Colombia classified Panama as a tax haven, and the Panamanian government threatened Colombia with retaliation in the form of raising tariffs, taxes on remittances and removal of the exemption from tolls for Colombian ships.

Days later, the Colombian government announced “an understanding to negotiate a double taxation agreement according to OECD standards, so as to remove Panama from its list of tax havens “

Source: Critica.com.pa