The Panamanian government has announced that until the dispute over tariffs is resolved, it will keep in abeyance the agreement signed with Colombia to buy two ships for $30 million.

As part of the trade dispute caused by the tariffs imposed by Colombia on imports of Panamanian footwear and textiles, the Varela administration has announced the suspension of a contract signed in October with Cotecmar, a company linked to the Colombian Defense Ministry.

“.. The purchase ‘has been suspended until we can resolve the trade dispute’ said the Panamanian Minister of Commerce and Industry, Augusto Arosemena, during a presentation of the 2016 annual report. The decision announced on Thursday to stop the transaction was taken ‘some time ago’, said Arosemena, who denied that this is a retaliatory measure against the Andean country. The purchase of ships was agreed on October 25 during a meeting between presidents Santos and Varela.”

Laestrella.com.pa reports that “…In November the Government of Colombia suspended a mixed tariff on footwear and textiles from the Colon Free Zone (CFZ), a tarriff declared illegal by the World Trade Organization (WTO), but it approved two decrees toughening customs controls and which also impeded imports of these products.”

Source: Prensa.com