BRIEFS. business

Tax issues hamper business with spain

Spanish companies hoping to do business with Panama's government could be forced to look elsewhere for work if the countries do not reach an agreement on tax issues.

Spain has wavered on signing an agreement that would end Panama's description as an offshore tax haven.

Because Spain has not yet signed the agreement, the Panamanian government is considering blacklisting companies from those countries so that they would be excluded from bidding on government projects.

Panama's ambassador to Spain, José Manuel López-Barrón, said that this could have an impact on firms seeking to obtain contracts related to the expansion of the Panama Canal.

Panama is putting pressure on the Spanish government to consider the accord in early March.