commerce

FTAs sought with Cuba, Canada

Officials have said that talks will start with both countries before the end of the year.

AP

new frontiers: Panama will focus on hashing out trade treaties with Canada and Cuba while the U.S. agreement is put on hold.1097898

While the country’s hopes of achieving the North American Free Trade Agreement (FTA) with the United States this year are fading, trade negotiators are keeping the table warm for talks with representatives of Canada and Cuba, two countries that once seemed to distant or difficult to reach. In both cases, the Ministerio de Comercio e Industrias (MICI) has announced that it plans to launch the negotiation process before the end of this year.

In Canada, the first round of official negotiations on a treaty seems imminent, thanks in part to the northern country’s openness about its desire for rapprochement with Latin American countries, a strategy that has made warmer relations with Panama seem a growing possibility.

And although Cuba’s new leader Raúl Castro has excited rumors of a more lenient regime, the Communist island nation continues to deter free commerce with its notoriously tough trade barriers. Nevertheless, preliminary consultations between businesses in Cuba and Panama have already gotten off to a promising start.

Cuba may only hold 27th position in a ranking of major importers of Panamanian goods. But take into consideration the activities of the Zona Libre de Colón (ZLC), and the situation is a whole different ballgame. Last year, Cuba spent $220 million in ZLC markets.

Máximo Gallardo, president of the Asociación Panameña de Exportadores (Apex), felt a future agreement with Cuba would be very desirable for Panama’s economy, especially when Cuba starts looking to expand its markets.

“Cuba attracts a lot of tourists, and is a market with an ability to pay,” he said.

For Panamanian exporters, “Las Isla Grande” represents an unusual market where there is equal demand for both industrial and agricultural products.

“Right now Cuba needs to import many foods, following the recent hurricanes. This is an opportunity we must jump on,” added Gallardo.