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Mexican Senate Approves Mexico-Panama FTA

Karla Salinas | 05.06.2015

The Governments of Panama and Mexico broadcast FTA decree.

The Governments of Panama and Mexico broadcast FTA decree.

The decree of the FTA between Mexico and Panama was approved, with the objective of establishing the foundations of bilateral commercial relations, the Secretariat of Foreign Affairs (SRE) reported.

The agreement was signed in Panama City in April 2014 and it seeks to facilitate the trade of goods and services, eliminate technical obstacles to the trade, increase investment and protect intellectual property rights.

The Mexico-Panama bilateral relationship has been strengthened by progress in the following areas:

 - Support from Mexico to Panama’s entry to the G-3.

 - Support to Mexico for its admission as an observer member of SICA.

- Extension of migratory facilities for business persons and Panamanian tourists who travel to Mexico, by issuing (from December 1, 2004) visas of long duration and multiple entrances to Mexican territory, 5 years for tourists and 3 years for business people.

- Inauguration of the headquarters facility of the Mexico-Panama Chamber of Commerce, as well as the establishment of an Office of the Inter-American Trade Network, located in the World Trade Center, Panama City.

- Signing of the Modification Agreement of the 'Air Transport Agreement' signed on February 14, 1996, concluded by Exchange of Notes dated October 11, 2005.

- Subscription of the Agreement for the Protection and Reciprocal Protection of Investments (APPRI), celebrated in Mexico on October 11, 2005.

With this background, on April 12th the Senate Chamber approved the FTA between the two countries and it was published in the Federal Official Journal.

In this logic and in compliance with Section I of Article 89 of the Mexican Constitution, the Federal Executive, Enrique Peña Nieto, issued the decree for its observance.

With this agreement, the Central American country will meet the requirement of having a Free Trade Agreement with all the nations of the Pacific Alliance, in order to acquire the status of a full member in the regional integration initiative.

It is expected that Mexican exporters are benefited in the next five years with growth of over 12% in shipments to Panama, as well as encouraging investment.

Panama is the 11th largest trading partner for Mexico in Latin America and the Caribbean, and Foreign Direct Investment (FDI) in Mexico from that country adds a total of 887 million dollars.

Over the last six years, Panama has positioned itself among the leaders of the region in attracting FDI, which has been mainly directed to sectors such as logistics, energy, real estate, free trade zone, financial services.

The current Government of Panama has prepared a five-year Strategic Plan, whose main objective is the improvement of productivity and competitiveness in those sectors with greater production potential (logistics, agribusiness, financial services and tourism) through an ambitious public investment plan, aimed to improve our business environment.

Translation of an article published by: Mexican Business Web