Panama-Canada FTA gets Royal Assent

OTTAWA – The Canadian government finalized the ratification Friday December 14, of the free trade agreement with Panama, after years of stalling with the legislation being put on hold twice because of general elections.

Ed Fast, Canada's Minister of International Trade, announced that the Canada-Panama Economic Growth and Prosperity Act had received royal assent after being passed by both the House of Commons and Senate.

“Our government’s top priority remains the creation of jobs, economic growth and long-term prosperity for Canadians,” said Mr Fast. “Panama is one of the fastest-growing markets in the Americas and a strategic gateway to Latin America. This agreement is a key part of our government’s plan to open new markets to increase Canadian exports as part of the most ambitious trade expansion plan in our nation’s history.”
Once implemented, a Canada-Panama trade agreement will immediately eliminate tariffs on more than 90 percent of Canadian goods exported to Panama, mainly in the aerospace, pharmaceuticals, pulp and paper, and agriculture and agri-food sectors.
In addition, an agreement will give Canadian suppliers preferred access to the government procurement market in Panama, where the government has a five-year plan to invest in major infrastructure projects worth $13.4 billion.
Panama is regarded by the Conservative government in Ottwa as an important market for Canada and a strategic hub of commercial activity for Central America, the Caribbean and the Andean region of South America.

It is Canada’s second-largest export market in Central America, after Costa Rica, with bilateral merchandise trade reaching $235.3 million in 2011, up 10.1 percent over 2010. Increasing economic opportunity in the Americas has been a Canadian foreign policy priority since 2007.
With both Canada and Panama having now completed their domestic ratification processes, the two countries will proceed to set a date for the entry into force of the agreement.
Panama is the ninth country with which the government of Prime Minister Stephen Harper has concluded free trade agreement in less than six years. The others are Colombia, Honduras, Jordan, Peru, Iceland, Liechtenstein, Norway and Switzerland.

In addition, Canada is in ongoing negotiations with the European Union, India and Japan, and recently joined the Trans-Pacific Partnership. Canada also has observer status, alongside Panama, with the Pacific Alliance.