Panama-Colombia trade spat kills patrol boats deal

THE  $30 MILLION  purchase of two Colombian Navy patrol vessels intended  to “strengthen security in the Pacific and Atlantic oceans” has been suspended  over  of a trade dispute between Panama and Colombia.

The news   came from Trade Minister Augusto Arosemena at a Thursday morning  meeting with journalists in Panama

The  October, the governments of Panama and Colombia

The announcemenr of the  agreement in which Panama would purchase the vessels from Cotecmar, came from the Colombia and Panama governments in October.

“These will serve to strengthen security in the Pacific and Atlantic oceans, as well as

humanitarian services,” a joint statement said.

The suspension is due to the current trade differences between Panama and Colombia June 2013.

Different actions of the Colombian authorities have extended the resolution of the case, and now the Panamanians are

preparing arguments that could further lengthen the controversy.

On Nov. 2, 2016, the Colombian authorities issued two decrees reconfiguring  the mixed tariff on imports of footwear and textiles, whose tariff scope starrted the dispute.

One of the decrees complied with the two favorable rulings of the World Trade Organization (WTO) in

favor of Panama. But the other generated new differences.

Colombia has until Jan. 22 to alter its policy to comply with international agreements.

If Colombia fails to agree to changes in customs controls, Panama may apply to the WTO for some kind of retaliatory measures