Canada Signs Free Trade Deal With Panama

Canada has signed a free trade deal with Panama, which will immediately slash tariffs on exports between the two countries by up to 90%.

The deal will be mutually beneficial, because, though Canada exports far more than it imports from Panama and vice-versa, both will be able to import goods cheaper, because prices will not have to factor in the tariffs.

Panama's imports from Canada, and many other places around the world are vital to its economic emergence.

Panama's economy grew by over 9% last year, and is expected to grow by over 3% this year according to the International Monetary Fund. Therefore this is a savvy move by Canada, as Panama's imports are likely to drop by a lesser margin than that of recession-hit countries.

The US proposed a similar deal with Panama last year, but it has been stalled and now looks likely to be shelved in favour of new policies by the Obama administration.

In 2008 Canada's top goods exports to Panama were:

• Vehicles, including diesel
• Electrical and electronic equipment
• Aerospace (primarily flight simulators)
• Pharmaceuticals
• Pulses (primarily lentils)
• Frozen potato products

The top exports to Canada from Panama were:

• Mineral fuels and oils
• Fruits and nuts
• Fish and seafood products
• Spices
• Coffee
• Mineral ores (primarily silver ores and concentrates)

In 2008, Canada exported six times the amount of goods that it imported from Panama.

Panama's incredible economic present and future continue to make it increasingly popular with overseas property buyers and investors. View Panama property for sale