Costa Rica, Panama Sign Free Trade Deal
October 27th, 2008 | by admin |Costa Rican president, Oscar Arias, and his Panamanian counterpart, Martís Torrijos, met Friday to sign the Tratado de Libre Comercio (TLC) - free trade agreement - between both countries.
The meeting was held in San José and signing the document were also the ministro de Comercio (trade ministers) of both countries, Costa Rica’s Marco Vinicio Ruiz, and Panama’s Severo Souza Gómez.
With the signing of the trade deal, 91% of Costa Rican goods can now enter Panama duty free. Panama is Costa Rica’s fifth export destination.
The trade deal is expected to greatly benefit small and medium sized exporters as well as conusmers on both sides of the border, with lower prices for many products.
“Costa Rica is Panama’s major market in Central America”, said Torrijos, who assures that the trade deal will mean a greater exchange of goods between the two countries as the two countries have strong commercial ties.
The trade deal frees up of any tariffs 90% of the goods now exchanged between the two countries and with the rest of products dropping duties in the next 3 to 17 years.
Only a small number of products are not included in the free trade deal, items like rice, sugar, potatoes, onions and coffee.
According to official figures, trade between the two countries was us$551 million dollars, 60% or sus$327 million of the total was of Costa Rican exports and the rest of Panamanian goods.
Torrijos arrived in San José early Friday morning for the signing ceremony at Casa Presidencial and was back in Panama by the afternoon.
