Panama and Chile signed a free trade deal here on Saturday,
ending their 15th round of Free Trade Agreement (FTA) talks.
Chile has accepted Panama's proposals on financial service,
professional service as well as market access for agricultural and
industrial products, said Alejandro Ferrer, Panama's Minister of
Commerce and Industry.
He said Chile has also acknowledged the important role Panama's
Colon Free Zone has played in the regional and world trade.
It is the fourth FTA Panama has reached as the country has
signed free trade deals earlier with El Salvador, China's Taiwan
and Singapore.
Ferrer emphasized that most of the Panamanian products will
enjoy a zero tariff when entering Chile's market. And tariff
reduction for 8 percent of Panama's exports to Chile will be
completed within 10 years.
The two sides excluded some sensitive issues from the agreement
such as market access for agricultural products.
Free trade negotiations between the two countries failed in 1998
due to big differences on financial services. The talks resumed in
July 2004.
During this round of negotiation, Panama and Chile agreed to
start talks on financial services within two years.
(Xinhua News Agency February 5, 2006)
