Mexico approves free trade deal with Panama

Mexico's Ministry of Foreign Affairs has approved a free trade agreement (FTA) with Panama, according to a decree published Monday in the Government Gazette.

The FTA, ratified in March by Mexico's Senate, will set the framework for boosting trade flows and investment between the two countries, and strengthen industrial property rights, the ministry said.

With the official adoption of the agreement, Panama fulfills the requirement of having a FTA with all member countries of the Pacific Alliance, before it can be a full member of the trade bloc founded in 2012 by Mexico, Colombia, Chile and Peru.

Mexican exporters, according to the ministry, will benefit from the deal, which foresees a 12-percent increase in goods to Panama over the next five years, in addition to increased investment in Mexican industries.

The complex deal, which includes 21 chapters and 4,000 tariffs, was signed on April 3 in Panama.

Figures from Mexico's Economy Ministry show trade between the two countries has grown 214 percent in the past 10 years.

Panama is the leading Central American investor in Mexico, with more than 932 million U.S. dollars invested, and the second- leading destination in Central America for Mexican investment, receiving 2.063 billion dollars.

Trade exchange between the two includes mainly medicine, television sets, iron or steel, automobiles, sanitary napkins and pampers. Enditem