Panama signs multilateral agreement as a result of brexit

Posted on 2019-07-18

The total commercial flow between Panama and the United Kingdom reached $ 89 million in 2018.

The Minister of Commerce and Industry of Panama, Ramón Martinez , together with his counterparts from the five countries of the Central American region and the Ambassador of the United Kingdom in Costa Rica, HE Ross Denny , are in the City of Managua, Nicaragua for the signing of a multilateral agreement.

Martinez will
 participate on July 18 in the signing ceremony of the Agreement establishing an Association between the United Kingdom of Great Britain and Northern Ireland and Central America.

This agreement is the result of the departure of the United Kingdom from the European Union, and it will replace the current preferential trade relations with this nation, framed in the Association Agreement between the European Union and the Central American countries, and which is in force since year 2013.

Already the countries of the Andean Community that currently maintain a commercial agreement with the European Union (Colombia, Peru and Ecuador, among others) have signed an agreement with the United Kingdom.

Ramón Martinez reported “this Agreement is a technical replica of the current agreement with the European Union, which aims to safeguard legal stability, maintaining the political and cooperation trade pillar, as reflected in the existing Association Agreement between Central America and the Union. European Union, by virtue of the imminent departure of the United Kingdom from the European Union, a process known as brexit.

In addition to the operations of the Colon Free Zone, the total commercial flow between Panama and the United Kingdom reached $ 89 million in 2018.

However, the fact to note is that although our exports to the United Kingdom are modest, they are very important for the agricultural sector: 84% correspond to fruits such as melon, pineapple and bananas. Of these, the banana represents 56%. The remaining 16% of the composition of our exports to the United Kingdom 12% corresponds to seafood and the remaining 4% other types of products.

Regarding the composition of the imports from the United Kingdom, half correspond to whiskey, cars and medicines. While the other half correspond to a variety of products of which stand out: perfumes, deodorants, cranes and lifting devices, beauty products and electrical appliances.

Practically, products of agricultural origin from the United Kingdom are not imported, within the framework of the current commercial agreement signed with the European Union.

Source: Panama America