MICI presents FTA between South Korea and Central America to Assembly
17 abril 2020
PANAMA

On April 17, the Minister of Commerce and Industries, Ramón Martínez, presented the Free Trade Agreement (FTA) signed between South Korea and Central America to the plenary of the National Assembly. Martínez explained that Panama is the only country in Central America that has not yet ratified the agreement. He thus urged the Assembly to prioritize its treatment so as to reactivate the Panamanian economy and shield it against the economic effects of the COVID-19 crisis. The measure is expected to be examined by the Legislators in the short term.

Minister Martínez announced that the FTA signed between South Korea and Central America will “bring Panama closer to Asian countries and consolidate opportunities to reactivate the Panamanian economy.” The key aspects include the following:

  • Electronic trade: This aspect prohibits parties from imposing any customs duty, tariff or other levies on the export and import of an originating product or digital product which is electronically transmitted.  It also says that parties must cooperate to ensure the protection of personal data, security of electronic trade and consumer protection.
  • Customs procedures and trade facilitation. It provides that each party shall adopt simplified customs procedures for the efficient clearance of goods. It also requires the provision of a separate and expedited customs procedure for fast-track shipments. Finally, it determines that the parties shall strive to use international standards and thus develop globally compatible electronic systems.
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