Identifier
Created
Classification
Origin
08PANAMA204
2008-03-07 18:48:00
UNCLASSIFIED
Embassy Panama
Cable title:
PANAMA AND MEXICO TO RE-START FTA TALKS; MEXICO
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UNCLAS PANAMA 000204
SIPDIS
SIPDIS
FOR STATE WHA/CEN - TELLO
FOR COMMERCE - PANAMA DESK OFFICER GAISFORD
FRO TREASURY - CENTRAL AMERICA DESK OFFICER SARA GARY
FOR USTR
E.O. 12958: N/A
TAGS: ECON CVIS EFTA ETRD FAS PM
SUBJECT: PANAMA AND MEXICO TO RE-START FTA TALKS; MEXICO
DROPS VISA REQUIREMENTS FOR PANAMANIANS
UNCLAS PANAMA 000204
SIPDIS
SIPDIS
FOR STATE WHA/CEN - TELLO
FOR COMMERCE - PANAMA DESK OFFICER GAISFORD
FRO TREASURY - CENTRAL AMERICA DESK OFFICER SARA GARY
FOR USTR
E.O. 12958: N/A
TAGS: ECON CVIS EFTA ETRD FAS PM
SUBJECT: PANAMA AND MEXICO TO RE-START FTA TALKS; MEXICO
DROPS VISA REQUIREMENTS FOR PANAMANIANS
1. (U) SUMMARY. On March 5, 2008, during the inaugural speech
for Expocomer 2008 Trade Convention in Panama City, Mexican
President Felipe Calderon announced that he would seek a free
trade agreement with Panama and that the GOM would eliminate
the visa requirement for Panamanians traveling to Mexico. END
SUMMARY.
--------------
Possible Panama-Mexico Free Trade Agreement
--------------
2. (U) During his speech to open Expocomer, Calderon
announced that the GOM will seek to begin talks on a free
trade agreement with the GOP. The GOP's Minister of Commerce
and Industry, Alejandro Ferrer, said he and the GOM's
Secretary of Economy have begun to establish a calendar for
SIPDIS
the talks. In 1999, the GOP and GOM suspended free trade
talks after failure to reach agreement and the topic had not
been discussed since. The GOP has finalized seven free trade
agreements during the Torrijos Administration. A full
description of the agreements can be found at
www.mici.gob.pa/TLC nueva.php.
3. (U) A sticking point in prior free trade negotiations, and
current relations, has been Mexico's black list designation
of Panama as a tax haven and the resulting impediments to
financial transactions between the two countries. During
ExpoComer, Domingo Latorraca, President of the Panamanian
Chamber of Commerce called for taking Panama off Mexico's
black list before beginning free trade talks.
4. (U) According to Calderon, Mexican foreign direct in
Panama during 2007 was $1.5 billion, which generated 4,000
jobs. According to preliminary figures from the GOP's
Comptroller General's Office, during 2007, Panama's exports
to Mexico approached $9.1 million, a 15% increase from 2006.
Mexico is Panama's 17th largest export market. Panama's
principal exports to Mexico were beef and fish. During 2007,
Panama's imports from Mexico were $212 million; an increase
of 22.5% from 2006. Mexico is Panama's sixth largest source
of imports
. Panama imports a wide variety of mostly food products from
Mexico; the largest being milk ($6.6 million in 2007).
--------------
Elimination of Mexican Visa Requirement
--------------
4. (U) Also during his speech, Calderon announced that as of
March 6, 2008, Panamanian citizens will not need a visa to
travel to Mexico. According to the GOM's Undersecretary for
Latin America and the Caribbean, Geronmino Gutierrez, during
2007, approximately 15,000 Panamanians traveled to Panama.
The GOP requires Mexican visitors to obtain a $5.00/90 day
validity tourist visa to enter Panama. There are no
indications to date that the GOP will eliminate this
requirement.
EATON
SIPDIS
SIPDIS
FOR STATE WHA/CEN - TELLO
FOR COMMERCE - PANAMA DESK OFFICER GAISFORD
FRO TREASURY - CENTRAL AMERICA DESK OFFICER SARA GARY
FOR USTR
E.O. 12958: N/A
TAGS: ECON CVIS EFTA ETRD FAS PM
SUBJECT: PANAMA AND MEXICO TO RE-START FTA TALKS; MEXICO
DROPS VISA REQUIREMENTS FOR PANAMANIANS
1. (U) SUMMARY. On March 5, 2008, during the inaugural speech
for Expocomer 2008 Trade Convention in Panama City, Mexican
President Felipe Calderon announced that he would seek a free
trade agreement with Panama and that the GOM would eliminate
the visa requirement for Panamanians traveling to Mexico. END
SUMMARY.
--------------
Possible Panama-Mexico Free Trade Agreement
--------------
2. (U) During his speech to open Expocomer, Calderon
announced that the GOM will seek to begin talks on a free
trade agreement with the GOP. The GOP's Minister of Commerce
and Industry, Alejandro Ferrer, said he and the GOM's
Secretary of Economy have begun to establish a calendar for
SIPDIS
the talks. In 1999, the GOP and GOM suspended free trade
talks after failure to reach agreement and the topic had not
been discussed since. The GOP has finalized seven free trade
agreements during the Torrijos Administration. A full
description of the agreements can be found at
www.mici.gob.pa/TLC nueva.php.
3. (U) A sticking point in prior free trade negotiations, and
current relations, has been Mexico's black list designation
of Panama as a tax haven and the resulting impediments to
financial transactions between the two countries. During
ExpoComer, Domingo Latorraca, President of the Panamanian
Chamber of Commerce called for taking Panama off Mexico's
black list before beginning free trade talks.
4. (U) According to Calderon, Mexican foreign direct in
Panama during 2007 was $1.5 billion, which generated 4,000
jobs. According to preliminary figures from the GOP's
Comptroller General's Office, during 2007, Panama's exports
to Mexico approached $9.1 million, a 15% increase from 2006.
Mexico is Panama's 17th largest export market. Panama's
principal exports to Mexico were beef and fish. During 2007,
Panama's imports from Mexico were $212 million; an increase
of 22.5% from 2006. Mexico is Panama's sixth largest source
of imports
. Panama imports a wide variety of mostly food products from
Mexico; the largest being milk ($6.6 million in 2007).
--------------
Elimination of Mexican Visa Requirement
--------------
4. (U) Also during his speech, Calderon announced that as of
March 6, 2008, Panamanian citizens will not need a visa to
travel to Mexico. According to the GOM's Undersecretary for
Latin America and the Caribbean, Geronmino Gutierrez, during
2007, approximately 15,000 Panamanians traveled to Panama.
The GOP requires Mexican visitors to obtain a $5.00/90 day
validity tourist visa to enter Panama. There are no
indications to date that the GOP will eliminate this
requirement.
EATON