Mining Sector Will Benefit From New Panama - Canada FTA
Saturday, May 15 2010 @ 01:02 PM EDT
Contributed by: Don Winner
Views: 93
The mining sector in Panama could be one of the major beneficiaries of the new bilateral Free Trade Agreement signed this week between Panama and Canada. The agreement was signed in the Canadian capital by trade ministers from Canada and Panama, Peter Van Loan and Roberto Henriquez, respectively, and once it is ratified by the parliaments of both countries tariffs on bilateral trade will be reduced by more than 90%. The Canadian Prime Minister Stephen Harper attended the signing of the agreement, which Minister Van Loan highlighted as an example of the importance the Canadian government gives free trade with the Americas. Henriquez said the arrival "of Canadian investment in Panama is sure to grow explosively," especially now that the Central American country "has also decided to develop a serious policy in the mining sector, because Canada is the world's miner." "I think Canada also will benefit from the enormous amount of public investment that we have, and with this treaty they will have advantages for investment. We're talking about $13.6 billion dollars, without counting the expansion of the Panama Canal," said the Panamanian minister. (TVN Noticias)
Editor's Comment: That's the first time I've heard this number - $13.6 billion dollars - that the government of Panama is planning to spend in public funds on infrastructure improvements, things like the new Metro system for example. Supposedly that expenditure does not count the $5.25 billion that is being spent to expand the Panama Canal. Great. The more the merrier. The vast majority of that money will be spent right here in Panama on wages, materials, services, etc. And Henriquez is right - Canadian companies now have an advantage over other competitors (like, from the United States) because they can import equipment duty free, for example. The US should ratify the bilateral free trade agreement as soon as possible. Obama can't do it because the unions are already pissed, and if they pass these agreements the unions will explode in a fireball of rage. So, it's a dilemma for the Democrats which will screw them one way or the other come November.