Canada free trade agreement with Panama signed
May 14, 2010
Canada free trade agreement with Panama signed
Daniel Workman
Even before the Free Trade Agreement was finalized today, Panamanian exports of gold, pineapples and frozen shrimps to Canada had skyrocketed.
Peter Van Loan, Canada’s Minister of International Trade, formally signed the Canada-Panama Free Trade Agreement this morning. His Panamanian counterpart, Roberto Henríquez also signed the pact.
The agreement should boost trade between Canada and Panama. The 2 nations exchanged C$132.1 billion worth of exports and imports in 2009.
According to Foreign Affairs and International Trade Canada, Canada-Panama free trade will create new opportunities in 3 Canadian industries: agriculture, construction and manufacturing.
Another key benefit of the agreement is that Canadian businesses will now be able to bid on projects that the Panamanian government finances.
This includes the $5.4-billion expansion of the Panama Canal and other infrastructure projects.
Top Exports to Panama from Canada
During 2009, Canadian exports to Panama totaled $91.4 million. That amount represents a 28.6% drop from 2008 but is 51.9% higher than in 2005.
Below are Canada’s top 10 exports to its Central American trade partner in 2009.
1. Drugs and medications … C$8.3 million (up 7.5% from 2008)
2. Frozen potatoes … $5.6 million (up 31.5%)
3. Coins, other than gold or legal tender … $5.4 million (down 2.6%)
4. Dried and shelled lentils … $5.3 million (down 20.1%)
5. Trucks with load capacity over 20 tons … $2.9 million (down 47.5%)
6. Elevators and belt-type conveyors … $2.52 million (down 14%)
7. Plywood excluding bamboo … $2.5 million (down 14.4%)
8. Vegetable fats or oils … $2.47 million (up 19.6%)
9. Cured pork meat … $2.3 million (up 15.8%)
10. Uncoated fine paper in rolls … $2.2 million (down 38.1%).
Overall, Canadian exports to Panama slowed by a further 20.1% to $23.9 million during the first 3 months of 2010. However, there were some notable exceptions.
Canadian lentil bean shipments to Panama spiked 176% to $2.8 million. Canada also exported $2.77 million worth of ferry boats to Panamanian waters, up from nil for the 3-month period ending March 2009.
Top Imports from Panama into Canada
The total value of Panamanian products imported into Canada was $40.7 million in 2009, up 91.7% from 2008. The 2009 amount is actually 8.9% less than Canada’s imports from Panama in 2005.
Below are the top 10 Canadian imported products from Panama last year.
1. Unrefined non-monetary gold … C$32.8 million (up from nil in 2009)
2. Fresh or dried bananas including plantains … $2.2 million (up 9.7%)
3. Unroasted coffee other than decaffeinated … $843,820 (down 44.8%)
4. Glass containers for conveyance or packing … $502,766 (up 2.5%)
5. Frozen shrimps and prawns … $434,318 (up 343%)
6. Abrasive powder or grain … $414,862 (up from nil)
7. Frozen, dried or salted cuttle fish … $387,130 (down 37.8%)
8. Fresh or dried pineapples … $362,822 (up 375.7%)
9. Other fresh or chilled fish … $327,177 (down 6%)
10. Fresh melons excluding watermelons … $268,480 (down 30.4%).
For the 3 months ending March 2010, the total for all imports from Panama into Canada jumped 706% to $21.6 million. The corresponding statistic was $2.68 million in the year-earlier quarter.
Panama’s frozen shrimps and prawns exported to Canada have accelerated by over 14,000% so far in 2010. Should the Gulf of Mexico oil spill do further harm to Louisiana’s vast shrimp resources, Panama is well-positioned to increase sales of its shrimps and prawns even more.
Before the formal signing of the free trade agreement, Panama was making great strides in growing its export sales to Canada.
Canadians are now hoping that free trade will distribute some of that economic growth will spread to the North American side of the trade equation.
Sources: Industry Canada’s Trade Data Online and Canada Border Services Agency’s online customs tariff manual.
