Free-trade pact with Panama to take effect today

A free-trade agreement between Taiwan and Panama is set to come into effect today, according to the Ministry of Economic Affairs.

The agreement, Taiwan's first free-trade pact, is expected to serve as a springboard for traders of the two countries to develop their foreign markets.

The agreement will help Taiwanese traders sell their products to Latin America through Panama, and help Panamanian exporters send their products to Asia through Taiwan, the ministry said.

President Chen Shui-bian (陳水扁) and his Panamanian counterpart, Mireya Moscoso, jointly signed the Taiwan-Panama Free Trade Agreement in Taipei on Aug. 21, and both countries have completed the legal and administrative requirements for implementing the pact.

The agreement will kick off a sweeping liberalization of trade in goods and services between the two countries. From Jan. 1, 6,200 categories, or 71 percent of Taiwanese products, will immediately enjoy duty-free entry to Panama. For Panama, 4,160 categories, or 48.49 percent of the nation's exports, will also enjoy non-tariff treatment in Taiwan, the ministry said.

Panama is Taiwan's 66th largest trading partner, with bilateral trade reaching US$104.24 million in the first 10 months of the year.

Last year, imports of Taiwan-ese goods to Panama amounted to US$123 million, and Panamanian exports to Taiwan US$4.8 million.

The zero tariff also applies to Panamanian beef, which as a result of the ban on imports of US beef, may spur imports of beef and sheep products from Panama, the ministry said yesterday.