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Panamanian trade officials launched free trade negotiations with Canada in Ottawa at the end of October 2008. At the same time “parallel” meetings took place between members of Panama’s Chamber of Commerce and members of Canada’s business community. Both countries expect to benefit from a free trade agreement. Both countries have conservative banking systems and have not suffered the kind of chaos seen in the United States as well as parts of Europe and Asia. Thus these two healthy economies expect to benefit from an expansion of trade.

According to the OttawaCitzen.com, November 5, 2008, the first round of free trade negotiations between Panama and Canada came after preliminary meetings in Ottawa in May and Panama City in July. Both governments have been consulting with businesses, industry associations and the public in preparations for these free trade negotiations.

The Ottawa Citizen quotes Panama’s ambassador to Canada, Romy Vasquez, as saying that, “the [trade] negotiations represent years of laying the groundwork and pushing for such an agreement, something [I have] had on [my] to-do list when [I] arrived in Canada in February 2005. For me, this is three-star super news because this is what I've been working for. So if we can sign or agree on something before I go, then it's five stars. And myself, I'm pushing everywhere I go for support."

A delegation of Panamanian trade officials was in Ottawa last week to launch free-trade negotiations with the Canadian government. The first round of negotiations came after a successful "exploratory process," including one meeting in Ottawa in May and another in Panama City in July. The Canadians also undertook a month-long consultation with Canada's provinces and territories as well as with businesses, industry associations and the public.

For Panamanian Ambassador Romy Vasquez, the trade negotiations represent years of laying the groundwork and pushing for such an agreement, something she had on her to-do list when she arrived in Canada in February 2005. Her term ends sometime next spring.
"For me, this is three-star super news because this is what I've been working for," Ms. Vasquez said. "So if we can sign or agree on something before I go, then it's five stars. And myself, I'm pushing everywhere I go for support."

Both countries have conservative banking systems and as such will not see as much of a downturn as other nations. Panama’s growth rate was 11.4% in 2007 and will likely end 2008 at 9%. As Canada loses exports to the United States’ recession ridden economy it is looking for other trading partners. Likewise much of Panama’s business is related to trade passing to or from the USA. Thus Panama is also looking to expand its trading and business base. A free trade deal would seem to be a good fit for both countries.

In addition to expanding trade between the countries an agreement between Canada and Panama could make travel easier for citizens of the two countries. Students may find visas easier to obtain for study in one country or the other. For Canada an advantage of a free trade deal with Panama is Panama’s “connectivity” according to Ms. Vasquez. Panama connects two oceans and two continents. Panama’s ports, air transport system and the Panama Canal provide Canada’s products with excellent access to Latin American markets.

According to Ms. Vasquez, “the one-on-one [free trade] negotiations [between Canada and Panama] are simpler. Other such negotiations between Canada and South and Central America involve several countries.”

The next round of talks is scheduled to take place in Panama in December.