US –Panama Free Trade Agreement

In the past few decades, the United States has been growing in its trade relationships on an international scale and Panama is its latest free trade partner. Beginning in November 2012, the United States and Panama will have a Free Trade Agreement called the U.S.-Panama Trade Promotion Agreement that will allow for a higher level of trade between the two nations. This agreement has been in the works for years under the Bush administration, and was ultimately passed in the Unites States about a year ago. It has finally been approved by Panamanian President Martinelli as well and he should be signing it into Panamanian law any day now. From the outside, people may be wondering why we would need such a partner in trade in that part of the world but the truth is that Panama is one of the fastest growing countries in Central America. According to current research it could prove to be invaluable to the market growth of the Unites States. The only way to accomplish this though is through a free trade agreement that can expand international trade and remove unnecessary barriers such as high tariffs between the two nations. The United States expects this long awaited agreement to solidify the once shaky relationship that had been rough centering around the Panama Canal and international freight shipping. The agreement is set to go into effect this November and both the United States and Panama have high hopes that it will enhance the economies of both sides.