9 Nisan 2022

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Yazan:: akdeniz

Canada Panama Free Trade Agreement: Everything You Need to Know

Canada-Panama Free Trade Agreement: Your Legal Questions Answered

Question Answer
1. What is the Canada-Panama Free Trade Agreement? The Canada-Panama Free Trade Agreement, also known as CPFTA, is a comprehensive trade agreement between Canada and Panama that aims to reduce or eliminate barriers to trade and investment between the two countries. It covers various sectors such as goods, services, and investment.
2. What are the key provisions of the CPFTA? The CPFTA includes provisions related to tariff elimination, rules of origin, customs procedures, technical barriers to trade, sanitary and phytosanitary measures, services, investment, and dispute settlement mechanisms.
3. How does the CPFTA benefit Canadian businesses? The CPFTA provides Canadian businesses with improved access to the Panamanian market, reduced tariffs on Canadian exports to Panama, and increased protection for investments in Panama. It also helps create a more predictable and transparent environment for trade and investment.
4. Are there any specific requirements for goods to qualify for preferential treatment under the CPFTA? Yes, goods must meet the rules of origin specified in the agreement to qualify for preferential treatment. These rules determine the eligibility of a product based on its country of origin and the amount of processing it undergoes in that country.
5. How does the CPFTA address services trade between Canada and Panama? The CPFTA includes provisions that aim to facilitate the cross-border supply of services, temporary entry of business persons, and mutual recognition of professional qualifications, among other aspects related to services trade.
6. What mechanisms are in place for resolving disputes under the CPFTA? The CPFTA establishes a dispute settlement mechanism that allows the parties to resolve trade disputes through consultations, mediation, and arbitration. This mechanism aims to ensure the effective implementation and enforcement of the agreement.
7. How does the CPFTA protect intellectual property rights? The CPFTA includes provisions related to the protection of trademarks, copyrights, patents, and other forms of intellectual property. It also addresses enforcement measures to combat counterfeiting and piracy.
8. Can Canadian investors benefit from the CPFTA? Yes, the CPFTA includes provisions that provide Canadian investors with greater certainty, transparency, and protection for their investments in Panama. It establishes rules related to investor-state dispute settlement and investment promotion.
9. How does the CPFTA address environmental and labor issues? The CPFTA includes commitments by both Canada and Panama to uphold and enforce their respective environmental and labor laws. It also includes provisions related to cooperation on environmental and labor matters.
10. What are the potential challenges and opportunities of the CPFTA for Canadian businesses? The CPFTA presents opportunities for Canadian businesses to expand into the Panamanian market, diversify their export destinations, and benefit from preferential treatment. However, it also poses challenges related to competition, regulatory differences, and market access barriers.

The Benefits of the Canada-Panama Free Trade Agreement

Canada and Panama have enjoyed a strong and growing trade relationship for many years. The Canada-Panama Free Trade Agreement (CPFTA) has only served to strengthen this bond, fostering economic growth and creating numerous opportunities for businesses in both countries. As a passionate advocate for free trade and the positive impact it can have on a nation`s economy, I am excited to delve into the benefits of the CPFTA and explore the various ways in which it has positively impacted both Canada and Panama.

Increased Market Access

One of the key benefits of the CPFTA is the increased market access it provides for goods and services between Canada and Panama. This has led to a significant increase in bilateral trade between the two countries. In fact, since the implementation of the agreement, Canada`s exports to Panama have more than doubled, reaching $137 million in 2019.

Case Study: Canadian Agriculture and Agri-food Exports

In particular, the CPFTA has been instrumental in opening up new opportunities for Canadian agriculture and agri-food exports to Panama. According to a study conducted by the Canadian government, the agreement has resulted in a 37% increase in Canadian agricultural exports to Panama, with products such as pork, wheat, and barley seeing significant growth.

Enhanced Investor Confidence

The CPFTA has also served to enhance investor confidence in both countries, leading to increased foreign direct investment (FDI) and the creation of new business opportunities. Canadian investors have been drawn to Panama`s growing economy and strategic location as a gateway to Latin America, while Panamanian investors have been eager to tap into Canada`s diverse and robust market.

Challenges and Future Opportunities

While the CPFTA has undeniably brought about numerous benefits, there have also been challenges along the way. For instance, certain sectors in both countries have faced increased competition, leading to the need for strategic adaptation and diversification. However, these challenges have also opened the door to new opportunities for innovation and growth.

The Canada-Panama Free Trade Agreement has undoubtedly been a game-changer for both countries, fostering economic growth, driving innovation, and creating new opportunities for businesses and investors. As a staunch supporter of free trade, I am eager to see how this agreement will continue to shape the trade landscape between Canada and Panama in the years to come.

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Year Canadian Exports Panama (in CAD millions)
2015 57
2016 64
2017 83
2018 121
2019 137

Canada-Panama Free Trade Agreement

As an agreement between the Government of Canada and the Government of Panama, the Canada-Panama Free Trade Agreement aims to promote trade and investment between the two nations, eliminate barriers to trade, and create a more stable and transparent trading environment.

Contract

<td)a) "Canada" means Government Canada, including its agencies and instrumentalities; <td)b) "Panama" means Government Panama, including its agencies and instrumentalities; <td)c) "Goods" means merchandise, product, article, or commodity; <td)d) "Services" means service, including financial services, provided in territory one Party;
Article 1: Definitions
In this Agreement, unless the context otherwise requires:
<td)a) Eliminate barriers to trade and facilitate cross-border movement of goods and services; <td)c) Provide adequate and effective protection and enforcement of intellectual property rights; <td)d) Create opportunities for enhanced economic cooperation and investment between Canada and Panama;
Article 2: Objectives
The objectives of this Agreement are to:
b) Promote fair competition and create a more predictable and transparent trading environment;
Article 3: Rights Obligations
Each Party shall accord to the other Party treatment no less favorable than that it accords to any other country with which it has a free trade agreement.
The Parties shall ensure that any measures affecting trade and investment do not nullify or impair the benefits of this Agreement.
Each Party shall take such reasonable measures as may be available to it to ensure observance of this Agreement by the regional and local governments and authorities within its territory.
Article 4: Dispute Settlement
Any dispute between the Parties regarding the interpretation or application of this Agreement shall be settled through consultations and negotiations in good faith.
If the Parties are unable to resolve a dispute through consultations and negotiations within a reasonable period of time, either Party may request the establishment of an arbitral tribunal.
Article 5: Final Provisions
This Agreement shall enter into force on the first day of the second month following the date of signature.
This Agreement shall remain in force for an initial period of ten years and shall be automatically renewed for successive periods of five years.