Singapore and Panama hope to sign FTA later this year
Channel News Asia, Singapore
Singapore and Panama hope to sign FTA later this year
By Michael Lim, Channel NewsAsia
8 April 2005
Singapore and Panama have successfully concluded negotiations for a free trade agreement which both countries hope to sign later this year.
This will be Singapore’s seventh free trade pact and it signals a new era in bilateral cooperation.
A team led by Panama’s Minister for Commerce and Industry Alejandro Ferrer is currently in Singapore to attract investment.
It is planning a new US$600 million megaport project which it believes will be of interest to port operator PSA.
Mr Ferrer said: "We are going to establish a megaport project in the Pacific of Panama and we will be delighted to have PSA a part of that endeavour."
Trade and Industry Minister Lim Hng Kiang also believes there are opportunities to explore in that sector.
He said: "There is a lot of scope for further collaboration. Panama being an important maritime link is also building up its port facilities. And I think here PSA will be in very good position to compete for port operations in Panama."
PSA told Channel NewsAsia it was honoured by the invitation from the Panamanian government to participate in the project.
Panama is also keen to attract investment in maritime-related businesses like shipyards and ship repair facilities.
And the Latin American country wants to open up its telecoms sector.
And in this case, it is making an exception to allow investment from Singapore companies in which the government has equity stakes.
Mr Alejandro Ferrer said: "We understand that in the case of Singapore, there could be companies interested in investing in telecom...We have made for the first time an exemption through our policy because we would like this to be a comprehensive alliance."
Both countries hope to sign the free trade agreement by the end of the year.
Under the pact, 70 percent of Singapore’s goods entering Panama will be tariff-free immediately and that will increase to 98 percent in 5 years. - CNA
