Panama, Taiwan seek to increase economic ties

Sep 17, 2007, 19:15 GMT

Panama City - Panama and Taiwan on Monday proposed a sharp increase in bilateral economic ties in the fields of construction, industry and the exploitation of marine resources in light of a free trade agreement between the two countries.

Panamanian Deputy Minister for Foreign Trade Carmen Gisela Vergara, and the deputy director general of Taiwan's Bureau of Foreign Trade, Wu Hsin-hua, launched a business forum in Panama that would explore joint opportunities.

Vergara said a free trade agreement since 2004 has opened up possibilities for investment in services, ports, airports and the technology sector. She noted that bilateral trade added up to 217.7 million dollars in 2006 and is on the rise.

According to Wu, Taiwan wants a stake in Panama's vibrant construction sector, and Taiwanese firms would be interested in playing a part in the expansion of the Panama Canal.

Wu said Kan Shi-Ying, the designer of the Taipei 101 - the tallest finished building in the world - is due to arrive in Panama later this month to speak at the 20th International Building Industry Fair in Panama City.

Taiwan was interested in Panama's plans to become a regional energy centre, and Wu mentioned the possibility that the two countries may jointly explore biofuels and the use of sea water to generate energy.

According to the trade deal in place since 2004, some 6,200 Panamanian items can enter the Taiwanese market with no tariff, while 4,160 Taiwanese products receive similar treatment in Panama.

The Taiwanese delegation is also set to visit Nicaragua, El Salvador, Honduras and Guatemala. The five countries have signed all signed free-trade agreements with Taipei, which will facilitate Taiwanese goods entering North American markets that Central American countries have also trade deals with.

Taiwan is recognized by 24 countries and half of them are in Latin America and the Caribbean.

Taiwan's deal with Panama and Guatemala is already in effect and the agreement with Nicaragua is expected to become active later this year. The trade deals with Honduras and El Salvador will come into effect in 2008.