December 11, 2008
No. 240
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, yesterday concluded a successful two-day visit to Panama City, Panama. The main purpose of the visit was to attend a ministerial meeting of the Pathways to Prosperity in the Americas initiative and to meet with his counterparts from the region in order to develop trade opportunities for Canadian business.
"In this period of global economic uncertainty, it is important to keep markets open, resist protectionist pressures, engage trading partners and provide opportunities for Canadian businesses to prosper both at home and in international markets," said Minister Day. "Canada recognizes Panama's importance as a dynamic, open economy and as a gateway to Latin America and the Caribbean. The meetings I had here allowed me to reinforce Canada's commitment to build stronger commercial relations in the region."
Following the Pathways to Prosperity in the Americas meeting, ministers agreed to a plan of action identifying key activities to be undertaken by all participating countries to advance the common objectives of trade and investment liberalization, development, rule of law and democracy. The meeting reinforced the messages that Prime Minister Stephen Harper and other leaders made at recent meetings of the G8, G20 and APEC on the need to keep markets open and commerce flowing, and to resist protectionism.
On the margins of the Pathways to Prosperity meeting, Minister Day met with U.S. Secretary of State Condoleezza Rice. They expressed their shared commitment in support of efforts to promote economic growth, democracy and greater opportunity in the hemisphere.
During his visit, Minister Day also met with Panamanian President Martín Torrijos, Foreign Minister Samuel Lewis Navarro and Minister for International Trade Gisela de Porras. He noted the excellent progress to date on negotiations with Panama on a free trade agreement that will include goods and services, as well as chapters on labour standards and the environment. They agreed to make every effort to ensure an expedient conclusion of negotiations for the benefit of both countries. Having met earlier with Canadian companies active in the country, Minister Day reported that they had expressed strong confidence in growing investment and trade with Panama.
Minister Day also witnessed the signing of a financing agreement for the Panama Canal expansion project, which is planned for completion in 2014. This is good news for exporters in Canada and throughout the hemisphere. This $5.3-billion project will provide new opportunities for Canadian companies to bid on engineering, building materials and construction contracts.
"The Panama Canal is nothing short of an economic engine, bringing business to-and through-Latin America. It's also a critical pillar of the Colón Free Trade Zone-a global trans-shipment hub that generates import and export activity worth billions each year," said Minister Day. "That, and other Panamanian infrastructure development projects relating to ports, roads, bridges and airports, will provide excellent business opportunities for Canadian firms."
While in Panama, Minister Day also helped move bilateral trade negotiations forward in Central America through productive one-on-one meetings with El Salvador's Minister of Economy, Ricardo Esmahan D'Aubuisson, Guatemala's Minister of Economy, Rómulo Alfredo Caballeros Otero, Honduran Minister of Industry and Trade, Fredis Alonso Cerrato, and Nicaraguan Investment Minister, Álvaro Baltodano. Each expressed their interest in advancing negotiations of a joint free trade agreement (Central America 4 Free Trade Agreement).
"We have made some excellent progress here in the Americas in recent years. From construction and tourism, to services, education and manufacturing, to energy and the ongoing development of the Panama Canal, we see a number of great opportunities to grow our relationship in the future. We believe that our response to the economic crisis should include a firm commitment to ongoing trade and investment with open, trade-oriented partners that share Canada's commitment to democracy, human rights and the rule of law. From the perspective of those key objectives, I can say that this visit was very successful," concluded Minister Day.
For more information on commercial relations with Panama, please visit: www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/panama/index.aspx?menu_id=15&menu=L#glance.
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For further information, media representatives may contact:
Mélisa Leclerc
Director of Communications
Office of the Minister of International Trade and Minister for the Asia-Pacific Gateway
613-992-6186
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
www.international.gc.ca/index.aspx
Backgrounder
Facts on current trade and investment with Panama
Canadian non-agricultural exports to Panama, 2007: $62.9 million, including pharmaceutical products, machinery, electrical machinery, vehicles, iron and steel products, paper and paperboard, and aircraft and spacecraft.
Canadian agricultural exports to Panama, 2007: $23.4 million, including milling malt and starch (mostly malt), dry shelled pulses (e.g. lentils, peas, and beans), meat, and preserved food (including frozen potatoes).
Canadian non-agricultural imports from Panama, 2007: $23.0 million, including mineral fuels and oils (including aviation fuel), fish and seafood, wood (mainly flooring), and glass and glassware (including containers for packing).
Canadian agricultural imports from Panama, 2007: $5.6 million, including edible fruit and nuts (including fresh and dried bananas), fresh melons and papayas, spices, and tea and coffee (mainly coffee).
Canadian direct investment in Panama, 2006: $111 million.
Foreign Direct investment in Canada from Panama, 2007: $80 million.
Two-way commercial services trade with Panama, 2006: $13.4 million.
