The trip follows a North American summit dubbed ‘The Three Amigos, where Harper met with American President Barack Obama, and Mexican President Philipe Calderon. The three leaders discussed many issues including trade, and the collective response to H1N1 (swine flu).
Panama Ends Ban On Canadian Beef, Opens Agriculture Trade
The agreement will benefit the Panamanian economy, viewed as one of the more lucrative in the world. As part of the trade agreement Panama will end its ban on Canadian beef. The ban was in place for six years, and triggered by an outbreak of mad cow disease in 2003.
In exchange for lifting it, Canada will immediately end tariffs on 90% of goods exported to Panama, a move affecting everything from the agriculture, to machinery such as a flight simulator. The deal is expected to help Panama’s agriculture industry. Panama’s President views it as a positive development for his country. In comments published by Reuters President Ricardo Martinelli applauded Canadian economic stability: “For the people of Panama this free trade agreement is an alliance with one of the biggest and most stable economies in the world.”
Canadian trade with Panama as of 2008 was $149 million Canadian.
Canadian Government Diversifies Trading Partners
Canada’s major trading partner has been the United States of America (USA). Because of the "Buy American" initiative, the Canadian government is seeking new trading markets in the Americas to offset Canada’s dependence on the US economy. At the Three Amigos summit, President Obama indicated his administration was willing to make exceptions for Canada. Talks are progressing slowly according to Canadian officials.
At a press conference in Panama, Prime Minister Stephen Harper in comments published by the Globe & Mail criticized President Obama for slowing down the process. “If you don’t mind my saying so, as much as I try and encourage the United States, and our other allies to remain committed to open markets and oppose protectionism we see some slowing down of the trade initiatives from that country.” He continued his comments, saying the deal was a chance for Canada to get out ahead and continue liberalizing trade.
The deal still needs Parliamentary approval in Canada. It’s the fifth deal Harper’s government has signed since they came to power in 2003. Those deals include a recent deal with Jordan, as well as trade agreements with a four-member European free trade association; a four member group representing: Norway, Switzerland, Liechtenstein and Iceland, separate from the European Union.
In the Americas, trade deals have been struck with Peru, and Columbia. Canadian Parliament hasn't yet approved the agreement with Columbia, citing concerns over human rights, and labour. Harper recently visited the Czech Republic to begin talks on a free trade deal with the European Union.
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