The Panama-Korea Free Trade Agreement (FTA) is a comprehensive trade agreement that was signed between the Republic of Panama and the Republic of Korea on July 14, 2018. The agreement aims to promote and deepen economic ties between the two countries, and it covers a wide range of areas, including trade in goods and services, investment, intellectual property rights, and e-commerce.
One of the main benefits of the Panama-Korea FTA is that it eliminates tariffs on a large number of goods traded between the two countries. This means that Panamanian exporters can now access the Korean market more easily and at a lower cost, while Korean exporters can also benefit from increased access to the Panamanian market. The FTA also provides for a gradual reduction of tariffs on certain sensitive products, allowing for a more gradual adjustment to the new trading environment.
The Panama-Korea FTA also includes provisions on investment, which aim to provide greater certainty and protection for investors from both countries. The agreement establishes a framework for the protection of intellectual property rights, which is an important issue for businesses that rely on patents, trademarks, and copyrights to protect their products and services.
Another key aspect of the Panama-Korea FTA is its provisions on e-commerce. The agreement recognizes the importance of electronic commerce in modern trade and includes provisions that aim to facilitate cross-border e-commerce transactions between the two countries. This is particularly important given the increasing use of online marketplaces and digital platforms for international trade.
Overall, the Panama-Korea FTA represents a significant step forward in the economic relationship between these two countries. The agreement is expected to boost trade and investment flows between Panama and Korea, and to create new opportunities for businesses in both countries. As such, it is likely to have a positive impact on economic growth and development in both Panama and Korea in the years to come.