This week thee North American Trade Agreement between Mexico and Panama became effective.
According to Mexican authorities, this is a significant step in the economic relationship between the two countries, as Panama by far is the most dynamic economy in the region and has been so for the past decade (average annual growth of GDP is 9.1%).
FTA agreement between Panama and Mexico will establish the commercial way through the continent and both countries will convert into centers of production and distribution of products and services for both American continents and global market.
During the past decade, trade between both countries nearly doubled. Right now Panama is the forth biggest trade partner for Mexico in Central America and twelfth in Latin America and Caribbean. In 2014 Panama and Mexico added $1.009 million to the trade volume.
Moreover, Panama is the second largest Latin American investor in Mexico after Brazil. Total of $1,035 million dollars were invested by Panama into Mexico between 1999 and 2014 .
Besides, with Mexico as a trade partner, Panama is getting closer to joining the Pacific Alliance, a regional initiative created in 2011, which joined by Chile, Colombia, Mexico and Peru. At the moment all four nations have a free exchange of goods, services, capital and employment to boost development. Together they take up almost 40% of Latin America’s GDP.
