During the first half of 2011, $16.2 million worth of Panamanian products were exported to Taiwan (merchandise placed in port FOB) and $21.7 million (cost, insurance and freight or CIF) of goods were imported from the Asian country according to the latest figures from the Controller's Office.
In 2010, Panama exported $43 million in various goods to the Asian island, while Taiwanese investment, mainly in the service sector amounted to $165 million.
Why is the exchange so low?
"The Panamanian Association of Exporters (Apex) estimates that cultural barriers and differing consumer tastes are making trade difficult. These factors increase costs for local exporters, because they have to produce labels in another language and specifications in line with the consumer", reported Presna.com.
Fernando Jimenez, vice president of Apex, said the union says they have not been able to "feel a strong impact" as a result of the agreement. Meanwhile, economist Francisco Bustamante said that the agreements are instruments that facilitate trade, "but do not oblige the parties to buy and sell."
Source: Prensa.com
More on this topic
April 2012
After a 10-year process in 2013 the elimination of tariffs under the FTA signed in 2003 between the two nations will finally be completed.
The complete elimination of tariffs stipulated in the Taiwan-Panama FTA will take effect in 2013, opening the door to new business opportunities between both parties.
July 2010
The signing of the free trade agreement (FTA) between Taiwan and China generates commercial opportunities for Panamanian producers.
The Embassy of Taiwan in Panama saw the news of the agreement as an amazing opportunity for Panama. The country will be able to take advantage of the FTA it has with Taiwan to send its raw materials, which can there be transformed into finished products for subsequent tax-free export to continental China.
June 2008
Panama and Taiwan agreed to broaden the terms of their four-year-old free trade agreement.
Panama was granted an increase to 1,000 metric tons in its quota for smoked pork exports, and there were increases too for sugar, processed chicken, dairy projects, fruits and juices. Taiwan won increases in quotas for manufactured goods, such as plastics, furniture and toys.
July 2010
Panama, among Central American countries, fails to make the most of its 60 million ton tariff-free sugar quota with Taiwan.
The requirement that part of the quota be supplied in a format that is not produced or consumed in Panama could be one of the reasons the country failed to meet its quota.
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