During the next ten years Panama will not pay export taxes as well as South Korea, according to the agreement that was signed together with other countries such as Honduras, El Salvador, Nicaragua and Costa Rica. The free trade pact between South Korea and Panama will eliminate approximately 95% of tariffs when exporting its goods between countries.
The Ministry of Commerce and Industry reports that in the export area Panama managed to obtain access to many agricultural and agroindustrial products, coffee, meat, fruits, sugar, among others, which allow this market to reach new destinations.
South Korea can expand its export market for high-tech products, vehicles, domestic appliances, among others.
The South Korean minister wishes for the agreement entered in Seoul with these five countries of Central America to have advantages over other Asian countries. This pact has an effect on the administration of the United States as applies a tariff of 53% on South Korean steel.
The Free Trade Agreement with South Korea will bring a positive effect for Panama which promotes a logistics and service platform, using its geographical position for the distribution of its high-tech products in Latin America.