Panama’s Groundbreaking Move into Mercosur
In an unprecedented move, Panamanian President José Raúl Mulino signed an agreement during the 65th Leaders Summit in Montevideo, officially making Panama an associate State of the Southern Common Market, Mercosur. This historical decision took place alongside the announcement of the finalization of the Free Trade Agreement (FTA) between Mercosur and the European Union (EU).
Key Points:
1. Associate States of Mercosur: Apart from Panama, other associate states of Mercosur include Chile, Peru, Colombia, Ecuador, Guyana, and Suriname. Bolivia, a former associate state, elevated its status to full membership earlier in the year, joining Argentina, Brazil, Paraguay, and Uruguay. Venezuela, once a full member, faced suspension due to concerns about its undemocratic government.
2. Panama’s Association Benefits: As a Mercosur Associate State, Panama gains access to specific benefits of the bloc without having to fully adhere to the Treaty of Asunción. This cooperative relationship paves the way for mutual opportunities, enhancing trade and collaboration between Panama and Mercosur countries.
In 2023, Panama’s trade with Mercosur amounted to US$ 530.3 million, with exports primarily consisting of industrial products, decaffeinated coffee, candy, cocoa beans, cookies, tobacco, and fish. On the other hand, Mercosur exported agricultural products, seafood, vehicles, furniture, and medicines to Panama, totaling US$ 522.4 million.
Conclusion:
Panama’s decision to join Mercosur as an associate State marks a significant milestone in the country’s economic and diplomatic relations. This move opens up new avenues for trade and cooperation, benefiting both Panama and Mercosur nations. As Panama takes on this new role in the alliance, it sets the stage for continued growth and collaboration in the region.
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