Panama-U.S. Tax Accord Highlights Panama's Growing Economy, Paves Way for Free-Trade Pact
WASHINGTON, Nov. 30, 2010 /PRNewswire-USNewswire/ -- The President of Panama Ricardo Martinelli released the following statement today after the United States and Panama signed a Tax Information Exchange Agreement (TIEA), clearing the way for approval of the pending free-trade agreement.
"This new treaty with the United States reconfirms Panama's status as one of the leading markets in the world for foreign investment and financial services.
"Over the last year, Panama has signed double taxation treaties and agreements with many countries, including: Mexico, Barbados, Portugal, Italy, Spain, France and Luxembourg. We have also completed similar negotiations with many more European and Asian countries as part of our National Strategy for the Promotion of International and Financial Services. These agreements demonstrate that the Panamanian economy is one of the most competitive in Latin America and is becoming a destination for international investment, in part due to its world-class financial sector.
"In the past year, the Republic of Panama has been upgraded to investment grade, a claim that only five Latin American countries can make, by Moody's, Standard & Poor and Fitch – the world's most influential and respected ratings agencies. And, Panama was just ranked as the 53rd most competitive economy in the world by the Global Competitiveness Report, up from 59th in last year's report.
"This new tax accord moves us closer to final approval of a trade agreement between our countries that is vital to our economies – especially at a time when the United States is trying to increase exports. The free-trade agreement we negotiated, and which Panama has approved, would make over 88 percent of U.S. consumer and industrial exports to Panama duty-free immediately, with the remaining tariffs phased out over 10 years.
"The Republic of Panama looks forward to working with the Obama Administration and Congress to secure final approval of our free-trade agreement to promote growth and development between our nations and expand opportunities for Panamanian and American workers."
Contact: Chad Kolton or Terry Holt* 1-202-789-4365
*HDMK partners Terry Holt & Chad Kolton are U.S. registered agents of the Republic of Panama.
SOURCE HDMK
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