Taiwan-Panama FTA takes effect

Taipei, Jan. 2, 2004 (CENS)--A free trade agreement inked by Taiwan and Panama took effect Jan. 1, said the Bureau of Foreign Trade (BOFT) under the Ministry of Economic Affairs.

With the FTA taking effect, Taiwan's exporters can enjoy exemption of custom duties on 4,181 items of commodities exported to Panama, and the Panama authority will give preferential treatment to Taiwan's marine transport firms in using the seaport facilities. The FTA will help domestic marine transport companies develop American and global shipping markets by way of the Panama Canal.

The first free trade agreement Taiwan has ever signed with foreign nations, the Taiwan-Panama FTA calls for immediate scrapping of custom duties on some export items of both sides after it takes effect, with those on the other items to be scrapped within five to 10 years.

Beginning from Jan. 1, Taiwan has exempted custom duties on 6,187 products imported from Panama. It is expected that 97% of Panama products will be allowed to enter Taiwan free of duty 10 years after the FTA takes effects; vice versa, Taiwan will see 95% of Panama-bound products, or 4,181 items, enjoy exemption of custom duty.

According to a survey made by the BOFT, at present more than 800 items of Taiwan-made products boast competitive edge in Panama, including textiles, printing and dying fabrics, lathes, printed circuit boards, monitors, automobile and motorcycle parts,

Thanks to the FTA taking effect, BOFT singled out some industries that are worth investment in Panama, including apparel, electronics, home appliances, furniture, food processing, toy, shoes, agriculture and fishing processed products, assembling, tourism, financial, and logistics.

BOFT said domestic firms can apply for the Panama preferential custom duties with such government units as the Science-Based Industrial Park of the Cabinet-level National Science Council, the Bureau of Standards, Metrology and Inspection under the Ministry of Economic Affairs and its branches, and the Export Processing Zone Administration under the MOEA and its branches.

The application forms for the preferential customs duties can be downloaded at the BOFT Web site: http//www.trade.gov.tw