The purpose of this note is to inform you that, on past December 6th, Panama formalized its entry as an Associated State to the Southern Common Market (“MERCOSUR“). Consolidating itself as a strategic bridge for trade in Latin America. This economic bloc, the most relevant in the region, is also the fifth largest economy in the world.
This important step opens a new stage of commercial and logistic integration for the region, positioning on, positiouiug Panama as a strategic bridge for trade in LATAM and, consequently, in Mexico.
Among the benefits to which Panama will have access as a new Associated State, are the participation in bilateral trade agreements and key economic and logistic integration meetings within MERCOSUR, and others.
Therefore, we consider that Panama’s entrance to MERCOSUR indirectly entails the generation of key benefits for the commercial relationship between Mexico and Panama.
It is worth noting that since April 3rd, 2014, Mexico signed the Free Trade Agreement between the United Mexican States and the Republic of Panama [1], so Mexico, as a strategic partner of Panama, is in a privileged position to capitalize on this link and thus to strengthen regional trade, achieving this by strengthening supply chains and investment, particularly in sectors such as food, manufacturing and logistics.
Ibarra Gallego’s membership in the Panama-Mexico Chamber of Commerce (Camexра), being the first and only Mexican law firm member of it, and our network of associated and correspondent allied law firms in Panama annd Latin America position us as ideal allies to support companies interested in taking advantage of this new trade environment.
Feel free to contact us to discuss how this new legal-commercial landscape could benefit your business and explore strategic opportunities.
[1] https://dof.gob.mx/nota_detalle.php?codigo=5398630&fecha=29/06/2015#gsc.tab=0
