MercoPress. South Atlantic News Agency

Panama becomes Mercosur associate State

Mulino signed the agreement on behalf of Panama

Panamian President José Raúl Mulino Friday signed his country's accession to the Southern Common Market as an associate State during the bloc's 65th Leaders Summit in Montevideo, on the sidelines of which the finalization of the Free Trade Agreement (FTA) with the European Union (EU) was also announced.

 Other associate states of Mercosur are Chile, Peru, Colombia, Ecuador, Guyana. and Suriname.

Bolivia used to rank among them but became a full member earlier this year, thus joining Argentina, Brazil, Paraguay, and Uruguay. Venezuela used to be a full member but was suspended given its undemocratic government.

At any rate, Panama became the first country outside South America to join the alliance after Brazil sponsored the move.

According to a note from Palacio de las Garzas (headquarters of the Panamanian Executive), the status of Mercosur Associate State will allow Panama to have a cooperative relationship by accessing certain benefits of the bloc, without fully adhering to the bloc's founding Treaty of Asunción, with mutual opportunities already spotted, according to that report.

In 2023, Panama's trade with Mercosur was worth US$ 530.3 million, a 0.3% increase from the previous year. Panamian exports totaled US$ 7.8 million, with Brazil buying 92.5%, Argentina 3.7%, Uruguay 3.1%, and Paraguay 0.7%. These exports consisted chiefly of industrial products, decaffeinated coffee, candy, cocoa beans, cocoa powder, cookies, undeveined tobacco, and fresh or frozen fish.

On the other hand, Mercosur exported products to Panama for revenues of up to US$ 522.4 million: 57.5% from Brazil; 28% from Argentina; 14.4% from Uruguay; and 0.1% from Paraguay; mainly of agricultural products such as paddy rice; yellow corn; refined soybean oil; gold coffee; corn starch; and wine, as well as shrimp; squid and hake, plus vehicles, acid oils, ceramics; wooden furniture, and medicines.