Panama 🇵🇦 marked a historic milestone by becoming an Associate State of MERCOSUR, being the first country outside of South America to achieve this status within the trade bloc made up of Argentina, Brazil, Paraguay, Uruguay and Bolivia.
The official accession took place during the 65th Summit of Heads of State of MERCOSUR on 6 December in Montevideo, Uruguay.
MERCOSUR represents the fifth largest economy in the world with $4.5 trillion in gross domestic product and encompasses more than 271 million inhabitants.
The Association with MERCOSUR gives Panama (& its export companies) access to preferential trade agreements without adhering to the Treaty of Asunción or the Common External Tariff Agreement. This allows it to maintain flexibility in its trade policy.
Moreover, it facilitates collaboration in infrastructure and sustainable development projects and participation in meetings and forums where policies that affect the region are discussed.
In return, Panama offers MERCOSUR access to its logistics platform, the Panama Canal and its free trade zone, boosting international exchange and competitiveness.
💡The EU has a Partnership Agreement with MERCOSUR since 2019. It gives EU exporters of goods and services preferential access to MERCOSUR markets by removing import duties on the majority of goods, as well as eliminating non-tariff barriers and discriminatory tax treatment.