The Panama-China Free Trade Agreement (FTA) was signed on June 12, 2018, and went into effect on December 1, of the same year. The agreement provides a framework for the gradual reduction and eventual elimination of tariffs on goods and services traded between the two countries.

The Panama-China FTA is a significant milestone for Panama as it is the first bilateral trade agreement with a country in East Asia. It is also a major step towards enhancing bilateral relations between Panama and China.

Under the agreement, Panama will benefit from a range of tariff reductions on a variety of goods and services. For example, tariffs on Panama`s agricultural exports such as coffee, seafood, and beef will be eliminated over time. Additionally, Panamanian manufacturers will gain access to the Chinese market, giving them new opportunities to sell their goods and services to a vast consumer base.

One key area where the FTA will benefit China is the trade in services. Panama is a leading financial center in Latin America, and the agreement will allow Chinese companies to access the country`s banking, insurance, and other financial services. This will make it easier for Chinese businesses to invest and operate in Panama, and also create new jobs for Panamanians.

The Panama-China FTA also includes provisions to protect intellectual property rights, promote transparency in government procurement, and improve standards for labor and environmental protection. These provisions will help to ensure that trade between the two countries is fair and sustainable.

The agreement has been welcomed by both countries as a significant step towards closer bilateral relations. It is also seen as an important development in the wider context of China`s Belt and Road Initiative, which seeks to promote greater connectivity and trade between China and countries in Asia, Europe, and Africa.

In conclusion, the Panama-China Free Trade Agreement is a milestone achievement for both countries. It is expected to bring significant benefits for Panama`s economy, particularly in the agricultural and financial sectors. At the same time, it will create new opportunities for Chinese businesses to invest and operate in Panama, strengthening bilateral ties between the two countries. As a result, the Panama-China FTA is a welcome development for the global economy and the trading community at large.