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Weekly Report - 11 August 2016 (WR-16-31)
PANAMA: Relations with Colombia under strain
President Juan Carlos Varela has announced that Foreign Minister Isabel de Saint Malo de Alvarado, the vice president, would be calling a meeting with a delegation from Colombia’s foreign ministry. Varela’s announcement comes amid worsening bilateral relations following a 29 July decree issued by the government led by President Juan Manuel Santos extending a tariff levied on textiles, clothes, and shoes from Panama’s Colón Free Trade Zone (FTZ) until 1 November. Colombia’s move – which came despite a 7 June ruling by the World Trade Organization (WTO) in favour of Panama over the issue – takes place as both countries are under pressure to reach agreements in other areas like fiscal transparency and security.
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