TAIPEI, Aug 9: Taiwan and Panama are due to sign a formal free trade agreement (FTA) later this month after concluding the final round of talks, Taiwan’s economics minister Lin Yi-fu said on Friday.

The FTA will be the first signed by Taiwan after 10 months of negotiations.

“(The) agreement that contains chapters covering specific issues, such as market access, services and investment, telecommunications, intellectual property rights, competition policy, dispute settlement, which are WTO (World Trade Organization) consistent,” Lin said.

Taiwan President Chen Shui-bian and Panama President Mireya Moscoso will sign the agreement on August 21 when the Panamanian leader visits Taipei to attend a summit between Taiwan and Central American countries.

The FTA is expected to benefit Taiwan’s exports of industrial products with preferential tariffs, while Panama is set to take advantage of the agreement to sell its agricultural products to the island.

In 2002, Taiwan’s exports to Panama totalled US$127 million and its imports from Panama were valued at US$4.81 million.

Taiwan entered the WTO under a name of customs territory in January 2002 due to political pressure from China.

Under the WTO framework, Taiwan is seeking bilateral trade agreements with its major trading partners or the countries, like Panama, which have diplomatic ties with the island.—AFP