November 7, 2006. Panama is to become Argentina's replacement on the UN Security Council after Latin American and Caribbean Group (GRULAC) of the UN Security Council delayed as far as some English-speaking Caribbean members were reportedly upset about not being adequately involved in this process.
Neither Guatemala nor Venezuela, both of which had been fighting over the seat for weeks, gained the requisite two-thirds majority despite 47 rounds of voting. To remind, Guatemala was backed by the USA and Venezuela was backed by some non-aligned states.
On November 1, 2006, Guatemala and Venezuela decided to withdraw in favour of Panama but GRULAC did not give in November 9. Panama will take its seat on January 1, 2007 for 2 years, along with 4 other non-permanent members of the Security Council - Belgium, Italy, Indonesia and South Africa.
It is worth mentioning that Panama was chosen because it was a country with which both countries had close ties. The fact that Panama will replace Argentina shows how far it has come on the economic front.
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September 8, 2006. At a meeting of Panama's President, Martin Torrijos and Executive President of the Central American Bank for Economic Integration (CABEI), Harry Brautigam, the parties agreed that by the end of 2006 Panama will become an 'extra-regional' partner of CABEI.
Having this status, Panama will be able to access funding of about USD 60 million that can assist it in improvement of living standards as well as be used in certain defined infrastructure projects such as the widening of the Panama Canal and generation of alternative energy.
The Central American Bank for Economic Integration was founded in 1960 by Guatemala, El Salvador, Costa Rica and Nicaragua to promote and integrate regional economic and social integration. Other extra-regional partners are China, Mexico, Spain, Argentina and Colombia. Belize and the Dominican Republic are also in the process of joining. CABEI has been operating for 43 years, contributing to the transformation of Central America into a dynamic region.
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June 28, 2006. Chile and Panama signed the free trade agreement reached last February. The finalized agreement opens up 92.5% of the Chilean economy to Panamanian producers. The process of negotiation has lasted 10-year, it was interrupted between 1998 and 2004 due to differences in financial services.
Panama's Minister of Commerce and Industry, Alejandro Ferrer, informed that most Panamanian products will enjoy a zero tariff when entering Chile's market.
Chile is Latin America's heaviest user of the Panama Canal as 50% of its external trade relies on the thoroughfare. Last year, exports from Chile to Panama reached USD 111.5 million. As to imports from Panama to Chile, they amounted USD 10.8 million.
This agreement is the fourth for Panama - previously, it has reached free trade deals with Singapore, El Salvador and Taiwan.
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