Singapore's Prime Minister Lee Hsien Loong and visiting Panamanian Second Vice-President Ruben Arosemena Valdes expressed their optimism about the outcome of the Panama-Singapore Free Trade Agreement (FTA) during their meeting on Thursday.

According to the comments by Lee's press secretary issued by the Prime Minister's Office, the two leaders agreed that the conclusion of the agreement will "lead to closer bilateral cooperation in economic and other areas."

Arosemena also briefed Lee on the progress of the United States- Panama FTA, the Panama Canal Expansion and Megaport projects during their meeting.

Arosemena arrived in Singapore on Tuesday for a three-day official visit to the city state.

Signed on Wednesday, the comprehensive Panama-Singapore FTA will eliminate tariffs on 98 percent of Singapore's domestic export and all Panamanian goods upon entry into effect.

It will also provide companies from the two countries with enhanced access to each other's markets and boost the growing bilateral trade and investment links.

In 2005, the trade volume between Singapore and Panama hit 1.96 billion U.S. dollars, making Panama Singapore's largest trading partner in Latin America. Singapore was Panama's sixth largest trading partner in 2004.

Source: Xinhua