Panama and Costa Rica have made progress on their Free Trade Agreement (FTA) negotiations despite various disagreements, the Panamanian Trade and Industry Ministry said on Thursday.

A meeting earlier this week between the two countries enabled them to exchange information, review issues and discuss future steps and economic activities, said the ministry.

Both countries' delegations reviewed market access and reached an agreement on 50 percent of tariff lines.

Among products examined were coffee, tea, fuels, medicine, rubber, manufactured products, leather, furs, machinery, mechanical equipment, precision instruments and antiques.

The delegations will exchange information in May on services and investment and on the government purchases annex.

Panama and Costa Rica discussed again the FTA after a long pause due to disagreements on financial services and dairy products. Both sides reviewed the few agreements reached up to 2002.

The two countries agreed that after exchanging associated documents, the date of the next meeting must be established, possibly for June.

Panama said it was confident that Costa Rica would accept the negotiation on opening financial services and telecommunications, both of which are state-owned. Costa Rica hopes that Panama will open its dairy products and pig sausage markets.

Panama's poultry sector has also shown interest in Costa Rica's opening of its processed products market.

Trade in onions appears to be one of the most sensitive issues that paralyzed previous negotiations.

El Salvador is the only Central American country with which Panama has reached a free trade agreement. In addition to Costa Rica, Panama is negotiating similar agreements with Honduras, Guatemala and Nicaragua.

Last year, Panama's exports to Costa Rica reached nearly 38.75 million U.S. dollars and Costa Rica's exports reached 194.6 million dollars, said the Trade and Industry Ministry. Costa Rica is Panama's largest trade partner.

Source: Xinhua