China and Panama will begin negotiations on a free trade agreement in the first half of July, the Central American country's Commerce Minister Augusto Arosemena said Tuesday.
"The first round of negotiations will be in the month of July in Panama and then it will take the number of rounds it takes to negotiate an accord that is beneficial for both countries," Arosemena told journalists.
Panama switched diplomatic ties from Taiwan to China last year.
Since then, both countries have signed a score of cooperation agreements on economic, commercial, migration, customs and education.
Panama is eyeing potential exports of coffee, fruit, cocao and seafood to the world's largest market.
The minister said he was confident "of making a negotiation that is win-win with the People's Republic of China which will allow us to open the market and receive foreign investment."
Exports to China have already grown 10 percent in the first quarter this year compared to last year, he said.
