Banana production in Panama that United Brands would expand its production in Panama because bananas could be produced more cheaply in Costa Rica and Ecuador. The history of banana production in Panama virtually coincides with that of United Brands, which has been in Panama since 1899. The company built railroads, port facilities, and storage areas for the processing and export of bananas. In the 1930s, a disease seriously curtailed banana production. In the 1950s disease resistant plants were developed, and production increased rapidly. In the early 1970s, a "banana war" erupted when banana-producing countries disagreed among themselves and with United Brands about an export
Canada–Panama Free Trade Agreement 99% of its tariffs on goods from Panama. Canada will keep tariffs on some imports of sugar, poultry, eggs and dairy products. Panama will end its ban on beef from Canada which was initiated after cases of mad cow disease were found in Canada in 2003. In 2008, bilateral merchandise trade between Canada and Panama totaled $149.1 million. Trade has increased by 48 percent from 2007. Canada made up $127.9 million of total trade between the two countries, while Panama made up the remaining $21.2 million. Both countries parliament needed to approve the agreement before it could come into force.