OTTAWA — Canada signed a free trade deal with the small Central American economy of Panama on Friday, continuing the country's trade liberalizing efforts in the hemisphere.

Trade Minister Peter Van Loan said the deal will give Canadian businesses opportunities in construction, education, manufacturing, logistics, human resources, distribution, energy and tourism.

"This agreement will eliminate tariffs on a range of Canadian products and provide better access for Canadian services providers to Panama's market," he said.

"It will also secure market access in the area of government procurement, opening more doors for Canadian businesses looking to participate in the Panama Canal expansion and other infrastructure projects."

Van Loan noted that as part of the agreement, the two countries are also signing to side deals on labour rights and environmental protection.

According to the government, Canadian merchandise exports to Panama totalled $88 million in 2009, a 52 per cent increase since 2005.

Under the Conservative government, Canada has stepped up trade negotiations with Latin American, including deals with Colombia and Peru, and on-going talks with El Salvador, Guatemala, Honduras and Nicaragua.