Mexico and Panama signedThursday a free-trade agreement aimed at increasing trade beyond the current estimated 1 billion dollars in goods and services exchanged annually by the twocountries, dpa reproted. The liberalisation of trade is important for the economic developmentof both states, Mexican President Enrique Pena Nieto said aftersigning the agreement at the World Economic Forum on Latin America inPanama.The volume of trade between Mexico and Panama amounted to more than 1billion dollars last year.Mexico alreadyhasfreetradeagreements with more than 40 countries.For Panama, the bi-lateral trade deal is regarded as a key step inits effort to become a member of the Pacific Alliance.