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Representatives of China and Panama will formally begin talks in June to establish a free-trade treaty, which will dramatically expand the commercial ties between the two countries.

“China is willing to stimulate its companies to actively participate in the construction of infrastructure in Panama, including ports, that would be based on mutual interest,” China trade minister Zhong Shan said at a press conference.

The announcement as the latest sign that the Panama government is not wasting any time in taking full advantage of the new relationship with China, which was launched last June. Pres. Juan Carlos Varela signed 19 different deals with China during his recent visit, and they clearly represented more than a simple photo opportunity.

The new deals included plans to study development a northern railway from Panama City, new flights from China to Panama and formally listing Panama as an approved destination for Chinese tourists.

Establishment of free trade zones would be a major step, opening up Panama to a flow of Chinese goods and industries. A deal would make it much easier for China to formally use Panama as its Central American base, which will lead to more businesses setting up operations in Panama—and creating more buyers and renters for the Panama City property market.

No details have emerged yet in the focus of the free trade zones. Typically, free trade zones offer a variety of benefits, including lower taxes and duties, and reduced paperwork for companies.

At the press conference, Zhong said both countries have agreed to promote the establishment of Chinese companies’ regional headquarters in Panama and utilize the existing Colon Free Trade Zone, the largest in the Americas, to enter the Latin American market.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.