Industry News

Panama FTA to Take Effect October 31st

October 22, 2012

On October 22, 2012, United States Trade Representative Ron Kirk and Ricardo Quijano, Panama’s Minister of Commerce and Industry, exchanged letters setting October 31, 2012, as the date for the United States - Panama Trade Promotion Agreement to enter into force. President Obama signed the U.S.- Panama Trade Promotion Agreement Implementing Act on October 21, 2011. According to the USTR, more than 86 percent of U.S. exports of consumer and industrial products and nearly half of agricultural commodities exported from the United States to Panama will become duty-free immediately upon entry into force. Wheat, barley, soybeans, high-quality beef, bacon, and almost all fruit and vegetable products will become duty free on October 31st, with most of the remaining agricultural tariffs to be phased out over the next 15 years. Consumer and industrial products gaining duty-free access to Panama on October 31st include information technology equipment, agricultural and construction equipment, aircraft and parts, medical and scientific equipment, environmental products, pharmaceuticals, and fertilizers. The Trade Promotion Agreement also provides access to Panama’s $20.6 billion services market.

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