U.S. Chamber of Commerce
Learn Reality Check
Explore Faces of Trade

Panama


In December 2006, the U.S. and Panamanian governments announced they had completed negotiations on a Trade Promotion Agreement "with the understanding that it is subject to further discussions regarding labor," according to the Office of the U.S. Trade Representative.

The agreement between the United States and Panama will expand trade between the two countries, eliminate tariffs and other barriers to goods and services, and promote economic growth. This year the Panamanian government will start taking bids on the largest public works project since the Three Gorges Dam in China--the expansion of the Panama Canal--a project with the impressive estimated cost of $5.25 billion. The investor protections and procurement provisions in the TPA give American companies an advantage over foreign competitors and will put them on equal ground with Panamanian companies on this project which is slated to begin in 2008 and finish in 2014.

United States Trade Representative, Ambassador Susan Schwab has commented that: "This historic agreement between two good friends and close partners will promote economic growth and development in both of our countries. Panama is an important ally in the region. We are pleased to be able to advance our long-standing friendship and deepen our trading relations with Panama." She continued on to say, "This comprehensive agreement significantly cuts trade barriers and expands opportunities for American workers, consumers, farmers and ranchers, manufacturers, and service providers."

Under the Panama TPA, 88% of U.S. consumer and industrial products and more than half of current U.S. farm exports will enter Panama duty-free immediately. The agreement will also strengthen intellectual property and investor protections, open services markets, and enhance transparency in government procurement.

Ambassador Schwab added: "The free trade agreement announced today expands an already vibrant trade and investment relationship, and is another important milestone in President Bush's strategy of building strategic ties in the Western Hemisphere. The agreement will provide new economic opportunities for U.S. exporters, including significant opportunities to participate in the $5.25 billion expansion plan for the Panama Canal."

For more information about the Chamber's regional initiatives, please contact Kathleen McInerney at kmcinerney@uschamber.com.


View "Free Trade with Panama: A Brief Summary of the Agreement", released by the Office of the United States Trade Representative in December, 2006.

For a more in-depth presentation of the agreement, view "Free Trade with Panama, A Summary of the Agreement", released by the Office of the United States Trade Representative in January, 2007.

Panama


About the U.S.-PanamaTrade Promotion Agreement

Trade Statistics Country Information