U.S.-Panama Trade Promotion Agreement
The United States and Panama concluded free trade negotiations of the U.S.-Panama Trade Promotion Agreement (U.S.-Panama TPA) on December 19, 2006 and signed the Agreement on June 28, 2007. This comprehensive trade agreement addresses Congressional concerns about labor, the environment, intellectual property, and other issues as agreed by consensus between the President and the Congress on May 10, 2007. The next step in the process is for the President to send implementing legislation to Congress. Upon Congressional approval, the Agreement will enter into force once Panama has taken the necessary steps to ensure implementation of its obligations.
WHY A U.S.-PANAMA TRADE PROMOTION AGREEMENT?
The U.S.-Panama TPA is a tremendous opportunity for U.S. exporters. This comprehensive trade agreement will eliminate tariffs and other barriers to trade of goods and services, promote economic growth, and enhance trade between the United States and Panama. The agreement will also spur reforms of Panama’s domestic legal and business environment that are important to encourage investment, protect intellectual property rights, enhance regulatory transparency, and strengthen protections for workers and the environment.
Why Panama?
Panama is already a strong trading partner and has the potential to be an even greater place to do business. Trade with Panama offers expanded economic opportunities for U.S. manufacturers, workers, and farmers. Panama’s predominantly service-based economy is a growing market for U.S. products and services. The agreement will provide expanded access to Panama’s entire services market, including financial services. The $5.25 billion expansion plan for the Panama Canal offers many new economic opportunities for U.S. providers of goods and services.
What’s in it for me?
The U.S.-Panama TPA has plenty to offer U.S. exporters, service providers and investors. Specifically, the U.S.-Panama TPA:
- Levels the playing field for U.S. companies who will enjoy tariff free access into Panama once the agreement takes full effect.
- Provides new market access for U.S. consumer and industrial products such as textiles and agricultural products.
- Provides unprecedented access to government procurement.
- Liberalizes the services sectors.
- Opens the Panamanian market to remanufactured goods.
- Protects U.S. investments in the region.
- Strengthens protections for U.S. patents, trademarks, and trade secrets.
- Improves customs facilitation.
- Provides benefits to small and medium sized exporters.
- Addresses government transparency and corruption, worker rights, protection of the environment, trade capacity building and dispute settlement.
- Requires important reforms of the domestic legal and business environment that are key to encouraging business development and investment.
Fact sheets and an outline of the Panama agreement are available on the United States Trade Representatives website at www.ustr.gov. To learn more about the services available to help U.S. companies enter the Panamanian market, visit www.buyusa.gov/panama/en.
