Recent News

October 21, 2011:
Statement By U.S. Trade Representative Ron Kirk On Presidential Signature Of Trade Legislation

 

October 13, 2011
Statements Regarding the Congressional Approval of the Korea, Colombia, and Panama Trade Agreements

 

From Enactment To Entry Into Force: Next Steps On The Trade Agreements

 

October 12, 2011:
Statement By U.S. Trade Representative Ron Kirk On Congressional Passage Of Trade Agreements, Trade Adjustment Assistance And Key Preference Programs

 

October 3, 2011
U.S Trade Representative Ron Kirk Calls for Swift Passage of Trade Agreements

 

  • The United States – Panama Trade Promotion Agreement: Implementing Legislation and Supporting Documentation

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  • Statements Regarding the President’s Submission to Congress of the South Korea, Colombia, and Panama Trade Agreements

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  • The Pending Trade Agreements: More American Jobs, Faster Economic Recovery Through Exports

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    August 3,2011
    Kirk Comment on Pending Trade Agreements, Trade Adjustment Assistance

     

    July 7, 2011
    USTR Kirk Comments Following Trade Markups In Senate Finance, House Ways and Means Committees

     

    July 5, 2011
    Statement from USTR Kirk Regarding Announcement of House Ways & Means Committee Markup

     

    June 30, 2011
    Ambassador Kirk Statement Regarding the Planned Informal Markup in The Senate Finance Committee

     

    June 29, 2011:
    INFO: Links on Pending Trade Agreements, TAA, Preference Programs

     

    June 28, 2011:
    U.S. Trade Representative Ron Kirk Welcomes Next Steps on Pending Trade Pacts, Trade Adjustment Assistance

     

    May 11, 2011
    Testimony of Deputy United States Trade Representative Miriam Sapiro Before the Senate Finance Committee

     

    April 18, 2011
    Ambassador Ron Kirk Announces Next Step for U.S.-Panama Trade Promotion Agreement
    Important U.S.-Panama Links


    Port of MiamiBenefits for Your Industry: USTR Fact Sheets

    Panama is one of the fastest growing economies in Latin America, expanding 6.2 percent in 2010, with similar annual growth forecast through 2015. This comprehensive Agreement will eliminate tariffs and other barriers to U.S. exports, promote economic growth, and expand trade between our two countries.  Visit USTR's Fact Sheet page to find out how the agreement will specifically benefit your sector.

     

    Tractor in a fieldBenefits for Your Farm: Agriculture Fact Sheets

    Panama is an important market for America’s farmers and ranchers. In 2010, the United States exported over $450 million of agricultural products to Panama, more than double U.S. agricultural exports to Panama in 2005. Top U.S. exports were corn, soybean cake and meal, wheat, rice, and horticultural products. Visit the Department of Agriculture's website to find out how the agreement will benefit your sector.

     

    Manufacturing PlantBenefits for Your Sector: Industry Fact Sheets: Benefits for Your Sector

    Over 87 percent of U.S. exports of consumer and industrial products to Panama will become duty-free immediately, with remaining tariffs phased out over ten years. U.S. products that will gain immediate duty-free access include information technology equipment, agricultural and construction equipment, aircraft and parts, medical and scientific equipment, environmental products, pharmaceuticals, fertilizers, and agro-chemicals. Visit the Department of Commerce's website to find out how the agreement will benefit your sector.  

     

    AgreementFull Text of the Agreement

    Read the full text of the U.S.-Panama trade agreement, which is an integral part of the President’s efforts to increase opportunities for U.S. businesses, farmers and workers through improved access for their products and services in foreign markets, and supports the President’s National Export Initiative goal of doubling of U.S. exports in 5 years.

    Support for the U.S.-Panama Trade Agreement

    Statements of support for the U.S.-Panama Trade Agreement from various elected officials, the business community, and advocacy groups can be found below.

     

    Visit Your Government Trade Partners

    Visit USTR's partners across the federal government to learn more about their part in the trade agreement.

    Department of Agriculture Seal     Department of Agriculture

    Commerce Seal     Commerce Department

    Labor Department Seal     Department of Labor

    OMB Seal     Office of Management and Budget

    Export Import Bank Seal      Export-Import Bank

    SBA Seal      Small Business Administration

    OPIC Seal      Overseas Private Investment Corp.

    USTDA Seal      Trade and Development Agency

    State Department Seal      State Department

    Key facts of the U.S.-Panama Trade Promotion Agreement

    Trade Agreement Home  •  Key Facts  •  Tax Transparency  •  Your Community

    The U.S. –Panama Trade Promotion Agreement (the “Agreement”) will support American jobs, expand markets and enhance U.S. competitiveness.

    • Panama is one of the fastest growing economies in Latin America, expanding 7.5 percent in 2010, with similar annual growth forecast through 2015. This comprehensive Agreement will eliminate tariffs and other barriers to U.S. exports, promote economic growth, and expand trade between our two countries.

    • The Agreement guarantees access to Panama’s $20.6 billion services market, including in priority areas such as financial, telecommunications, computer, distribution, express delivery, energy, environmental, and professional services.

    • Panama’s strategic location as a major shipping route also enhances the importance of the Agreement. Approximately two-thirds of the Panama Canal’s annual transits are bound to or from U.S. ports.

    The Agreement will remove barriers to U.S. goods entering Panama’s market.

    • U.S. industrial goods currently face an average tariff of 7 percent in Panama, with some tariffs as high as 81 percent. U.S. agricultural goods face an average tariff of 15 percent, with some tariffs as high as 260 percent.

    • Over 87 percent of U.S. exports of consumer and industrial products to Panama will become duty-free immediately, with remaining tariffs phased out over ten years. U.S. products that will gain immediate duty-free access include information technology equipment, agricultural and construction equipment, aircraft and parts, medical and scientific equipment, environmental products, pharmaceuticals, fertilizers, and agro-chemicals.

    • U.S. agricultural exports will also benefit. Over half of current trade will receive immediate duty-free treatment, with most of the remaining tariffs to be eliminated within 15 years. Panama will immediately eliminate duties on high-quality beef, frozen turkeys, soybeans, soybean meal, crude soybean and corn oil, almost all fruit and fruit products, wheat, peanuts, whey, cotton, and many processed products. The Agreement also provides duty-free access for specified volumes of standard grade beef cuts, chicken leg quarters, pork, corn, rice, and dairy products through tariff rate quotas.

    The Agreement is key to maintaining U.S. market share in this important market.

    • The United States faces strong competition as Panama’s other trading partners increase their share of Panama’s total imports.

    • In 2010, Panama finalized a trade agreement with Canada, which has not yet entered into force. Many Canadian goods and services directly compete with those of the United States in Panama. U.S. products, such as pork and frozen french fries, will be at a significant competitive disadvantage if they continue to face duties while Canadian products enjoy preferential access.

    • The European Union (EU) has negotiated an Association Agreement with the Central American countries, including Panama, which was initialed on March 22, 2011, which has not yet entered into force. Machinery and transportation equipment, chemicals and metals are the leading exports from the EU to Panama.

    The Agreement provides significant infrastructure opportunities.

    • In addition to the ongoing $5.25 billion Panama Canal expansion project, the Government of Panama has identified almost $10 billion in other significant infrastructure projects.

    • Construction equipment and infrastructure machinery used in such projects accounted for $280 million in U.S. exports to Panama in 2010. Tariffs for this sector average 5 percent with almost all being eliminated upon entry into force.

    Other benefits of the Agreement Include:

    A Level Playing Field for U.S. Investors: The Agreement ensures that U.S. companies in Panama are protected against discriminatory or unlawful treatment, and provides a neutral and transparent mechanism for settlement of investment disputes.

    CopyrightGreater Protection for Intellectual Property Rights: The Agreement provides for improved standards for the protection and enforcement of a broad range of intellectual property rights, which are consistent with both U.S. standards of protection and enforcement, and with the standards increasingly embraced by our trading partners. Such improvements include state-of-the-art protections for digital products such as software, music, text, and videos and stronger protections for patents, trademarks and test data, including an electronic system for the registration and maintenance of trademarks.

    Commitments to Protect Labor Rights and the Environment: The Agreement commits both Parties to adopt and maintain in their laws and practice the five fundamental labor rights as stated in the 1998 ILO Declaration on Fundamental Principles and Rights at Work. Both Parties are also required to effectively enforce – and may not waive – labor laws related to fundamental labor rights. Both Parties also commit to effectively enforce their own domestic environmental laws and adopt, maintain, and implement laws, regulations, and all other measures to fulfill their obligations under covered multilateral environmental agreements. All obligations in the labor chapter and the environment chapter are subject to the same dispute settlement procedures and enforcement mechanisms as the Agreement’s commercial obligations.

    Cash RegisterFair and Open Government Procurement: Under the Agreement, U.S. suppliers are granted rights to non-discriminatory treatment in bidding on procurement by a broad range of Panamanian government ministries, agencies, regional governments, and public enterprises. For procurement covered by the Agreement, it requires the use of fair and transparent procurement procedures, such as advance notice of purchases and timely and effective bid review procedures.

    An Open and Competitive Telecommunications Market: Panama has agreed to a pro-competitive regulatory framework that builds upon the WTO Basic Telecommunications Reference Paper and guarantees competitive access to Panamanian telecom networks on reasonable and non-discriminatory terms. U.S. telecommunications companies are ensured the right to interconnect with Panamanian dominant carriers’ fixed networks at non-discriminatory and cost-based rates.

    FarmNew Opportunities for Agriculture: This agreement creates new opportunities for U.S. farmers, ranchers, workers, and food processors seeking to export to Panama, one of the fastest growing economies in Latin America. This comprehensive Agreement will eliminate tariffs and other barriers to U.S. exports, promote economic growth, and expand trade between our two countries.

    More Manufacturing Exports to Panama: The U.S.-Panama Trade Promotion Agreement creates new opportunities for U.S. manufacturers seeking to export to Panama, giving American manufacturers more market access in two ways: (1) by eliminating tariffs, or duties, charged when U.S. exports come into Panama, and (2) by laying out a framework to address other barriers to U.S. exports – including those that may arise in the future.

    YarnIncreased Textile Access for U.S. Apparel: This agreement opens new market access opportunities for U.S. textiles and apparel manufacturers and strengthens customs enforcement mechanisms to verify claims of origin and deny illegal customs circumvention. Upon entry into force of the Agreement, tariffs on U.S. textiles and apparel entering Panama that meet the Agreement’s rules of origin are eliminated.

    A Growing Service Market: Panama has a large and growing services market. Services account for roughly 77 percent of Panama’s $27 billion economy. Leading sectors include banking and insurance, health care, logistics and transportation services.

    Financial Services Benefits: The financial services chapter in this agreement provides extensive market access into Panama for American financial services firms – supplementing and modifying the Agreement’s rules on investment and services without undermining the right of U.S. financial regulators to take action to ensure the integrity and stability of financial markets or address a financial crisis. Importantly, Panama commits to treat U.S. financial institutions comparably to their competitors in the Panamanian market.