ManuFACTS: U.S.

-Panama Trade Promotion Agreement

A Win-Win for Panama Consumers and U.S. Manufacturers

• Panama offers U.S. manufacturers a growing opportunity for exports

within a stable and expanding market. Panama has had one of the fastest
growth rates of any economy in Latin America over the last four years,
and its GDP has nearly doubled since 2000, according to the International
Monetary Fund (IMF).

• Small and medium-sized manufacturers will strongly benefit from the

U.S.-Panama agreement: over 7,250 small and medium-sized companies
export manufactured goods to Panama, representing 85 percent of total
U.S. exporters.

• Manufactured goods are the vast majority of U.S. exports to Panama. In

2010, the U.S. exported $5.6 billion worth of manufactured goods to
Panama— a 66-percent increase over 2007. Manufactured goods make up
over 90 percent of total U.S. merchandise exports to Panama.

• Last year, we had a $5.5 billion trade surplus in manufactured goods with
Panama— our eighth-largest among all trade partners.

How Congress Can Help

• This trade agreement is a deficit-neutral, job-creating economic stimulus package. This preferential trade
agreement will increase U.S. manufacturing exports to Panama. The Obama Administration needs to send
this trade agreement to Congress for approval as quickly as possible, and Congress should act immediately
to pass the implementing legislation.

1331 Pennsylvania Ave NW, Suite 600, Washington, DC 20004 P 202• 637• 3000 F 202• 637• 3182 www.nam.org
Bottom Line
The U.S.-Panama trade agreement offers real advantages to
the manufacturing sector:
• Due to preferences programs, over 90 percent of Panama’s
exports to the U.S. enter our market duty-free— they face no
tariffs on their goods.
• U.S. manufactured goods face an average tariff of 8 percent
in Panama. This agreement will lower these tariffs to zero, in
most cases immediately.
• Over 90 percent of Panama’s exports to the United States
are returned goods, fish and other agricultural products.
American manufacturing will not be impacted by Panama’s
exports.
• Failure to pass the agreement could cause the U.S. to lose
our strong presence as a market leader— other countries
such as Canada and the European Union are entering into
trade agreements with Panama. Chinese manufacturers are
increasingly competing in our market share as well. To keep our
exports strong, we need the U.S.-Panama trade agreement.

More Information
Web: www.nam.org/trade
E-mail: trade@nam.org

April 2011