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ITA Posts Fact Sheet on Benefits of U.S.-Panama TPA

The International Trade Administration posted a fact sheet on duty-free access for U.S. exports resulting from the entry into force of the U.S.-Panama Trade Promotion Agreement. According to the fact sheet, the TPA immediately eliminated or reduced tariffs on almost all U.S. industrial exports to Panama, with the remaining tariffs to be eliminated over defined time periods.

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The TPA’s entry into force provides immediate duty-free access to Panama for U.S. industrial goods covering over 2,400 tariff lines, the ITA said. Before the agreement’s entry into force, these products faced an average tariff rate of 8.3 percent. Sectors with a large number of products that became duty free on Oct. 31 include infrastructure and machinery; chemicals; consumer goods; and environmental goods.

Panama also made commitments for reductions throughout its tariff schedule for eligible U.S. products, the ITA said. With entry into force of the TPA, Panama’s average tariff rate for all industrial goods from the U.S. has been reduced from 7 percent to 3.3 percent.

To find out when tariffs on specific products go to zero, check the FTA Tariff Tool (here), ITA said.