November 13, 2025

Export Snapshot: Panama – What U.S. Exporters Need to Know About the United States–Panama Trade Promotion Agreement (PATPA)

The United States–Panama Trade Promotion Agreement (TPA), implemented in 2012, is one of the most strategic trade frameworks in the Western Hemisphere. It eliminates tariffs on nearly all U.S. exports, enhances regulatory transparency, strengthens intellectual property protections, and supports expanded opportunities in logistics, finance, agriculture, and digital services.

Panama’s central role as a global logistics hub, anchored by the Panama Canal and the Colón Free Zone, makes it a powerful gateway for U.S. exporters targeting Latin America and the Caribbean.

Overview of U.S.–Panama Trade

U.S. goods exports to Panama (2024): $10.5 billion, led by machinery, vehicles, refined fuels, agricultural products, and technology services.
U.S. goods imports from Panama (2024): $554.9 million, primarily seafood, gold, sugar, tropical fruits, and specialty agriculture.
Tariff Treatment: Nearly all U.S. industrial and consumer goods now enter duty-free under the TPA.
Trade Role: Panama functions as a re-export and logistics hub, multiplying the regional reach of U.S. exports.

Key TPA Advantages for U.S. Exporters

Duty-Free Access: Almost all U.S. goods qualify for immediate duty-free entry.
Efficient Customs Procedures: Electronic documentation, advance rulings, and simplified clearance processes.
Services and Investment Access: U.S. firms receive national treatment across finance, telecommunications, express delivery, and professional services.
Strong IP Enforcement: Robust protection for software, entertainment, pharmaceuticals, and trademarks.
Transparent Procurement: Clear rules that support U.S. participation in Panamanian government tenders.

These features help U.S. exporters enter Panama’s high-growth sectors with reduced barriers and predictable compliance processes.

Strategic Export Opportunities

Sector	Opportunity	Compliance Note
Logistics, Ports, and Infrastructure	Canal modernization and port expansions drive demand for U.S. machinery and engineering services	Verify HS codes and ensure TPA eligibility through origin rules
Financial and Digital Services	Panama’s fintech and digital banking growth creates opportunities for U.S. cybersecurity and SaaS providers	Align with financial sector regulations and data protection standards
Energy and Renewables	Solar, wind, LNG, and grid upgrades are expanding rapidly	Check environmental certifications and customs codes
Agricultural Products and Food Exports	Strong demand for U.S. grains, poultry, meat, dairy, and packaged foods	Confirm labeling and sanitary requirements under Chapter 3
Cloud, Analytics, and ICT Services	National digital transformation initiatives support U.S. IT and cloud solutions	Apply digital trade provisions guaranteeing free data flow

Rules of Origin and Documentation

To qualify for duty-free treatment under the TPA, products must satisfy the agreement’s tariff shift and regional value content (RVC) requirements defined in Annex 4.1. These rules ensure that qualifying goods genuinely originate from the United States or Panama.

U.S. exporters should:

Prepare a TPA Certificate of Origin when claiming preference.
Retain all supporting records for at least five years for potential verification by customs authorities.
Confirm whether the product meets applicable tariff shift or RVC thresholds for its HS classification.
Coordinate with U.S. Customs and Border Protection (CBP) or Panama Customs (ANA) for binding rulings on classification or origin questions.
Use digital FTA management and HTS validation tools to maintain origin consistency across product lines.

Correctly applying tariff shift and RVC rules is essential for avoiding duty disputes and ensuring smooth customs clearance.

Emerging Trends and Market Insights

Panama Canal Sustainability Upgrades: Infrastructure modernization and water-management initiatives create demand for U.S. engineering, environmental, and automation technologies.
Regional E-Commerce Expansion: Higher online purchasing volumes support U.S. exports of consumer goods, logistics software, and payment technologies.
Growing Data Infrastructure: Investments in fiber networks and data centers align with strong demand for U.S. cloud and cybersecurity solutions.
Energy Diversification: LNG, solar, and battery storage growth create opportunities for U.S. clean energy exporters.
Re-export Dynamics: The Colón Free Zone amplifies the reach of U.S. goods into Central America, South America, and the Caribbean.

These evolving sectors highlight Panama’s importance as both a consumer market and a regional distribution platform.

Why It Matters for Exporters

The United States–Panama TPA gives U.S. exporters a competitive and predictable foundation for entering one of the hemisphere’s most strategically located economies. It ensures:

Zero tariffs on almost all U.S. goods
Streamlined customs procedures
Robust IP and digital trade protections
Transparent rules for services and procurement
Regional reach through Panama’s world-class logistics network

Whether your company exports machinery, software, food products, or renewable energy systems, aligning with TPA rules unlocks long-term, low-friction access to Panama and surrounding markets.

For automated HTS verification, compliance tracking, and rules-of-origin analysis under the TPA, explore Trade Insight AI for data-driven trade intelligence and FTA automation.

Series Note:
This article is part of the Export Snapshot series, highlighting major U.S. Free Trade Agreements and how exporters can use AI-driven tools to expand globally with confidence.