Panama's TPA opens duty-free access. We open the doors.

Panama is one of Latin America’s most dynamic economies, driven by its strategic location as a global trade and logistics hub. With a GDP of approximately $77 billion in 2023, Panama has experienced steady growth, underpinned by the Panama Canal, the Colón Free Zone, and a robust services sector. The United States remains Panama’s most important trading partner, accounting for roughly 25% of its total trade. The U.S.-Panama Trade Promotion Agreement (TPA), in effect since 2012, eliminated tariffs on most industrial goods and opened services markets, creating a favorable environment for bilateral trade. In 2023, two-way goods trade exceeded $12 billion, with the U.S. running a modest surplus. For U.S. businesses, Panama offers a gateway to the Americas and a mature market for high-value exports.

Top Import Sectors from the United States

Panama’s imports from the United States are heavily concentrated in machinery, mineral fuels, and agricultural products. In 2023, the top U.S. export categories to Panama included machinery and mechanical appliances ($1.2 billion), mineral fuels and oils ($1.1 billion), and electrical machinery ($500 million). The demand for U.S. machinery reflects Panama’s ongoing infrastructure projects, including the expansion of the Panama Canal and urban development in Panama City. Mineral fuel imports, primarily refined petroleum and LNG, support Panama’s energy needs and its role as a regional bunkering hub. Agricultural imports from the U.S. are also significant, with corn, wheat, and soybeans leading, as Panama relies on imports for over 60% of its food consumption. The TPA has eliminated duties on most U.S. agricultural goods, making them highly competitive. Additionally, Panama imports significant quantities of plastics, vehicles, and pharmaceutical products from the United States, all benefiting from preferential tariff treatment under the agreement.

Top Export Opportunities to the United States

Panama’s exports to the United States are smaller in volume but include high-value commodities and niche products. The leading export category is precious stones and metals (primarily gold), which accounted for $400 million in 2023. Panama is a significant gold producer, and most of its output is exported to U.S. refineries. The second-largest export is fresh and frozen fish, particularly tuna and mahi-mahi, valued at $150 million, driven by Panama’s Pacific and Caribbean fisheries. Agricultural exports also include bananas, pineapples, and coffee, which benefit from duty-free access under the TPA. An emerging opportunity is the export of medical devices and optical instruments, as Panama develops its manufacturing base in the Colón Free Zone. For U.S. importers, Panama offers a reliable source of tropical fruits and seafood, with logistical advantages due to proximity and direct shipping routes. The U.S. market also absorbs re-exports from the Colón Free Zone, including consumer electronics and apparel, though these are often classified as originating from other countries.

Business Entry and Regulatory Overview

Panama offers one of the most business-friendly environments in Latin America, with the U.S. dollar as its official currency, no central bank, and a territorial tax system. Foreign companies can establish operations through a branch, a local corporation (Sociedad Anónima), or a Panama Private Interest Foundation. The Panama Foreign Investment Law guarantees national treatment for foreign investors, with no prior approval required for most sectors. However, certain activities—such as retail, media, and legal services—require local licensing. The Ministry of Commerce and Industries (MICI) oversees trade regulations, while the Panama Customs Authority handles import procedures. Import tariffs are generally low, averaging 7%, with many goods entering duty-free under the TPA. Non-tariff barriers include sanitary and phytosanitary (SPS) measures for agricultural products and technical standards for electronics. The U.S. Commercial Service in Panama provides guidance on regulatory compliance. Intellectual property protection is strong, with Panama adhering to international treaties and maintaining a modern IP registry. Labor laws are flexible, with a minimum wage of about $2.50 per hour and a 48-hour work week. Companies should note that Panama requires all foreign employees to obtain work permits, which can be processed through the National Immigration Service.

Key Ports, Logistics Infrastructure

Panama’s logistics infrastructure is world-class, anchored by the Panama Canal, which handles over 14,000 transits annually and connects the Atlantic and Pacific oceans. The country’s major ports include Balboa (Pacific) and Colón (Atlantic), both operated by international terminal operators and equipped with modern container handling facilities. The Colón Free Zone, the largest free trade zone in the Americas, serves as a distribution hub for goods moving between the U.S., Latin America, and Asia. Panama’s Tocumen International Airport is a regional passenger and cargo hub, with direct flights to over 80 destinations. The country also has a well-developed road network, including the Pan-American Highway, which connects Panama to Central America. For U.S. exporters, Panama offers efficient multimodal logistics, with transit times from U.S. Gulf ports of 5–7 days. The government has invested in expanding the Panama Canal’s capacity and modernizing port infrastructure, ensuring that Panama remains a competitive logistics center. The country’s digital customs platform, SICE, streamlines import and export documentation, reducing clearance times. Additionally, Panama’s status as a regional financial center provides easy access to trade finance and banking services.

Coppermont Advisory for Panama

Coppermont provides end-to-end trade advisory services for companies looking to import from or export to Panama. Our team offers market entry strategy, partner identification, and regulatory compliance support. We help U.S. exporters navigate the TPA’s rules of origin and tariff schedules, ensuring maximum duty savings. For U.S. importers sourcing from Panama, we conduct supplier due diligence, quality control inspections, and logistics optimization. Our advisory covers key sectors including agribusiness, logistics, energy, and medical devices. We also assist with customs brokerage, warehousing, and distribution through the Colón Free Zone. Whether you are a small business exploring your first export or a multinational expanding in Latin America, Coppermont provides the local expertise and global network to de-risk your Panama trade operations. Contact us for a free initial consultation and discover how we can help you succeed in Panama’s dynamic market.