Washington Council on International Trade
A Word from the President
International Trade has long been a controversial subject. But much of our current national discussion and rhetoric on trade is downright harmful to Washington State's economic interests. Read more.
Panama Headlines
►Kirk Sees Progress on Panama, Columbia
Journal of Commerce, April 21, 2009
U.S. Free Trade Agreement with Panama
Background: The United States Government signed a free trade agreement (FTA) with the Government of Panama on June 28, 2007. They additionally agreed to incorporate the labor and environmental provisions based on the bipartisan agreement on trade reached between Congress and the Administration on May 10, 2007.
The Bush Administration has not yet sent the agreement to Congress. The U.S. - Colombia FTA still awaits a vote by Congress, and WCIT hopes that the U.S.-Panama FTA can be put to a vote just after the Colombia vote, before 2008 comes to an end.
U.S. - Panama Trade Facts
Panama continues to be an important transport and financial hub in Latin America for U.S. companies. Its economy is largely service based, accounting for 80% of all economic activity. Under the FTA, U.S. companies will be in a more competitive position as Panama agrees to allow almost 90% of all consumer and industrial goods from the U.S. to immediately enter duty free.
Also, Panama agrees under the FTA to open up preferred access for U.S. companies to compete for contracts related to the Panama Canal Expansion. This is a $5.25 billion project open for bid to global service firms. U.S. and Washington State companies like PACCAR are more likely to win contracts should this preferred access be granted.
| Exported Product | Current Tariff | New Tariff Under FTA |
|---|---|---|
| Raspberries | 15% | 0% |
| Pears | 5% | 0% |
| Potato Chips | 15% | 0% |
| Dried Whey | 30% | 0% |
| Beef (choice cuts) | 30% | 0% |
| Industrial Machinery | 4% | 0% |
Important Materials
U.S. - Panama Trade Promotion Agreement
Brief summary by the Office of the U.S. Trade Representative
Read. (pdf)