On October 22, 2012, the Office of the U.S. Trade Representative (USTR) issued a press release announcing the determination by the governments of the U.S. and Panama to bring into force the U.S.-Panama Free Trade Agreement (FTA), effective October 31, 2012.
The release explains that "after entry into force of the Agreement, Panama will immediately reduce or eliminate tariffs on U.S. industrial goods, currently averaging seven percent, with some tariffs as high as 81 percent. Over 86 percent of U.S. exports of consumer and industrial products to Panama will become duty-free immediately."
Some of the industries mentioned in the press release, which will benefit from the reduction of duties, include the following:
- Agricultural goods
- Information technology equipment
- Aircraft and parts
- Medical and scientific equipment
- Environmental products
- Pharmaceuticals
- Construction equipment
The decision came after both governments reviewed the laws and regulations regarding the agreement implementation. The U.S.-Panama FTA Implementation Act was signed into law on October 21, 2011.
The press release is available online here.
