September 28, 2007

The U.S.-Panama TPA will level the playing field, and enhance competition because it moves the U.S.-Panama commercial relationship beyond one-way preferences to full partnership and reciprocal commitments. Presently 96 percent of Panama's exports to the United States enter duty-free under unilateral preference programs, such as the Caribbean Basin Initiative (CBI). In contrast, only 25 percent of U.S. industrial exports and 34 percent of agricultural exports enter Panama duty-free. Panama's tariffs on industrial goods range as high as 15 percent. In addition, U.S. products currently face a competitive disadvantage because Panama has been actively negotiating free trade agreements with other countries.

Source: Statement of Why the U.S.-Panama Trade Promotion Agreement is in the Interests of U.S. Commerce