February 8, 2008

Chemicals accounted for over 16 percent of U.S. industrial exports to Panama in 2006, totaling $356 million. Panamanian tariffs range between zero and 15 percent with an average of 3.5 percent. Eighty percent of U.S. chemical exports will receive duty-free treatment immediately upon implementation of the Agreement. The remaining tariffs will be eliminated over five and 10 years. Best prospects for U.S. exports in this sector include antibiotics, non-vaccine medicaments, perfumes, and adhesive dressings. Tariffs on 100 percent of U.S. pharmaceutical exports, 100 percent of fertilizer and agro-chemicals exports, 77 percent of cosmetics exports, and 83 percent of plastics exports will all be duty-free immediately upon implementation of the Agreement.

Source: Prepared by the International Trade Administration