High-Tech Instruments Sector

An Expert's View about Electrical, Measuring and Testing Equipment in Panama

Posted on: 26 May 2012

The high-tech instrumentation sector accounted for over $23 million in U.S. exports to Panama over 2008-10 (average).

The U.S.-Panama Trade Promotion Agreement Opportunities for the U.S. High-Tech Instruments Sector The U.S.-Panama Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • The high-tech instrumentation sector accounted for over $23 million in U.S. exports to Panama over 2008-10 (average). • Estimated duties paid on exports of U.S. high-tech instrumentation to Panama from 2008 to 2010 were over $6 million. • Almost 100 percent of U.S. exports of high-tech instrumentation to Panama would receive duty-free treatment immediately upon implementation of the U.S.-Panama Trade Promotion Agreement. High-Tech instrumentation Sector Overview U.S. High-Tech Instrumentation Exports to • The high-tech instrumentation sector accounted for over $23 1 Panama Averaged $23 Million million in U.S. exports to Panama over 2008-10 (average). • Top U.S. high-tech instrumentation exports to Panama include analytical instruments, instruments for modeling and electricity $35 meters. $30 • In 2009, U.S. production of high-tech instrumentation products $25 2 was over $43 billion. $20 • The U.S. high-tech instrumentation sector employed over 191,000 3 $15 workers in 2008. $10 $5 $0 2008 2009 2010 Improved Market Access for U.S. High-Tech Instrumentation Exporters to Panama • Panama’s high-tech instrumentation taris average 8.2 percent, ranging from 0 to 15 percent. 4 Almost ? ? ? ? o? U.S. High-Tech • Almost 100 percent of U.S. high-tech instrumentation exports to Panama would receive duty-free treatment immediately upon Instrumentation Exports to Panama implementation of this Agreement. ? ould ? e Dut? -? ree Immediatel? • The remaining taris will be eliminated in 10 years. 0.2% Immediate Key States Exporting to Panama 99.8% • Top U.S. states exporting high-tech instrumentation to Panama 10 Years include: California, Georgia, New York, Washington, South Carolina, Florida, Minnesota, and Indiana. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Panama. The denition for high-tech instrumentation used in this report, unless otherwise cited, is based on HS headings 9023-24, 9026-28 and 9030-32. 2 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS within 333 and 334. Shipments used as best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics. 4 Data based on three-year average for 2008 to 2010. in Millions USD Foreign Competition in Panama’s Market EU High-Tech Instruments Could • Since the conclusion of negotiations with the United States, Immediately Get a 8 Percentage Panama has concluded separate negotiations with Canada and the EU. The EU-Central America Association Agreement which Point Tari Advantage in Panama includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua 9% and Panama successfully completed negotiations in May 2010. 8% This agreement will provide the EU with increased regional 7% 6% opportunities in Central America through lower taris, increased 5% government procurement market access and elimination of 4% certain non-tari barriers. Panama also concluded free trade 3% agreement negotiations with Canada in May 2010. As part of 2% this agreement, Panama will eliminate taris immediately on 90 1% percent of Canada’s exports. 0% Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 • EU high-tech instrumentation exporters will immediately enjoy EU MFN-If U.S.-Panama Agreement is not enacted an average tari of less than one percent upon implementation of the EU-Central America Association Agreement, while U.S. exporters will face an average MFN tari of 8.2 percent until implementation of the U.S.-Panama Trade Promotion Agreement. Other Key Commitments by Panama for the High-Tech Instruments Sector Intellectual Property Rights: The U.S.-Panama TPA requires high levels of intellectual property protection, consistent with U.S. standards of protection, and will support the growth of trade in digital and other intellectual property-based products. This Agreement provides protection for copyrighted works, stronger protection for patents and trade secrets and the high level of enforcement required provides tough penalties for piracy and counterfeiting. Customs Administration: The U.S.-Panama TPA requires measures designed to increase transparency and eciency in administering customs procedures. The Agreement will allow exporters to obtain advance rulings on tari classication, origin of goods, and other customs matters. The Agreement addresses industry’s demand for express delivery services by requiring that, within one year after the date the Agreement takes eect, Panama must provide a separate, expedited customs Rules of Origin: The U.S. Panama TPA rules of origin allow only U.S. and Panamanian originating goods to receive preferential tari treatment under the Agreement. The trade agreement rules of origin provide clear requirements for a good to be considered originating, including that a good must be wholly obtained or produced entirely in the territory of the United States or Panama, as well as requirements for materials that are used in the production of the good. Government Procurement: The U.S.-Panama TPA government procurement provisions guarantee non-discriminatory access for U.S. goods, services, and suppliers to a broad range of public sector entities in Panama. The Agreement covers purchases of Panamanian central government entities, including all key ministries, and signicant government enterprises. In addition to the $5.25 billion Panama Canal expansion project, the Government of Panama has identied almost $10 billion in other signicant infrastructure projects. The U.S.-Panama TPA also claries that build-operate-transfer contracts (BOTs) are within the scope of the government procurement obligations in the Agreement. Average Tari May 2011 The International Trade Administration - Your Global Business Partner The International Trade Administration (ITA) – a division of the U.S. Department of Commerce – strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA also utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information on exporting to Panama, please contact: • The ITA office of the U.S. Embassy in Panama at enrique.tellez@trade.gov, or 011-507-317-5000, or by visiting our website http://www.export.gov/panama. • You can also locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac. For more information on the U.S.-Panama Trade Promotion Agreement, please visit www.export.gov/fta/panama and www.trade.gov/fta/panama. For more information on industry-specific issues, please visit http://trade.gov/mas/index.asp.
Posted: 26 May 2012

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