Minerals and Fuel Sector

An Expert's View about Energy in Panama

Posted on: 26 May 2012

The minerals and fuel sector accounted for over $192 million in U.S. exports to Panama over 2008-10 (average) or 8.8 percent of total U.S. industrial exports to Panama.

The U.S.-Panama Trade Promotion Agreement Opportunities for the U.S. Minerals and Fuel Sector The U.S.-Panama Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • The minerals and fuel sector accounted for over $192 million in U.S. exports to Panama over 2008-10 (average) or 8.8 percent of total U.S. industrial exports to Panama. • Estimated duties paid on exports of U.S. minerals and fuel to Panama from 2008 to 2010 were over $15 million. • Over 87 percent of U.S. exports of minerals and fuel to Panama would receive duty-free treatment immediately upon implementation of the U.S.-Panama Trade Promotion Agreement. Minerals and Fuel Sector Overview U.S. Minerals and Fuel Exports to Panama • The minerals and fuel sector accounted for over $192 million in Averaged $192 Million U.S. exports to Panama over 2008-10 (average) or 8.8 percent of 1 total U.S. industrial exports to Panama. $300 • Top U.S. minerals and fuel exports to Panama include diesel fuel, fuel oil, lubricant oil, and propane. $250 $200 $150 $100 Improved Market Access for U.S. Minerals and Fuel $50 Exporters to Panama $0 • Panama’s minerals and fuel taris average 6.5 percent, ranging 2008 2009 2010 from 0 to 81 percent. 2 • Over 87 percent of U.S. minerals and fuel exports to Panama would receive duty-free treatment immediately upon implementation of this Agreement. • Taris on the remaining 13 percent would be eliminated in 5 Over 87% of U.S. Minerals and years. Fuel Exports to Panama Would be Duty-Free Immediately Key States Exporting to Panama 12.09% • Top U.S. states exporting minerals and fuel to Panama include: Louisiana, Texas, Mississippi, New Jersey, California, Georgia, Florida and Washington. Immediate 87.87% 5 years 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Panama. The denition of minerals and fuel used in this report, unless otherwise cited, is based on HS chapters 25 and 27. 2 Data based on three-year average for 2008 to 2010. in Millions USD Foreign Competition in Panama’s Market EU Minerals and Fuel Exporters • Since the conclusion of negotiations with the United States, Could Immediately Get a 3 Panama has concluded separate negotiations with Canada and the EU. The EU-Central America Association Agreement which Percentage Point Advantage in includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua Panama and Panama successfully completed negotiations in May 2010. 7% This agreement will provide the EU with increased regional 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 minerals and fuel exporters will immediately enjoy an average EU MFN-If U.S.-Panama Agreement is not enacted tari of 3.4 percent upon implementation of the EU-Central America Association Agreement, while U.S. exporters will face an average MFN tari of 6.5 percent until implementation of the U.S.- Panama Trade Promotion Agreement. Other Key Commitments by Panama for the Minerals and Fuel Sector 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 procedure for express shipments. 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. 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

See more from Energy in Panama

Expert Views    
Infrastructure Projects   By U.S. Commercial Service
Electrical Power Equipment   By U.S. Commercial Service
Minerals and Fuel Sector   By U.S. Commercial Service
Panama's wind sector supported by auctions   By Teknotietamys Oy (Techknowledge Ltd.)