Medical Equipment Sector

An Expert's View about Medical, Health and Cosmetics Products in Panama

Posted on: 26 May 2012

The medical equipment sector accounted for $36 million in U.S. exports to Panama over 2008-10 (average) or 1.6 percent of total U.S. industrial exports to Panama.

The U.S.-Panama Trade Promotion Agreement Opportunities for the U.S. Medical Equipment Sector The U.S.-Panama Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • The medical equipment sector accounted for $36 million in U.S. exports to Panama over 2008-10 (average) or 1.6 percent of total U.S. industrial exports to Panama. • Estimated duties paid on exports of U.S. medical equipment to Panama from 2008 to 2010 were over $7 million. • Over 90 percent of U.S. exports of medical equipment to Panama would receive duty-free treatment immediately upon implementation of the U.S.-Panama Trade Promotion Agreement. Medical Equipment Sector Overview U.S. Medical Equipment Exports to • The medical equipment sector accounted for $36 million in U.S. exports to Panama over 2008-10 (average) or 1.6 percent of total Panama Averaged $36 Million 1 U.S. industrial exports to Panama. • Top U.S. medical equipment exports to Panama include surgical $50 instruments, diagnostic equipment, lab reagents, and medical appliances. $40 • In 2009, U.S. production of medical equipment was over $98 $30 2 billion. $20 • The U.S. medical equipment sector employed over 274,000 3 workers in 2009. $10 $0 2008 2009 2010 Improved Market Access for U.S. Medical Equipment Exporters to Panama • Panama’s medical equipment taris average 7.9 percent, ranging from 0 to 15 percent More than 90% of U.S. Medical . 4 • Over 90 percent of U.S. medical equipment exports to Equipment Exports to Panama will be Panama would receive duty-free treatment immediately upon Duty-Free Immdediately 0.00% implementation of this Agreement. • Taris on the remaining 10 percent would be eliminated in 10 9.91% years. Immediate 10 Years Key States Exporting to Panama 90.09% • Top U.S. states exporting medical equipment to Panama include: Florida, California, Georgia, Illinois, Massachusetts, Texas and Wisconsin. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data reported by Panama. The denition for medical equipment used in this report, unless otherwise cited, is Uruguay Round Medical Equipment sector agreement and includes products within HS chapters 38, 4, 85, 87, 90 and 94. Pharmaceuticals are not covered in this report. 2 U.S. Department of Commerce, U.S. Census Bureau, NAICS 334510, 334517, 339112, 339113, and 339114. Shipments used as best proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, NAICS 334510, 339112 and 339113 (non-seasonally adjusted). 4 Data based on three-year average for 2008 to 2010. in Millions USD Foreign Competition in Panama’s Market EU Medical Equipment Exporters • Since the conclusion of negotiations with the United States, Could Immediately Get a 7 Panama has concluded separate negotiations with Canada and the EU. The EU-Central America Association Agreement which Percentage Point Tari includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua Advantage in Panama and Panama successfully completed negotiations in May 2010. This agreement will provide the EU with increased regional 8% 7% opportunities in Central America through lower taris, increased 6% government procurement market access and elimination of 5% certain non-tari barriers. Panama also concluded free trade 4% 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 • EU medical equipment exporters will immediately enjoy an EU MFN-If U.S.-Panama Agreement is not enacted 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 7.9 percent until implementation of the U.S.-Panama Trade Promotion Agreement. Other Key Commitments by Panama for the Medical Equipment 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. 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. Remanufactured Goods: Currently, remanufactured equipment could be treated as a “used good” and face possible import prohibitions and restrictions in Panama. Upon entry into force of the Agreement, U.S. remanufacturers of many products, such as engines, radiators, and alternators for construction equipment and transportation machinery, will gain access to export their remanufactured products to Panama without being unjustied prohibitions and restrictions. 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

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