Countries › Panama › Guide › 9. Trade and customs › Panama's trade agreements: the US TPC, the EU and UK association agreements, Central America, Canada, Mexico, Korea, Israel and the 2025 Mercosur framework

Panama's trade agreements: the US TPC, the EU and UK association agreements, Central America, Canada, Mexico, Korea, Israel and the 2025 Mercosur framework

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Last verified: 2026-10-29 · Status: Changing

The Ministry of Commerce and Industries lists Panama's regional agreements (EU and UK association agreements with Central America, the Central American FTAs and customs union protocol, Korea and Central America, EFTA and ALADI) and bilateral agreements (United States, Singapore, Chile, Peru, Canada, Mexico, Israel and partial scope agreements with Cuba, Colombia, the Dominican Republic and Trinidad and Tobago). Each was approved by a law of the National Assembly. In October 2025 Ley 489 approved Economic Complementation Agreement 76 with Mercosur, a framework that enters into force 30 days after all parties notify ALADI and does not by itself cut tariffs.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Trade agreements listed by MICI (regional and bilateral)	6 regional groupings and 11 bilateral agreements textMICI ONCI agreements pages, as of 2026-10-29 · in force
Trade agreement with the United States	Trade Promotion Agreement (Ley 53 de 2007) textLey 53 de 2007, as of 2026-10-29 · in force
Trade agreement with the European Union	Central America and EU Association Agreement (Ley 27 de 2013) textLey 27 de 2013, as of 2026-10-29 · in force
Agreement with Mercosur	ACE 76 framework approved by Ley 489 de 2025; in force 30 days after all parties notify ALADI textLey 489 de 2025, as of 2026-10-29 · pending
Preferential trade agreement with Argentina	Only through the Mercosur ACE 76 framework (Ley 489 de 2025) textLey 489 de 2025, as of 2026-10-29 · pending
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos), as of 2026-10-29 · in force

The rule

1. MICI's Office of International Trade Negotiations lists Panama's agreements: regional (Association Agreement between Central America and the European Union; Association Agreement between Central America and the United Kingdom; the Central American region FTAs with Costa Rica, El Salvador, Honduras, Guatemala and Nicaragua, the incorporation protocol and the Central American Customs Union; Korea and Central America FTA; EFTA and Central American States FTA; ALADI) and bilateral (partial scope agreements with Cuba, Colombia, the Dominican Republic and Trinidad and Tobago; the Trade Promotion Agreement with the United States; FTAs with Singapore, Chile, Peru, Canada, Mexico and Israel). Its multilateral section also covers the WTO Trade Facilitation Agreement.MICI, Oficina de Negociaciones Comerciales Internacionales, regional and bilateral agreements pages, list of agreements, 2026-10-29 official text · verified 2026-10-29

2. The Trade Promotion Agreement with the United States was approved by Ley 53 de 13 de diciembre de 2007.Ley 53 de 13 de diciembre de 2007, art. 1, 2007-12-13 official text · verified 2026-10-29

3. The Agreement establishing an Association between Central America and the European Union and its Member States was approved by Ley 27 de 17 de abril de 2013; the equivalent association agreement with the United Kingdom was approved by Ley 103 de 31 de octubre de 2019.Ley 27 de 17 de abril de 2013; Ley 103 de 31 de octubre de 2019, art. 1, 2019-10-31 official text · verified 2026-10-29

4. Approval laws for other FTAs: Central America and Panama FTA, Ley 24 de 2003; Singapore, Ley 19 de 2006; Chile, Ley 7 de 2007; Canada, Ley 69 de 2010; Peru, Ley 82 de 2011; Mexico, Ley 33 de 2014; Israel, Ley 105 de 2019; Korea and Central America, Ley 182 de 2020; partial scope agreement with Cuba, Ley 30 de 2009.Approval laws listed, art. 1 of each law, 2020-11-19 official text · verified 2026-10-29

5. Panama's incorporation into the Central American economic integration subsystem, approved by Ley 26 de 2013, brought the Central American customs code and regulation into Panamanian law; ANA amended the national tariff in 2016 under article 5 of that protocol.Ley 26 de 17 de abril de 2013; Decreto de Gabinete 15 de 5 de abril de 2016, Ley 26 art. 1, 2013-04-17 official text · verified 2026-10-29

6. Under trade agreements, the origin rules of each agreement apply and ANA verifies origin; imports under ratified trade or integration agreements that expressly provide for it are exempt from import duties.Decreto Ley 1 de 2008, arts. 81 numeral 3 and 107, 2008-02-13 official text · verified 2026-10-29

7. Ley 489 de 2025 approved Economic Complementation Agreement 76 between the Mercosur States Parties signatory to the Treaty of Asunción (Argentina, Brazil, Paraguay and Uruguay) and Panama, signed in Montevideo on 6 December 2024. It sets objectives including a future free trade area, incorporates the bilateral agreements Panama has or concludes with each Mercosur member under the 1980 Montevideo Treaty, provides for periodic negotiations, is administered by a commission of the Mercosur Common Market Group and MICI's trade negotiations office, and enters into force 30 days after all parties notify ALADI, remaining in force until replaced by a Mercosur and Panama free trade agreement.Ley 489 de 13 de octubre de 2025 approving ACE 76, ACE 76 arts. 1, 2, 4 and 6, 2025-10-13 official text · verified 2026-10-29 · changed: Panama approved ACE 76 with Mercosur by Ley 489 published in Gaceta Oficial 30385-A on 13 October 2025; entry into force depends on all parties' notifications to ALADI.

Partner	Agreement	Approval law
United States	Trade Promotion Agreement	Ley 53 de 2007
European Union	Association Agreement with Central America	Ley 27 de 2013
United Kingdom	Association Agreement with Central America	Ley 103 de 2019
Central America	FTA Central America and Panama	Ley 24 de 2003
Singapore	FTA	Ley 19 de 2006
Chile	FTA	Ley 7 de 2007
Canada	FTA	Ley 69 de 2010
Peru	FTA	Ley 82 de 2011
Mexico	FTA	Ley 33 de 2014
Israel	FTA	Ley 105 de 2019
Korea	FTA with Central America	Ley 182 de 2020
Cuba	Partial scope agreement	Ley 30 de 2009
Mercosur (Argentina, Brazil, Paraguay, Uruguay)	ACE 76 framework	Ley 489 de 2025

Selected agreements and the Panamanian laws that approved them (Legispan).

Worked example

A US manufacturer ships machinery parts to a Panamanian buyer and claims the preferential rate under the Trade Promotion Agreement with a valid certification of origin.
If the goods meet the agreement's origin rule, ANA applies the preferential duty; if not, the national tariff rate applies, and ITBMS at 7 percent applies either way.
An Argentine exporter cannot yet claim Mercosur preferences in Panama under ACE 76, which is a framework without its own tariff schedule; the national tariff applies unless a bilateral agreement covers the product.

Step by step

Identify the origin of the goods and check whether an agreement with that country is listed by MICI.
Read the agreement's tariff schedule and origin rules (MICI and INTELCOM publish texts and explanatory documents).
Obtain the proof of origin the agreement requires before shipment.
Declare the preference in the customs declaration and keep origin records for verification.
For Mercosur trade, monitor ALADI notifications and any follow up agreement under ACE 76.

Common traps

Agreements cover only originating goods; transshipment through a partner country does not confer origin.
ACE 76 with Mercosur is a framework; it does not itself reduce tariffs.
Preferences cut duty but not ITBMS or ISC.
Panama has no tax treaty with Argentina, so trade agreements do not affect income tax on cross border payments.

Sources

Related: Panama country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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