Top Panamanian Exports & Imports
Why the United States Wants a Free Trade Deal with Panama
Jan 29, 2008
With a population of 3.2 million, Panama is strategically located on the eastern end of a natural land bridge that connects North and South America. Panamanians control the Panama Canal, a waterway that links the North Atlantic Ocean via the Caribbean Sea with North Pacific Ocean.
Currently the Panama Canal is undergoing a vast reconstruction project that may double the Canal's capacity, at a cost of US$5.3 billion. Should the American Congress pass the proposed free trade treaty with Panama, more U.S. exports are expected to flow through the revamped waterway.
Panama and American Trade
Panama exported US$9.7 million worth of commodities to the world in 2007 including bananas, clothing, coffee, shrimp and sugar. Topping the list of customers for Panamanian exports in 2006 were the United States (39.8% of total exports), Spain (8.1%), Netherlands (6.7%), Sweden (5.6%) and Costa Rica (4.5%).
Also in 2007, Panama imported about $12.1 billion worth of goods. Leading suppliers of Panamanian imports included the United States (27% of total imports), Netherlands Antilles (10.1%), Costa Rica (5.1%) and Japan (4.7%).
Panama’s international trade deficit was $2.4 billion in 2006. Exports from the United States account for much of that amount.
Panamanian Exports to U.S.
Panama exported US$378.2 million worth of merchandise to the United States in 2006, up 15.7% from 2005 and up 25% in 4 years.
- Fish and shellfish …US$104.8 million (27.7% of Panama to U.S. exports, down 7.3% from 2005)
- Goods returned then re-exported to America … $73.1 million (19.3%, up 2.5%)
- Nonmonetary gold … $33.3 million (8.8%, up 86.2%)
- Crude oil … $31.8 million (8.4%, up from NIL)
- Cane and beet sugar … $23.3 million (6.2%, down 19.3%)
- Fruits and preparations including frozen juices … $12.6 million (3.3%, up 35%)
- Green coffee … $11.2 million (3%, down 0.6%)
- Abrasives, belting, boxes, glass … $9.4 million (2.5%, up 29.8%)
- Bauxite and aluminium … $7.7 million (2%, up 29.8%)
- Miscellaneous exports including movies … $6.6 million (1.7%, up 10,341%).
Fastest-Growing Panamanian Exports to U.S.
Below are American imports from Panama in 2006 with the highest percentage sales increases from 2005.
- Miscellaneous exports including movies … US$6.6 million (up 10,341%)
- Iron and steel products excluding advanced manufacturing … $1.4 million (up 3,313%)
- Stereo equipment including radios and tape decks … $1.7 million (up 1,960%)
- Other automotive parts and accessories … $1 million (up 619%)
- Collectibles including antiques, artwork and stamps … $1.6 million (up 377%).
Panamanian Imports from U.S.
Panamanian imports from the U.S. rose 25.2% to $2.7 billion in 2006, up 92.4% since 2002.
Of American exports to Panama in 2006, the following product categories had the highest values.
- Fuel oil … US$726.1 million (26.8% of Panama from U.S. imports, up 39.1% from 2005)
- Pharmaceutical preparations … $162.9 million (6%, down 10.1%)
- Other petroleum products … $133 million (4.9%, up 217.9%)
- Civilian aircraft … $123.5 million (4.6%, up 16.7%)
- Toiletries and cosmetics … $78 million (2.9%, up 41.1%)
- Computer accessories … $64.5 million (2.4%, up 11.1%)
- Newsprint … $59 million (2.2%, up 29.4%)
- Telecommunications equipment … $50.5 million (1.9%, up 13.5%)
- Computers … $44 million (1.6%, up 52.9%)
- Civilian aircraft parts … $41.5 million (1.5%, up 34.9%).
Fastest-Growing Panamanian Imports from U.S.
Below are American exports to Panama in 2006 with the highest percentage sales increases from 2005.
- Specialized mining equipment … US$2.9 million (up 676% from 2005)
- Numismatic coins … $2.6 million (up 524%)
- Other petroleum products … $133 million (up 218%)
- Alcoholic beverages excluding wine … $12.7 million (up 176%)
- Pleasure boats and motors … $11.4 million (up 148%).
In terms of the merchandise flow between the two countries, Panama’s trade deficit with America was $2.7 billion in 2006, up 92.4% from 2002. The Panama trade deficit with the U.S. increased 25.2% in 2006 – a faster rate than the 17.8% deficit increase in 2005 from the year earlier.
Sources
This analysis is based on latest statistics from the US Census Bureau - Foreign Trade Statistics and CIA World Factbook as of the date of article publication.
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