Panama–United States Trade Promotion Agreement
The Panama–United States Trade Promotion Agreement is a free-trade deal between Panama and the United States. It aims to remove barriers to trade, expand access to goods and services, and encourage private investment. It also covers policies beyond trade, including intellectual property, labor, environment, and government rules. The pact has been in effect since October 2012.
Negotiations were completed in December 2006, the agreement was signed in June 2007, and Panama’s National Assembly ratified it in July 2007, before a Spanish translation was finished.
The agreement helped drive changes to Panama’s copyright law in 2012, a move that drew criticism from free-culture and digital-rights groups who argued it favored the entertainment industry and could limit free expression.
In Panama, the election of Pedro Miguel González Pinzón as President of the National Assembly in 2007 sparked controversy and drew opposition from some U.S. lawmakers, who warned it could threaten the trade pact. González later did not seek re-election.
In the United States, Republicans in the House pressed for fast-track approval. In October 2011, President Obama submitted three pending trade deals (with Colombia, Panama, and South Korea), and all three passed Congress. The Panama pact was approved 300–129 in the House and 77–22 in the Senate. Obama signed it on October 21, 2011, and it took effect on October 31, 2012.
Critics like Senator Bernie Sanders argued the agreement could help tax havens like Panama, where wealthy individuals and large corporations avoid U.S. taxes; this critique resurfaced after the Panama Papers leak in 2016.
This page was last edited on 3 February 2026, at 15:35 (CET).