Report by the WTO Secretariat

Panama has a small, relatively open economy that is highly dependent on services, especially those related to foreign trade. The Panama Canal and the development of free zones make the country one of the world’s most important distribution and re-export centres, which is why in 2019, the sum total of Panama’s exports and imports of goods and services was equivalent to 82% of GDP. Services accounted for 70% of GDP during the review period; in 2020, the most important services were wholesale and retail trade; transport, storage and communications; financial intermediation; and real estate, business and rental activities. All of these services are related in some way to international trade. The structure of Panama’s merchandise trade is of particular importance: a distinction must be drawn between trade from the Panamanian customs territory per se and trade through the Colón Free Zone, where three quarters of the value of the country’s total merchandise trade is processed. During the review period, there was a significant change in the type of merchandise exported by Panama: until 2018, agricultural and food products dominated, whereas in 2019, exports of mining products, specifically copper, which were previously non-existent, commenced following the opening of a copper mine that year, accounting for 56% of all goods exported in 2020.