Republic of Panama
Central America · the isthmus linking North and South America
- Capital
- Panama City
- Largest city
- Panama City
- Language
- Spanish
- Demonym
- Panamanian
- Government
- Unitary presidential republic
- President
- José Raúl Mulino (since 1 July 2024)
- Currency
- Balboa (PAB), at par with the US dollar, which is legal tender
- Area
- 75,420 km² (CIA World Factbook)
- WTO member
- Yes — since 6 September 1997
- Trade hubs
- Panama Canal; Colón Free Zone, the largest free zone in the Americas
Panama's Geography & People
Panama occupies the narrow isthmus between Costa Rica and Colombia, linking North and South America. The Panama Canal connects the Atlantic and Pacific oceans.
Panama City is the capital and main business centre; Colón, on the Caribbean coast, hosts the Colón Free Zone.
Panama's Economy
Panama's economy is built on services: the canal, ports, logistics, banking and the Colón Free Zone. Its own goods exports are small and led by shrimp and fish, bananas, watermelon, palm oil and teak.
Copper concentrate was the largest export until the country's only large copper mine stopped operating at the end of 2023; export figures now exclude it (MICI).
Panama's Trade Policy
Panama uses the US dollar alongside its balboa and has been a WTO member since 1997. It has trade agreements with the United States, the European Union and its Central American neighbours, among others.
The Colón Free Zone lets companies import, store and re-export goods to Latin America and the Caribbean without paying Panamanian duties.
Panama's Trade Position
Panama imports far more goods than it exports, a gap largely offset by its services earnings from the canal, logistics and finance.
In 2026, re-exports through the Colón Free Zone have recovered strongly on demand from regional markets (MEF, INEC data).
Panama's Top Trading Partners
2026 · MICI, CustomsIndia is a top-five market for Panamanian goods
India was the fifth-largest destination for Panama's exports in January–July 2026 (MICI, INEC data). Check trade obstacles for your product →
Other Country Profiles
Import Summary
Panama's Top Import Sources
Goods, CIF · Oct–Dec 2025 · INECThe United States is Panama's largest supplier: INEC records $626.8 million of imports from the US in October–December 2025, the latest quarter with values by country. Fuel delivered through Panama's petroleum free zones and goods from China follow closely.
| # | Origin | Imports |
|---|---|---|
| 1 | 🇺🇸 United States | $626.8M |
| 2 | Petroleum free zones (Panama) | $624.8M |
| 3 | 🇨🇳 China (mainland) | $599.8M |
| 4 | 🇲🇽 Mexico | $154.8M |
| 5 | 🇨🇷 Costa Rica | $121.1M |
Quarterly figures from Panama's national statistics institute (INEC), preliminary, in balboas (at par with the US dollar). Panama's statistics list its free zones as origins, so fuel and goods re-entering from them appear separately. In January–March 2026, imports from China grew 11.8% (INEC). Customs summaries for January–June 2026 rank the United States first, followed by China, Mexico, Brazil and Colombia. Source: INEC, Comercio Exterior, October–December 2025.
Panama's Top Imported Products
Growth only · H1 2026Panama's Import Trend
Goods, CIF · US$ · Customs| Period | Goods Imports | Change vs a year earlier |
|---|---|---|
| 1 Jan–25 Jun 2026 | $7,882M | — |
Customs records for 1 January to 25 June 2026; no comparable prior-year figure was published with them. Source: Autoridad Nacional de Aduanas.
Colón Free Zone Trade
Jan–May 2026 · INEC| Flow | Value | Change |
|---|---|---|
| Imports into the free zone | $4,772M | ▲ 0.2% |
| Re-exports from the free zone | $5,599M | ▲ 23.0% |
Re-exports reached their highest January–May level in five years. By the end of June, cumulative re-export growth was 24.9%, led by demand from Venezuela, Costa Rica, the US, Ecuador, El Salvador, Nicaragua and Honduras. Sources: INEC via Panamá América; MEF economic report, June 2026.
No trade agreement with India
Indian goods enter Panama at its standard tariff rates, as there is no India–Panama trade agreement. Panama's customs summaries do not break out imports from India. Check import duty for your product →
Export Summary
Panama's Top Export Markets
Ranking only · Jan–Jul 2026 · MICIPanama's Top Exported Products
Shares only · Jan–Jul 2026 · MICIPanama's Export Trend
Goods and special regimes · US$| Period | Goods Exports | Change vs a year earlier |
|---|---|---|
| Jan–Jul 2026 | $913M | ▲ 18.5% |
| Jan–Jul 2025 | $771M | — |
Excludes copper concentrate, not exported since the mine closed at the end of 2023. The 2025 value is the 2026 total less the reported increase of $142.5M. Source: MICI (Intelcom), INEC data.
A re-export hub for goods India makes
Pharmaceuticals, apparel and footwear were among the fastest-growing re-exports from the Colón Free Zone in the first half of 2026 (MEF), all categories in which India is a major global supplier. Check trade obstacles →