Trade Policy Panama became a full member of the WTO in August 1997. As part of its WTO accession, Panama revised its tariff structure and adopted a full ad-valorem system, using the declared CIF value as the basis for import duty calculations. Agrochemical and agricultural machinery imports are duty free. However, Panama raised import tariff on around 40 sensitive agricultural products, including meat, milk, potatoes and rice in October 1999. Panama does not require import licences.
Any company holding a commercial licence can freely import goods into Panama.
While Panama has no foreign exchange restrictions, its monetary system is mostly dollarised. Panama's legal currency unit is the Balboa, however, it is only issued in the form of coins. US dollar bills are recognised as legal tender and the only paper currency in circulation. In addition, all commercial transactions are carried out in US dollars. Special permits are required for the import of live animals, tanned leather, eggs, milk products and diary by-products.