The future looks bright for exports of U.S. food products to Panama due in part to the impending U.S.–Panama Trade Promotion Agreement (TPA) and to the forecast of extraordinary growth of the Panama economy. This growth is based on a service sector that has a higher demand for food products that local agriculture cannot supply.  U.S. food products are well positioned in consumer preference.  The U.S.– Panama TPA will make duty-free trade a two-way street and is a key building block in the U.S. strategy to advance free trade within the Western Hemisphere.  The Agreement is comprehensive, covering all agricultural products. Liberalization of Panama’s market will occur through tariff reductions and the expansion of duty-free tariff-rate quotas.