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2.34. In 2015, the First Protocol to Partial Scope Economic Complementarity Agreement No. 71 between Panama and Cuba entered into effect. The Protocol amended the preferences initially negotiated and introduced new preferences, as well as provisions on science and technology, the environment and intellectual property.

2.45. Panama continues to implement the legal-stability regime. This regime guarantees stability for 10 years for legislation, taxation (except indirect taxes), customs regimes (except tariff changes) and labour laws and stability for five years for municipal taxes. Investments exceeding PAB 2 million in certain sectors and activities [55] benefit from this regime, as do companies that opt for the special regimes. (...)
[55] Sectors: (...) agriculture and agro-forestry (...) Activities: (...) water irrigation and conservation.

Table 3.4. Tariff lines for which Most-Favoured Nation (MFN) tariffs are higher than bound tariffs, 2021:
(...)
Applied tariff (HS Code): 3826.00.00.00.00;
Bound tariff (HS code): 3826.00.00;
MFN tariff: 10;
Bound tariff: 6.5;
Description Bound tariff: Biodiesel and mixtures thereof, not containing or containing less than 70% by weight of petroleum oils or oils obtained from bituminous minerals;
Description MFN tariff: Biodiesel and mixtures thereof, not containing or containing less than 70% by weight of petroleum oils or oils obtained from bituminous minerals
(...)

3.39. The Consumption Tax on Petroleum-Derived Fuels (ICCDP) is a specific tax per gallon that varies according to the product and, in the case of gasoline, according to the source of the bioethanol or biodiesel with which it is blended (Table 3.6). The tax is much higher for gasoline blended with imported bioethanol or biodiesel. This differentiation in the tax rate is one of the energy policy instruments used by Panama to, inter alia, protect the environment and promote energy self-sufficiency, encouraging the production and use of biofuels in national territory and generating electricity from biomass. In addition to this differentiation in the ICCDP, since 2014 the purchase of bioethanol and biodiesel made from domestic raw materials and used in the blending of gasoline as biofuels generates a tax credit of PAB 0.60 per gallon. This credit can only be used to offset the payment of ICCDP and is not transferable.

3.43. The import (or export) of goods harmful to the environment and human, animal or plant health or which conflict with the security of the State and the financial economic system, and others determined by special regulations or laws (Article 99 of Decree-Law No. 1 of 13 February 2008), is prohibited. (...)

Box 3.4. Conventions to which Panama is a signatory, 2021:
(...) Basel Convention (hazardous wastes), Rotterdam Convention (hazardous chemical products and fertilizers), Stockholm Convention (persistent organic pollutants), Montreal Protocol (substances that deplete the ozone layer) (...) Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (endangered species) (...) Kyoto Protocol to the United Nations Framework Convention on Climate Change, United Nations Convention on Biological Diversity, Montreal Convention (marking of plastic explosives for the purpose of detection)

3.65. (...) procedures prior to import involve other government entities such as the Ministry of Agricultural Development (MIDA), the Ministry of Health (MINSA) and National Customs Authority (ANA); in other cases, for products coming from natural forests, the Ministry of Environment (MITS) must be involved and, in the case of marine products, the Panama Aquatic Resources Authority (ARAP).

3.70. There are no domestic taxes on exports. In general, Panama does not impose export taxes, charges or levies, except for on processed wood from natural forests, which is subject to a levy of 1% of the free on board (f.o.b.) value. However, wood from duly certified forest plantations is not subject to this levy.

3.71. Panamanian legislation allows exports, as well as imports, to be prohibited or otherwise restricted in order to preserve fauna, flora or cultural, historical and archaeological heritage. (...)

3.72. Exports of wood from natural forests or extracted from water reservoirs are regulated in Panama. The prohibition on the export of this type of wood in stumps is in force; only samples may be exported to investigate the potential for exploitation (export) of the wood. An application must be made to the Ministry of the Environment to export these samples. Primary processing and treatment are a requirement for their export. Moreover, timber species must come from sustainable forest plantations certified by the Ministry to be eligible for export. In 2015, the export of Cocobolo wood was prohibited.