Panama raises tariffs on US powdered milk to 28.1%
Panama formalised the measure through Resolution No. 011 of the Ministry of Commerce and Industries, published on August 10. It followed an investigation launched at the beginning of 2026 to assess import volumes. The decision applies only to specified categories of whole milk powder from the United States.
The safeguard was triggered after imports reached the level set in the Trade Promotion Agreement between Panama and the United States. For the relevant product, the 2026 tariff-rate quota was 104 metric tonnes. The agreement sets the activation point at 110% of that amount, producing a threshold of 114.4 tonnes. Panama’s Directorate General of Trade Defence, using information from the National Customs Authority, determined that the threshold had been reached.
The tariff increase varies by customs classification. Products previously covered by a preferential duty of 2.5% will face an additional 8.8 percentage points, bringing the total rate to 11.3%. Categories with a preferential rate of 6.2% will receive an extra 21.9 percentage points, resulting in a final duty of 28.1%.
The action is an instrument provided for in the agreement rather than a suspension of the accord or a closure of Panama’s market. The treaty, in force since October 31st 2012, established a gradual reduction of tariffs between the two countries. For agricultural goods classified as sensitive, it also allowed longer liberalisation periods and temporary safeguards when imports exceed agreed volumes.
Panama has used or examined similar measures for other food products. In 2025, authorities opened investigations involving butter, yoghurt and several dairy products, as well as rice, pork and chicken. Safeguards were also activated for certain cheeses, yoghurt, fluid milk and butter. In January 2026, Panama confirmed a safeguard for specified cheese categories, including mozzarella, after imports reached their relevant trigger level.
Further investigations in 2026 have covered whole and skimmed milk powder, cheeses and ice cream. The measures come as the agreement approaches an advanced stage of its tariff-reduction schedule. Once a product completes its liberalisation period, the special safeguard will no longer be available for that category. For whole milk powder, the 2026 import limit has now been reached, allowing the additional duties to take effect.
