TABLE OF CONTENTS


                                                            PAGE

I.   EXECUTIVE SUMMARY                                        1
     * Commercial Overview
     * Business Trends and Opportunities
     * Trade and Investment Climate

II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS                2
     * Leading Agricultural Sector Exports
     * Leading Industrial Sector Exports

III. ECONOMIC TRENDS AND OUTLOOK                              4
     * Major Trends and Outlook
     * Principal Growth Sectors
     * Government Role in the Economy
     * Balance of Payments
     * Trade and Investment Barriers
     * Labor Force
     * Major Local and Third Country Competitors
     * Infrastructure Situation
     * Major Infrastructure Projects Underway

IV.  POLITICAL ENVIRONMENT                                   11

V.   MARKETING U.S. PRODUCTS AND SERVICES                    12
     * Distribution and Sales Channels
     * Use of Agents/Distributors; Finding a Partner
     * Franchising
     * Direct Marketing
     * Joint Ventures/Licensing
     * Steps to Establishing an Office
     * Selling Factors/Techniques
     * Advertising and Trade Promotion
     * Pricing a Product
     * Sales Service/Customer Support
     * Government Procurement
     * Intellectual Property Rights
     * Registering Your Products
     * Contacting a Local Attorney

VI.  TRADE REGULATIONS AND STANDARDS                         16
     * Tariffs and Import Taxes
     * Customs Valuation
     * Import Licenses

                                                           PAGE

     * Export Controls
     * Import Documentation
     * Export Documentation
     * Temporary Entry
     * Labeling, Marking Requirements
     * Prohibited Imports
     * Standards (ISO 9000)
     * Free Trade Zones/Warehouses
     * Special Import Provisions
     * Membership in Free Trade Arrangements

VII. INVESTMENT CLIMATE                                      22
     * Openness to Foreign Investment
     * Conversion and Transfer Policies
     * Expropriation and Compensation
     * Dispute Settlement
     * Performance Requirements/Incentives
     * Right to Private Ownership and Establishment
     * Protection of Property Rights
     * Regulatory System
     * Capital Markets and Portfolio Investment
     * Bilateral Investment Agreements
     * OPIC Investment Insurance Program
     * Labor Code
     * Foreign Direct Investment Statistics
     * Major U.S. Investors

VIII.  TRADE AND PROJECT FINANCING                           31
     * Banking and Financing
     * List of Panamanian Banks with Correspondent U.S. Banks

IX.  BUSINESS TRAVEL                                         34
     * Business Customs
     * Visas
     * National Holidays
     * Specific Business Information

 LIST OF APPENDICES

     APPENDIX A:    COUNTRY DATA

     * Country Profile
     * Domestic Economy
     * Trade

     APPENDIX B:    DATA ON BEST PROSPECT SECTORS/AGRICULTURE AND
                    INDUSTRY SECTOR EXPORTERS

     * Best Prospects for Agricultural Sector Exports
        - Agricultural Consumer Oriented Products
        - Bulk Agricultural Products
        - Intermediate Agricultural Products

     * Best Prospects for Industry Sector Exports
        - Building Products
        - Computers and Peripherals
        - Apparel
        - Automotive Parts and Service Equipment
        - Medical Equipment
        - Air Conditioning and Refrigeration
        - Food Processing and Packaging Equipment
        - Telecommunications Equipment
        - Agricultural Machinery and Equipment
        - Security and Safety Equipment

     APPENDIX C:    LIST OF CONTACTS

     * U.S. Embassy Trade Personnel
     * Washington-based USG Country Contacts
     * U.S. Based Multipliers Relevant for Country
     * Ministries and Government Owned Agencies in Panama
     * Local Trade Associations/Chambers of Commerce
     * Country Commercial Banks
     * Major Advertising Agencies

     APPENDIX D:    MARKET RESEARCH - LIST OF 1993-1995 REPORTS

     * Agriculture Sector Reports - U.S. Dept. of Agriculture
     * Industry Sector Analyses(ISA) - U.S. Dept. of Commerce

     APPENDIX E:         TRADE EVENT SCHEDULE                           1995 COUNTRY COMMERCIAL
                         GUIDE: PANAMA