Factbox: Highlights of U.S.-Panama free trade deal

(Reuters) - Panama's National Assembly has approved a tax information exchange treaty with the United States that is expected to clear the way for action in the U.S. Congress on a bilateral free trade agreement.

Here are some details about U.S.-Panamanian trade and the agreement, which was signed by the two countries four years ago but never approved by the U.S. Congress:

CURRENT TWO-WAY TRADE

* The United States exported more than $6 billion worth of goods to Panama in 2010 and imported less $400 million of products from that country, which has a services-oriented economy. The pact is expected to have a small, positive effect on bilateral trade.

US MARKET ACCESS FOR PANAMANIAN GOODS

* Almost all of Panama's exports have long entered the United States duty-free under various trade preference programs. The free trade agreement locks in that duty-free access for Panama, and requires other reforms expected to encourage more U.S. investment in the country.

* The pact keeps in place a tariff-rate quota on Panama's sugar exports to the United States but gradually increases an initial quota of 7, 065 metric tons to 7,675 metric tons over 15 years. After that, the quota would rise 5 percent annually.

MANUFACTURED GOODS

* More than 88 percent of U.S. exports of consumer and industrial goods to Panama will become duty-free once the agreement is implemented, with remaining tariffs phased out over 10 years.

* The agreement includes "zero-for-zero" immediate duty-free access for key U.S. sectors including agricultural and construction equipment, information technology products, and medical and scientific equipment.

* Other key U.S. export sectors such as motor vehicles and parts, paper and wood products, and chemicals will also obtain significant access to Panama's market.

* Apparel products made in Panama will be duty-free under the agreement if they use U.S. or Panamanian fabric and yarn. A special textile safeguard will provide for temporary tariff relief, if imports under the agreement prove to be damaging to domestic producers.

AGRICULTURAL GOODS

* More than half of U.S. farm exports to Panama will become duty-free immediately, including high-quality beef, other meat and poultry products, soybeans and related products, most fresh fruits and tree nuts, distilled spirits and wine, and a wide assortment of processed products.

* U.S. farm products benefiting from expanded market access opportunities through tariff-rate quotas include pork, chicken leg quarters, dairy products, corn, rice, refined corn oil, dried beans, frozen french fries, and tomato products.

* Tariffs on most remaining U.S. farm products will be phased out within 15 years

SERVICES

* Panama will accord substantial market access across their entire services regime, including financial services.

* It agreed to eliminate measures that restrict investment in retail trade to Panamanian nationals, to provide improved access in sectors like express delivery, and to grant new market access to professional services that previously had been reserved exclusively to Panamanian nationals.

* Panama also agreed that both mutual funds and pension funds in its territory will be allowed to use portfolio managers in the United States.

PANAMA CANAL EXPANSION

* U.S. firms are guaranteed a fair and transparent process to sell goods and services to a range of Panamanian government entities, including the Panama Canal which is in the midst of a major expansion.

Sources: USTR fact sheet, U.S. Customs data

(Reporting by Doug Palmer; editing by Laura MacInnis)