Panama extends 30% tariff on hydraulic cement imports

The Cabinet Council of Panama approved extending the 30% tariff on hydraulic cement imports for two more years to protect approximately 4,385 jobs in the local cement industry.

The extension, requested by the Panamanian Industrial Union (SIP), comes amid projections of declining cement consumption due to reduced domestic demand. The SIP emphasized the need to support national production to enhance per capita income.

Cement production in Panama has been declining since 2014, largely due to an economic slowdown and rising imports. The construction sector's downturn, worsened by the 2020 coronavirus pandemic, has impacted many workers in this industry.

According to Global Trade Analytics, Panama has significantly reduced its cement imports in the past few years. The figures for all types of cement decreased from 414,178 metric tons in 2022 to 91,531 mt in 2023, and further to 79,857 mt in 2024. Hydraulic cements imports dropped from 19,552 mt in 2023 to 7,714 mt in 2024.