Panama has not appended the WTO Telecom Reference Paper to its schedule of commitments.

It is reported that the Autoridad Nacional de los Servicios Públicos (ASEP, National Public Service Authority), the executive authority responsible for the supervision and administration of services in the telecommunications sector, is independent of the government in its decision-making.

Under Art. 5 of Law No. 81/2019, the transfer of personal data of a confidential, sensitive or restricted nature by the company responsible for the database or its custodian shall be permitted, provided that the company and/or its country of residence provide a level of protection comparable to that of Law No. 81; or if the transferring entity takes all necessary steps to ensure that the data will be protected in a manner consistent with the Law No. 81 through contracts, codes of conduct or applicable international standards. Art. 5 lists the following exemptions: when the data subject has given their consent; in the case of bank, money, stock market or securities transfers; when the transfer of the information is required by law or in order to comply with international treaties ratified by the Republic of Panama; and when the transfer is necessary for the conclusion or execution of a contract concluded or to be celebrated by the interested party or in their interest.

Panama has committed to covering cross-border data flow in the Free Trade Agreement between the United Mexican States and the Republic of Panama (Art. 14.10).

The Personal Data Protection Law provides a comprehensive data protection regime. The law applies to any person in charge of data processing who is domiciled in Panama and to any foreign companies' ongoing commercial online activities targeting the Panamanian market.

Pursuant to Art. 29 of Law No. 35, a patent application must be filed through a lawyer using the form provided by the Directorate General of the Industrial Property Registry of the Ministry of Commerce and Industry (DIGERPI). For applicants residing abroad, the application must also designate an address in the Republic of Panama for administrative and judicial notifications, and be accompanied by proof of payment of the applicable fee and filing fee.

Panama is a party to the Patent Cooperation Treaty (PCT).

Panama has a copyright regime governed by Law No. 64. However, the exceptions do not follow the fair use or fair dealing model, which limits the lawful use of copyrighted works by others. Art. 67 outlines the exceptions, including performances of works made at home, provided that there is no direct or indirect profit-making interest; performances for the general good during official or religious ceremonies; and performances in educational institutions for exclusively didactic purposes, among others.

Panama is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).

Under Art. 13 of Law No. 22, when selecting contractors for the acquisition of goods and services, contracting entities in Panama are required to first consider the feasibility, availability, and quality of goods and services produced within the country. According to Art. 7 of Executive Decree No. 439, foreign companies wishing to participate in these selection procedures must reference any international agreements or treaties on reciprocity between their home country and Panama. Additionally, when contracting for goods and services, the tender documents must specify that the goods and services must be of national origin, production, manufacturing, or provision.

Art. 10 of Law No. 22 provides that the State must promote the competitive participation of micro, small and medium-sized enterprises in certain acts of contractor selection carried out by public institutions. Art. 88 of Executive Decree No. 439 further elaborates on the provision mentioned above, stating that in the case of minor procurement acts, the entity must select the proposal submitted by the micro or small enterprises, provided that it complies with the requirements and demands of the tender documents and the proposed price is not greater than 5 % in relation to the lowest price proposal submitted by another type of enterprise.

It is reported that transparency and accountability deficits persist in Panama’s government procurement practices. In 2020, Panama adopted Law 153 with the stated objective of modernising the public procurement framework and strengthening transparency. However, reported enforcement has remained uneven. A recurrent concern for foreign firms contracting with the Panamanian government is the delayed settlement of payments to suppliers and contractors. Investors also point to opaque procurement procedures, including instances where tender requirements are modified during the process, which raises concerns that bids may be structured to favour particular firms.
In addition, investors report corruption risks across levels of government and within the private sector, including alleged requests for kickbacks and the inflation of contract values by officials and intermediaries. Reports also allege that judges, mayors, legislators, and local officials have accepted bribes in connection with land titling and favourable rulings. Permitting and titling procedures are further described as lacking transparency, with civil servants allegedly soliciting payments at multiple stages.

Panama is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 1997.

There are no foreign ownership limitations in sectors relevant to digital trade.