|
|
|
FACT
SHEET:
U.S.-Panama Trade
Promotion Agreement -
Arizona Farmers Will Benefit
November 2007
Printer Friendly Version
The U.S.-Panama Trade Promotion Agreement eliminates tariffs and other
barriers on most U.S. goods, increasing export opportunities for agricultural
products important to Arizona. With immediate elimination of duties on over 60
percent of current U.S. trade, this agreement changes the one-way street of
duty-free access currently enjoyed by most Panamanian exports into a two-way
street benefiting both countries. The American Farm Bureau strongly supports the
agreement, predicting widespread gains for U.S. agriculture exceeding $190
million per year.
Arizona’s exports to all countries, estimated at $520 million in 2006,
supported about 6,200 jobs, on and off the farm. These export sales make an
important contribution to the Arizona farm economy which had total cash receipts
of $2.9 billion in 2006.
Beef. With the largest source of farm cash receipts, at $737 million in
2006 or a quarter of the state’s total, Arizona’s cattle and calf industry will
profit from this agreement.
Panama will immediately eliminate its 30-percent
duty on beef products of most importance to the U.S. beef industry--prime
and choice cuts. Panama’s tariffs on other cuts of beef will be phased out
over 15 years.
The 10-percent tariff on beef tongues and livers
will be eliminated in 5 years, and the 15-percent tariffs on other edible
offal will be eliminated immediately.
Panama has already implemented our December 2006
bilateral agreement on sanitary and phytosanitary (SPS) measures, reopening
its market to U.S. beef by bringing its import requirements related to BSE
into compliance with international standards.
Panama also accepted the equivalence of the U.S.
meat inspection system, which allows U.S. inspectors to certify beef for
export to Panama without having each facility and shipment inspected by
Panamanian authorities.
Dairy Products. The Arizona dairy industry earned cash receipts of $504
million in 2006, making it the second largest agricultural industry in the
state. Dairy farmers will benefit from this agreement.
U.S. exporters will have immediate duty-free access to nine preferential
dairy tariff-rate quotas (TRQs) with a combined total of 3,986 tons. These
include 2,625 tons of skim milk powder, 728 tons of cheese, 263 tons of ice
cream, and 370 tons of other dairy products. These quantities will grow by 4
or 5 percent each year and the over-quota tariffs for these TRQs, which
range from 15 percent for ice cream to 50 percent for milk powders, will be
phased out in 15 to 17 years.
U.S. dairy exporters will continue to have access to the global TRQs for
3,830 tons of milk powder and 3,782 tons of cheese that are part of Panama’s
World Trade Organization commitments.
Panama will eliminate its 30-percent tariff on dried whey products
immediately. The tariffs on most other dairy products, which currently face
duties as high as 140 percent, will be phased out over 15 years.
In addition, Panama has already implemented our December 2006 bilateral
agreement on SPS measures and technical standards by recognizing the
equivalence of the U.S. food safety systems for processed foods, including
dairy products, and by streamlining its product registration system for
packaged foods. This will allow U.S. food processors to export dairy
products to Panama without burdensome paper work and without having each
facility and shipment inspected by Panamanian authorities.
The National Milk Producers Association supports the Agreement, noting
that "Panama imports nearly half its dairy products, and the U.S. stands to
become a larger supplier once the FTA is finalized."
Vegetables. The vegetable industry is important to Arizona. Lettuce alone
had farm cash receipts totaling $389 million, or 14 percent of the state’s
total. Arizona’s vegetable growers will benefit from this agreement.
Panama will eliminate its tariffs on nearly all frozen and processed
vegetables immediately. The tariff faced by U.S. exporters for these
products currently is 15 percent.
The tariffs for most fresh vegetables will be eliminated in 10 to15
years.
Panama will eliminate its 15-percent tariffs on fresh lettuce,
cauliflower and broccoli in 12 years. The 15-percent tariffs on frozen
broccoli, cauliflower and vegetable mixtures will be eliminated immediately.
Fruits. Arizona is the ninth largest exporter of fresh and processed
fruits, and this agreement will benefit Arizona.
Panama will eliminate its tariffs on nearly all fresh and processed
fruits immediately.
Following are examples of fruit products of importance for Arizona that
will be duty-free immediately (the currently applied tariff is indicated in
parentheses): melons (15 percent), oranges (15 percent), and grapefruit (15
percent).
Tree Nuts. As the seventh largest U.S. exporter of tree nuts, Arizona
will gain from this agreement.
Panama will eliminate its tariffs on all shelled and roasted nuts
immediately. The current tariff on pecans is 10 percent and the tariff for
all roasted nuts is 15 percent.
Panama will also eliminate its tariffs on most in-shell nuts
immediately, but the tariff on in-shell nut mixtures will be phased out in 5
years. These tariffs currently range from 5 to 10 percent.
Back to the
U.S.–Panama Trade
Promotion Agreement
|
|
|
