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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 Florida. 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.
Florida’s exports to all countries, estimated at $1.7 billion in 2006,
supported about 20,100 jobs, on and off the farm. These export sales make an
important contribution to the Florida farm economy which had total cash receipts
of $7 billion in 2006.
Fruits. Supported by its very large citrus industry, Florida fruit
producers and processors are the state’s leading agricultural export industry
and third largest fruit exporters in the nation with overseas sales estimated at
$589 million in 2006. This industry will benefit from the agreement.
Panama will eliminate its tariffs on nearly all fresh and processed
fruits immediately.
Following are examples of fruit products of importance for Florida that
will be duty-free immediately (the currently applied tariff is indicated in
parentheses): oranges (15 percent), grapefruit (15 percent), all citrus
juices (15 percent)
Vegetables. The nation’s fifth largest fresh and processed vegetable
exporter, Florida’s vegetable industry will benefit from the Panama FTA.
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 10-15 years.
Panama will eliminate its 15-percent tariffs on fresh tomatoes in 12
years.
Beef. As the state’s fourth largest source of farm cash receipts at $484
million in 2006, Florida’s cattle and calf industry will gain 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 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.
Peanuts. Florida peanut exports totaled $19 million in 2006, making it
the fourth largest exporter in the nation. The Panama agreement will benefit
peanut farmers.
Panama will eliminate its 15-percent tariff on most peanut products
immediately.
The tariff on roasted peanuts will be eliminated in 5 years.
Back to the
U.S.–Panama Trade
Promotion Agreement
