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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 Hawaii. 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.
Hawaii’s exports to all countries, estimated at $88 million in 2007,
supported about 1,100 jobs, on and off the farm. These export sales make an
important contribution to Hawaii’s farm economy which had total cash receipts of
$555 million in 2006.
Fruits. Hawaii is the ninth largest exporter of fresh and processed
fruits in the nation. Pineapples are a $76-million industry, but guava and other
tropical fruit are also important. The Panama agreement can benefit Hawaiian
fruit growers.
Panama will eliminate its tariffs on nearly all fresh and processed
fruits immediately, including its 15-percent tariff on fresh pineapples and
guavas.
Panama will phase out its 15-percent tariffs on processed pineapple and
pineapple juice in 10 years.
Tree Nuts. Hawaii is the nation’s eighth largest exporter of tree
nuts due to the success of its macadamia nut industry. Hawaiian tree nut
producers will benefit from this agreement.
Panama will eliminate its tariffs on all shelled and roasted nuts
immediately. The current tariff on macadamia nuts is 10 percent, and the
tariff for all roasted nuts is 15 percent.
Coffee. Cash receipts from coffee production totaled $30 million in 2006,
or 5 percent of the state’s agricultural receipts. Hawaiian coffee growers will
benefit from the Panama agreement.
Panama will phase out its 54-percent tariff on U.S. roasted coffee in 8
years.
Back to the
U.S.–Panama Trade
Promotion Agreement
