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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 Wyoming. 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.
Wyoming’s exports to all countries, estimated at $61 million in 2007,
supported about 630 jobs, on and off the farm. These export sales make an
important contribution to the Wyoming farm economy which had total cash receipts
of $1 billion in 2006.
Beef. The cattle and calf industry accounts for three-fourths of Wyoming
farm cash receipts with sales of $763 million in 2006. This industry will
benefit 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.
Pork. Wyoming hog farmers are the fourth largest earner of farm cash
receipts with sales of $28 million in 2006. The hog industry can benefit from
this agreement.
Panama will provide immediate duty-free access within preferential
tariff-rate quotas (TRQs) for 2,554 tons of U.S. pork products, including
1,600 tons of fresh and frozen pork cuts, 636 tons of pork fat and bacon,
and 318 tons of processed pork. Most of these products currently face
tariffs of 70 percent. The TRQ quantities will expand and the over-quota
tariffs will be eliminated in 15 years.
Panama will also eliminate its 10-percent tariff on pork variety meats
immediately on entry into force of the Agreement.
In addition, Panama has already implemented our December 2006 bilateral
agreement on SPS measures by recognizing the equivalence of the U.S. meat
inspection system, allowing U.S. inspectors to certify pork for export to
Panama without having each facility and shipment inspected by Panamanian
authorities.
The National Pork Producers Council supports the Agreement, saying "This
agreement will contribute greatly to the bottom line of U.S. pork producers
by opening up new market access to more than 3 million additional consumers
in the Western Hemisphere."
Vegetables. The state’s fresh and processed vegetable exports were
estimated at $4.1 million in 2007. Wyoming’s growers of dried beans and other
vegetables can 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 10-15 years.
Panama will eliminate its 15-percent tariffs on lentils and most dried
beans immediately. For Kidney beans, Panama will provide immediate duty-free
access within a preferential TRQ that starts at 795 tons and grows each year
by 6 percent. The 15-percent over-quota tariff will be phased out in 12
years.
Back to the
U.S.–Panama Trade
Promotion Agreement
