FAS Touts Benefits of Panama TPA for Agricultural Exporters
Implementation of the U.S.-Panama Trade Promotion Agreement is “exciting news” for U.S. agricultural exporters because Panama is already an important market for U.S. farmers, ranchers, and producers, said the Foreign Agricultural Service in a blog post. Panama already imports 65 percent of its food products from the U.S., it said, and the agreement ensures U.S. exporters will receive duty-free treatment on products accounting for more than half of the current trade. Tariffs on remaining agricultural products will be phased out within 15 years.
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The FAS office in Panama has been working with U.S. agricultural trade organizations to expand U.S. exporters’ presence in Panama, it said. “The Panamanian private sector has a strong preference for the American brand of food products,” said Arlene Villalaz, an FAS agricultural specialist in Panama. “With the Panama TPA underway, the U.S. will maintain and improve that market share.”
Among the trade organizations positioning themselves to take advantage of expanded opportunities in Panama is the U.S. Grains Council, which represents the barley, corn and sorghum industries, FAS said. In 2010, the council opened its regional office for Latin America and the Caribbean in Panama City.
Before the agreement, Panama’s tariffs on grains ranged from zero to 90 percent, FAS said. Under the Panama TPA, barley and wheat will receive duty-free treatment immediately, while sorghum will receive duty-free treatment in five years. Panama also established a 298,700 ton duty-free tariff rate quota (TRQ) for corn that will grow at a rate of three percent before it’s completely eliminated in 15 years.