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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 Montana. 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.
Montana’s exports to all countries, estimated at $723 million in 2007,
supported about 7,000 jobs on and off the farm. These export sales make an
important contribution to the Montana farm economy which had total cash receipts
of $2.3 billion in 2006.
Beef. Montana’s cattle and calf industry provided the state with $1.1
billion in farm cash receipts in 2006, 48 percent of the state’s total.
Cattlemen 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 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.
Wheat. Montana is the nation’s fourth largest exporter of wheat and
products, and earnings from wheat farming are the state’s second largest source
of farm cash receipts ($688 million in
2006). Wheat growers will benefit from this agreement.
Panama’s current zero-tariff treatment for wheat will be locked in place
immediately upon implementation of the Agreement.
The 10-percent tariff on wheat flour will be eliminated within 12 years.
Barley. Barley ranks as the third largest source of farm cash receipts
with earnings of $97 million in 2006. Barley growers will benefit from this
agreement.
Panama’s current zero-tariff treatment for barley and barley malt will
be locked in place immediately upon implementation of the Agreement.
Vegetables. The state’s fresh and processed vegetable exports were
estimated at $54 million in 2007. Montana’s potato and pulses farmers stand to
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 provide immediate duty-free access within a preferential
tariff-rate quota (TRQ) for frozen precooked French fries that starts at
3,640 tons and grows each year by 4 percent. The 20-percent over-quota
tariff will be eliminated in 5 years.
Panama will eliminate its 15-percent tariff on potato chips immediately
and the tariffs on potato flakes (15 percent) and other potato preparations
(as high as 54 percent) will be phased out in 5 to 10 years. Panama will
also establish a 765-ton duty-free preferential TRQ for fresh potatoes that
will grow each year by 2 percent.
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
