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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 North Carolina. 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.
North Carolina’s exports to all countries, estimated at $2 billion in 2007,
supported about 24,200 jobs, on and off the farm. These export sales make an
important contribution to the North Carolina farm economy which had total cash
receipts of $8.2 billion in 2006.
Poultry Meats. Farm cash receipts from broilers were $2.9 billion in
2006, or 36 percent of the state’s total. Turkey production accounted for
another 6 percent with cash receipts of $518 million. From 2004 through 2006,
U.S. suppliers shipped an average 5,700 tons of poultry meat valued at $7
million to Panama each year. However, exports are mostly limited to turkey cuts
and whole turkeys due to a 260-percent tariff on broiler leg quarters. Poultry
producers will benefit from the Panama FTA.
Panama will eliminate its 15-percent duties on turkey meat immediately
for frozen whole turkeys and most frozen turkey cuts. The 15-percent tariffs
on processed turkey and chicken will be eliminated within 5 years.
The 260-percent tariff currently applied to chicken cuts will be
eliminated immediately for mechanically de-boned chicken, within 5 years for
wings and 10 years for other chicken cuts except leg quarters.
Panama will provide immediate duty-free access within a preferential
tariff-rate quota (TRQ) for chicken leg quarters that starts at 660 tons and
grows each year by 10 percent. The 260-percent over-quota tariff will be
eliminated in 18 years.
U.S. poultry exporters will continue to have access to the global
756-ton TRQ for chicken cuts that is part of Panama’s World Trade
Organization commitments.
In addition, Panama has already implemented our December 2006 bilateral
agreement on sanitary and phytosanitary (SPS) measures by recognizing the
equivalence of the U.S. poultry inspection and disease monitoring systems,
allowing U.S. inspectors to certify poultry for export to Panama without
having each facility and shipment inspected by Panamanian authorities.
Pork. Hog industry cash receipts were $1.9 billion in 2006, or 23 percent
of the state’s agricultural total. North Carolina is the nation’s sixth largest
exporter of live animals and meats with shipments estimated at $372 million in
2007. Hog
farmers will benefit from this agreement.
Panama will provide immediate duty-free access within preferential 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."
Peanuts. As one of the nation's largest peanut and peanut product
exporters, North Carolina’s peanut industry will benefit from this agreement.
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
