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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 Georgia. 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.
Georgia’s exports to all countries, estimated at $1.5 billion in 2007,
supported about 16,100 jobs, on and off the farm.
These export sales make an important contribution to the Georgia farm economy
which had total cash receipts of $6 billion in 2006.
Poultry Meat. With cash receipts of $2.7 billion in 2006, broilers are
Georgia’s leading agricultural industry accounting for 45 percent of total farm
earnings. Georgia is the nation’s second largest broiler exporter. 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. Georgia’s poultry industry will benefit from this agreement.
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.
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. 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.
Peanuts. Georgia is the nation’s largest exporter of peanuts, which
account for 4.5 percent of the state’s farm cash receipts. Under the Panama
agreement, peanut growers will benefit.
Panama will eliminate its 15-percent tariff on most peanut products
immediately.
The tariff on roasted peanuts will be eliminated in 5 years.
Beef. Accounting for 5 percent of state farm cash receipts at $308
million in 2006, Georgia’s cattle and calf industry will profit 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 offals will be eliminated
immediately.
Panama has already implemented our December 2006 bilateral agreement on
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.
Vegetables. Georgia’s exports of fresh and processed vegetables were
estimated at $76 million in 2007. Vegetable growers will gain from the Panama
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 to 15
years.
Back to the
U.S.–Panama Trade
Promotion Agreement
