Transcript Slide 1

Foreign Agricultural Service
Agricultural Status of Panama
Miss. Arlene Villalaz
USDA / Foreign Agricultural Service
Agricultural Specialist for Panama
[email protected]
Foreign Agricultural Service
in Panama
FAS Panama office provides assistance and informs on
the Panamanian Agricultural Situation, Consumer
Trends, and Import regulations to USG officials and to
many of our US Agricultural Exporters who have
shown great interest in entering the Panamanian
market. Including, our coordination of trade missions
in Panama for USDA’s Cooperators. Support the
implementation of the U.S. -Panamanian SPS/TBT
Agreement, all in the spirit of resolving trade issues.
Maintain and expand U.S. Agricultural Exports, which
represents 65% of the market share in Panama.
FAS/Panama office advises, promotes and monitors
developments with the GOP, in the issuing of a
science - based biotech regulation in Panama
Foreign Agricultural Service
in Panama
FAS Panama office also provides support for and
coordinates other USDA activities in country, such as
monitoring distribution of Certificates of Quota
Eligibility for Raw Sugar, promoting the Export Credit
Guarantee Program, managing technical exchanges,
facilitating inspection visits of the Food Safety
Inspection Service. Oversees outreach efforts
regarding U.S. regulations and inspection
requirements of the Food and Drug Administration,
among others
Panama at a glance…
Government Type: Constitutional democracy.
Area: 75,420 sq. km
Population (May 2010): 3,322,576.
Annual population growth rate: 1.5%.
Unemployment (2010): 4.7%.
Dollarized economy since 1904
GDP (2010): U.S.$27.2 billion
GDP Annual growth rate: 7.3%
Per capita GDP: $12,700
Panama is generally in compliance with its agricultural
commitments under the WTO, and starting in January
2007, has applied good science to SPS measures,
facilitating trade in agricultural products.
The Panamanian Food Safety Authority (AUPSA),
created in 2006, has simplified procedures and the
issuance of special regulations that apply to imports
of food products from the United States (due to the
SPS agreement) recognizing the high standards of
the U.S. sanitary inspection system, and also the
good experience of decades of importing and
consuming those products.
A. Market Access
Tariffs:
All tariffs applied by Panama are below the WTO ceilings.
The last time Panama raised tariffs was in 1999, for a
number of agricultural products, but even then levels
remained below the WTO ceilings. Since then, there
have been some Cabinet Decrees modifying the
import tariff, but for reducing some tariffs that
Panama established at the WTO Adhesion at 15%
now are at 10% for example for juices and other food
preparations, and for the condensed milk that used to
have a 155% tariff, now has a 30% tariff.
B. Major U.S. Agricultural Exports to
Panama:
Corn…………………………$70,399,438
Soybean Meal…………………$48,477,000
Wheat…………………………..$20,522,000
Snacks and Processed food…$66,419,000
* U.S. Food products represents 65% of the Market
share of food products sold in Panama (2010)
C. Major Agricultural Products of
Panama (Exports to the U.S.)
Fishery Products (Tuna, Mahi Mahi)
Shrimps
Raw Sugar Cane
Unroasted Coffee
Fresh Tropical Fruits (melons,
watermelons, Papaya, squash)
Tariff Rate Quotas (TRQ)
The following are TRQ’s as per Panama’s WTO commitments for year 2009:
TARIFF RATE QUOTAS ADMINISTRATION. YEAR 2010
VALUE
QUANTITY
Measure NEGOTIATED
PRODUCT
NEGOTIATED Unit
(US dollars)
PORK MEAT
880
MT
1,922,555
YELLOW CORN
320,100
MT
70,399,438
RICE
27,106.68
MT
9,661,680
DAIRY PRODUCTS
2,170
MT
8,520,036
CHICKEN MEAT
0
Kg
0
POTATOES
618
MT
443,550
TOMATOES
2,898
MT
PRODUCTS
TOTAL
Source: Ministry of Agricultural Development
www.mida.gob.pa (Contingentes)
2,855,802
$93,803,061
D. Export Subsidies:
Panama is in compliance with WTO Agreement on
Agriculture, regarding Export Subsidies, In late
December 2009, Panama’s National Assembly
passed Law 82 of 2009, which creates a Certificate of
Promotion of Agricultural Exports (CEFA) program.
The CEFA program will give incentives to agricultural
exporters to reduce packing and transportation costs
for specified agricultural products, to be more
competitive. The CEFA replaces the CAT program,
as a result of Panama’s commitment under WTO
agreement.
E. Domestic Support
The new Government of Panama (GOP) by President Ricardo Martinelli,
has published on the Official Gazette No. 26,445-A, the Government’s
Strategic Plan for 2010 – 2014.
The five year plan identifies $9.6 billion of infrastructure investment, of
which $3.8 billion is in social investment (e.g. schools, hospitals,
housing, aqueducts and irrigation, jails, and a metro system) and $5.8
billion in economic investment (e.g. cold chain, tourism, road
infrastructure, and regional airports). The majority of the investment is
divided into four sectors which Panama has a competitive advantage
in which to target investment in order to achieve an estimate 6-9%
GDP growth per year and generate approximately 500,000 new jobs
by 2020. The four sectors are: Logistics (with Value Added Services),
Luxury Tourism, Agriculture and Financial Services.
GOP Strategic Plan for 2010 – 2014 on Agriculture:
1.
2.
3.
4.
Changing the focus to high-margin production for export diverting land
use of unsustainable protected crops (e.g. onions, tomatoes) for high
value added exports (e.g. tropical fruits).
Improving production yields and reducing waste, by better access to
pesticides, pest reduction techniques and irrigation as well as the ability
to rotate the land use and reduce crops, and the conversion of residual
waste through value-added products.
Developing a world class Cold Chain System, the goal is that significant
investments in a world-class cold chain system, road infrastructure at
production sites and irrigation system will facilitate the transition to high
value agriculture.
Establishing a reliable mechanism for the promotion and
commercialization of Panamanian agricultural products abroad by
creating a Promotion for Exports and Foreign Investment Agency.
Trade Promotion Agreement with the United States:
The negotiation of a U.S./Panama Trade Promotion
Agreement (TPA) concluded in December 2006. Many
Panamanians consider the agreement a political
accomplishment for the Government of Panama
because of the long terms obtained for politically
sensitive products such as rice, potatoes and onions.
On the other hand, by recognizing the U.S. sanitary
inspection system, Panama initiates a new era of
science based decisions that eliminates previous
discretionary measures, opening the market to U.S.
meats and other products.
The TPA is still pending for its U.S.Congressional and
U.S.Senate approval.
U.S. Non-party Agreements, already entered into force:
1- Bilateral Treaty with Colombia, for trading on a specific list of
products
2- FTA with Costa Rica
3- FTA with El Salvador.
4- FTA with Taiwan
5- FTA with Singapore
6- FTA with Guatemala
7- FTA with Chile
8- FTA with Nicaragua
9- FTA with Honduras
Other Agreements pending Ratification procedure:
1- FTA with Canada
2- FTA with European Union and Central America countries
Foreign Agricultural Service
Thanks for your attention!
Miss. Arlene Villalaz
USDA / Foreign Agricultural Service
Agricultural Specialist for Panama
[email protected]