You’ve been granted free access to this subscribers only article.
U.S.-Panama Free Trade Agreement goes into effect
The United States-Panama Trade Promotion Agreement signifies an end to a five-year push to solidify three free trade agreements. The agreement, which went into effect Oct. 31, joins the United States-Korea Free Trade Agreement and the Colombia Free Trade Agreement, which took effect March 15 and May 15, 2012, respectively.
“Panama is one of the most rapidly growing economies in Latin America, and represents a valuable market for American soy and the many products like poultry and pork for which soy is critical in the production process,” said American Soybean Association President Steve Wellman, a soybean farmer from Syracuse, Neb., in a press release.
As of Oct. 31, all tariffs on U.S. soybeans, soybean meal, and crude vegetable oils will be removed with the enactment of the free trade agreement. Tariffs will also be removed for many beef, poultry, and pork products, which use soybean meal as feed. Additionally, the free trade agreement will level the trade playing field between the two countries, which currently sees more than 99 percent of Panamanian exports to the United States enter duty-free under the Caribbean Basin Initiative, while the majority of American exports to Panama are subject to tariffs.
The United States exported more than $53 million in soybean products to Panama last year, down from $65 million in 2010. Soybeans and soybean products are the largest U.S. agricultural export commodity, totaling nearly 1.5 billion bushels in 2011, with a value of more than $23 billion. This represents more than half of domestic soybean production and 20 percent of total American farm exports.
For the beef industry, the three trade agreements that went into effect in 2012 will boost beef exports by $3 billion.
“Texas ranchers have worked for nearly five years to see these agreements become reality,” said Texas and Southwestern Cattle Raisers Association President Joe Parker Jr. in a cattle raisers press release. “Families, both at home and abroad, want Texas beef on their tables, and now we will be able to help meet that demand. This is a win for consumers overseas and producers here in the United States.”
Among other things, implementation of the Panama Free Trade Agreement results in the immediate repeal of the 30 percent tariff on prime and choice cuts of U.S. beef and begins to phase out all remaining tariffs.
According to the U.S. International Trade Commission, the three trade agreements will increase U.S. exports by at least $13 billion and add $10 billion to the U.S. Gross Domestic Product. Additionally, exports of U.S. goods generate an estimated 8,000 jobs for every billion dollars shipped overseas.
Your Opinions and Comments
Be the first to comment on this story!
You must be logged in to post a comment.
Agriculture Today Archives
Customs intercepts pest new to the United States (May 25, 2016)
Does wounded tree have a chance? (May 25, 2016)
Livestock Market Reports (May 25, 2016)
Mother Nature whips Wilson County crops (May 25, 2016)
Scrapie confirmed in Texas (May 25, 2016)
TDA Market Recap (May 25, 2016)
Texas Hay Report (May 25, 2016)
Beef cattle seven-year decline ends (May 18, 2016)
Educational video for water well owners (May 18, 2016)
Free Beef Quality Assurance training set for May 25 (May 18, 2016)
Fretwell wins Region 8 high school all around rookie saddle (May 18, 2016)
Grant to restore, enhance the monarch butterfly habitat (May 18, 2016)
Grass-fed beef conference (May 18, 2016)
Gun safety and barbecue in New Braunfels (May 18, 2016)
La Vernia Poultry Judging wins state, advances to nationals (May 18, 2016)
Lawn, landscape, rainwater program May 21 in Floresville (May 18, 2016)
Lesser prairie chicken off the list (May 18, 2016)
Livestock Market Reports (May 18, 2016)
Luling Foundation Field Day (May 18, 2016)
Protecting your tomatoes (May 18, 2016)
TDA Market Recap (May 18, 2016)
Texas Hay Report (May 18, 2016)
As El Nińo fades, expect warmer, drier weather says Texas A&M expert (May 11, 2016)
Floresville team wins second at state (May 11, 2016)
Livestock Market Reports (May 11, 2016)
Llamas, load up! (May 11, 2016)
TDA Market Recap (May 11, 2016)
Texas Hay Report (May 11, 2016)
Transplanting mountain laurels (May 11, 2016)
2016 La Vernia Junior Livestock & Poultry Show (May 4, 2016)
Beef, forage symposium May 10 (May 4, 2016)
Cattle raisers’ crime watch (May 4, 2016)
Corn acreage increases in Texas (May 4, 2016)
Help controlling the weeds (May 4, 2016)
Krueger leads the way at La Vernia stock show (May 4, 2016)
Land Heritage nomination deadline nears (May 4, 2016)
Livestock Market Reports (May 4, 2016)
TDA Market Recap (May 4, 2016)
Texas Hay Report (May 4, 2016)
May 2016 Gardening Calendar (May 1, 2016)