Currently tariffs on imports of chicken meat is 260% for chicken thighs and drumsticks. This protection for the local industry will gradually disappear, according to provisions by the Trade Promotion Agreement signed with the northern country.
An article in Prensa.com, reports that "When the agreement comes into force, which could be in 2013, depending on the adaptability of Panamanian law to the TPA- specific quantities of chicken meat may come into the country without incurring tariffs. In the first year that the TPA is in force, the quota is 660 metric tons of chicken quarters - thighs and boned pieces, from the U.S. ".
Then, the duty free quota will increase year by year, until eventually, after 5 years of the TPA, there will be no limit. The same applies to chicken wings, now also protected with a tariff of 260% - they will enter Panama with zero tariffs.
"What has been negotiated is a challenge for local industry, because Panamanians eat the whole chicken. The country is in fact one of the biggest consumers of chicken in Latin America. The per capita consumption of Panama (75.9 pounds) is second only to Venezuela (76.34 pounds) and Brazil (83.02 pounds), reports the Latin American Poultry Association. "
Source: Prensa.com
More on this topic
January 2011
Starting January 2012 nutrition labeling of single-ingredient foods such as ground meat and poultry will be required.
On December 29, 2010, the Food, Safety and Inspection Service (FSIS) has changed regulations on meat and poultry products. The changes will come into effect on the 1st of January 2012.
October 2011
Both houses of the U.S. Congress ratified the Treaty of Trade Promotion with Panama and other countries.
A press release from the Presidency of the Republic of Panama reads:
Panama’s growing economy growth saw years of effort pay off, especially under the current government administration, after both houses of the U.S. Congress ratified the Trade Promotion Agreement (TPA) with Panama and other countries.
January 2011
In 2010 it exported 218 million pounds, 33 million more than in 2009.
Alfredo Velez, corporate vice president of Tip Top Industries, said the sector is expected to grow 10% this year.
He added, "Exports to Venezuela are in the process of closing since so far we have completed the technical analysis and logistics, once this agreement is complete, it will take three months to start shipments to that market because the chicken which goes to Venezuela will be an additional production above the local production."
January 2010
As the free trade agreement between both countries comes into effect, Nicaragua expects to increase exports in 15%.
Orlando Solórzano, Development Minister, highlighted the opportunities presented by this FTA for companies to export more to Panama.
Solórzano told newspaper Laprensa.com.ni: "Grains, vegetables, milk and derivates, cheese and instant coffee enjoy important export quotas.
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