While the FTA provides for a gradual tariff reduction for chicken imported from the US, it dose pose a threat to the poultry industry in Panama.

Currently tariffs on imports of chicken meat is 260%- for chicken thighs and drumsticks. This protection for 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