{"id":6157,"date":"2012-10-22T16:31:36","date_gmt":"2012-10-22T21:31:36","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=6157"},"modified":"2012-10-25T11:50:01","modified_gmt":"2012-10-25T16:50:01","slug":"united-states-panama-set-date-for-entry-into-force-of-united-states-panama-trade-promotion-agreement","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/united-states-panama-set-date-for-entry-into-force-of-united-states-panama-trade-promotion-agreement\/","title":{"rendered":"United States, Panama Set Date for Entry into Force of Trade Promotion Agreement"},"content":{"rendered":"

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The breaking news is that this Halloween is going to be very special for the US and Panama.\u00a0 This is very big people, very big for the US and VERY BIG FOR PANAMA.\u00a0 As reported in the Miami Herald.<\/p>\n

A long-awaited free trade agreement with Panama that will reduce or eliminate tariffs on U.S. exports and provide access to the Central American country\u2019s lucrative services industry is scheduled to go into effect Oct. 31.<\/p>\n

U.S. Trade Representative Ron Kirk and Panamanian Minister of Commerce and Industry Ricardo Quijano exchanged letters Monday that set the implementation date.<\/p>\n

Last year, Panama\u2019s trade with the Miami Customs District, which stretches from Palm Beach County to Key West, set a record for the second year in a row. With total trade of $2.1 billion in 2011, Panama was the Miami district\u2019s 16th most important trading partner.<\/p>\n

President Barack Obama signed legislation to implement free trade agreements with Colombia, South Korea and Panama at the same time last fall, but Panama needed to amend its tariff schedule and overhaul intellectual property regulations before the pact could take effect.<\/p>\n

Since Panama is already one of the United States\u2019 preferential trading partners, the big impact of the agreement will be on U.S. exporters.<\/p>\n

More than 86 percent of U.S. consumer and industrial exports will enter Panama duty-free beginning Oct. 31 and nearly half of U.S. agricultural products, including high-quality beef, bacon, soybeans, wheat, barley and nearly all fruit and vegetables, will become duty-free. Most remaining tariffs will be phased out over 15 years.<\/p>\n

Tariffs on U.S. industrial exports currently average 7 percent and duties on agricultural products average 15 percent with some tariffs climbing as high as 260 percent.<\/p>\n

Information technology products are among those eligible for immediate duty-free status. That should be a big boost for South Florida because computers and cell phones and other telephone equipment were its top exports to Panama last year.<\/p>\n

Nationally, Panama is the United States\u2019 52nd largest trading partner with $8.6 billion in total trade in products during 2011. U.S. exports totaled $8.3 billion and imports, $389 million. The Miami district exported $1.88 billion worth of products to Panama in 2011 and imported $212.7 million.<\/p>\n

\u201cImplementation of the U.S.-Panama FTA is welcome news as we work to get our economy moving again,\u201d said Doug Oberhelman, chairman and chief executive of Caterpillar and chairman of the Business Roundtable\u2019s International Engagement Committee. \u201cPanama is an important strategic and commercial partner for the United States, and this overdue free trade agreement will increase U.S. exports to the fast-growing region, supporting U.S. economic growth and American jobs in the process,\u2019\u2019 he said.<\/p>\n

\u201cThis agreement also provides U.S. firms and workers improved access to customers in Panama\u2019s $22 billion services market, including in areas such as financial, telecommunications, computer, express delivery, energy, environmental and professional services,\u2019\u2019 said Kirk.<\/p>\n

He pointed out that Panama\u2019s economy is one of the fastest-growing in Latin America with growth of 10.6 percent last year. Growth also is expected to be brisk over the next five years.<\/p>\n

\u201cThat adds up to support for more well-paying jobs across the United States,\u2019\u2019 Kirk said. Each extra $1 billion in exports is estimated to create 5,000 to 7,000 jobs.<\/p>\n

HERE IS A GOVERNMENT FACT SHEET WITH THE HIGHLIGHTS<\/div>\n
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The U.S. \u2013Panama Trade Promotion Agreement (the \u201cAgreement\u201d) will support American jobs, expand markets and enhance U.S. competitiveness.<\/p>\n