The FTA with the U.S. and the Poultry Industry

Although gradual, tariff reductions on chicken from the U.S. pose a threat to the poultry industry in Panama.

Monday, January 23, 2012

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. "

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Auction of Tariff Quota for Chicken

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The first auction of import rights in Panama for poultry meat from the U.S. will be held from December 10 to December 14, 2012.

Notice of Auction Panama Poultry Export Quota, Inc.:

Notice of Auction
Panama Poultry Export Quota, Inc. (PAN-PEQ)

Offers will be accepted from 10 December to 14 December 2012

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