Marking the one-year anniversary of the U.S.-Panama trade agreement entering into force Thursday, U.S. Trade Representative Michael Froman highlighted significant increases in American shipper activity to the Central American country.
Some of the U.S. goods to experience an uptick to Panama are primary and fabricated metal products, processed food, petroleum and coal products, and apparel and apparel accessories, while farmers and ranchers saw strong export growth, including in soybeans, wheat, pork, beef, dairy products, and potato products.
“The potential for trade in goods and services as well as investment between our two countries due to the trade agreement is significant,” Froman said in a statement. “We appreciate the active engagement of the Panamanian government during the last year and will continue to work closely with them to ensure that the agreement is fully enforced and the benefits continue to accrue to both countries.”
U.S. goods exports to Panama totaled $9.2 billion, up 17 percent for November 2012-August 2013 compared with the same previous period, according to the Office of the U.S. Trade Representative. In terms of agricultural products, the United States was already Panama’s largest supplier, and the improved access afforded by the trade agreement has opened the market even further. From November 2012 through August 2013, U.S. exports of agricultural products to Panama were up nearly 18 percent from the comparable previous period.
The U.S. Congress approved the U.S.-Panama pact on Oct. 12, 2011. President Obama signed it on Oct. 21, 2011, and the agreement entered into force on Oct, 31, 2012. More than 87 percent of U.S. exports of consumer and industrial products, and more than half of agricultural exports, to Panama are already duty free under the agreement, with remaining tariffs phased out over defined time periods, USTR said.
USTR: Exports to Panama on the rise
