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Panamanian producers insist on revision of treaty with the U.S.

Tratado-de-Promocion-Comercial-TPC-con-Estados-Unidos
Panama City, Jun 11 (Prensa Latina) Today, in Panama, poultry and pig farmers insisted on the need to review the Trade Promotion Agreement (TPA) with the U.S., in force since 2012 on tariff relief, because it is affecting local producers.

For the president of the National Association of Poultry Producers (ANAVIP), Luis Castroverde, the renegotiation of this text is vital and at the same time a challenge because it means competing with subsidized products and with large companies, to the detriment of a small production like Panama’s. He also criticized the way in which US authorities have refused to find formulas so that national exports can coexist with their imports.

He also criticized the way in which the US authorities have refused the possibility of finding formulas so that national exports can coexist with their imports.

For his part, the president of the National Association of Pork Producers (ANAPOR), Carlos Pitti, said that with this fight they are not defending the producers, but the country’s economy, jobs and agriculture, which are at risk of being lost.

“If we allow a poorly negotiated treaty to destroy the productive sectors, we will have a country without food,” he warned.

The officials recalled that the claim has been going on for years and even today they are still demanding the opening of the total market that was established in the TPC scheme.

Pitti acknowledged that although the government is aware of the problems surrounding the agreement, Washington’s good will is needed to understand that social peace begins with food.

In this regard, the Minister of Agricultural Development, Augusto Valderrama, explained that there are talks with authorities of the northern country on tariff relief for sensitive items such as pork, chicken, rice and dairy products, which represent more than 55 percent of the agricultural gross domestic product and “guarantee the peace and stability of the country”.

However, U.S. Undersecretary of Agriculture Alexis Taylor said in a visit to the isthmus that they will focus on the implementation and not on the renegotiation of the TPC with Panama.

“If we start looking at these very particular issues, we may end up unraveling the basis of the whole agreement,” she said.

Statistics from Panama’s poultry sector indicate that since the entry into force of this pact, 11 years ago, the United States has registered a surplus of more than 2,800 million dollars in the general trade balance and more than 400 million dollars in the agricultural balance.

The Canal nation only exported to the northern nation diverse products for an approximate value of 90 million dollars.

In March 2022, Valderrama himself warned that if the United States did not accept the revision of the agreement, some alternatives would have to be sought, and it would be to export those products to other countries, alluding to China.

The TPA between Panama and the United States also includes disciplines related to customs administration and trade facilitation, technical barriers, government procurement, investment, telecommunications, e-commerce, intellectual property rights and labor and environmental protection.

mh/ybc/rgh/ga

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