City of Panama. — The announced visit of United States Secretary of State Antony Blinken to Panama is a ray of hope, emboldening the Panamanian authorities to try to insist on a renegotiation of the 2007 Trade Facilitation Agreement (TPC) signed between the two nations that ended with the tariff cut a debacle threatens in national production.
Blinken will attend a regional meeting on migration in Panama, a visit “which we hope will provide an opportunity and encourage conversations around this[the TPC]negotiation,” assured Deputy Minister for Agricultural Development Carlo Rognoni.
Last March, the Panamanian authorities raised the need for a renegotiation of the TPC, which begins this year 2022 with a gradual reduction in tariffs for almost all local production, primarily affecting products such as rice, beef, chicken, pork and dairy products derivatives.
upon such a request US Embassy Charge d’Affaires in Panama, Stewart Tuttle, reiterated on the occasion that his country was not considering renegotiating the TPC. “… We do not intend to renegotiate the contract…” he said, noting that the canal nation has benefited from the deal for 10 years.
The National Poultry Farmers Association pointed out at the time that since the TPC came into effect in 2012, the United States had a surplus of more than $2.8 billion in the general trade balance and more than $400 million in the agricultural trade balance have recorded.
Tuttle pointed out that Panama exported approximately $90 million worth of products to the United States.
Agricultural Development Minister Augusto Valderrama expressed confidence that the United States would renegotiate the TPC with Panama or claimed that other alternatives would have to be sought, for which he does not rule out a trade deal with China.
Panamanian Foreign Minister Erika Mouynes is currently on a tour of the Asian continent, where she met her counterpart and State Councilor Wang Yi in the People’s Republic of China.
product of this meeting, The Panamanian Ministry of Foreign Affairs reported that in the commercial sector it was possible to reactivate the certification process for Panamanian pig, chicken and seafood farms.
The facility inspection process by China Customs, which normally requires an on-site inspection, will be temporarily replaced with virtual inspections to speed up the process and clear facilities, according to the information.
“The Chinese market represents enormous potential for Panama’s agricultural and livestock sector, and this certification will be a crucial step in achieving effective access,” adds a press release from the Panamanian Ministry of Foreign Affairs.
Likewise yesIt has been agreed with the People’s Republic of China that it will examine the possibility of financially supporting the Food and Agriculture Organization of the United Nations (FAO) project to make Panama the regional center for agricultural exports, with a view to exports to the Asian market.
According to the official statement, Foreign Minister Mouynes has formally invited the People’s Republic of China to accede to the Panama Canal Treaty’s neutrality protocol, for which both parties have agreed to set up a technical negotiating table that will evaluate the appropriate mechanisms to implement this adhesion.