Source: Tom Johnston, MEATINGPLACE, 4/26/19



A surge in U.S. pork exports to Panama thus far in 2019 has triggered a safeguard measure, according to the U.S. Meat Export Federation.

As export volume already exceeded 130% of the tariff rate quota (TRQ) set by the U.S.-Panama Trade Promotion Agreement, Panama applied higher tariff rates on some imports of U.S. pork on April 1 that will remain in effect for the rest of the year.

The duty-free TRQ for applicable products is 2,858 metric tons. The safeguard rate is triggered at 3,715 metric tons, according to USMEF spokesman Joe Schuele. TRQ volumes increase annually until reaching unlimited duty-free volumes by year 15 of the agreement, which is 2026.

Panama's 2019 out-of-quota tariff rate for most U.S. pork products is 54.4%, but this rate increased to 70% — or the pre-U.S. Panama TPA rate — now that the safeguard measure was triggered. Lower rates — 60% for chilled carcasses and 40% for two processed pork lines — apply to some products. The tariff rate on U.S. pork variety meat remains at zero, USMEF told members in a memo announcing the safeguard trigger.

A regional policy
Gerardo Rodriguez, USMEF regional marketing director for Mexico, Central America and the Dominican Republic, said he expects demand to weather the negative impact of the higher tariff rate. USMEF has positioned U.S. pork as a versatile product that delivers excellent value to its Panamanian customer base, he said.

USMEF applies this strategy throughout Central America. He notes that six of seven countries in the region are now top 20 markets for U.S. pork, and in 2018 exports saw double-digit growth in almost all of those markets.

U.S. pork exports to Central America set records last year, totaling 86,031 metric tons valued at more than $200 million. Through February, 2019 exports to the region were 16% above last year's volume pace and up another 12% in value.

Exports to Panama have accelerated at an even faster rate, climbing 66% in volume and 45% in value from a year ago.

For more stories, go to www.meatingplace.com.