Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 4/19/11

As the United States and Panama completed work on the U.S.-Panama Trade Promotion Agreement this week, an economist predicted if the deal is approved by Congress, it could boost hog prices and pork industry jobs.

Iowa State University economist Dermot Hayes predicted the pact would add 20 cents to the price U.S. producers receive for each hog marketed and create more than 200 U.S. pork industry jobs. U.S. pork exports to Panama are expected to increase by about $16 million a year under the pact, according to the National Pork Producers Council.

“Implementing the pending trade agreement with Panama will level the playing field so that U.S. producers and exporters of food and farm products receive reciprocal market access,” NPPC President Doug Wolf said in a news release. “It also will open to U.S. pork producers, other agricultural sectors and U.S. businesses a market of almost 3.4 million consumers.”

U.S. pork exports to Panama currently are restricted by a small quota and out-of-quota duties as high as 80 percent. Under the Panama Trade Promotion Agreement, U.S. pork variety meats would receive immediate duty-free treatment.

The deal would also expand market access for U.S. pork muscle meat through larger tariff rate quotas that would grow by 6 percent annually. The out-of-quota tariffs would be phased out in 15 years, and all other tariffs on U.S. pork would be phased out over 12 years, according to NPPC.

The agreement would also resolve significant sanitary and technical issues. For example, Panama would recognize the U.S. meat inspection system as equivalent to its own meat inspection system.

NPPC urged Congress to approve three pending trade agreements -- Colombia, Panama and South Korea – before its August recess.

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