U.S. Department of Agriculture (USDA) data indicates a rising demand for United States pork in Panama. However, U.S. pork exports face a unique hurdle, as the result of such strong demand.
United States pork exports have exceeded 130-percent of the tariff rate quota (TRQ) outlined in the U.S.-Panama Promotion Agreement. As a result, Panamanian officials increased tariff rates on U.S. pork. The out-of-quota tariff rate for most U.S. pork products is 54.5-percent, but raised to 70-percent when the safeguard was triggered.
Gerardo Rodriguez serves as U.S. Meat Export Federation (USMEF) regional marketing director for Mexico, Central America and the Dominican Republic. Rodriguez says the recent tariff announcement was met with mixed emotions.
?With the safeguard, the (tariff) rate increases to 70-percent. This is a result of more interest in finding U.S. pork in Panama,? Rodriguez said. ?The (export) volume will decrease compared to what it was in previous months, but we also work with a certain niche that values what the product is about, and they will keep buying product.?
Rodriguez believes the industry has positioned pork well, sparking great demand.
?This is not just a commodity market. We?re working to develop the markets, so we can provide solutions for value-added products (and) give more than a commodity product,? Rodriguez said. ?If we were to be chosen as a commodity, the market would basically be closed now that we?re facing a 70-percent tariff. I?m expecting the situation to be different this time. It is more than a commodity. It is a value-added product.?
In 2018, Central America doubled United States pork imports. The record-large amount totalled 86,031 metric tonnes, which was valued at more than $200 million. Through February, exports to the region were 16-percent above last year?s volume pace and up another 12-percent in value.
