Caribbean & Central America - December 2013 (ISSN 1741-4458)

One year on since TPA with US took effect: US and Panamanian officials recently hailed the one-year anniversary of the implementation of the US-Panama Trade Promotion Agreement (TPA). According to a 19 November press release by the US State Department, bilateral trade with the US – Panama’s largest trading partner, accounting for approximately 23% of all two-way trade – grew by “roughly 20 percent to more than $10 billion in 2012 and has only continued to increase” since the TPA took effect on 31 October 2012. Another press release by the Office of the US Trade Representative highlighted the various positive results for the US of the agreement. Examples include the fact that from “November 2012 through August 2013 exports of agricultural products increased 18 percent to nearly $500 million. Exports of soybeans and soy products increased 94 percent to $72.5 million, and dairy product exports grew 24 percent to $40.8 million. Pork exports were up 70 percent to $17.6 million, and beef and beef products exports increased 42 percent to $7.6 million. Wheat exports grew 18 percent in the same period, to $40.1 million, while processed potato product exports increased 21 percent to $8.9 million”.

ACP: On 25 November the Panama Canal authority (ACP) reported that the Canal had contributed US$981.8m to State coffers in last fiscal year, which ran to 30 September 2013. This is 2.2% higher than that budgeted by the ACP for this year. It brings the total contribution to government coffers since the Canal’s administration passed into Panamanian hands at the start of the new millennium to US$8.5bn, according to an ACP communiqué. The ACP statement added that the US$981.8m included US$369m from customs duties linked to the traffic of goods through the Canal, and US$2.2m in payment for services.

• Global Entry Program

During a recent visit to Panama City, US Vice-President Joe Biden announced that the US is adding Panama to its Global Entry Program, which enrols travellers in a pre-screening security process that simplifies their entrance procedure into the US. According to a US embassy press release, Biden praised this stating: “Facilitating the flow of people is good for trade, it’s good for tourism, and it’s good for relationships between the countries…It’s a reflection of our friendship and our trust in Panama and the Panamanian people”.