Panama's Agricultural (Dairy, Grain, Meats, etc.) Protectionism

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Agricultural Protectionism in Panama

By Tom on November 8, 2016 in News from Panama

Post Views: 299

So much for cheaper imported meat products.

After having granted permits to import processed meats from 7 plants in Brazil, the government decided to reverse the decision and suspend the imports in order to show “solidarity” to domestic producers.

The Panamanian Food Safety Authority “… taking into consideration denouncements from the productive sectors in the country, the Honorable Deputies of the Republic of Panama and other authorities, and in solidarity with this sector, which is of paramount national importance, has taken the decision to issue resolutions, through which the approval of the 7 processed meat plants in the Republic of Brazil are “suspended”, so that our authorities, who are committed to the domestic agricultural sector, can develop the best policies in this regard and contribute to strengthening these sectors.”

From a statement issued by the Panamanian Food Safety Authority:

The Panamanian Food Safety Authority is a state governing body that ensures compliance and enforcement of laws and regulations on the safety of food entering the national territory, under strict scientific and technical criteria.

Among its functions it is to approve the sanitary and phytosanitary eligibility of countries, regions, areas, production lines and / or plants for food exported to the Republic of Panama.

http://panamaadvisoryinternationalgroup.com/blog/news-from-panama/agricultural-protectionism-in-panama/

[MarieElaine]

I have heard that the meat handling plant in David is horribly unsanitary.  This tidbit came from someone who bought pigs there and switched over to Gray River Farms organic pigs.

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Panama's Agricultural Protectionism Continues

The Ministry of Agriculture is planning to invest $6 million to buy between 13,000 and 20,000 liters of milk in the first stage and to convert these purchases into a "state policy".

Monday, July 17, 2017

Amid the complaints from local producers, who cite loss of competitiveness of local production compared to imported dairy products, the Panamanian government announced that it will begin a milk purchase process to distribute nationwide through the IMA and other institutions.

Eduardo Carles, Minister of Agricultural Development, explained to Prensa.com that "... what they are looking for are options for the purchase of milk to become a state policy, as has been done with the purchase of pork, rice, tubers, tomatoes, onions, among other things."

See: "Central American Trade in Milk and Dairy Up 4%"

"... In addition, the import tariff for mozzarella cheese is to be raised from 15% to 30%." Next week, the Ministry of Industry and Commerce will present the proposal to the Cabinet, Carles said."

 

http://www.centralamericadata.com/en/article/main/Panamas_Agricultural_Protectionism_Continues

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Panama Raises Tariffs on Imported Pork from the United States

The Varela administration has applied a special agricultural safeguard to some porcine products imported from the United States, among which are hams, legs, shoulders and their pieces.

Tuesday, July 24, 2018

Arguing that up until July 16 of the current year, 3,506 metric tons of pork have entered the country, a volume that exceeds the 2,697 metric tons agreed for this year in the Trade Promotion Treaty, the Ministry of Commerce and Industries (Mici) resolved to increase the tariff on fifteen products imported from the USA.

See also "Increase in Pork Slaughter in Panama"

Among the products for which a higher tariff must be paid are pork ribs, whose tariff went from 62% to 70%, and hams, shoulders and pieces, without bones, which will now incur 70%, instead of 62%.

Economist Rolando Gordón, told Laestrella.com.pa that " ... this is a reflection of the Panamanian authorities having no control over the products that have to enter the country through the Trade Promotion Treaty."

See "Central America Consumes More Pork Meat"

Gordón adds that " ... the measure of increasing the tariff seeks to protect domestic production. Complaints by producers have been constant during the last months, and the commercial treaty has come to light in these."

See resolution by the Mici. (In Spanish)

 

https://www.centralamericadata.com/en/article/main/Panama_Raises_Tariffs_on_Imported_Pork_from_the_United_States

[Moderator_02]

And this is because....?

Perhaps protectionism?

[Moderator_02]

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More Protectionism

To correct alleged price distortions in the local market, the Panamanian government plans to regulate imports of beef from Nicaragua.

Tuesday, September 11, 2018

The Ministry of Agricultural Development (MIDA)'s plan is to establish new import rules, which will aim to correct the "distortion in the price of beef paid for the local product." 

The new regulatory framework, which according to Panamanian authorities consists of imposing an import tariff that would vary between 15% and 50%, depending on the tariff heading, will come into force through a decree issued by the Ministry of Commerce and Industries ( MY CI). Initially, the measure will only apply to purchases made in Nicaragua, since according to representatives of the MIDA, these are the ones that are most affecting the local beef market.  

See  "Bovine meat market in Central America"

According to the head of the MIDA, Eduardo Carles, " ...'In the last 20 months there has been speculation in the price of beef cattle in the country. These irregular lows have caused distortions in the local market, and in conjunction with producers and the agro-industry action is being taken in this regard."

According to a report by the trade union of entrepreneurs in the sector, the price paid to producers has been falling in recent years, given that between 2016 and 2018 a kilo of calf meat went from $2.63 to $2.22, and in the case of a kilo of steer, it went from $2.22 to $2.02.

Carles added that they have " ... asked the MICI that no later than next Monday (yesterday) the request made by Mr. Juan Carlos Varela be delivered to us to establish regulatory mechanisms for certain types of commercial meat cuts that are coming into the country and which in effect are damaging the commercial line and distorting profit margins of slaughterers and owners of supermarkets and grocery stores."

It is important to remember that at the beginning of August, several organizations of local agricultural producers organized several demonstrations against the supposedly excessive entry of products such as dairy products and meat. See "Fight against agricultural imports"

 

https://www.centralamericadata.com/en/article/main/More_Protectionism

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When Protectionism Fails

The Panamanian government's decision to raise the tariff on meat imported from Nicaragua from 3% to 30% to allow local producers to compete has so far shown no clear results.

Friday, February 15, 2019

In September 2018, the Panamanian government decided to establish barriers to the entry of Nicaraguan beef by raising the import tariff from 3% to 30%. This has not had the expected effects, as the prices paid to local producers have not risen.

See "Meat: The Conflict Between Panama and Nicaragua"

Although the immediate effect of the protectionist measures was a decrease in Nicaraguan meat income, prices for producers have registered a negative variation, since between 2017 and 2019 the price paid locally per kilogram of steer meat has fallen from $2.2 to $2.

Eduardo Carles, Minister of Agricultural Development, said to Prensa.com that "... Even when the first measures were applied, local producers informed us that Nicaraguan beef imports were still affecting the livestock sector, because the price of live cattle in the Central American country was much more depressed than that paid in Panama. Since the ministerial resolution became effective, Nicaraguan imports fell by 40%, but the producer price has not been stabilized."

Also see "Beef: Increasing Business with the US"

Euclides Diaz, executive secretary of the National Association of Cattle Ranchers (Anagan), assures that the "... measure adopted by Panama regarding beef imports is necessary, otherwise 'we run the risk of importing poverty from Nicaragua into our fields."

According to CentralAmericaData reports, in the first half of 2018 imports of fresh, chilled or frozen beef from companies in Panama totaled $18 million, of which $8 million was from Nicaragua.

 

https://www.centralamericadata.com/en/article/main/When_Protectionism_Fails