Consumer Goods Sector

An Expert's View about DIY, Housewares, Appliances and Electronics in Panama

Posted on: 26 May 2012

The consumer goods sector accounted for $158 million in U.S. exports to Panama over 2008-10 (average) or 7 percent of total U.S. industrial exports to Panama.

The U.S.-Panama Trade Promotion Agreement Opportunities for the U.S. Consumer Goods Sector The U.S.-Panama Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • The consumer goods sector accounted for $158 million in U.S. exports to Panama over 2008-10 (average) or 7 percent of total U.S. industrial exports to Panama. • Estimated duties paid on exports of U.S. consumer goods to Panama from 2008 to 2010 were over $50 million. • Over 62 percent of U.S. exports of consumer goods to Panama would receive duty-free treatment immediately upon implementation of the U.S.-Panama Trade Promotion Agreement. Consumer Goods Sector Overview • The consumer goods sector accounted for $158 million in U.S. U.S. Consumer Goods Exports to exports to Panama over 2008-10 (average) or 7 percent of total 1 Panama Averaged $158 Million U.S. industrial exports to Panama. • Top U.S. consumer goods exports to Panama include jewelry, video games, arcade equipment, furniture, kitchen appliances, $165 and washing machines. $160 • In 2009, U.S. production of consumer goods products was over $154 billion (or nearly 4 percent of total U.S. manufacturing 2 $155 production). • The consumer goods sector employed over 1.2 million workers in 3 $150 the United States in 2009. $145 2008 2009 2010 Improved Market Access for U.S. Consumer Goods Exporters to Panama • Panama’s consumer goods taris average 10.9 percent, ranging from 0 to 15 percent. 4 • Over 62 percent of U.S. consumer goods exports to Panama would receive duty-free treatment immediately upon implementation of this Agreement. Over 70% of U.S. Consumer Goods Exports • Taris on the remaining 38 percent would be eliminated in 5 to to Panama Would be Duty-Free Within Five 10 years. Years Selected Sub-sectors: • Furniture: Panama will eliminate taris on 5 percent of U.S. furniture exports immediately 27.87%. Taris on another 14.4 percent of exports will be eliminated over ve years, and duties on the Immediate remaining 81 percent of exports will be eliminated over ten years. 5 Years • Toys: 62.04% Panama will eliminate taris on 74 percent of U.S. toy 10.09% exports immediately upon implementation of the Agreement. 10 Years Taris on another less than 1 percent will be eliminated over ve years and the remaining 25.3 percent over ten years. • Appliances: Panama will eliminate taris on 85 percent of U.S. appliance exports immediately upon implementation of the Agreement and another 5.8 percent within ve years. Taris on the remaining 9.5 percent will be eliminated over ten years. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Panama. The denition for consumer goods in this report, unless otherwise cited, includes products within HS chapters 46, 66, 69, 70, 71, 73, 83, 84, 85, 87, 89 to 92, and 94 to 97. 2 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 323, 327, 332, 333, 334, 335, 336, 337, and 339. Shipments used as best proxy to production. 3 U.S. Department of Labor, Bureau of Labor Statistics, within NAICS 327, 223, 335, 336, 337, and 339 (based on non-seasonally adjusted). 4 Data based on three-year average for 2008 to 2010. in Millions USD • Recreational Goods: Panama will eliminate taris on 93 percent of U.S. recreational goods exports immediately upon implementation of the Agreement. Taris on another 2.4 percent of exports will be eliminated over ve years. Taris on the remaining 4.2 percent will be eliminated over ten years. Key States Exporting to Panama • Top U.S. states exporting consumer goods to Panama include: Florida, Georgia, Illinois, Indiana, Ohio, Alabama, California, Michigan, Minnesota, Nevada, North Carolina, New Jersey, Pennsylvania, New York, Texas and Wisconsin. EU Consumer Goods Exporters Foreign Competition in Panama’s Market Could Immediately Get a 2 • Since the conclusion of negotiations with the United States, Panama has concluded separate negotiations with Canada and Percentage Point Tari the EU. The EU-Central America Association Agreement which Advantage in Panama includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua 12% and Panama successfully completed negotiations in May 2010. 10% This agreement will provide the EU with increased regional 8% opportunities in Central America through lower taris, increased 6% government procurement market access and elimination of 4% certain non-tari barriers. Panama also concluded free trade 2% agreement negotiations with Canada in May 2010. As part of 0% this agreement, Panama will eliminate taris immediately on 90 percent of Canada’s exports. EU MFN-If U.S.-Panama Agreement is not enacted • EU consumer goods exporters will immediately enjoy an average tari of 8.6 percent upon implementation of the EU-Central America Association Agreement, while U.S. exporters will face an average MFN tari of 10.9 percent until implementation of the U.S.-Panama Trade Promotion Agreement. Other Key Commitments by Panama for the Consumer Goods Sector Customs Administration: The U.S.-Panama TPA requires measures designed to increase transparency and eciency in administering customs procedures. The Agreement will allow exporters to obtain advance rulings on tari classication, origin of goods, and other customs matters. The Agreement addresses industry’s demand for express delivery services by requiring that, within one year after the date the Agreement takes eect, Panama must provide a separate, expedited customs procedure for express shipments. Rules of Origin: The U.S. Panama TPA rules of origin allow only U.S. and Panamanian originating goods to receive preferential tari treatment under the Agreement. The trade agreement rules of origin provide clear requirements for a good to be considered originating, including that a good must be wholly obtained or produced entirely in the territory of the United States or Panama, as well as requirements for materials that are used in the production of the good. Intellectual Property Rights: The U.S.-Panama TPA requires high levels of intellectual property protection, consistent with U.S. standards of protection, and will support the growth of trade in digital and other intellectual property-based products. This Agreement provides protection for copyrighted works, stronger protection for patents and trade secrets and the high level of enforcement required provides tough penalties for piracy and counterfeiting. Average Tari May 2011 The International Trade Administration - Your Global Business Partner The International Trade Administration (ITA) – a division of the U.S. Department of Commerce – strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA also utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information on exporting to Panama, please contact: • The ITA office of the U.S. Embassy in Panama at enrique.tellez@trade.gov, or 011-507-317-5000, or by visiting our website http://www.export.gov/panama. • You can also locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac. For more information on the U.S.-Panama Trade Promotion Agreement, please visit www.export.gov/fta/panama and www.trade.gov/fta/panama. For more information on industry-specific issues, please visit http://trade.gov/mas/index.asp.
Posted: 26 May 2012

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