Environmental Goods Sector

An Expert's View about Machinery and Robotics in Panama

Posted on: 26 May 2012

The environmental goods sector accounted for approximately $85 million in U.S. exports to Panama over 2008-10 (average) or over 3.8 percent of total U.S. industrial exports to Panama.

The U.S.-Panama Trade Promotion Agreement Opportunities for the U.S. Environmental Goods Sector The U.S.-Panama Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • The environmental goods sector accounted for approximately $85 million in U.S. exports to Panama over 2008-10 (average) or over 3.8 percent of total U.S. industrial exports to Panama. • Estimated duties paid on exports of U.S. environmental goods to Panama from 2008 to 2010 were over $13 million. • Over 96 percent of U.S. exports of environmental goods to Panama would receive duty-free treatment immediately upon implementation of the U.S.-Panama Trade Promotion Agreement. Environmental Goods Sector Overview U.S. Environmental Goods Exports to • The environmental goods sector accounted for approximately $85 million in U.S. exports to Panama over 2008-10 (average) or Panama Averaged $85 Million 1 over 3.8 percent of total U.S. industrial exports to Panama. • Top U.S. environmental goods exports to Panama include air and $95 gas pumps, water ltration and purication machinery, regulators, and heat exchange pumps. $90 • The U.S. environmental goods sector generated approximately $85 2 $60 billion in equipment sales in 2009. • The U.S. environmental goods sector employed approximately $80 400,000 workers in 2009, with an additional 1.3 million employed 3 $75 in environmental services. $70 2008 2009 2010 Improved Market Access for U.S. Environmental Goods Exporters to Panama • Panama’s environmental goods taris average 6.3 percent, ? ver ? ? ? o? U.S. Environmental Goods ranging from 0 to15 percent. Exports to Panama ? ould ? e Duty? ? ree 4 • Over 96 percent of U.S. environmental goods exports to Immediately Panama would receive duty-free treatment immediately upon 2.41% implementation of this Agreement. 1.34% • Taris on the remaining 4 percent would be eliminated in 5 to 10 years. Immediate Key States Exporting to Panama 5 Years • Top U.S. states exporting environmental goods to Panama include: Florida, Georgia, Texas, Wisconsin, Tennessee, South 10 Years Carolina, Minnesota, California, Illinois, Missouri, Washington, 96.25% Ohio, Michigan, New Jersey and New York. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Panama. The denition for environmental goods uses in this report, unless otherwise cited, is based on the Environmental Goods Convergence List tabled as a non-paper in the WTO, with products falling with HS chapters 39, 44, 69, 70, 73, 76, 84, 85, 89, 90 and 95. Total imports by Panama from the United State have been adjusted in an attempt to capture only environmental goods trade. 2 Environmental Business International, Inc. Note that data for the environmental goods industry and markets vary signicantly because of inexact denitions of the sector. 3 Environmental Business International, Inc. 4 Data based on three-year average for 2008 to 2010. in Millions USD Foreign Competition in Panama’s Market EU Environmental Goods • Since the conclusion of negotiations with the United States, Panama has concluded separate negotiations with Canada and Exporters Could Immediately Get the EU. The EU-Central America Association Agreement which a 4 Percentage Point Advantage includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua in Panama and Panama successfully completed negotiations in May 2010. 7% This agreement will provide the EU with increased regional 6% opportunities in Central America through lower taris, increased 5% government procurement market access and elimination of 4% certain non-tari barriers. Panama also concluded free trade 3% agreement negotiations with Canada in May 2010. As part of 2% 1% this agreement, Panama will eliminate taris immediately on 90 0% percent of Canada’s exports. • EU environmental goods exporters will immediately enjoy an average tari of 2.1 percent upon implementation of the EU- EU MFN-If U.S.-Panama Agreement is not enacted Central America Association Agreement, while U.S. exporters will face an average MFN tari of 6.3 percent until implementation of the U.S.-Panama Trade Promotion Agreement. Other Key Commitments by Panama for the Environmental Goods Sector Remanufactured Goods: Currently, remanufactured equipment could be treated as a “used good” and face possible import prohibitions and restrictions in Panama. Upon entry into force of the Agreement, U.S. remanufacturers of many products, such as engines, radiators, and alternators for construction equipment and transportation machinery, will gain access to export their remanufactured products to Panama without being unjustied prohibitions and restrictions. Investment: The U.S.-Panama TPA establishes a strong and predictable legal framework for U.S. investors for all forms of investment. Under the Agreement, Panama will provide U.S. investors substantive protections and due process rights that are consistent with U.S. legal principles and practice. The Agreement establishes an impartial dispute settlement mechanism for investors to pursue damages for breaches of these protections. Government Procurement: The U.S.-Panama TPA government procurement provisions guarantee non-discriminatory access for U.S. goods, services, and suppliers to a broad range of public sector entities in Panama. The Agreement covers purchases of Panamanian central government entities, including all key ministries, and signicant government enterprises. In addition to the $5.25 billion Panama Canal expansion project, the Government of Panama has identied almost $10 billion in other signicant infrastructure projects. The U.S.-Panama TPA also claries that build-operate-transfer contracts (BOTs) are within the scope of the government procurement obligations in the Agreement. 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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