Metals and Ores Sector

An Expert's View about Metals, Metalworking, Glass and Minerals in Panama

Posted on: 26 May 2012

The metals and ores sector accounted for $171 million in U.S. exports to Panama over 2008-10 (average) or 7.8 percent of total U.S. industrial exports to Panama.

The U.S.-Panama Trade Promotion Agreement Opportunities for the U.S. Metals and Ores Sector The U.S.-Panama Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • The metals and ores sector accounted for $171 million in U.S. exports to Panama over 2008-10 (average) or 7.8 percent of total U.S. industrial exports to Panama. • Estimated duties paid on exports of U.S. metals and ores to Panama from 2008 to 2010 were over $20 million. • Over 81 percent of U.S. exports of metals and ores to Panama would receive duty-free treatment immediately upon implementation of the U.S.-Panama Trade Promotion Agreement. Metals and Ores Sector Overview U.S. Metals and Ores Exports to Panama • The metals and ores sector accounted for $171 million in U.S. exports to Panama over 2008-10 (average) or 7.8 percent of total Averaged $171 Million 1 U.S. industrial exports to Panama. • Top U.S. metals and ores exports to Panama include steel sheets $200 and bars, aluminum sheets, bars and strips. • In 2009, U.S. production of metals and ores products was over $150 2 $246 billion (or nearly 6 percent of U.S. manufacturing output). • The U.S. metals and ores sector employed over 629,000 workers in $100 3 2009. $50 $0 2008 2009 2010 Improved Market Access for U.S. Metals and Ores Exporters to Panama • Panama’s metals and ores taris average 7.2 percent, ranging from 0 to 15 percent. 4 More t? an ? 1? o? U.S. Metals and Ores • Over 81 percent of U.S. metals and ores exports to Panama would receive duty-free treatment immediately upon Exports to Panama ? o?l d ? e D?t ? ? ? ree implementation of this Agreement. ? mmediatel? • Taris on the remaining 19 percent would be eliminated in 5 to 10 years. 11.70% 6.82% Immediate Key States Exporting to Panama 5 Years • Top U.S. states exporting metals and ores to Panama include: 10 Years California, Florida, Georgia, Alabama, Texas, Tennessee, Illinois, 81.48% New York, New Jersey and Minnesota. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Panama. The denition for metals and ores used in this report, unless otherwise cited, includes products within HS chapters 26, 72, 73, 74, 75, 76, 78, 79, 80, 81 and HS headings 7106 and 7112. 2 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes within 331, 332, and 339. Shipments used as best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, selected NAICS codes within 331, 332, and 339 (non-seasonally adjusted). 4 Data based on three-year average for 2008 to 2010. in Millions USD Foreign Competition in Panama’s Market EU Metals Exporters Could • Since the conclusion of negotiations with the United States, Immediately Get an almost 5 Panama has concluded separate negotiations with Canada and the EU. The EU-Central America Association Agreement which Percentage Point Tari includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua Advantage in Panama and Panama successfully completed negotiations in May 2010. 8% This agreement will provide the EU with increased regional 7% opportunities in Central America through lower taris, increased 6% 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 metals and ores exporters will immediately enjoy an average EU MFN-If U.S.-Panama Agreement is not enacted tari of 2.3 percent upon implementation of the EU-Central America Association Agreement, while U.S. exporters will face an average MFN tari of 7.2 percent until implementation of the U.S.- Panama Trade Promotion Agreement. Other Key Commitments by Panama for the Metals and Ores 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. 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