MICI Investigates Agricultural Safeguard Mechanism in Dairy and Poultry within Panama-US Trade Promotion Agreement
Source: dairynews.today
The Panamanian government, through the Ministry of Commerce and Industries (MICI), has launched an investigation into the possible activation of the Special Agricultural Safeguard Mechanism under the Trade Promotion Agreement (TPA) with the United States. This investigation targets skimmed milk powder and chicken thighs.
The Panamanian government, specifically the Ministry of Commerce and Industries (MICI), has initiated an official inquiry regarding the potential activation of the Special Agricultural Safeguard (SEA) mechanism within the framework of the Trade Promotion Agreement (TPA) between Panama and the United States.
This inquiry currently focuses on imported skimmed milk powder and chicken leg quarters.
The investigation aims to assess whether these imports have reached the activation thresholds outlined in Article 3.17 and Annex 3.17 of the TPA. According to the TPA, a 110% activation level applies to skimmed milk powder, while a 130% threshold is set for chicken leg quarters.
The General Directorate of Trade Defense is analyzing available data, including periodic reports from the National Customs Authority. These reports highlight the proximity of these imports to the SEA mechanism's automatic activation levels.
Resolutions regarding SEA implementation, investigation, or modification began in 2018. Each SEA resolution outlines the agreed metric ton levels for the current year, specifying the activation percentage, preferential tariff, additional safeguard duties, and applicable tariffs.
Under Panama's TPA agreement, the SEA measure can be applied to six products, including chicken, beef, pork, dairy products, rice, vegetable oils, and processed tomatoes. In contrast, the United States can apply SEA measures to nearly 60 lines of dairy products.
This inquiry currently focuses on imported skimmed milk powder and chicken leg quarters.
The investigation aims to assess whether these imports have reached the activation thresholds outlined in Article 3.17 and Annex 3.17 of the TPA. According to the TPA, a 110% activation level applies to skimmed milk powder, while a 130% threshold is set for chicken leg quarters.
The General Directorate of Trade Defense is analyzing available data, including periodic reports from the National Customs Authority. These reports highlight the proximity of these imports to the SEA mechanism's automatic activation levels.
Resolutions regarding SEA implementation, investigation, or modification began in 2018. Each SEA resolution outlines the agreed metric ton levels for the current year, specifying the activation percentage, preferential tariff, additional safeguard duties, and applicable tariffs.
Under Panama's TPA agreement, the SEA measure can be applied to six products, including chicken, beef, pork, dairy products, rice, vegetable oils, and processed tomatoes. In contrast, the United States can apply SEA measures to nearly 60 lines of dairy products.
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