He cabinet council approved tariff changes on Tuesday aimed at protecting the nation’s corn production and guaranteeing the nation’s production of raw milk used to make cheddar cheese.
The approved decree changes, creates and abolishes tariff shares with the aim of increasing them to the maximum consolidated level before World Trade Organization (WTO)import tariff for 5 tariff headings of products made from corn, and develop one of these fractions into which more products are classified, to separate and be able to increase the tariff specifically for corn products imported through it.
In this sense, the minister dr Trade and industry, Frederick Boyd he explained that currently national corn production takes place in the area of 23,694 hectare about 3,098 producers, with an annual production of 2,475,025 quintal, mainly in the provinces Los Santos, Herrera and Chiriqui.
It is also reported that the national corn processing industry for human consumption acquires 50% of this production for its conversion into products such as corn flour, tortillas, empanadas and other consumer foods, making a stable market for the production of national corn.
However, in recent years, imports of processed corn have grown to reach 12,192 metric tons in 2022, causing a distortion in the local market that puts the manufacturing industry’s production line at risk due to an oversupply of imported products.
Boyd noted that both The Ministry of Trade and Industry as well as the Ministry of Agricultural Development addressed the concerns expressed by producers, processors and industrialists of this branch of national production and considered it necessary to promote these measures to protect national corn production by increasing tariffs on certain processed corn products, without exceeding Panama’s pre-WTO commitments.
The government also approved the change in the description of the corresponding tariff share industrial cheddar cheese or cottage cheeseadapt it in accordance with the current size in which it is commercialized at the international level and thus facilitate its acquisition by the national industry.
Minister Boyd explained that with the proposed change, the description of the tariff rate share for cheddar cheese for industrial use will include containers of 15 or more net kilograms.
He pointed out that this adjustment makes it easier for the domestic processing industry to procure imported raw materials in order to complete the development of its activity, while maintaining a safe market for the supply of domestic raw milk, with an adequate supply of the population with products for daily consumption, in sufficient quantities and at affordable prices.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
