The long-anticipated U.S.-Panama Free Trade Agreement (FTA) will officially go into effect Oct. 31. The FTA became law this time last year along with the Korea and Colombia FTAs. The passage of the FTAs could provide more than $2.3 billion in additional agricultural exports according to the U.S. Department of Agriculture, including a favorable outcome for the U.S. soy industry.
Currently, less than 40 percent of U.S. agricultural exports enter the Panama market duty-free; however, the Panama FTA will immediately secure duty-free treatment for half of U.S. farm exports including soybeans, soy meal and crude soy oil. The 20 percent tariff on refined soy oil will be phased out over the next 15 years.