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September/October 2007 INsight excerpts
Panama and U.S. Sign Trade Promotion Agreement
Panama and U.S. Sign Trade Promotion Agreement Since 2004, the U.S. and Panama have been working to negotiate a trade promotion agreement to benefit both countries. On June 28, 2007, the two countries signed the U.S.-Panama Trade Promotion Agreement (TPA), which is waiting for approval by the national legislatures of both countries. Once implemented, the agreement will affect tariffs on all agricultural products, with 60 percent of the products currently traded becoming duty-free immediately. Tariffs on most remaining agricultural products will be phased out within 15 years. According to the Office of the United States Trade Representative, the U.S. and Panama traded a total of $3.1 billion in 2006. The average tariff rate for agricultural products imported into Panama is currently 15 percent, but some key exports from the U.S. face significantly higher rates. Meat tariffs run up to 70 percent, grain tariffs up to 90 percent, and the tariff on chicken leg quarters is 260 percent. When the TPA goes into force, tariffs will be eliminated on 78 processed food tariff lines immediately, including miscellaneous food preparations, chocolate confectionery, infant formula, soup and some other products. Another 16 lines, such as tomato sauces and retail dog and cat food, will become duty free within 5 years. The current tariff of 15 percent on bottled table wine will be eliminated immediately under the TPA, and tariffs on all other wines will be phased out within 5 years. Eighty percent of the tariff lines for fruits, nuts and vegetables will be eliminated immediately when the TPA goes into effect. For more information on the U.S.-Panama Trade Promotion Agreement and its effects on U.S. agriculture, visit www.fas.usda.gov/itp/us-Panama.asp.
Southern Products Draw Foreign Buyers Four buyers from India and five from China visited the SUSTA region in July to meet with companies and sample southern food products during two reverse trade missions. Both groups of buyers first visited the New York Fancy Food Show, then traveled to the SUSTA region to experience the variety of products the southern U.S. has to offer. Over 68 companies met with the Indian buyers as they traveled from New York City to Atlanta and Orlando. The mission was part of SUSTA’s India Initiative, which seeks to increase Indian buyers’ awareness of southern U.S. products and allow them to forge lasting relationships with suppliers. A total of 272 buyer-seller introductions were made during the visit. While no immediate sales were reported, participants projected $100,000 in future sales as a result of the mission. The Chinese buyers visited New York City and followed with meetings in several locations: Columbia, Maryland; Columbia, South Carolina; and Dallas, Texas. Over 50 suppliers participated in one-on-one meetings matching them with buyers interested in their products.
2007 Version of Farm Bill Passes to Senate On July 30, 2007, the United States House of Representatives voted to approve a new 2007 Farm Bill (H.R. 2419), which would provide $225 million in funding annually for the Market Access Program (MAP) from 2008 to 2012. This amount represents an increase of $125 million over five years for the program. Funding for the Foreign Market Development (FMD) program would continue at the current level of $34.5 million annually for 2008 through 2012. A “managers amendment” including language making tobacco ineligible for MAP funds was also approved by the House during the debate over the legislation. The Senate Agriculture Committee will begin markup of its version of the Farm Bill in September.
Sizzling International Opportunities in Miami! SUSTA will co-sponsor a reverse trade mission bringing Caribbean buyers to Miami from October 29-31 for the IFE Americas show. In cooperation with the Foreign Agricultural Service's Caribbean Basin Agricultural Trade Office (ATO), SUSTA will host meetings between these buyers and southern U.S. suppliers exhibiting at the show. Companies will have the opportunity to showcase their products to the buyers and make contacts during one-on-one visits. More information is available on our Events page (www.susta.org/events) or by contacting Omar Gonzalez of the Caribbean Basin ATO at omar@cbato.net. Companies may also meet SUSTA staff at the IFE Americas show. Look for us in booth 707, part of the USA Pavilion!
East Meets West in Taipei Cajun Promotion Taiwan got a taste of Louisiana’s Cajun flavors this May during a two-week promotion sponsored by SUSTA and the Agricultural Trade Office (ATO) in Taipei. Food samples from southern U.S. suppliers were used by Chef Roy Lyons to prepare Cajun cuisine during chef seminars, menu promotions, a supermarket retail promotion and other activities. The promotions targeted both trade contacts and consumers, and reached an estimated 6 percent of the population of Taiwan’s two largest cities, Taipei and Kaohsiung, through four television stories and over 25 magazine and newspaper articles. More than 25 restaurants participated in the promotions, and at least seven continued to offer Cajun dishes using U.S. ingredients on a regular basis following the events. Taiwan consumers and importers have relatively low awareness of regional cuisines from the U.S., and chefs have little knowledge of high-quality U.S. products and how they may be used in these cooking styles. The SUSTA/ATO promotions introduced products new to the food service sector in Taiwan, giving local chefs an opportunity to experience authentic preparation techniques. Consumers also had the opportunity to sample a variety of high-quality southern U.S. products. As a follow-up to this activity, SUSTA and the Taipei ATO will bring journalists from the Taiwan media to Louisiana in September to further explore Cajun and Creole cuisine and the products available from the region.
Promote Your Brand Overseas without Spending More! How would you like to be able to market your products to the world for less? Apply for Market Access Program (MAP) Branded funds, and you could have twice as much to spend on international promotions in 2008! MAP Branded is a matching funds program, which means that exporters can apply for an amount equal to what they plan to spend on foreign advertising, exhibiting at international trade shows, in-store promotions, and other activities promoting U.S. food and agricultural products overseas. A company with an international marketing budget of $10,000 can increase their spending power to $20,000 with MAP Branded funds. Companies pay all the costs of their promotions up-front, then submit documentation to SUSTA after the activity to request reimbursement for up to half of their expenses. pplicants can apply for as little as $5,000 in Branded funds per year. A new-to-export company who has never participated in MAP Branded can request up to $25,000 from SUSTA for their first year in the program. Companies with prior experience in exporting can apply for up to $50,000 in their first year. The maximum amount that a returning participant may request is $250,000. Returning participants receive an allocation based on the percentage of funds they have used in the past, so companies that use all their requested funds in a program year have a better chance of receiving their full request the next year. So how do you get a piece of this pie? Visit the Branded Application portion of our website, www.susta.org/services/map_application.html. There you will find all the tools to determine whether your company is eligible to receive MAP Branded funds and what you need to apply for the 2008 program year. You can view a sample application and download the 2008 Branded Pre-Qualification Form and Application. Once you complete your pre-qual and application, print and sign the documents and mail them to SUSTA with your $200 application fee. The Branded Department will then review your application and contact you with any questions. If you have any questions about whether your company can participate in MAP Branded, how to complete the application, or other aspects of the Branded program, see our Frequently Asked Questions (www.susta.org/services/map_faq.html), visit the new Branded Blog, or contact SUSTA’s Branded Department at (504) 568-5986.
Branded Staff Goes Interactive! SUSTA’s Branded Department is always available to answer questions from interested companies and participants enrolled in the Market Access Program Branded. But many companies wonder, “Am I the only one with questions about this?” Well, you’re not! That is why, starting September 5, Branded Program Manager Deneen Wiltz will answer questions from companies via the “brand”-new Ask SUSTA! Branded Blog. SUSTA is creating the Branded Blog to serve our MAP Branded participant community better. Companies with questions about the application process, program rules, submitting reimbursement claims, and other Branded information can email their questions to branded@susta.org. Every day, we will select questions for Deneen to answer, and both the question and answer will be posted on the blog. Companies can check the blog daily to see if their questions have been answered – or if Deneen has answered a similar question from someone else! Since Ask SUSTA! Branded Blog will be a public website, contact names and other sensitive information pertaining to Branded participants will not be posted on the blog. Branded participants with questions specific to their company (such as whether they have graduated from a specific market or whether their application has been approved) should continue to direct such questions to Branded staff in a private email or telephone call.
Revised Content Policy for USA Pavilions In any USDA endorsed trade show more than half of the products must be of U.S. origin. This applies to all companies that are exhibiting in a USA pavilion. U.S. origin is determined by the percentage of ingredients used to make the product that is from the U.S. excluding added water. At least 51% of the product must be comprised of U.S. origin. For more information on regulations or upcoming trade shows, visit www.fas.usda.gov or www.susta.org/events/index.html.
Make SUSTA Activities Part of Your 2008 Marketing Plan! Get a jump start on the 2008 activity year! SUSTA has posted the Generic events proposed for the 2008 year on the web at www.susta.org/services/2008_gip.html. Are you applying for the Market Access Program (MAP) Branded? Be sure to see if you want to include any of the proposed activities in your 2008 country marketing plans. Companies can begin registering for events online as soon as they are posted on our Events page (www.susta.org/events). Promotions are planned for exciting new markets including Egypt, Vietnam, Australia, Turkey and Ukraine for the 2008 activity year, and activities will continue in popular markets such as Europe, Canada, India and China. Expect new opportunities for seafood, value-added foods, and plant and nursery products, as well as repeats of many successful promotions from previous years. Events will target key players in the trade, food service and retail sectors to provide southern U.S. suppliers with a variety of vehicles to promote your products. More information about the 2008 MAP Branded application can be found on page 3 of this newsletter, or by visiting www.susta.org/services/map_news.html. Companies that do not apply for MAP Branded funds are also invited to explore international markets through SUSTA Generic promotions in 2008. Take advantage of this opportunity to review SUSTA’s future Generic events as you plan your international marketing budget! Please note that information posted about the proposed activities is subject to change.
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