Panama lifts tariff on Arkansas rice

A fter years of facing a severely limited Panamanian market for milled rice, U.S. farmers received welcome news.

I recently met with the U.S. Embassy in Panama City to discussed rice trade with embassy officials at length on a visit late last month. Shortly after my visit, the Mulino administration announced that it plans to re-open Panama’s zero tariff rate quota for U.S. milled rice in 2025. This change could result in increased exports worth between $2-5 million for the American rice industry.

I was in Panama due to my role as a member of the House Intelligence Committee, where I chairs the subcommittee that oversees the Central Intelligence Agency. Each member is assigned a region of the globe in which to specialize and his is the western hemisphere.

I’ve been privileged to spend time working in Panama and have been able to work with its government on various issues. Countries in my region know that I’m going to ask about agriculture, so it wasn’t entirely a surprise when I highlighted that Panama was out of compliance with our trade agreement.

For the past several years, Panama has only allowed rough rice from the U.S. to be imported duty-free, much to the chagrin of U.S. rice advocates who have called for Panama to honor the 2012 trade agreement between the two nations.

I am glad to see the Mulino administration is once again willing to buy American milled rice and feels it is best when both the US and Panama honor their agreements.

The U.S. rice industry, which has been struggling with high input costs, low prices, and high interest rates, praised the development as a glimmer of light in otherwise dark times. Peter Bachmann, who is president of USA Rice said the announcement strengthens international trade relations and provides value-added opportunities for US rice farmers and exporters.

Rep. Rick Crawford