Caterpillar Chairman Urges Passage of U.S.-Panama Trade Promotion Agreement

WASHINGTON, May 21, 2009 /PRNewswire-FirstCall via COMTEX/ -- CAT | Quote | Chart | News | PowerRating -- Caterpillar CEO Jim Owens tells Senate Finance Committee the agreement will increase exports to Panama

Caterpillar Inc. (NYSE: CAT | Quote | Chart | News | PowerRating) Chairman and Chief Executive Officer Jim Owens testified on Thursday, May 21, before the United States Senate Finance Committee in support of passage of a Trade Promotion Agreement (TPA) between the United States and Panama.

"Time and time again, we have seen the benefits of expanding our opportunities for trade," Owens said. "In 2008 alone, Caterpillar exported more than $16 billion in products from the U.S., supporting tens of thousands of jobs in the U.S. for Caterpillar and our suppliers."

During his testimony, Owens noted that the Panama Canal Expansion project is one reason duty-free trade with Panama is essential. The expansion is one of the world's largest public works projects since the Three Gorges Dam was constructed in China. Today, about five percent of all world trade passes through the Panama Canal. With the Canal at capacity and many of the newer, larger ships unable to use the Canal, it takes longer than it should for some U.S. exports to reach overseas markets.

"The TPA with Panama will benefit manufacturing exporters like Caterpillar and American farmers who export crops, because it will reduce the tariffs on U.S. products shipped to this long-time ally," Owens said. "More than 60 percent of Caterpillar's sales are outside of the United States, and most of our major competitors are based overseas. We know we can compete and win in the global marketplace, but we must have trade policies that remove foreign trade barriers," Owens added.

If enacted, a trade agreement with Panama would eliminate tariffs ranging from three to 10 percent on Caterpillar products, benefiting both the company and its customers.

"When such barriers have been lifted, Caterpillar's track record has been clear, as Caterpillar exports have dramatically increased following passage of all previous Free Trade Agreements," Owens said. "For example, from the time trade agreements have gone into effect, Caterpillar exports have quadrupled to Canada and Mexico, tripled to Chile and nearly doubled to countries included in the Central America Free Trade Agreement, helping to support jobs at the U.S. facilities that ship products to those countries."

About Caterpillar:

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com.

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Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "would," "expect," "anticipate," "should" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, (i) adverse change in general economic conditions; (ii) adverse change in the industries Caterpillar serves including construction, infrastructure, mining, energy, marine and electric power generation; (iii) Caterpillar's ability to manage material, including steel, and freight costs; (iv) Caterpillar's ability to generate cash from operations, secure external funding for its operations and manage its liquidity needs; (v) material adverse change in customers' access to liquidity and capital; (vi) currency exchange or interest rates changes; (vii) political stability; (viii) market acceptance of the company's products and services; (ix) significant changes in the competitive environment; (x) epidemic diseases; (xi) severe change in weather conditions negatively impacting operations; (xii) changes in law, regulations and tax rates; and (xiii) other general economic, business and financing conditions and factors described in more detail in the company's Form 10-K filed with the Securities and Exchange Commission on February 20, 2009. This filing is available on our website at www.cat.com/sec_filings. We do not undertake to update our forward-looking statements.

SOURCE Caterpillar Inc.

http://www.CAT.com

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