u.s. commercial service panama doing business in panama
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U.S. Commercial Service Panama
Doing Business in Panama
Robert Jones, Commercial CounselorEmbassy of the United States of America
U.S. Commercial ServiceU.S. Embassy Panama
Our Mission:– To help U.S. businesses find qualified
international partners.– To represent U.S. business interests
internationally.
The U.S. Commercial Service is part of the U.S. Department of Commerce, with 101 offices in the 50 States and 70 countries world wide.
PanamaThe Cross Roads of the World
Location, Location, LocationLocation, Location, Location
More significant than sizeMore significant than size
• Population: 3.1 million• GDP: 13.6 billion (2005)• Per capita: $ 4,222• GDP: Composition by sector:
Services 77 %, Industry 15%, Agriculture 8%
Panama’s Advantages
Large local banking sector, finance & credit availability. Strategic location at the mouth of two oceans. Finest Inter-modal transport capability in the Region. Ports in
the Atlantic and the Pacific oceans. Panama Canal provides immediate access to Atlantic &
Pacific markets. Regional Air Hub
Panama Economic Overview
Panama’s economy is based on a well developed services sector that accounts for about 80% of GDP
Services consisting of the Panama Canal, Banking, Insurance, the Colon Free Zone, Ocean, Air & Rail Transportation, Ocean Vessel Flag Registration and Legal and Accounting Firms.
Panama’s goods and service export earnings have traditionally been among the largest in the region relative to GDP.
The sectors of the Panamanian economy with the greatest potential for growth in the medium term are ports, maritime services, telecommunications, tourism, energy and non-traditional agricultural exports.
Dollarized economy, simplifies business planning, no currency risk.
Highly bilingual and well educated workforce.
Major regional logistics center for shipping and direct air routes throughout Latin America.
Relatively high level of personal security
Strong preference for U.S. made products & services.
Stable economic and political environment
Business Infrastructure
Principal Trading PartnersImports
PanamaPanamaTotal Imports: Total Imports: $ 4,155 million $ 4,155 million (f.o.b. 2005 Est.)(f.o.b. 2005 Est.)
U.S. Share of Panama Imports: 30%
Import Sectors:Import Sectors:
Automotive; Telecom; Automotive; Telecom; Construction; Consumer Construction; Consumer goods; Computers; goods; Computers; Energy; ApparelEnergy; Apparel
In 2005, bilateral trade between USA and Panama totaled $ 1.6 billion, with U.S. exports accounting for $1.1 billion.
Between 2002 and 2005, U.S. exports to Panama grew over 30%.
Principal Trading PartnersExports
PanamaPanama
Total Country Exports: Total Country Exports: $ 964 million $ 964 million (f.o.b. 2005 Est.)(f.o.b. 2005 Est.)
U.S. Share of Panama Exports: 44%In 2005, over 90% of Panama’s good exports to the United States came in duty free under unilateral benefits programs like Caribbean Basin Initiative (CBI) and the Generalized System of Preferences (GSP) or under 0% MFN tariffs.
Exports:Exports:
Bananas, shrimp, sugar, coffee
Non traditional agric. products
FTA NegotiationsThe free trade agreement with Panama is an important link in the Administration's strategy of opening markets in the Hemisphere through competitive liberalization. Ninth round of negotiations was in January in Washington, DC.
US$ 200 million in annual procurement opportunities.
Currently increasing water storage capacity of the Gatun Locks.
Planning a $ 5.2 billion expansion project that will include construction of a third set of locks.
This increased capacity will allow transit of Post Panamax vessels.
Contact: www.pancanl.com
The Panama CanalEighth Wonder of the World
The Colon Free Trade Zone World’s second largest
12 Billion Dollars of Trade
• One central point for worldwide re-distribution.
• A central marketing structure to promote sales.
• Credit facilities to finance re-exports.
• Dollar transactions.
• Established channels of distribution
• Duty Free treatment of “In Bond” goods.
• Contact them at: www.colonfreezone.com
Advantages for locating in the Free Zone
Founded in 1947 with 50 hectares in the Atlantic deep water port of Founded in 1947 with 50 hectares in the Atlantic deep water port of Colon, now the World’s Second Largest (FTZ) encompassingColon, now the World’s Second Largest (FTZ) encompassing over 500 hectares, 1800 companies and employing over 24,000 people.over 500 hectares, 1800 companies and employing over 24,000 people.
Panama’s Opportunities
Real Estate DevelopmentReal Estate Development
EnergyEnergy
Technology HubsTechnology Hubs
Second home investment & residential construction - $750 million
Fiber Optic Connections
Electrical Generation - $500 million
Logistic ServicesLogistic Services
Panama Canal - $5.2 billion
Ports on Atlantic & Pacific, new Megaport - $1.5 billion
Howard Special Zone
Colon Free Zone
Our Services
Gold Key ServiceSingle Company PromotionCatalog ExhibitionsTrade CounselingMarket ResearchVideo Conferences
Contact Us
U.S. Commercial Service Panama
Embassy of the United States of America Panama
Email: [email protected]
www.buyusa.gov/panama