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During 2008, the Panamanian economy kept a continuous growth. United States is Panama's main trading partner. Local exports to this country represent 50% of Panamanian goods sent abroad, but are just about 500 million dollars annually. By contrast, Panama imports 200 thousand million in products every year. According to the Ministry of Economy and Finance, 133 thousand workers were engaged in trade and sale services in 2008. It is one of the main sectors for investment. For instance: According to the Comptroller General's Office, 365 million dollars have been imported in domestic appliances throughout 2008. In 2009, GDP is expected to grow 2.5% much lower than that of 4.5 recorded for 2008. Panama imports consumer goods, intermediate goods and capital, which in 2007 amounted to 4.891.7 million. In addition, Panama has 3.4 million hectares destined to agricultural activities, of which 1.5 million are arable farming. The Spanish company Ramfrut began operations in Panama in 2002, and currently exports about 500 containers of watermelons and melons to the U.S. and the European Market. It is located in the district of Rio Hato covering and area of 400 hectares plus another 500 thousand square meters. The growing demand for non-traditional crops is the main attraction for investors in the field. The farmers claim to feel safe in this aspect because of the increased purchasing power of markets like China and India which sets a promising scenario. The European Union (EU) became in 2006 the main investor in Panama, with almost US$4,585 million, according to the business office of the European Commission. Spain was the second destination country for Panamanian exports in 2006. In total, trade between both countries reached around the US$150 million. Europe represented 60% of the non-traditional agro exports of Panama, surpassing the United States. Free Trade Agreements With the signature of the Tratado de Promoción Comercial (TPC) between Panama and the United States, a new commercial phase after mid 2007, once the processes of legal review, signature and ratification by the congresses of both countries is completed. This commercial instrument has 23 chapters providing substantial legal security for business, trade and investments between both countries increasing opportunities to investors from the United States. This treaty:
For 2009-2010, it is expected that the United States will maintain its level of investment in Panama, in business areas of importance such as:
Panama and Chile entered a Free Trade Agreement reason why the South American country opened 92.5% of its tariff lines. Similarly, Costa Rica joins the list of agreements, negotiating areas such as dairy, beef, pork and chicken, as well as telecommunications and financial services. On the other hand in 2009, Peru will negotiate a Free Trade Agreement (FTA) with Central America and South Korea, in addition to a partnership agreement with the European Union, Costa Rica, Honduras, El Salvador and the Dominican Republic. The FTA includes Panama, which will soon initiate negotiations with the South American country. In December of 2008 the Corporación Andina de Fomento (CAF), became a partner of Panama to implement a credit scheme, which is estimated between 400 and 600 million. This will support global infrastructure projects that have an important ability to generate employment, and assisting the government in social issues. Panama and Singapore successfully negotiated a Free Trade Agreement. This is the first time that the Asian country signs an agreement with a Latin-American country. Singapore has a great investment potential that internationally adds up to some 260 thousand million dollars Also, this FTA is considered a strategic alliance that:
Export Processing Zones Panama offers manufacturers located in an EPZ special tax incentives under Law No. 25 of 1992 and complementary regulations. The main export industries allowed in the EPZ are:
The new Law turn the EPZ in 100% tax-free areas. As a consequence, both the promoter/developer and the export industries as well as any activity, operation, transaction, license, procedure, transfer of movable goods and real estate, purchase and importation of all equipment, spare parts, raw materials, and all goods and services required for its operations, shall be 100% exempted from national direct and indirect taxes, duties, levies, right and charges. It is worth mentioning that all tax exemptions are granted for an indefinite period. Special labour law regulations are also contained in the Law applicable to employment contracts for a fixed period or work, productivity regulations, rotation of employees, vacations and others. For these companies, there are
Similar incentives exist for oil and petrochemical companies located in the country’s Petroleum Free Zones as well as for Call Centers. If you want to set up an export industry, in the Business Panama Group, we have licensed real estate agents, excellent lawyers, insurance specialists, mortgage brokers, investment advisors and other professionals to assist you on all your needs. We can help you with:
The Business Panama Group team of realtors, lawyers and other professionals will provide you a variety of services from the purchase of the property to all phases of development including structuring, financing, contractual, environmental, construction, permitting, employment, immigration and more. We also will be glad to provide you access to our “List of Recommended Professionals” formed by first class architects, environmental consultants, builders and others. For more information, please click here to contact us. | | ||||||||||||||||||||||
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