# Presentation: 512610

## U.S. Commercial Service Panama

**Doing Business in Panama**
**Robert Jones, Commercial Counselor**
**Embassy of the United States of America**

## U.S. Commercial ServiceU.S. Embassy Panama

**U.S. Commercial Service****U.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.***

## PanamaThe Cross Roads of the World

**Location, Location, Location**
**More 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.

## Business Infrastructure

-  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 PartnersImports

**Panama**

**Total Imports: ****$ 4,155 million ****(f.o.b. 2005 Est.)**

**U.S. Share of Panama Imports:**  30%

**Import Sectors:**
**Automotive; Telecom; Construction; Consumer goods; Computers; Energy; 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 PartnersExports

**Panama**

**Total Country Exports: ****$  964 million ****(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:**

- Bananas, shrimp, sugar, coffee
- Non traditional agric. products

## FTA Negotiations

## The Panama CanalEighth Wonder of the World

- 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 Canal****Eighth Wonder of the World**

## The Colon Free Trade Zone World’s second largest12 Billion Dollars of Trade

**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 Colon, now the World’s Second Largest (FTZ) encompassing
-  over 500 hectares, 1800 companies and employing over 24,000 people.

## Panama’s Opportunities

**Real Estate Development**

**Energy**

**Technology Hubs**

- Second home investment & residential construction - $750 million

- Fiber Optic Connections

- Electrical Generation -          $500 million

**Logistic Services**

- Panama Canal - $5.2 billion
- Ports on Atlantic & Pacific, new   Megaport - $1.5 billion
- Howard Special Zone
- Colon Free Zone

## Our Services

**Our Services**

- Gold Key Service
- Single Company Promotion
- Catalog Exhibitions
- Trade Counseling
- Market Research
- Video Conferences

## Contact Us

**U.S. Commercial Service Panama**
**Embassy of the United States of America Panama**
**Email: robert.o.jones@mail.doc.gov**
**www.buyusa.gov/panama**