U.S. Commercial Service Panama Panama’s Business Opportunities Nicholas R. Kuchova Senior Commercial Officer Embassy 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, Location”, more significant than size!!! • Population: 3.3 million • GDP: $18.6 billion (2008) • GDP Per capita: $ 5,500 • GDP: Composition by sector: Services 80%, Industry 14%, Agriculture 6%
Panama’s Advantages • Dollarized economy, simplifies business planning, no currency risk. • Large local banking sector, finance & credit availability. • Finest intermodal transport capability in the region. • Ports on Atlantic and Pacific Oceans. • Stable economic and political environment. • Major regional logistics center with direct air routes throughout Latin America. • Strong preferences for U.S. made products and services. • Bilingual and well educated workforce. • High level of personal security.
Panama’s Principal Trading Partners - 2008 Total Country Imports: $ 9 billion U.S. Share of Panama Imports:40% Other trading partners: Europe, Japan, Mexico and South America Bilateral Trade U.S. / Panama : $4.4 billion U.S. Export to Panama : $3.6 billion ($1 billion going to the Colon Free Zone) • Import Sectors: • Automotive • Telecom • Construction • Consumer Goods • Computers • Energy • Apparel • Air Conditioning • Pharmaceuticals
The Trade Promotion Agreement between the United States and Panama was ratified by Panama in July 2007. It awaits ratification by the U.S. Congress. TRADE PROMOTION AGREEMENTU.S. – Panama
The Panama CanalEighth Wonder of the World • Over US$ 250 million in annual procurement opportunities. • A $5.25 billion Canal expansion project is under way to construct much larger and deeper Canal locks to allow transit of Post Panamax vessels. • Three prequalified consortia submitted bids to construct the new locks (1 U.S.-led, 2 Spain-led). • Contact: www.pancanal.com
Panama Canal Expansion Project Widening and Deepening of Atlantic Entrance Atlantic Locks and Access Channel Raise Gatun Lake Level Gatun Lake Widening and Deepening Gaillard Cut Widening and Deepening Pacific Locks and Access Channels Widening and Deepening of Pacific Entrance
The Colon Free Trade Zone World’s second largest$19 Billion in Trade (2008) • 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, 1,800 companies and employing over 24,000 people. Advantages of doing business in the Zone: • Central point for worldwide re-distribution • 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
Panama’s Opportunities Energy Technology Hub Panama is a crossroads for global fiber optic cables • Electrical generation - $1 billion Logistic Services • Panama Canal - $5.25 billion • Ports on Atlantic & Pacific $500 million • Howard Special Zone • Colon Free Zone • City of Knowledge
Best Prospect for U.S. Exports - 2009 1. Wholesaling & Warehousing 2. Building Products 3. Travel & Tourism 4. Telecommunications Equipment 5. Computer & Peripherals 6. Construction Equipment 7. Air Conditioning and Refrigeration Equipment 8. Electrical Power Systems 9. Security & Safety Equipment 10. Materials & Handling Machinery
Our Services Gold Key Service Single Company Promotion International Partner Search Trade Counseling Market Research Video Conferences
Contact Us U.S. Commercial Service Panama Embassy of the United States of America E-mail: email@example.com www.buyusa.gov/panama
Trade Delegation to Panama • For more details please contact: • Diana (Chris) Poli • Tel: 314-425-3342 • Email: Diana.Poli@mail.doc.gov The delegation will be traveling to Panama for one-on-one meetings with prospective business partners in late September.