Doing Business in Panama
EENI - Business School.
Subject (Course): International Trade and Business in Panama.
The Canal. Syllabus:
- Introduction to the Republic of Panama (Central America).
- Panamanian Economy
- International Trade of Panama.
- Business in Panama City.
- Panama Canal.
- Cases study:
- City of Knowledge.
- Colon Free Zone.
- Set-up a Company in Panama.
- Clusters of Investment:
- Information Technologies
- Investing in Panama.
- The Legal Framework for foreign investment (FDI) in Panama.
- Foreign Companies in Panama.
- Introduction to Spanish
- Access to the Panamanian Market
- Business Plan for Panama.
Purposes of the subject “Doing Business in the Republic of Panama”:
- To analyse the Panamanian economy and foreign trade
- To evaluate business opportunities in the Republic of Panama
- To explore Panama's trade relations with the student's country
- To know Panama's Free Trade Agreements (FTAs)
- To understand the role of the Panama Canal and the Colon Free Zone
- To develop a business plan for the Panamanian Market
Sample of the subject - Doing Business in Panama
Subject Description (Doing Business in Panama).
The Republic of Panama:
- Capital: Panama City
- Panamanian Population: 4 millions of people
- Area: 75,517 square kilometres
- Frontiers of Panama: Costa Rica and Colombia
- Panamanian official language: Spanish
- The main religion in Panama: Christianity
- Catholicism (3 million) and Protestants.
- Panama belongs to the Christian Civilisation - Latin American area
- Panama became independent from Spain in 1821
- Abolition of slavery in
- African Diaspora in
Panama: 0.4 millions of people (14% of the Panamanian population)
- The main pillars of the economy of the Republic of Panama (America)
are the Panama Canal, banking, and financial services and the Colon Free Trade Zone (the biggest duty free zone in the Americas)
- The Balboa and the US Dollar (USD) are the official currencies of Panama.
- Panama has no central Bank; it does not have a risk of devaluations and having total freedom to transfer capitals.
- The International Banking centre of Panama, with more than seventy international banks, is governed by the principles of the Basel Convention.
- The City of Knowledge is an international complex for education, R & D, organised to promote and facilitate synergy between universities, scientific research centres, companies of the new economy and international
- In the Republic of Panama, they were installed five submarine fibre optic cables communicating North America and South America and the Caribbean with the world, making it the ideal location for telecommunications companies and data centres. Leading companies (MCI, Cable & Wireless and Movistar) have been implemented in Panama.
- The Republic of Panama has been selected by major multinational
companies such as Samsung Electronics, Inc., DHL, DELL (Call centre), Hutchinson Port Holding Group, HSBC, BICSA, Scotiabank, Assicurazioni
Generali, or American Life Insurance Company as headquarters for their regional operations.
- The main international organisations such as UNICEF, the United Nations Development Programme, the Organisation of American States, the Spanish International Cooperation Agency (AECI) and Bladex, among others, have chosen Panama to establish their regional headquarters.
International Trade of Panama.
- Colon Free Zone is the second biggest duty free Trade Zone in the World (2,500 enterprises, 27.347 employments, 16.160 million dollars in imports and re-exports (international trade).
- Exports of Panama: 821 million dollars.
- The main Panamanian export products: salmon, tuna, beef, watermelon, shrimp, and pineapples.
- Top export partners of Panama (as % of the total export value): the United States 42%, the People's Republic of China and Taiwan 5.3%, Costa Rica 7.3%, Sweden 5.4%, the Netherlands 6.5%, and Spain 6.2%.
- Top import partners of Panama: the United States 29%, Costa Rica 5.2%, Mexico 4.5%, China 4.2%, and Japan 3.6%.
- The Republic of Panama has a privileged geostrategic position that makes it one of the largest logistics centres in the World; with the Panama Canal as a major axis, the Panama Canal over 190 million
metric tonnes of cargo (container, Bulk) are transported, serving more than 120 maritime routes to eighty countries.
- 80 kilometres between the Pacific and the Atlantic Oceans, 8 to 10
hours to transit
- 14,000 ships pass through the Panama Canal every year.
- The activities of international transport through the Panama Canal
representing 5% of global foreign trade.
- The increase in foreign trade, especially between Asia and the United States, continues to have very significant impact on the demand for the services of the
- Panama Canal to increase both the number of Panamax transits and the UMS tonnage (Tonnage System Channel).
- The Expansion project of the Panama Canal (1 billion dollars) offers significant business opportunities for companies around the world.
Panama's Free Trade Agreements (FTA) and Market Access:
- Central American Integration System (SICA)
- Central American Common Market - Integrated with SICA -
- Panama has Free Trade Agreements (FTA) with
the United States, Canada, Central America, Chile, El Salvador, Taiwan, Singapore, Guatemala, Honduras, Nicaragua, the European Union, the Andean Community, and Costa Rica.
- Association of Caribbean States (ACS)
- Mesoamerica Project
Panama is a member of:
American and Caribbean Economic System (SELA)
Commission for Latin America (ECLAC)
- Latin American Integration Association (observer)
- Forum for East Asia-Latin America (Panama)
- Organisation of American States (OAS)
- Africa-South America Summit (ASA)
- World Bank (WB)
- Andean Community (Observer)
- World Trade Organisation (WTO)
- United Nations (UN)
Agreement Panama Taiwan: