Export is one of the most profitable businesses in Panama. During 2010-2012 more than $74 million recorded in business involving Panamanian exporters. There are some facts which all investors should be aware of when doing business in Panama:
Export Products:
Export commodities in Panama according to the CIA World Factbook: gold, bananas, shrimp, sugar, iron and steel waste, pineapples, watermelons. In addition there is alchohol such as world famous rum and beer.
Ease of export:
Panama has extremely easy policy in terms of export, very low requirement on paperwork and fast working system. The cost and time to export per container can be half of what it takes to do it in many other counties.
Plus in general, Panama ranks very high in the ease of doing business for cross-border trade. There are 3 simple documents required to make the transaction: bill of lading, commercial invoice and customs export declaration.
Free Trade agreements:
Panama has Free Trade agreements with the following countries: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua , Republic of China (Taiwan), and the U.S. Panama is negotiating with Canada to implement its agreement.
Protecting investment agreements:
Panama has Bilateral Investment Agreements (BIA) with several countries. A BIA establishes rules to protect investors from wrongful of discriminatory government actions when they invest or attempt to invest in the other country’s territory, and by providing a mechanism for an investor of one country to submit to binding international arbitration a claim for damages against the other country.
Panama has this with the U.S., the U.K., France, Switzerland, Germany, Taiwan, Canada, Argentina, Spain, Chile, Uruguay, The Czech Republic, Netherlands, Cuba, Mexico, Dominican Republic, Korea, Ukraine, Sweden, Qatar, Finland and Italy.
