Key policy makers instrumental in the passage of the U.S. - Panama Trade Promotion Agreement (TPA) and prominent executives of multinationals took stage to showcase Panama’s logistical prowess and to shed light on business opportunities in fast growing business sectors.
Among the speakers on logistics were Henry Kardonski, Managing Director of Panama Pacifico; Dean Rodin, Managing Director of Maersk Line Caribbean Cluster; and Juan Carlos Croston, Vice President of Marketing for Manzanillo International Terminal. Pedro Heilbron, CEO of COPA Airlines introduced the panel of logistics experts and talked about the expansion of infrastructure to accommodate transshipment growth due to Panama’s strategic geographic location. The most intriguing of presentations was the keynote address by Alberto Aleman, former Administrator of the canal, who spoke of the maritime thoroughfare as “one of the wonders of the world in terms of engineering.” He projects that 8.4 million TEUs or containers will transit the canal by 2015 and that number will grow to 12 million by 2018. “(Global commerce)...is all about the connectivity,” Aleman stated.
Introduced by Dr. Nicolas Ardito Barletta, Director of the National Center for Competitiveness, the second half of the program focused on high-growth sectors in Panama and overviews of some of Panama’s largest foreign investors. On the panel were Vice Minister of Foreign Trade, Jose Pacheco; Alberto Diamond, Superintendent, Banking Superintendence of Banks; Jorge Azcarraga, Vice President for Commercial and Regulatory Affairs, AES Panama; and Mercedes Morris, Director of Public Affairs, Minera Panama.
With a $6.2 billion fully-funded investment, Minera Panama’s copper mining project is not only the largest foreign investment in Panama, but the 2nd largest development in the world. According to Ms. Morris, copper will be the leading export of Panama in the future, representing 12-15% of the country’s GDP.
The closing speaker was the U.S. Ambassador to Panama, Jonathan Farrar, who highlighted the challenges that Panama still faces before it can attain its vision of building a first-world economy. Nevertheless, major investments by the likes of COPA in Panama's growing air hub, SSA Marine in Panama's world class transshipment activities, and Minera Panama in what will be one of the world's largest copper mines and Panama’s top export, underscore the fact that Panama thrives as a gateway for global commerce.
The Ambassador talked of the “guideposts” the TPA will put in place to protect investors, secure workers’ rights, open the government procurement market, and protect intellectual property, as “commerce not only involves an exchange of goods but also an exchange of ideas.”
Though the U.S. government has given the stamp of approval through the ratification of the TPA, “many conditions are not fulfilled completely today in Panama,” according to Ambassador Farrar. Citing The World Economic Forum’s 2012 report, the Ambassador said that Panama ranks132nd out of 144 countries in terms of the independency of its legal system, and 94th out of the 144 in terms of investor protection. With the passage of the U.S.-Panama TPA, standards will be put in place to ensure the fair treatment of investors, with the establishment of a transparent legal process for the settlement of investment disputes.
AMCHAM Panama’s President, Luis Laguerre, stated at the conference, “The establishment of an internationally binding Rule of Law process will ensure free and fair trade practices for our AMCHAM members.”
Interestingly, Ambassador Farrar did not raise any specific issues on education of highly skilled professionals, AMCHAM Panama views education and training as the key to fueling continued growth in the economy. The availability of skilled labor in the local economy is of paramount importance for AMCHAM’s member corporations.
“We will continue to put educational programs into place to help fill the pipeline for future growth of our member companies and growth of the local economy. Education is a priority for our members, and we will advocate programs of higher learning and of worker training in hopes that the public sector will follow our lead,” said Luis Laguerre.
AMCHAM Panama and Ambassador Farrar share many of the same concerns regarding investment in Panama. However, we also share in the belief that the future is bright for Panama, and in the country’s long-term bilateral relationship with the United States will continue to flourish. The U.S.-Panama TPA will lead the way as Panama evolves into a first-world economy in which free commerce and fair trade practices are alive and well.
Media Contact: Kimberly Crocker 507-301-3881