1. PANAMA: Building a Global Business Platform
Jose Pacheco Tejeira Viceminister of Foreign Trade Ministry of Trade and Industry Panama

2. PANAMA: Building a Global Business Platform
Strategic Geographical Position
International Financial Center
Connectivity through land, sea and air
World Class logistic Platform
Open Service Dollarized Economy
Ideal Site for doing business

3. PANAMA: Building a Global Business Platform
PANAMA PROFILE
GDP – Real growth rate (%):
- Year :
- Year :
- March 2012:
GDP per cápita: US$8,622 (2011)
GDP composition by sector (%):
- Agriculture:
- Industry:
- Services:
Inflation rate (%): (2011)
Unemployment rate (%): 4.6 (March 2012)
Population: 3.5 millons
Life expectancy at birth: 77.9 years
- Male: years
- Female: years
Total area: 75,517 Km2
Los principales reportes de mayor importancia internacional que miden la competitividad de los países del mundo desde distintas aristas como el Índice de Competitividad Global del World Economic Forum, el Doing Business del Banco Mundial, reportes de FDI Intelligence del Finnancial Times y el Índice de Desempeño Logístico del Banco Mundial destacan a Panamá como un país que ocupa posiciones privilegiadas en sus distintas mediciones, destacando la fortaleza del país en Atracción de Inversión Extranjera Directa, Centro Financiero, Política Económica y la proyección de importantes proyectos de infraestructura

4. PANAMA: Building a Global Business Platform
Panama Trade Partners Panama has pursued a policy of liberalization and free trade
USA
South Korea
EFTA
(European Free Trade Association,
Iceland – Liechtenstein – Norway - Switzerland)
SINGAPORE
ROC (Taiwan)
PERU
Enforced
Signed (under implementation)
Negotiating (4 agreements with 7 countries) and Integration process with SIECA (Central America)
Central America
Costa Rica,
El Salvador Honduras, Guatemala, Nicaragua
CANADA
ADA Association Agreement between EU and Central America (27 countries)
CHILE

5. RANKING OF IMPORTS BY COUNTRY
PANAMA: Building a Global Business Platform
RANKING OF IMPORTS BY COUNTRY
IMPORTS 1998
IMPORTS 2007
IMPORTS 2011 (P)
No.
PAIS
IMP 1998 % 1
UNITED STATES
1,351.0
39.5% 3
JAPAN
308.4
9.0% 4
MEXICO
164.8
4.8% 6
COSTA RICA
101.7
3.0% 8
COREA
91.3
2.7% 9
COLOMBIA
64.3
1.9% 10
GUATEMALA
55.7
1.6% 11
GERMANY
45.4
1.3% 12
SPAIN
44.7 13
UNITED KINGDOM
40.3
1.2% 15
FRANCE
32.2
0.9% 16
TAIWAN
30.8 17
BRAZIL
27.8
0.8% 18
CANADA
27.6 21
EL SALVADOR
23.8
0.7% 24
CHILE
19.4
0.6% 25
PERU
18.3
0.5% 27
CHINA
12.7
0.4% 29
HONDURAS
12.3 55
NICARAGUA
1.7
0.0% 57
SINGAPORE
1.2
No.
PAIS
IMP 2007 % 1
UNITED STATES
2,079.6
30.3% 3
CURAZAO ISLAMD
489.2
7.1% 5
CHINA
358.7
5.2% 6
JAPAN
328.9
4.8% 7
COSTA RICA
326.2
4.7% 8
COREA
267.7
3.9% 9
MEXICO
212.0
3.1% 10
COLOMBIA
192.1
2.8% 11
BRAZIL
140.7
2.0% 12
GUATEMALA
107.4
1.6% 13
SPAIN
107.0 14
GERMANY
87.3
1.3% 16
EL SALVADOR
72.3
1.1% 17
PERU
69.0
1.0% 18
FRANCE
58.2
0.8% 20
CANADA
50.6
0.7% 23
ITALY
41.6
0.6% 24
CHILE
40.8 26
TAIWAN
32.8
0.5% 27
UNITED KINGDOM
32.6 54
SINGAPORE
3.3
0.1% No
PAIS
IMP 2011 % 1
UNITED STATES
2,826.7
24.9% 4
CHINA
689.7
6.1% 5
COSTA RICA
509.8
4.5% 6
COLOMBIA
469.6
4.1% 7
MEXICO
445.3
3.9% 8
COREA
303.8
2.7% 9
SPAIN
294.4
2.6% 10
JAPAN
292.1 11
BRAZIL
217.4
1.9% 12
GUATEMALA
196.5
1.7% 13
GERMANY
166.1
1.5% 16
EL SALVADOR
103.8
0.9% 17
CANADA
86.3
0.8% 18
ITALY
86.1 20
PERU
68.5
0.6% 21
CHILE
67.1 22
FRANCE
52.2
0.5% 25
TAIWAN
45.6
0.4% 27
UNITED KINGDOM
37.1
0.3% 43
NICARAGUA
15.5
0.1% 44
SINGAPORE
13.1
Ranking includes CFZ and Petroleum Processing Zones

6. Investment Grade + Foreign Investment + Sustained Growth
PANAMA: Building a Global Business Platform
Investment Grade + Foreign Investment + Sustained Growth
BBB Positive
+33%
BBB
Stable
Baa3 Positive
Fuente: FMI (2010).
2006: +10.1%
2010: +7.5%
2007: +12.2%
2011p: +7.0%
2008: +10.7%
2009: +3.2%

7. PANAMA: Building a Global Business Platform
Companies and Multinationals

8. PANAMA: Building a Global Business Platform
Government Strategic Planning Focusing on sectors with the greatest potential will generate more than 500,000 new jobs over the next decade.
The development plan prioritizes the stabilization of public finances
Panama aims to improve on its Investment Grade credit rating and will ensure that the level of public debt stays below 30% of GDP over the next 10 years.
Significant investments in the education, health, public safety, and transportation sectors will increase the standard of living and benefit the residents of Panama.
During the next five years, this investment will be primarily focused on infrastructure development that will generate jobs and stimulate growth on a path towards sustainable development.
Key Growth Drivers
(Measured by their impact on incremental GDP and job creation)
Logistics
Tourism
Agriculture
Financial Services
Science and Technology

9. The Logistics Environment
PANAMA: Building a Global Business Platform
The Logistics Environment
PORTS
AIRPORTS
PANAMA CANAL
RAILROAD
COLON FREE ZONE
SPECIAL ECONOMIC ZONES
ROADS NETWORK
CUSTOMS
LOGISTICS CABINET
MAIN TASK
Development of a Master Plan to promote Panama as a global logistic hub for world trade.

10. PANAMA: Building a Global Business Platform
Connectivity Panama dominates the region with more direct connectivity

11. PANAMA: Building a Global Business Platform
Tourism Developing a new air logistics network Panama’s new air connectivity development plan
The plan seeks to further develop air connectivity beyond the Panama City and Colon corridor.
Through the development of 6 new airports and the expansion and remodeling of another 6 existing terminals.

12. The Panama Canal The main international trade engine
PANAMA: Building a Global Business Platform
The Panama Canal The main international trade engine
Over 14,000 vessels transit this waterway each year.
300 million tons through more than 120 routes.
It’s complemented by Panama’s port infrastructure that handles an annual volume of more than 7 million TEUs.

13. PANAMA: Building a Global Business Platform
INFRASTRUCTURE The Panama Canal Expansion The main international trade engine
Cost
Estimated investment of $5,250 Millions
FUTURE LOCKS
CURRENT LOCKS
Figure 1: Graphical image of the expansion project. PACIFIC OCEAN
　The Canal expansion is on schedule and is $413.8 million under budget.
　Completion Year: 2014

14. PANAMA: Building a Global Business Platform
Maritime Connectivity International Ports Connected through the Panama Canal every Week
Savannah
Yantian
Kwangyang
Hong Kong
Pusan
Keelung
Wilmington
NJ/NY
Rotterdam
Le Havre
Halifax
Felixstowe
Long Beach
Los Angeles
Bremerhaven
Kaohsiung
Charleston
Nagoya
Thamesport
Oakland
Seattle
Tokyo
Colombo
Shanghai
Yokohama
Newport News
Hakata
Manzanillo (Mx)
Kobe
Osaka
Hamburg
Shimizu
Port Said
Zeebrugge
Chabang
Tahiti
Auckland
Doniambo
Brisbane
Sydney
Melbourne
Tanjung Priok
Singapore
Marseilles
La Spezia
Tilbury
Dunkerque
Qingdao
Buenaventura
Guayaquil
Callao
Arica
Coquimbo
San Antonio
San Vicente
Puerto Limón
Iquique
Manta
Antofagasta
Valparaíso .
Balboa
Antwerp
Itajai
Baltimore
New Orleans
Paranagua
Santos
Puerto Cabello
Veracruz
Manzanillo
Colon
Cartagena
La Guaira
Guanta
Maracaibo
Everglades
Kingston
Miami
Boston
This map shows the international ports connected through the Panama Canal on a weekly basis.
Transiting and feeder vessels , make up a global network , all possible because of the Panama Canal and the related ports infrastructure.
Panama unmatched connectivity links more than 144 different trade routes around the world.
Transit the Canal
Source : ACP
Feeder services that don´t transit the Canal

15. Infrastructure Projects National Road and Highway Network Improvements
PANAMA: Building a Global Business Platform
Infrastructure Projects National Road and Highway Network Improvements
The Ministry of Public Works has engaged in a major overhaul of Panama City’s internal road network, as well as the expansion of major national highway segments.
Reorganization of Panama City’s road network: includes new overpasses in 18 intersections in metropolitan area by 2014.
Expansion of Highways: Corredor Sur will be widened to six lanes, while Corredor Norte will be extended until the Tocumen area .
In addition, highway segment expansion outside Panama City have been competitively awarded.
Justificación / Objetivos 15 15

16. PANAMA: Building a Global Business Platform
Infrastructure Projects National Road and Highway Network Improvements
Madden – Colon II: US$ 220 Million
Divisa – Chitre: US$ Million
La Villa – Las Tablas: US$ 75.7 Million
David – Boquete: US$ Million
Arraijan – La Chorrera: US$ Million
Total: US$ Million

17. PANAMA: Building a Global Business Platform
Integrated transportation system Public transportation system serving GPC will integrate the Metro and Metro Bus systems.
An international bidding process was undertaken to select the operator of the MetroBus system.
The winner was the Colombian group Fanalca.
Panama’s MetroBus system will have 1,200 state of the art Volvo and Mercedes-Benz buses operating on 76 routes.

18. PANAMA: Building a Global Business Platform
PROINVEX Panama Trade and Investment Agency The shortest road of investing in Panama
ONE STOP SHOP Integrated Information System that allows the investors to easily identify all the instruments that the National Government has available for the Direct Foreign Investment.
CONCIERGE SERVICE in processes of due diligence. PROINVEX is also responsible of coordinating the international commercialization and the promotion of the exports of national products.

19. PANAMA: Building a Global Business Platform
Incentive Laws An attractive legal framework for investment as Multinational Headquarters (SEM) Every year, more multinational companies choose Panama
Judicial stability facilitates trade and provides investment incentives.
One of the most competitive legislations in the region.
Laws specifically aimed at multinational companies complement the incentives offered by special zones.
No Taxable income (Offshore Operations)

20. PANAMA: Building a Global Business Platform
Multinational Headquarters (SEM) Every year, more multinational companies choose Panama

21. PANAMA: Building a Global Business Platform
Special Economic Zone The Colon Free Zone The most important free trade zone in the western hemisphere
Operating since Currently houses over 3,042 operators.
The second largest free trade zone in the World after Hong Kong.
The Colón Free Zone is located a few kilometers from the Panama Canal in the Caribbean sector.
Goal for 2012 is to handle $30 billion in annual trade volume.

22. Special Economic Zone City of Knowlegde
PANAMA: Building a Global Business Platform
Special Economic Zone City of Knowlegde
Synergy
International Technopark
Non-governmental Organizations
Academic Organizations
Research & Development
For Example: Information Technology, Biomedical, Renewable Energy
Florida State University, University of California-Berkeley,
Georgia Tech University .
United Nations, Unicef,
Red Cross,
World Food Programme

23. Special Economic Zone Panama Pacifico
PANAMA: Building a Global Business Platform
Special Economic Zone Panama Pacifico
1,400 hectare Special Economic Zone adjacent to the Canal, Railway, Ports and Panamá City.
Taxation, customs, labor, immigration and special business Regime
London & Regional Panama as master developer of the project.
Business and Commercial world class center with residential areas of high level
Target activities will be exempt from taxes in the Republic of Panama
Law No. 41 of July 2004.

24. PANAMA: Building a Global Business Platform
Special Economic Zones Zones can be established anywhere in the country
FISCAL : Tax Exemption No Value Added Tax and no Income Tax.
MIGRATION: Permanent Resident Visa as Investor, Special Resident Visas, Scientist Visas , Spouse and Dependents
LABOR: Workers´s rotation, Negotiable vacation periods.

25. PANAMA: Building a Global Business Platform
Incentive Laws Film industry Incentives are granted for the development of the movie making and audiovisual industry
Fiscal, customs, labor and migratory incentives are granted to the industry.
Eliminates bureaucratization and guarantee prompt processes for the productions.
BENEFITS FOR THE FOREIGN PRODUCTION
Sole “One-Stop-Shop” for the paperwork.
Processing of Migratory and Labor Permits for the foreign personnel.
Customs: Temporary custody of equipment without guarantee bond.
Permits for public locations throughout the entire national territory.
Link with producers, technicians, casting agencies and national personnel.

26. Panama: Where the World Meets
PANAMA: Building a Global Business Platform
Panama: Where the World Meets
#1-for Financial Freedom In Latin America.
#1-for Port Facilities in the Western Hemisphere.
#1- in Latin America for Availability of Venture Capital.
#1-for Air Transport Facilities in Latin America.
#2-among Most Competitive Economies in Latin America.
#3-for Business Freedom in Latin America.
#3-in the World for Affordability of Financial Services.
CLOSING FACTS

27. PANAMA: Building a Global Business Platform
Jose Pacheco Tejeira Viceminister of Foreign Trade Ministry of Trade and Industry Panama