Tariff Increases Draw the World’s Attention to Panama
According to the Ministry of Commerce and Industry, North American and South American companies are interested in establishing themselves in the country to take advantage of its logistical benefits.
The United States (US) tariff increase has caused global trade to focus on Panama; several American and South American companies have expressed interest in establishing themselves in the country, taking advantage of its strategic position. For Trade Minister Julio Moltó, the US tariff policy should not be perceived by domestic exporters as an obstacle; on the contrary, it represents an opportunity to open up new markets and expand business. “10% is the new zero. That’s what we need to work towards, with competitiveness and taking advantage of the Panamanian logistics sector,” he said.
The head of the Ministry of Commerce and Industry (MICI) indicated that North American and South American companies have approached the country seeking to establish themselves in the country, using it as a platform for transshipment, processing, repackaging, and packaging of goods. Authorities are awaiting the National Assembly’s approval, in its second and third debates, of Economic Complementation Agreement No. 76 between the member states of the Southern Common Market (Mercosur) and the Republic of Panama, to establish trade relations with the countries that make up this group. However, talks have already been held with Brazil, Uruguay, Argentina, and Paraguay with the aim of further promoting Panama as a logistics hub and strategic location for global trade.
The legislative initiative presented by the Ministry of Foreign Affairs establishes that, to support these actions and increase trade in goods and services, the parties will encourage business meetings to expand trade and investment relations with the private sector. In addition, trade facilitation activities will be developed, as well as improvements to regional logistics infrastructure and the exchange of information on trade policies. Giomar González, director of the Business Alliance for Secure Trade in Panama (BASC), highlighted that the country has more than 50 high-level companies that have exported 27,000 metric tons to date, demonstrating the opportunities the country has in logistics and services. “We Panamanians must believe in our country and that we have a hub with world-class features,” he stated. Data from the Ministry of Commerce and Industry reveals that, during 2024, Panama’s exports to the United States totaled $264.6 million, with seafood being the largest export.
