1. PANAMA: Building a global business
platform to serve the world.
Ricardo Quijano
Minister of Trade and Industry
June 2012

2. Panama is known for its high rate of economic growth
• The country’s sterling economic success is based on a strong macro-
economic policy and excellent management of the Panama Canal and
associated transportation services.
• The Government of Panama has promoted economic growth over the last
decade through open market policies and encouraging trade.

3. Openness to Foreign Investment
• Key Panamanian strengths are
considered to be cross border
trading and access to financial
services.
• Local and foreign investment is
treated under the same terms and
conditions, pursuant to non-
discrimination principles.
• Panama became the fifth country in
Latin America to obtain investment
grade rating.
• The three (3) major credit rating
agencies have confidence that the
Government of Panama has the
willingness and ability to manage
its debt obligations.

4. Investment Grade and International Economic Achievements
• Doing Business Report (2011 – 2012) – World
Fitch Ratings Bank
(June 2011)  Ranked 61 of 183 economies
• Competitiveness Report (2011 – 2012) –
International Economic Forum
 Ranked 49 out of 142 countries,
increasing four places compared to the
Standard & previous year
Poor’s
(July 2011) • Business Destination- Forbes Magazine
 Ranked 60 out of 134 countries as a
recommended destination for business
• Panama, among the 10 least expensive cities
Moody s to live in the world, according to The
(2011) Economist Intelligence Unit
 The cheapest city to live in America

5. Panama: Connecting Trade
Expanding trade and our international alliances
Free Trade Agreements– FTAs
In order to promote competitiveness and
increase exports of our private sector to the
U.S., Canada, European Union and
countries of Central and South America:
 Panama has recently signed bilateral
investment treaties, conventions for the
avoidance of double taxation
 8 implemented FTAs
 6 FTAs in the process of implementation
 7 FTAs currently under negotiation
 4 Partial Scope Agreements

6. Foreign Direct Investment (FDI)
A pillar in economic growth
• Foreign direct investment increased by 19%, with a total of $ 2.8 million in
FDI.
• Nearly 70 Multinational Enterprises have been established to benefit the
legal framework that provides incentives for investment.
• The Investment Stability Law guarantees all foreign and domestic investors
equal rights in terms of their investment and business practices. It also
provides a 10-year stability in terms of legality, and it will remain identical to
that in force at the time of registration.

7. Regulatory framework to attract investment and promote
development of technologies • Panama is an attractive
jurisdiction for the establishment
of offshore corporations,
enterprises and industries.
• Flexibility of the incorporation law
and only income generated
within Panama is taxable.
• There are special tax and
incentives for manufacturers to
locate in an export-processing
zone.
• There are no legal requirements
such as minimum export
percentages or the obligation to
invest in local companies or
purchase goods from local
vendors.

8. Free Trade Zone/ Industrial Parks
• Free Zones are zones of free enterprise, specifically
delimited, for the establishment of enterprises from all
over the world whose activities are the production of
goods and services.
• Panama currently has 14 Free Zones, with 95 companies
registered.
• Enterprises Permitted within the Free Zones:
 Manufacturing, Assembly Enterprises.
 Finished or Semi-Elaborated Processing Products
Enterprises.
 Export Services Enterprises.
 Cutting edge technology, scientific research, higher
education.
 Logistics services, environmental services, health,
and general services.

9. Panama-Pacifico
La posición de
Panamá permite
a las empresas
aprovechar los
sistemas
logísticos
The Panama Pacifico Special Economic Area is an area assigned for the
production of goods and services with high added value and technology.

10. Logistic sector headquarters in Panama
Regional headquarters of Multinational Companies
• 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.

11. City of Knowledge
• The City of Knowledge is a scientific, technological and entrepreneurial park
located by the Panama Canal.
• It offers special labor and immigration provisions.
• All benefits awarded have a duration of 25 renewable years, which is more
than any other incentive law.

12. The Colon Free Zone
• Registered 40% growth; reaching 30 billion in merchandise.
• The largest free zone in the Americas and the second largest in the world.
• The CFZ is an imposing area that does business with every major country
one can imagine.

13. Logistics
Interconnection infrastructure
The Creation of a Logistics Cabinet • Logistics Cabinet is made up of
public and private sector
representatives.
• Created in order to benefit from
Panama’s geographical position
as well as from the vast variety of
business opportunities that will
permeate after the increase of
traffic through the expanded
Interoceanic Canal, expected to
be completed by 2014.
• Its main objective is to integrate
programs and goals for the
elaboration of a master plan
promoting Panama as a logistics
and commercial center with a
global vision.

14. Multimodal Logistics Center for the Americas
• An infrastructure network
created because of the
country’s strategic geographic
position.
• Network of highways and roads
to connect the main centers of
production.
• A railway connecting the two
oceans in 1 hour, transports
more than 350 thousand
containers per year
• A port system with state of the
art technology, facilitating
global trade in the Atlantic and
Pacific

15. The Panama Canal delivers record amount
of over 1,000 million dollars • In 2011, the Canal gave
the country a record
intake of 1,043 (one
thousand 43) million
dollars.
• The increase in
contributions is the
result of record high
tonnage through the
Canal.
• Direct contributions
from the Canal under
panamanian
administration total
6,576 million dollars.

16. The Panama Canal Expansion
• Estimated
Cost investment
of U.S.$
5.250 million.
• Will increase the
benefits for our country
and enhance
ESCLUSAS ACTUALES international maritime
commerce.
• Shipping companies
are designing and
TERCER JUEGO DE ESCLUSAS
building post-Panamax
vessels to supply the
growing demand.

17. Trans-Isthmic Railroad Transshipment from port to port
Pacific Atlantic
• The railway is considered a "dry canal" because it allows the transfer
of goods from one ocean to another, without customs clearance.
• This service currently operates at its maximum capacity.

18. Panama is the country with the largest maritime connectivity
in Latin America and the Caribbean
• The Panama Canal connects more than 144 shipping routes, enabling
the country to offer a wide range of logistics services.
• Its advantageous geographical position makes it the country with the
largest maritime connectivity, according to the United Nations Conference
on Trade and Development (UNCTAD).

19. Innovative Port Facilities in Latin America
• Port activity showed a
20% increase in the
Atlantic side and a 17%
increase in the Pacific
side.
• Panamanian ports
generate 24% of GDP.
• Panama has also been
the main cruise terminal
facility in Latin America.

20. Public Works - Road Infrastructure
• 3 billion dollar investment
in infrastructure.
• Construction and road
reorganization through the
expansion and creation of
new infrastructure,
including 23 points of the
city.
• Construction of the Cinta
Costera III in Casco Viejo
is necessary for the road
map of the city and will
bring great economic
benefits to the country.

21. Integrated Transportation System
Metro Bus
Transporte Colectivo
Nueva flota de buses
cómodos y con aire
acondicionado, que
ofrece a los pasajeros
mayor rapidez y
calidad en sus viajes
por la ciudad.
Metro Bus
Investment of US$ 1,200 million. Completion and estimated delivery by
December 2013. Its operation begins in 2014.

22. Air Connectivity • Panama has the largest air
connectivity in Latin America,
according to the International Air
Transport Association (IATA).
• Tocumen International Airport has
become the main hub of the region.
• Tocumen International Airport offers
16 daily flights to the United States
of America.
• The creation of the Muelle Norte,
64 Destinations consisting of 12 new gates, will
29 Countries increase passenger transit from six
to nine million, annually.
• Panama has become the site in
Latin America for air transportation
training because of our flight
In June 4 new destinations simulators.

23. Airport investment exceeding US$ 225 Million
1. International Airport Enrique Malek - Chiriquí
2. International Airport Río Hato, Coclé
3. International Airport Panamá Pacífico, Panamá
4. International Airport Marcos A. Gelabert - Panamá
5. International Airport of Tocumen - Panamá
6. International Airport Enrique A. Jiménez - Colón 6
4
5
3
1
2

24. The Panamanian banking center is the most modern and
successful in Latin America
• Free movement of U.S. Dollar
and free movement of
capital, without a Central
Bank.
• Financial System with a solid
and diverse International
Banking Sector, whose assets
increased by 15.2%.
• In the insurance
sector, premiums grew by
14.6%, surpassing the barrier
of 1 billion written premiums.
• New Law on Insurance and
Reinsurance.

25. Panama seeks to stay ahead of the curve of commerce and
telecom
Hotel and Real Estate Offer in “Cadena de Frío”
Panama. Telecom
9 Centers for collections. Panama became one of the
Real estate is one of the most
dynamic, up 24%. 8 Public markets. first countries in the world
Refrigerated transport system to offer free wireless
Panama currently offers
Investment US$297 Million broadband access
25,000 hotel rooms with
nationwide, reaching 80%
renown hotel brands from
of the population.
around the world.

26. Panama: the best destination to visit in 2012
• The New York Times highlighted Panama in its January 2012 edition, using
the slogan “Go for the Canal. Stay for everything else”.
• Listed in The Economist Intelligence Unit, as the least expensive city to live
in America and the sixth in the world.
• Strategic site for meetings, conventions and regional events. The February
2012 issue of Forbes Magazine, recognized Panama as an excellent place to
invest.

27. Final Remarks
• Panama's economic growth is driven by the dynamism
of the public sector, seeking to increase productivity
through its investment programs.
• Logistics in the country has led to significant
improvements in levels of competitiveness, which have
been recognized by international organizations,
business magazines and financial newspapers
worldwide.
• Growth rates will be maintained in the coming years
characterized by the diversification in the economy,
providing the basis of both growth and sustainability of
development.
Thank You