In a recent visit to Atlanta, ProPanama Chief Administrator Gerardo G. Pelaez emphasized the untapped business potential of Panama, a nation often defined in the minds of many by its boxers and historical dictators rather than its emerging roles as a major logistics and trade hub.
Despite being only a four-hour flight away from Atlanta, the true significance of Panama and its canal often goes unnoticed by potential investors.
Pelaez remarked, “We go around preaching Panama, so the world starts to want to know,” during talks aimed at generating interest in the Central American nation.
The story of Panama as a critical trade destination began in the early 16th century, with the establishment of a Spanish outpost in present-day Colon.
Today, this area hosts the second largest free-trade zone in the world, trailing only Hong Kong, a fact Pelaez highlighted humorously.
The impetus for trade expansion came in the 1850s during the California gold rush, when the concept of a railway across Panama paved the way for the eventual construction of the Panama Canal by the French and later completed by the United States in 1914.
By the late 1970s, President Jimmy Carter set a timeline for the canal’s transfer to Panama, which occurred in 1999.
Since then, Panama has made substantial strides in infrastructure, most notably with the expansion of the canal, which included new locks inaugurated in 2014.
Currently, a quarter of Panama’s economic output is derived from logistics, with a staggering 6 percent of global trade passing through the canal, much of it destined for the East Coast of the United States, particularly through the Port of Savannah.
Pelaez humorously reminded the audience, “You guys buy a lot of stuff.”
Panama’s strategic location is further supported by its five major ports, facilitating efficient processing and trans-shipment of goods, complemented by the synergy of its railway along with the canal.
In 2024, more than 8 million container units were processed at Panamanian ports, underscoring the growing importance of this logistics hub.
Additionally, Panama offers free trade agreements with 23 nations, making it an attractive destination for businesses targeting a market of over 800 million people within a two-day shipping distance.
Pelaez noted, “So Panama is not 4 million. It’s 800 million,” emphasizing that businesses often overlook the extensive market opportunities that extend beyond Panama’s own population.
The Panamanian government incentivizes foreign investment by exempting taxes on sales conducted outside its borders and providing attractive tax regimes for international businesses.
As Pelaez concluded, many potential investors often respond to inquiries about their absence in Panama with, “I didn’t know.”
Beyond its maritime advantages, Panama is also enhancing its aviation connections.
Tocumen International Airport, the country’s primary air travel hub, recently welcomed nearly 18 million passengers, with direct flights to Atlanta operated by Delta Air Lines and Copa Airlines.
This connectivity not only enhances Panama’s profile as a logistics center but also facilitates its growth in technology, finance, and real estate sectors.
Industrial parks like the City of Knowledge and Panama Pacifico are attracting businesses in IT, logistics, and manufacturing by offering various incentives.
For instance, companies in the City of Knowledge can employ up to 100 percent foreign workers, a significantly higher percentage than the 15 percent maximum allowed elsewhere in the country.
Investment specialist Oriadna Ortega highlighted the welcoming nature of Panama for foreigners owing to its diverse cultural background, resulting from historical migration linked to the canal.
“You see all the Panamanians here look different, so you will feel welcome. You will never feel like an outsider in Panama,” Ortega stated.
On the corporate side, foreign investors can rest assured that their interests will remain safeguarded, as policies are not likely to fluctuate with political changes unlike in some Latin American countries.
Investors pouring $2 million or more into Panama can have their tax rates frozen for a decade, according to Ortega.
Prospective residents can easily gain residency through investment, requiring just a minimum commitment of $300,000 in real estate, $500,000 in stock equity, or $750,000 in a bank deposit.
The Panamanian government is also amending laws to allow permanent residents to acquire a passport without needing to become a citizen.
Amid political shifts to the left in many neighboring Latin American nations, Ortega pointed out that an influx of citizens from those countries seeking stability and opportunity is further driving demand in Panama’s real estate market.
She stated, “In Latin America, there is a movement to the left. So people are running away from that, and they want to move their assets, and they’re choosing Panama.”
The visit to Atlanta represents only the beginning for ProPanama as it seeks to deepen its engagement with the city while also strengthening its ties with the Georgia Hispanic Chamber of Commerce.
The GHCC previously attracted the annual convention of the U.S. Hispanic Chamber of Commerce to Atlanta, which is set to occur between September 21-23, 2023, highlighting the growing importance of collaborative efforts to promote trade and investment opportunities.
image source from：globalatlanta
