Latin America & the Caribbean
Opportunities for UK companies
Panama
Panama’s economy is based on a large service sector.
Many UK companies operate from Panama, including well-known companies such as Aggreko, Biwater, Diageo, GSK, Solar Century and Unilever. Total trade in goods and services (exports plus imports) between the UK and Panama was £287 in the four quarters to the end of Q3 2020.[1].
Market Detail
Panama is regional hub and as an important logistics platform with a strategically important geographical location, dollarised economy, and social, political and economic stability, Panama is a key regional player for UK business, values and security objectives. With its location and resources, Panama aspires to be an influential regional player, and is well aligned with many of the UK’s values and priorities. Panama’s economy is predicted to have contracted by 9.0% in 2020 due to the pandemic but is set to recover some of it’s lost ground, growing by 4.0% in 2021 and 5.0% in 2022[2].
UK companies exporting to Panama will find:
- 100% foreign ownership is allowed
- No restrictions on the transfer and repatriation of capital and profits
- Panama became a member of the World Trade Organization (WTO) in 1997 and is a beneficiary of the General System of Preference (GSP) programmes and the Caribbean Basin Initiative (CBI)
- Panama uses the US dollar and there are no foreign exchange controls
- Legislation guaranteeing juridical security, fiscal and tax incentives for investors
- Economic stability, with record low inflation and sustained economic growth
- Strategically located on the major world shipping route provided by the Panama Canal
- A hub for air travel
- One of the best countries for telecommunications connectivity in the world
- Low unemployment rate of under 6%
Opportunities in Panama for UK companies:
- Infrastructure
- Energy
- Agriculture
- Education
- Marine
- Security
