Panama Business Opportunities

The Panama Canal, of course is the doyen which thrives in Panama today. Although the Canal provides only 9.6% of Panama's gross domestic product there is no doubt about its importance. For one thing, the U.S. built Canal led to the use of the U.S. dollar because of Panama's special relationship with the USA. The Canal ports and maritime trade which spawned the Colon Free Zone and encouraged the growth of the Panama Ship Registry, the largest in the world, since June 1993.

Panama has announced an ambitious US $5.3bn plan to widen its famous canal to handle a new generation of giant container ships. President Martin Torrijos described the project as a "formidable challenge" but necessary if the canal is to retain its place as a key route for global cargo.

With over US $10 billion in commercial transactions in 1995, generated by 1500 companies, The Colon Free Zone's high growth rate is a phenomenon that started 45 years ago. The CFZ is supplier to Latin America and as a free zone is surpassed in size only by Hong Kong. Any person or business entity can operate in the Colon Free Zone. A commercial license is not required and there is no minimum investment required. Keeping in pace with modern times, gigantic steps are presently being taken in order to further expand operational patterns at the CFZ introducing manufacturing and assembly activities.
For shoppers: goods are sent in bound from the Colon Free Zone to Tocumen International Airport, where they are delivered to departing passengers. Normally they can get it there for a flight the following day. On the day of departure, leave plenty of time to get goods out of the customs area on the lower level of the airport before checking in for your flight.

Panama has always geared itself to profit from its privileged geographical position in order to establish commercial and legal advantages for foreign trade and services. The international Banking Center (over 100 banks from 30 countries) provides many benefits, including the free circulation of the US dollar; the existence of laws protecting bank secrecy; the freedom to transfer funds and set the loan portfolio; the determination of interest rates according to the market influence; and the tax exemption of all interest earned on time deposits.