Free processing zones would provide that added value to continue supporting Panamanian exports as one of the most productive sectors.
Now that the copper mine will have to close, the strengthening of free zone activities will create more investor confidence, from the perspective of Víctor Manuel Pérez III, president of the Panamanian Association of Exporters (Apex).
“For that foreign investor entering the free zones, it is important to maintain a message of confidence and optimism that Panama continues to be an important, relevant and favorable point for investment,” said Pérez.
He added that Panama has enviable logistical conditions and a workforce that demonstrates the ability to absorb these investments.
Processing zones represent between 15% and 25% of Panama’s exports, excluding copper, according to statistics.
In the first nine months of this year, goods worth 214.3 million dollars were exported from these complexes, which is 23 percent of total exports.
The hole left by the mine
By the third quarter of the year, exports from the Cobra mine amounted to $2.217 million, which is a greater increase of $57 million compared to the same period in 2022.’
2,927
million dollars of exports in the third quarter of the year, including the copper mine.
265
Millions of dollars in other products, in addition to the traditional ones, were exported.
With the cessation of operation, this line will experience a big drop, which will affect the state treasury.
billion kunas
On the other hand, exports are expected to cross the $1,000 million mark this year as well.
Francisco Mola Ortega, Deputy Minister of Foreign Trade, reported that in September they went to 800 million dollars, so in October it must have exceeded 1 billion.
In economic terms, bananas are still the main export product, with 115 million dollars by September.
It is followed by waste from steel, copper and aluminum with 73.2 million dollars.
In third place are fish meal and oil with $49.8 million, followed by fish and fillets with $47.3 million and shrimp ($41.4 million), according to data from the National Institute of Statistics and Census (Inec).
Mola Ortega reported that in addition to these products, Panama also exports sauces, butters, soaps, detergents, packaging and other seafood products.
The main markets are still the Caribbean and Central America, where according to their criteria there is still a lot of work, as well as the USA.
He singled out companies such as Barraza y Cia., winner of the 2023 Exporter of the Year award, which locates detergents in the Caribbean, and Plasticos Generales, which ships plastic bags to the United States.
To this information, Pérez III added that they took advantage of the fact that Brazil was affected by drought to send fruit to Europe.
In addition to bananas, other fruits that are part of the domestic offer are watermelon, with 13.5 million dollars until September; pineapple, with 4.8 million dollars and melon, with 175 thousand dollars.
affectations
The crisis in November did not have a big impact on exporters, because it happened outside the harvest season, explained Pérez III.
Products with losses were perishable, such as bananas transported by land to Central America.
Losses were estimated at a million dollars a day.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
