This week we’ve boiled down some great articles for you. It’s been a huge week for the Panama Canal expansion, with huge investment in PortMiami helping to justify the cost to Panamanian officials – as well as a Vice-Presidential visit keeping things sweet politically. Latin America continues to grow healthily as well, with economists and financial analysts predicting a strong growth rate throughout 2014. We’ve also included one of our own FAQ-style articles, focused on how to get Panamanian Citizenship through direct investment.
Read on to get to the real bones of the best stories coming out of the Republic of Panama this week, in our Weekly Offshore roundup from the isthmus!
PortMiami: Good for growth, good for business
Home to over 200,000 jobs and generating $27 billion worth of activity for the local economy, PortMiami is a huge player in the Atlantic. As such, when it turns its attention to compliance with the new Panama Canal measurements, it’s worth paying attention. With a large investment in the port driving Joe Biden to visit Panama, the huge demands of PortMiami are being fuelled by investment in Panama’s canal expansion – a co-dependency which will see even more money flow into local infrastructure in Panama over the next decade.
“These upgrades include a deep dredge and new super-sized cranes to ensure that the port is “Big Ship Ready” when the expanded Panama Canal opens in 2015 and a new class of “Post-Panamax” mega cargo liners hit the high seas. PortMiami is the only Eastern Seaboard port south of Norfolk, Va., that will meet the 50-foot depth required to accommodate the new ships when they begin passing through the expanded Panama Canal. This means our area will be well-positioned to win new job-creating trade opportunities with booming Asian and Latin American markets.
The upgrades also include a new port tunnel, scheduled for completion in May 2014, and a new on-port rail link. The tunnel will allow port traffic to move more quickly and easily to and from the interstate highway system, reducing downtown traffic while enabling expanded port operations. The new rail link, made possible through a partnership with Florida East Coast Railway, will allow cargo shipments arriving in Miami to reach over 70 percent of the U.S. population in less than four days’ transit time.”
Source: Miami Herald
Latin America Continues to Grow in 2014
Latin America and the general Caribbean will grow its economy by 3.2% in 2014, with the prediction being accompanied by a positive regional forecast. The figure is being driven by the increasingly positive statistics derived from Latin American exports, with countries such as Panama expected to be major up and coming players both in regional and international exports.
“The Economy of Latin America and the Caribbean will grow by 3.2% in 2014, higher than the figure expected this year, with a better external environment and perform consumption, the Economic Commission for Latin America and the Caribbean said Wednesday. In a report, ECLAC predicted annual growth of 2.6% of GDP.
“Next year is expected to be moderately more favorable. The market conditions will contribute to increased external demand and, therefore, exports of the region,” said the agency.”
Source: La Prensa
Approve Bill 651: Amending the Code of Criminal Procedure and Judiciary
Panama’s National Assembly has approved an amendment to Bill 651, which will dispose of Article 42. Article 42 had previously stated that anyone who coerced law enforcement officials of all ranks would face lengthy prison terms. It has now been set aside, in what some are calling a triumph for leniency and others are saying is a big blow to the country’s anti-corruption nature. It’s too early to say which way this will be received by the public but, following Panama’s Corruption Conference 2 weeks ago, it may not be the most popular motion by the National Assembly.
“The full National Assembly approved, on a third reading, Bill 651, which amends the Penal Code and Criminal Procedure and Judicial Procedure for regulating activities related to the offense of organized crime. This will eliminate the controversial Article 42, which stated that those using physical force or intimidation to threaten witnesses, experts, judges, prosecutors or agents of the security forces, face imprisonment of 8-12 years.”
Source: Mi Diario
How to Get Panama Citizenship By Investment
Panamanian citizenship is one of the simplest to obtain in Central America, with few barriers to entry. One of the simplest ways to gain your citizenship in Central America’s most successful republic is to invest – with a wide variety of ways to invest both small and large sums of money. These fast track investment solutions for obtaining a visa mean that the prudent investor can move past the problems of being a foreigner quickly.
““Citizenship by Investment” is an immigration program enacted in Panama, as well as other countries, which allows foreigners to become permanent residents leading to citizenship after making a minimum investment. The requirements for minimum investments differ amongst the countries. Some countries require at least $1 Million USD while others require more or less. The Panama Citizenship by Investment programs offers two options.”
Read more about Panama Citizenship by Investment
Panama Canal Expansion to Lower Cost of Shipping U.S. Grain to Asia by 12%
The Panama Canal is once more at the hub of U.S. business endeavors, with a huge increase in capacity at the canal allowing ever larger grain shipments through the “big ditch”. This will increase the competiveness of grain exported to Asia from the United States by roughly 12% – an economic windfall for the Panama Canal company and large grain operators in the states affected. This kind of story is expected to become a regular sighting, with the efficiency of freighting food or agriculture products through the Canal dropping sharply post-Expansion.
“Upon completion of the expansion of the Panama Canal, the cost to transport grain from the U.S. corn belt to Asia will drop by an estimated 12%.
A new report, “Panama Canal: Expanding the Gateway for U.S. Grain to the East,” Rabobank says the expansion of the Canal will accommodate grain-laden ships from the U.S. of 25% more capacity than before, resulting in a shift in U.S. grain shipping routes that doubles the draw area west of the Mississippi River for exports through the Panama Canal.
Rabobank predicts the decline in shipping cost, coupled with the increased capacity, will help ports along the U.S. Gulf to regain export volume lost to ports in the Pacific Northwest over the last decade, and also benefit large grain traders and exporters with operations in the U.S. Gulf region. Ocean freight accounts for 60% of total shipping cost, so increased shipping capacity has a material effect on cost savings.”
Source: Yahoo News
Free Downloadable Ebook – Panama Business Handbook
Put together by our legal team at International Relocation Firm, the Panama Business Handbook is part of a series of ebooks written on topics relevant to our readers. We are aiming to provide expats and investors with the information they need, for free! Our main focus this week is successfully starting, owning and running a business in Panama – especially if you’re new to the way of doing business here.
They include such titles as –
We have packed each ebook with detail, providing you with the introductory legal assistance you need for potentially making the decision to make Panama your base of operations. Follow the links above to download your ebooks now!
