Welcome to the Panama Weekly News Roundup! Elections are round the corner and a sense of urgency has begun to consume political activity in Panama as rivals jockey for position in the final lap of what has been a long campaign. While this political maneuvering takes place President Martinelli works on his re-election in a few years, the Panama Canal delays sound a hopeful note for U.S. business, and Costa Rica is surpassed by Panama as the region’s highest rated destination for expats and retirees.
Find out what the biggest stories were in this week’s Panama Weekly News Roundup!
Panama Canal Delays give U.S. Ports Time to Work on Strategies
Expanding the Panama Canal has seen some serious teething difficulties lately, with the project delayed thanks to an ongoing spat between the contracted builders and the Panama Canal Authority. This has proven to be somewhat of an unintentional boon for businesses and ports in the U.S. as delays mean businesses and infrastructure gets a little more time to grow and get prepared. Currently the mega ports of the United States are gearing up significantly, with road and rail infrastructure also being worked on. This full-throated commitment to the ongoing success of the Panama Canal expansion highlights the amount of money investors and regions are expecting to come pouring out, once more moving Panama to the center of the region’s financial activity.
“Those arguments spill over into other regional issues. For example: Want to keep the two big container ports competitive? Then we need to extend state Routes 167 and 509 to Interstate 5 so the ports can move truck traffic in and out more efficiently. Want to keep freight trains hauling containers to the rest of the country moving? Then why would you want to further clog already congested rail lines with trains hauling coal and oil to export terminals?
The Panama Canal threat has some deficiencies. Advocates of the regional ports say the West Coast still is the best entry point to deliver freight to the Upper Midwest and the best exit point to ship many goods to Asia, so the threat is overblown. They also note the amount of investment, including dredging projects, that will be required at some of the ports hoping to land those larger ships. Critics of the ports maintain there’s a threat all right, but it comes from the north, not the south, in the form of British columbia’s Vancouver or Prince Rupert, with lower costs and better rail connections. Others cite competition from West Coast ports including Los Angeles/Long Beach and Oakland, Calif., and maybe from Mexico as well.”
Source: The News Tribune
Panama Surpasses Costa Rica as a Retirement Haven
Costa Rica’s time as the number one destination for retiring expats abroad may be at an end, according to a Central America Data report. With already high prices and a historic high-density of foreigners living there, it has fallen to Panama to pick up the mantle of number 1 retirement destination for Central America. With the number of Americans from southern states looking to Central America, this is a good time for Panama to establish itself as having a robust economy to sustain their inbound numbers.
“The rising cost of real estate in Costa Rica is the key factor forcing foreigners to look at other countries in the region in their search for a place in Central America to use as a second home or for retirement says a Central America Data report.
“Since the turn of the century 2000 expatriates have been looking for the ‘next Costa Rica’. To this effect, Nicaragua is sometimes referred to as an alternative to Costa Rica, but only for those who do not mind the uncertainty regarding the legal possession of property titles. “Panama has emerged in recent years as a clear competitor for Costa Rica, particularly in the housing market, where prices, although growing, are less than in the Costa Rican market.””
Source: Newsroom Panama
Martinelli Considering Running in 2019, Potentially Amending Presidential Laws
While his presidency has certainly never shied away from controversy, President Ricardo Martinelli’s current proposal has raised hackles amongst the opposition. Proposing to slash the period of time which must elapse before an incumbent president can seek re-election, the savvy politician is looking to build on the successful 5 years of his governance with a return to power before the decade is out. His pro-business stance and sense of stability may be key points to passing the legislation, which Martinelli has said is vital for political equilibrium to truly take root in Panama.
“During an interview with CNN in Spanish, from Davos, Switzerland, where he participated in the annual meeting of the World Economic Forum (WEF for its acronym in English), Martinelli acknowledged that he would support an amendment to the policy regarding the duration which must elapse before a President seeks re-election (currently 10 years).
Article 178 of the Constitution states that “officials who have been elected President or Vice President may not be elected to the same office immediately following two presidential terms.”
“That [the constitutional reform] is one of the points that could be discussed. I think it’s important that Panamanians change our Constitution and we are a little more flexible, because the Constitution we have is a militaristic court.”
Though he said that in 2019 he would once more aspire to the presidency, a reform of this scope may allow Martinelli to return to power by July 1, 2019.”
Source: La Prensa
Progress of Panama’s Subway
Panama’s metro line is almost complete, with the Cambio Democratico party lauding the achievement and promising its opening by March 5th of this year. The pictures in the short article illustrate how close the public work is to completion and what commuters can expect of their daily transit.
“It is the intention of the current president of Panama, Ricardo Martinelli, to finish this landmark public works by March 5, 2014 (Ash Wednesday). The subway or Metro as it is commonly called, will be his major legacy. He will be remembered by this major accomplishment for many years to come. I don’t recall an administration that has achieved so much in a period of only five years. He has raised the bar for future presidents.”
Source: Lingua Franca
Other Articles
This month we’ve had a large amount of interest in a number of articles addressing the present, clearing up the past, and discussing the future. The first article we’ll take a look at focuses on a decision overturned, as Panama’s National Assembly removed an international taxation clause which would see corporate bodies and offshore corporations subject to more than just Panama’s low “local” taxation. Read more about the Panama tax law
Our second article centered on the benefits of opening a business in a tax haven such as Panama, with access to excellent banking facilities, secrecy laws, and simplified steps to establishing foundations and more. Learn more about the benefits of opening a business in Panama
Panama’s Economic Outlook was our vision of the future, taking in the upcoming fiscal year for the republic as well as examining commentator’s views on reasons to invest over the upcoming year. 6 years of strong growth consistently have led to an unshakeable faith in the country’s potential – we break this sentiment down and get to the facts of the matter. See our economic outlook for Panama in 2014.
