February 7, 2023

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Assessment of Business and Funding Between Colombia and Panama

Bilateral industry and funding between Colombia and Panama have grown at a quite secure tempo ever for the reason that two international locations signed a Loose Business Settlement in September 2013. Since then, Colombia’s herbal useful resource/commodity manufacturers have benefited from tariff-free exports to the Panamanian marketplace. Conversely, Panama exports manufactured pieces and different completed merchandise to Colombia, as a part of a loose go with the flow of products and services and products between the 2 Latin American international locations.

A temporary look on the 10-year-old Colombia-Panama FTA, and it’s obvious that Colombian exports to Panama a long way outweigh industry flows within the different course. In 2020, Colombia imported simply 1.6 % of the price of products that it exported to Panama. That quantity has arise for the reason that pandemic-induced lull in international industry, however Colombia nonetheless holds a big industry surplus with Panama. 

Business and Funding: Most sensible 10 Colombian exports to Panama

With regards to industry and funding, figures revealed at the Buying and selling Economics site point out that Colombian exports to Panama crowned $426.7 million USD in 2021. Right here’s a breakdown of the ones exports by way of sector and their values (in thousands and thousands USD):

  1. Crude oil – $89.9m 
  2. Prescribed drugs – $32m
  3. Plastics – $30m 
  4. Animal, vegetable fat and oils – $19.25m 
  5. Electronics apparatus – $18.46m
  6. Perfumes and cosmetics – $17.27m
  7. Development/development fabrics – $14.79m
  8. Commercial chemical substances – $13.84m
  9. Equipment elements – $12.44m
  10. Paper merchandise – $12.86m

Whether or not you’re a overseas investor searching for a bullish business to position your cash into, or an organization in search of to go into the Colombian marketplace, it’s necessary to imagine the entire industry and funding tendencies prior to doing industry in Colombia.

An infographic on trade and investment  in Panama
Panama’s major export companions, necessary in figuring out Business and Funding

Business and Funding: Most sensible 10 Panamanian exports to Colombia

With regards to industry and funding, figures revealed at the Buying and selling Economics site point out that Panamanian exports to Colombia reached $40.6 million USD in 2021 – a long way lower than the $426 million value of products Panama imports from the Andean country. Right here’s a breakdown of Panama’s exports by way of sector and their values (in thousands and thousands USD):

  1. Iron and metal – $6.12m
  2. Mineral fuels, distillation merchandise – $5.25m
  3. Valuable stones and jewellery – $3.37m
  4. Plastics – $3.26m
  5. Prescribed drugs – $3.1m
  6. Animal fat, vegetable oils – $2.63m
  7. Sugar, sugar-based merchandise – $1.79m
  8. Exhausting liquor – $1.76m
  9. Aluminum – $1.74m
  10. Sneakers – $1.38m
Panama’s major export companions, necessary in figuring out Business and Funding

Business and funding in Colombia, Panama: Key FDI statistics

  • After the USA, Panama is the twond greatest nation of beginning for Colombian FDI inflows
  • After the USA, Colombia is the twond greatest nation of beginning for Panamanian FDI inflows

Now not lengthy after the 2 international locations signed the bilateral industry pact, Panama and Colombia negotiated a monetary/tax knowledge sharing deal in a bid to combat tax evasion and cash laundering, information experiences stated on the time. 

For years, Panama has loved the spoils of being a tax haven for overseas buyers who want to defend some or all in their taxable income of their house international locations. Colombian industry and investments property within the Central American nation should now be declared. In alternate for agreeing to percentage monetary knowledge with tax government, the management of ex-Colombian president Juan Manuel Santos agreed to take away Panama from a listing of nations it considers tax havens. 

Trade and investment between Panama and Colombia a Biz Latin Hub infographic
Business and funding between Panama and Colombia

Biz Latin Hub will let you with industry and funding in Colombia and Panama

At Biz Latin Hub, we offer built-in marketplace access and back-office services and products all over Latin The united states and the Caribbean, with workplaces in Bogota and Cartagena, in addition to over a dozen different main towns within the area. We even have depended on companions in lots of different markets.

Our unrivalled achieve way we’re preferably positioned to strengthen multi-jurisdiction marketplace entries and move border operations.

In addition to wisdom about industry and funding in Colombia and Panama, our portfolio of services and products comprises hiring & PEO accounting & taxation, corporate formation, checking account opening, and company criminal services and products.

Touch us nowadays to determine extra about how we will be able to lend a hand you to find most sensible skill, or another way do industry in Latin The united states and the Caribbean.

If this text on industry and funding in Colombia and Panama was once of passion to you, take a look at the remainder of our protection of the area. Or learn about our staff and professional authors.

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