Mayra Lamboglia Attorney At Law

Always the right counsel

Panama, Republic of Panama

 

 

NEWS

Strengthening Dollar Will Benefit Panama
By ROBERTO GONZÁLEZ JIMÉNEZ for La Prensa - The price of foods and imported consumer goods should fall due to the strengthening dollar, according to Raúl Moreira, the President of the Panamanian College of Economists. A strong dollar, which posted the greatest gains in October than in the past 17 years, means Panamanian importers need less money to buy the same products. As transportation costs should also drop due to lower prices thanks to the fall in prices of fuel, "imported inflation", to which the present increases in prices have been attributed, would have to yield. The strength of the dollar will have, in addition, other positive effects in the local economy.
 
Resident and Tourism Laws Changing
Panama’s new resident and tourism laws are due to come in to effect this month and if the current proposal remains intact, far fewer foreigners will be eligible for the pensioners visa. Currently to apply for a pensionado visa one must have a retirement income of $500 (plus $100 for every dependant) per month but the new law states that every person applying must have an income of at least $1000 per month. The proposed law will exclude many foreigners who were once considering Panama as a retirement destination.
The New Beach Front in Panama
Norberto Odebrecht S.A. is constructing the shore protection of the Cinta Costera Boulevard of Panama City in Panama. The existing boulevard named Avenida Balboa, which is located in the bay next to the entrance of the Panama Canal, will be extended seawards, and in addition to the shore protection a new boulevard including several parks will be developed.
The total length of the shore protection will be 3 km, and as main armor layer 30,000 X-blocs with a size of 0.75 m3 will be applied. The construction of the Cinta Costera project will be executed in the coming 18 months. The Cinta Costera shore protection will be the largest X-bloc application worldwide so far.

U.S., Panama Sign Free-Trade Agreement

The United States and Panama signed a free trade agreement on Thursday with only a few days to spare before key U.S. legislation expires. The U.S. and Panama signed a free- trade accord that includes new labor and environment provisions demanded by congressional Democrats.
The United States and Panama have enjoyed long-standing, strong economic ties and a mutual commitment to deepening the trade relationship through a free trade agreement. A free trade agreement with Panama is an important link in the Administration's strategy of opening markets in the Hemisphere through competitive liberalization.

This is an historic agreement,'' U.S. Trade Representative Susan Schwab said at a ceremony in Washington. The accord includes ``ground-breaking labor and environment provisions, a result of the bipartisan agreement between the Bush administration and congressional leadership,'' she said.

Panama, whose economy is anchored by the Panama Canal, is a mostly services-based economy and one of the few countries in the world that runs a trade deficit with the U.S. American companies shipped $2.7 billion in goods and agriculture items to Panama last year and imported less than $400 million.

In 2003, bilateral trade between the United States and Panama totaled $2.1 billion, with U.S. exports accounting for $1.8 billion of that amount. Between 2002 and 2003, U.S. exports to Panama grew over 30%. Nearly half of Panama's total imports come from the United States. U.S. foreign direct investment in Panama totals roughly $25 billion. Panama currently enjoys broad access to the U.S. market. In 2002, over 90% of Panama's goods exports to the United States came in duty free under unilateral benefits programs like the Caribbean Basin Initiative (CBI) and the Generalized System of Preferences (GSP) or under 0% MFN tariffs.

The Panama pact tears down tariffs and other trade barriers between the two countries in manufacturing, services and other sectors. Over 88 percent of U.S. exports of consumer and industrial goods to Panama will become duty-free immediately, with remaining tariffs to be phased out over 10 years. The free-trade agreement will also open the way for U.S. companies to participate in the $5.25 billion expansion project for the canal, the U.S. trade office said.

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