Ernesto Lara Chairman, British Chamber of Commerce Panama

UK-Panama business ties are going from strength to strength, with Brexit providing extra impetus for the development of new trade opportunities.

• Interview

In recent years, the UK has been between the fifth- and second-largest investor in Panama. What is your outlook regarding the future of UK-Panamanian investments post Brexit and, hopefully soon, COVID-19?

I believe the UK will continue to pursue Panama as an important commercial ally in the region. Brexit was freedom to do business, which means British businesses will continue developing markets all around the world. Panama represents an interesting potential for the UK. Today, Panama produces some of the best coffee, rum, cacao, chocolate, and other products. Additionally, the Panamanian government recently passed laws that benefit and support foreign investment. Also, there is a second investment law oriented in favor of the hospitality sector. The most interesting element of the tourism law—100% credit to investors—will attract more British investment. The UK is also trying to develop new markets. There are big ambitious infrastructure projects such as the fourth transmission line and the construction of the fourth bridge over the Panama Canal that will attract several British companies. There are also many opportunities in the education sector. We must note there are currently two British groups that operate schools in Panama. In the hospitality sector, there is a clear need for project designs. Panamanian tourism is under developed, and we need to take advantage of the new hospitality law. In addition, real estate is a sector with a great deal of potential, and this is the perfect time to buy. Everybody knows it is a buyer’s market. In Latin American, Panama is one of the best countries to do business.

“There are big ambitious infrastructure projects such as the

fourth transmission line and the construction of the fourth bridge over the Panama Canal that will attract several British companies.”

What opportunities do you see for British companies in Panama, both for the market itself and as a gateway to the region?

Several companies established their headquarters in Panama. There are some 180 SEMs registered in the country, and they are doing well and have success stories. We can mention London and Regional, who worked hard to develop Panama Pacifico and did an excellent job representing Panama. Financial stability provides guarantees of success. Panama does not have currency depreciation, which is great advantage. We are liberal on the free flow of money; this has been a permanent feature of the economy. Unfortunately, other countries in Latin America make this extremely difficult. Not to mention Panama also has a free trade zone, a logistics and transportation sector that will continue growing steadily in the future, and several other advantages that almost everyone already knows.

How can your member companies best take advantage of Panama’s connectivity to the wider region, whether as a financial, logistics, or regional headquarters hub? From your view, how can the country’s connectivity be further strengthened?

Panama’s connectivity is seen as highly developed on a regional scale. Thanks to the geographical location and the Panama Canal, the country has developed an extremely strong logistics sector. Additionally, there is a similar situation for SMEs and the financial sector. The government has become aware of the importance of these sectors’ development, which will result in many more opportunities for British companies. For the financial sector, there is a major opportunity if we offer multicurrency accounts. This will facilitate domestics affairs, and business will be easier. Panama will continue to offer the best connectivity in the region.

What are the priorities for the chamber in 2021? What is your general outlook for this year?

As a chamber, we are nonprofit; we operate from donations. Our members have been extremely supportive, and we thank them all. We will continue to support their initiatives as we have done in 2020. They are our priority. We will continue as best as we can to help the needy, orphanages, and hospitals. In terms of our regular events that are part of the social and business calendar, we are exploring the possibility of holding our golf tournament and the British Business Forum. We are not going to be able to do A Day at the Races, which is known as the Tropical Ascot. We will continue to promote opportunities for UK and Panama, which is our main objective. 2021 will be a better year with the vaccines, and we will be able to do greater things now we know how to manage the problem.