Alejandro Canakis General Manager, GlaxoSmithKline Central America & Caribbean

GSK has its regional HQ in Panama, taking advantage of the country’s generous tax regime and modern logistics infrastructure.

• Interview

How would you assess GSK’s experience as a multinational with a regional HQ based in Panama, and what impact has this had on GSK’s ability to carry out its strategy for the region?

GSK has been in Panama for over 70 years and counting. Our experience has been extremely positive, and the impact goes not only to our business in Central America and the Caribbean, but also extends to the rest of Latin America. Among the reasons why we choose Panama to establish our regional operations, I should highlight its great location in terms of logistics along with the tax regimes that benefits both the company and our employees. In addition, the support structure from governments to SME companies has been a catalyzer to evolve together as they have historically been open to feedback, and the dialog is always open for continuous improvement.

In 2020, GSK celebrated the expansion of its production facility in Juan Díaz, Panama City. How did Panama’s logistical connectivity factor into this investment decision? How can the country further strengthen its position as a regional headquarters and/or manufacturing and export base for multinationals?

Regarding our export model, it is worth mentioning that only at our Juan Díaz plant, we produce more than USD50 million annually in products such as Panadol, Dolex, and Teraflu, which are exported to more than 15 Latin American countries. This contributes to the economy of Panama and positions the country as a strategic place at the logistics level to implement

“I would encourage anyone to

consider Panama as a location to stablish its regional operations.”

regional operations. In February 2020, we shared the acquisition of new equipment and remodeling efforts for our manufacturing plant; these included: state-of-the-art technology in the industry, as well as the modernization of different areas to ensure ergonomic and efficient environment for its employees. The continuous investment that GSK has made over the years in expanding and improving its production infrastructure is a sign of its commitment to the country and its economy. That is closely related to our conviction of Panama a prime location for our regional operations. Regarding how Panama can continue to strengthen its position as attractive destination for a regional HQ/logistics hub, I would mention two points related to human capital: investment in technical professionals’ education and English as a second language for both college and technical graduates.

As an example of a multinational success story in Panama, what would your message be to the international business community in the audience looking to expand their footprint in the country?

I would encourage anyone to consider Panama as a location to stablish its regional operations. Each business has its own needs and particularities to be considered in the equation; however, if their needs involves solid connectivity and a stable environment in terms of stable macroeconomics, excellent personal security, and investment friendly regimes, Panama should be among the top three choices. Besides the benefits of Panama’s logistic infrastructure and the benefits of the location, not only for the overall commercial activity, but for travelling across the region (Copa, Hub de las Americas), we have found a great value in the country’s economic stability and social safety net, both factors that are key to attracting talent from all over the world, which is a significant factor in establishing strong regional and global operations in the country.

What are your expectations and targets for 2021 in Panama?

Our expectation, like any company in the world facing the embattles of the pandemic, is to regain access to our normal life, which will depend on the COVID-19 vaccine roll out. That will be the first and basic step to maintain a healthy financial state from which to translate into securing jobs, continuing to invest in the country, and keep bringing innovative products to Panama and the region; that is our commitment to patients and will continue to be our main driver.