Overview of Trade and Investment Between Colombia and Panama

Overview of Trade and Investment Between Colombia and Panama

Bilateral trade and expense involving Colombia and Panama have grown at a relatively continuous tempo ever given that the two nations around the world signed a Free of charge Trade Settlement in September 2013. Since then, Colombia’s normal useful resource/commodity producers have benefited from tariff-free of charge exports to the Panamanian current market. Conversely, Panama exports created merchandise and other concluded products to Colombia, as portion of a free of charge stream of goods and expert services among the two Latin American nations.

A transient glance at the 10-yr-outdated Colombia-Panama FTA, and it is clear that Colombian exports to Panama considerably outweigh trade flows in the other course. In 2020, Colombia imported just 1.6 p.c of the value of products that it exported to Panama. That amount has come up given that the pandemic-induced lull in global trade, but Colombia still retains a huge trade surplus with Panama. 

Trade and Expense: Major 10 Colombian exports to Panama

In terms of trade and expense, figures released on the Buying and selling Economics site indicate that Colombian exports to Panama topped $426.7 million USD in 2021. Here’s a breakdown of those exports by sector and their values (in hundreds of thousands USD):

  1. Crude oil – $89.9m 
  2. Pharmaceuticals – $32m
  3. Plastics – $30m 
  4. Animal, vegetable fats and oils – $19.25m 
  5. Electronics gear – $18.46m
  6. Perfumes and cosmetics – $17.27m
  7. Building/building resources – $14.79m
  8. Industrial chemical compounds – $13.84m
  9. Equipment factors – $12.44m
  10. Paper merchandise – $12.86m

Whether you are a foreign investor on the lookout for a bullish industry to put your income into, or a firm in search of to enter the Colombian industry, it is essential to consider all the trade and financial investment trends just before doing business in Colombia.

An infographic on trade and investment  in Panama
Panama’s primary export partners, crucial in understanding Trade and Investment decision

Trade and Financial commitment: Major 10 Panamanian exports to Colombia

In terms of trade and expenditure, figures printed on the Investing Economics site point out that Panamanian exports to Colombia reached $40.6 million USD in 2021 – considerably considerably less than the $426 million value of products Panama imports from the Andean country. Here’s a breakdown of Panama’s exports by sector and their values (in hundreds of thousands USD):

  1. Iron and steel – $6.12m
  2. Mineral fuels, distillation products – $5.25m
  3. Important stones and jewelry – $3.37m
  4. Plastics – $3.26m
  5. Prescribed drugs – $3.1m
  6. Animal fats, vegetable oils – $2.63m
  7. Sugar, sugar-centered products – $1.79m
  8. Tough liquor – $1.76m
  9. Aluminum – $1.74m
  10. Footwear – $1.38m
Panama’s primary export partners, essential in understanding Trade and Expense

Trade and expenditure in Colombia, Panama: Critical FDI stats

  • Right after the United States, Panama is the 2nd premier region of origin for Colombian FDI inflows
  • Soon after the United States, Colombia is the 2nd premier place of origin for Panamanian FDI inflows

Not prolonged following the two countries signed the bilateral trade pact, Panama and Colombia negotiated a money/tax facts sharing deal in a bid to battle tax evasion and revenue laundering, information reports reported at the time. 

For yrs, Panama has loved the spoils of being a tax haven for foreign buyers who want to defend some or all of their taxable earnings in their household international locations. Colombian trade and investments assets in the Central American region ought to now be declared. In trade for agreeing to share money details with tax authorities, the administration of ex-Colombian president Juan Manuel Santos agreed to take away Panama from a record of nations it considers tax havens. 

Trade and investment between Panama and Colombia a Biz Latin Hub infographic
Trade and expenditure between Panama and Colombia

Biz Latin Hub can assist you with trade and expenditure in Colombia and Panama

At Biz Latin Hub, we provide built-in market place entry and back-business office expert services throughout Latin The usa and the Caribbean, with workplaces in Bogota and Cartagena, as perfectly as around a dozen other significant cities in the area. We also have reliable companions in many other marketplaces.

Our unrivalled achieve signifies we are preferably put to aid multi-jurisdiction marketplace entries and cross border functions.

As nicely as understanding about trade and investment decision in Colombia and Panama, our portfolio of products and services features using the services of & PEO accounting & taxation, business development, lender account opening, and corporate lawful providers.

Make contact with us today to locate out a lot more about how we can assist you in getting top rated expertise, or otherwise do small business in Latin The united states and the Caribbean.

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