Bilateral trade and expenditure involving Colombia and Panama have grown at a somewhat continual speed ever due to the fact the two countries signed a Totally free Trade Agreement in September 2013. Given that then, Colombia’s purely natural useful resource/commodity producers have benefited from tariff-no cost exports to the Panamanian current market. Conversely, Panama exports manufactured goods and other finished solutions to Colombia, as part of a cost-free flow of products and companies involving the two Latin American nations.
A temporary glance at the 10-yr-outdated Colombia-Panama FTA, and it is clear that Colombian exports to Panama far outweigh trade flows in the other route. In 2020, Colombia imported just 1.6 % of the price of items that it exported to Panama. That range has appear up given that the pandemic-induced lull in worldwide trade, but Colombia continue to retains a big trade surplus with Panama.
Trade and Investment: Top 10 Colombian exports to Panama
In phrases of trade and investment, figures released on the Trading Economics website suggest 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 millions USD):
- Crude oil – $89.9m
- Prescription drugs – $32m
- Plastics – $30m
- Animal, vegetable fat and oils – $19.25m
- Electronics products – $18.46m
- Perfumes and cosmetics – $17.27m
- Construction/creating supplies – $14.79m
- Industrial chemical substances – $13.84m
- Machinery elements – $12.44m
- Paper solutions – $12.86m
Irrespective of whether you are a overseas trader searching for a bullish industry to place your income into, or a organization looking for to enter the Colombian industry, it is vital to contemplate all the trade and expenditure trends prior to doing business in Colombia.
Trade and Investment: Leading 10 Panamanian exports to Colombia
In conditions of trade and financial investment, figures released on the Trading Economics website reveal that Panamanian exports to Colombia attained $40.6 million USD in 2021 – significantly significantly less than the $426 million really worth of goods Panama imports from the Andean nation. Here’s a breakdown of Panama’s exports by sector and their values (in thousands and thousands USD):
- Iron and metal – $6.12m
- Mineral fuels, distillation solutions – $5.25m
- Precious stones and jewellery – $3.37m
- Plastics – $3.26m
- Prescribed drugs – $3.1m
- Animal fats, vegetable oils – $2.63m
- Sugar, sugar-based items – $1.79m
- Hard liquor – $1.76m
- Aluminum – $1.74m
- Footwear – $1.38m
Trade and expenditure in Colombia, Panama: Critical FDI studies
- Just after the United States, Panama is the 2nd biggest state of origin for Colombian FDI inflows
- Following the United States, Colombia is the 2nd largest nation of origin for Panamanian FDI inflows
Not extended after the two countries signed the bilateral trade pact, Panama and Colombia negotiated a monetary/tax information sharing offer in a bid to struggle tax evasion and cash laundering, news experiences explained at the time.
For many years, Panama has appreciated the spoils of remaining a tax haven for foreign investors who wish to protect some or all of their taxable earnings in their household countries. Colombian trade and investments belongings in the Central American region will have to now be declared. In trade for agreeing to share money information and facts with tax authorities, the administration of ex-Colombian president Juan Manuel Santos agreed to eliminate Panama from a checklist of countries it considers tax havens.
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