Bilateral trade and expense concerning Colombia and Panama have developed at a relatively continuous tempo at any time given that the two countries signed a No cost Trade Settlement in September 2013. Considering that then, Colombia’s normal resource/commodity producers have benefited from tariff-totally free exports to the Panamanian market. Conversely, Panama exports created products and other concluded items to Colombia, as portion of a free of charge stream of goods and solutions in between the two Latin American nations.
A short glance at the 10-12 months-old Colombia-Panama FTA, and it is evident that Colombian exports to Panama significantly outweigh trade flows in the other path. In 2020, Colombia imported just 1.6 per cent of the value of products that it exported to Panama. That selection has come up considering the fact that the pandemic-induced lull in world trade, but Colombia nonetheless holds a significant trade surplus with Panama.
Trade and Investment: Leading 10 Colombian exports to Panama
In phrases of trade and investment decision, figures revealed on the Buying and selling Economics web-site indicate that Colombian exports to Panama topped $426.7 million USD in 2021. Here’s a breakdown of these exports by sector and their values (in tens of millions USD):
- Crude oil – $89.9m
- Prescribed drugs – $32m
- Plastics – $30m
- Animal, vegetable fats and oils – $19.25m
- Electronics gear – $18.46m
- Perfumes and cosmetics – $17.27m
- Development/constructing components – $14.79m
- Industrial substances – $13.84m
- Machinery parts – $12.44m
- Paper goods – $12.86m
No matter if you are a overseas trader searching for a bullish market to put your cash into, or a corporation looking for to enter the Colombian market, it is crucial to look at all the trade and investment traits just before accomplishing enterprise in Colombia.
Trade and Financial investment: Major 10 Panamanian exports to Colombia
In conditions of trade and investment, figures posted on the Buying and selling Economics web-site point out that Panamanian exports to Colombia reached $40.6 million USD in 2021 – much less than the $426 million value of merchandise Panama imports from the Andean nation. Here’s a breakdown of Panama’s exports by sector and their values (in hundreds of thousands USD):
- Iron and steel – $6.12m
- Mineral fuels, distillation products – $5.25m
- Precious stones and jewelry – $3.37m
- Plastics – $3.26m
- Pharmaceuticals – $3.1m
- Animal fats, vegetable oils – $2.63m
- Sugar, sugar-based mostly products – $1.79m
- Really hard liquor – $1.76m
- Aluminum – $1.74m
- Footwear – $1.38m
Trade and expense in Colombia, Panama: Essential FDI studies
- Just after the United States, Panama is the 2nd premier state of origin for Colombian FDI inflows
- Just after the United States, Colombia is the 2nd greatest state of origin for Panamanian FDI inflows
Not very long immediately after the two international locations signed the bilateral trade pact, Panama and Colombia negotiated a financial/tax details sharing deal in a bid to battle tax evasion and cash laundering, information studies stated at the time.
For yrs, Panama has enjoyed the spoils of becoming a tax haven for overseas traders who want to defend some or all of their taxable earnings in their property international locations. Colombian trade and investments belongings in the Central American nation ought to now be declared. In exchange for agreeing to share fiscal information with tax authorities, the administration of ex-Colombian president Juan Manuel Santos agreed to eliminate Panama from a record of nations it considers tax havens.
Biz Latin Hub can assistance you with trade and financial investment in Colombia and Panama
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