Nestle in Panama recently announced its expansion in the country and the installation of their shopping center for the region.
There is little chance that the economic and social crisis in Venezuela and tariff conflict emerged with Colombia can be solved in the short or medium term, so the crisis facing right now the Colon Free Zone (CFZ) will only be overcome by exploring new business options.
In recent years, Panama has become an attractive place for setting of multinational companies (SEM) for its dual platform for business.
For this reason, Walmart does not want to be left behind, although there are many things in discussion to make it happen 100%. Executives of Colon Free Zone attempt an approach to attract Walmart company to install its distribution center for Latin America on Panamanian ground.
That is the criteria under which the new administration of the Free Zone, led by Surse Pier Point, who said that to revive economic activity in the commercial emporium, several actions will be taken ranging from strengthening trade with the domestic market, facilitating the retail purchase of tourists visiting the country, attracting new actors like the US retail chain Walmart and implement the Colon Free Port law.
Walmart in Panama – What is needed?
In order to Walmart decides to install its offices in the country, Panama needs to seduce him more, and to convince about the advantages of using Free Zone as a center for collection and distribution of their goods from the United States and Asia.
The strategy consists in getting their attention and make them see that here in Panama, many other multinational companies have done well, because setting in Panama is strategic for any business.
- The aim is to present a proposal to establish some operations of management supply in the Panamenian Free Zone, which could open a new era for the commercial emporium, place it on the radar of large retail chains in the country.
- Walmart has no operations in Panama because the company has an extraordinary logistical infrastructure. However, within its product portfolio, there is a lot that are imported from various production centers in China and other Asian countries before being distributed United States, Mexico and Central America, an operation in which Panama and the CFZ logistics center can offer competitive advantages that can translate into significant savings.
- The Panamanian delegation, composed of representatives of the FTA, the Ministry of Trade and Industry and the Panama Canal Authority, will present facilities operate in Colon, the use of ports and expansion of the Canal.
- Surse Pier Point indicated that further this initiative, the administration will seek to strengthen the exchange between the CFZ and the local economy, as statistics indicate that Panama is the third largest market for companies operating in the Free Zone, which provides opportunities to grow.
- A lot of adjustments to the law governing the CFZ will be made to facilitate the sale of goods retail for tourists visiting the country, a practice that is prohibited, as companies operating in the free zone are only authorized to perform Wholesales.
According to experts in the field, Panama is the only country in the hemisphere that can provide a platform for financial services with zero convertibility risk by not having a central bank, as well as a logistics platform that is born in the country’s connectivity to other destinations. These two points could be the two main attractions of the country for these companies in Panama.
The SEM are offices that perform administrative tasks from Panama to its main office, subsidiary or affiliate in other countries which have labor, immigration and tax incentives operations.
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