During the first half of 2007 Panama has continued with its spectacular economic growth. First quarter results showing a 9.2% increase in GDP were recently announced prompting distinguished economists to predict annual growth of 10-11% for 2007. At the same time unemployment decreased to 7.2%, its lowest level in approximately thirty years. The sectors of maritime, the Colon Free Zone, construction/real estate, and tourism showed double digit increases, leading the way.

As the Panama Canal begins its expansion into a third set of locks that is going to duplicate its capacity, and other infrastructure projects, such as, the continuation of the North Corridor all the way to Colón, the Cinta Costera which will reclaim part of the Bay of Panama and build new access roads, the cleaning of the Bay and others come into place, it reinforces the predictions that Panama will continue to enjoy strong economic growth for the next few years.

The U.S.-Panama Business Council was active in the first half of 2007 starting with the real estate conference of Panama Spectacular in March where professionals from ten countries visited Panama to learn about its real estate opportunities and make agreements with local realtors and developers. It was the fourth year in a row for Panama Spectacular that has become one of the top real estate conferences in Latin America. During March the Council also led a delegation of U.S. companies to participate in Expocomer, the largest tradeshow in the country.

In May the Council hosted in Panama City ExpoTrans 2007, a transportation conference that had the privilege of the active participation of the U.S. Secretary of Transportation Mary E. Peters and fifteen high officials from the U.S. Government. Their visit was a strong signal of the U.S. government’s support for the expansion of the Canal and Panama’s opportunities. During ExpoTrans the Council hosted its Annual Friendship Gala Dinner in Panama City recognizing Copa Airlines, Panama Ports Company and the Administrator of the Panama Canal Authority Alberto Alemán Zubieta.

In February the Council, together with the Panamanian Association of Realtors and Developers (ACOBIR) and FIABCI Panama, worked hard to have Panama selected as host of the “2007 FIABCI Congress of the Americas” scheduled to take place on October 30, 2007. This prestigious hemispheric congress will attract more than four hundred international delegates, reinforcing Panama’s attractiveness for second homes and retirement, and will allow Panama to show its traditional hospitality.

However, the highlight of the last six months was the signing on June 28 of the Trade Promotion Agreement by USTR Susan Schwab and Panama’s Minister of Commerce Alejandro Ferrer. A process that started in 1993 with the signing of a Framework Agreement and was later reinforced by Panama’s entry into the World Trade Organization, began in earnest in 2003 when Panama and the United States agreed to have bi-lateral negotiations for a Treaty. The Accord, recently ratified by Panama’s Congress now faces ratification by U.S. Congress this Fall, and will update trade and investment relations between the two countries. The U.S.-Panama Business Council, that has provided support and leadership for the Treaty since its beginning, feels that it will strengthen the foundations of the relationship between the two countries and set the stage for future growth and cooperation.

Panama Week 2007 will have as its slogan “Pillars for Growth” to highlight the importance and impact that the Trade Promotion Agreement and the Expansion of the Panama Canal will have for future growth. We encourage every member of the U.S.-Panama Business Council to contact its representative in Congress and communicate its support for the Treaty. We look forward to see you during Panama Week!

Maj. General (Ret.)Eugene Renzi                            Amb. Juan B. Sosa
Chairman of the Board                                              President 

LINKS TO PANAMA WEEK 2007 Pillars for Growth INFORMATION