Setting up shop in Panama

Setting up shop in Panama

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Things to think about when setting up a business in Panama.

US ExIm Bank Chaiman visits Panama

Ex-Im Bank Chairman Fred P. Hochberg Conducts Business Development Mission in Panama, August 7 - 8

PANAMA CITY, Aug. 8, 2011 /PRNewswire-USNewswire/ -- Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank), conducted a business-development mission in Panama on August 7 – 8, 2011, to promote Ex-Im Bank financing available to support sales of U.S. goods and services to private and public-sector buyers.

(Logo: http://photos.prnewswire.com/prnh/20110414/MM83673LOGO)

Panama is the fastest-growing country in Central America, with a GDP growth rate of 7.5 percent in 2010 and strong growth anticipated through 2015. The government of Panama has set ambitious goals for the country's infrastructure investment that could total more than $10 billion in the next five years, including a $1.5 billion metro line.

As of June 30, 2011, Ex-Im Bank has over $1 billion in exposure in Panama. Ex-Im's support for Boeing aircraft sales to Copa Airlines, Panama's flag carrier, constitutes the majority of its financings in the country in recent years, and the Bank is seeking to expand its support beyond the aviation sector.

Hochberg met with Panamanian business leaders to discuss Ex-Im Bank financing available to encourage more companies in Panama to purchase U.S. goods and services. He is focused on expanding use of the Bank's products for infrastructure development, renewable-energy production, medical and transportation equipment, construction and other sectors.

"From financing U.S. construction equipment for the Pan-American Highway in the 1940s to supporting U.S. aircraft sales to Copa Airlines today, Ex-Im Bank has helped to expand business and tourism in Panama," said Chairman Hochberg. "The Bank is open for business in all of our programs in Panama. We provide an array of innovative financing tools and resources for Panamanian buyers to purchase U.S. goods and services."

Commenting on the pending U.S.-Panama Free Trade Agreement, Hochberg noted, "Ex-Im Bank supports Panamanian companies as productive partners with U.S. exporters for the mutual benefit of our countries. The free trade agreement with Panama will allow the Bank to harness additional opportunities in infrastructure and other key sectors and improve U.S. access to Panama's $20 billion services market."

Hochberg's schedule included meetings with Copa Airlines officials, breakfast at the American Chamber of Commerce of Panama on Monday, August 8, followed by a meeting with U.S. Ambassador to Panama Phyllis M. Powers and a visit to the Panama Canal.

Panamanian buyers interested in learning more about Ex-Im Bank's financing may contact Senior Commercial Officer Daniel Crocker at the U.S. Embassy in Panama City through email at Daniel.Crocker@trade.gov or by calling (507) 207-7388.

About Ex-Im Bank:

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

In FY 2011 through August 4, 2011, Ex-Im Bank has approved more than $24.5 billion in total authorizations – an all-time Ex-Im record. This total included 2,548 U.S. small-business transactions. The Bank's FY 2011 authorizations to date represent a 70 percent increase over its FY 2008 total of $14.4 billion.

Ex-Im Bank's authorizations through August 4 will support $31.5 billion in U.S. export sales and approximately 213,000 American jobs in communities across the country. For more information, visit the Bank's Web site at www.exim.gov.

SOURCE Export-Import Bank of the United States

Panamapundit logs off

Panamapundit is the username of Sam Taliaferro in his Panama Investor Blog postings until his unfortunate passing away. In his blog he provided updates about business developments in Panama not readily available in English, analyzed from a pro-business perspective and his experience developing a resort community in Panama. He will be missed....

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Samuel Walker Taliaferro VII

June 10th, 1952 – February 17th, 2011

Sam Taliaferro, devoted father and husband, developer, entrepreneur and cherished friend to hundreds of people around the world, passed away early this morning after a two year battle with cancer.

Words like "pioneer" and "visionary" are used frequently to describe successful people but few truly deserve those titles as much as Sam.

http://primapanama.blogs.com/_panama_residential_devel/2011/02/samuel-walker-taliaferro-vii.html#tp

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An inventor by profession, Sam developed and patented numerous technologies used by fortune 100 companies throughout the world. He built a number of manufacturing operations to build these technologies, the last one in Costa Rica in 1995.

In 2000 he had an idea to create Valle Escondido, a residential resort community in the mountain highlands of Panama that would appeal to those looking for an exotic yet first world lifestyle. The small village where the project is located has become known throughout the world as a retirement/tourist hot spot due to his marketing efforts and the success of the development. It was rated the number one foreign retirement destination in the western hemisphere by the AARP in 2002 and one of the top five best lifestyle values in the world by Fortune Magazine in 2005. The success of the project lit the fuse that started the real estate boom (and bust) in Panama.

In 2005 Sam began writing the Panama Investor Blog which focuses on the country from an investors prospective and reaches people interested in Panama from all over the world. Current subscription is about 7000.

Sam and his wife Thalia also operate the Valle Escondido resort Golf & Spa located in the center of the residential project. The resort employs about 80 full time Panamanians and is one of the areas largest employers.

http://primapanama.blogs.com/_panama_residential_devel/who-is-sam-taliaferro.html

$2.6 billion in loan guarantees vs. 13,000 jobs

Right after the U.S.-Panama Tax Information Exchange Agreement was signed by Vice-President Juan Carlos Varela, he attended the signing of an agreement for the US $2.6 billion purchase by COPA airline (NYSE: CPA) of 32 Boeing (NYSE: BA) airplanes, with financing guaranteed by the U.S. Export-Import Bank http://www.exim.gov .

The same day that 13,000 jobs of the Panama financial center are put in jeopardy, a Panamanian multinational secures financing guaranteed by the U.S. taxpayer. Quid pro quo?

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Copa and Boeing sign largest ever Panama-US business deal

Wednesday, 01 December 2010 17:35


Panama's principle airline Copa, and the Boeing aircraft company signed a $2.6 billion dollars agreement for the purchase of 32 aircraft onTuesday (November 30).

It was the largest ever business transaction between the U.S. and Panama

The ceremony took place at the U.S. Department of Commerce, soon after the signing of a tax disclosure agreement between the two countries.
Panamanian vice president and foreign minister, Juan Carlos Varela represented the government at the ceremony along with the chief executives of both companies: Pedro Heilbron of Copa Airlines, and Jim Albaugh of Boeing.

The 32 aircraft will be delivered between 2015 and 2018, and are part of the planned growth of the company, said Heilbron.

Copa Holding's president, Stanley Motta, and Vice President of Finance, Victor Vial, shared details of the funding for the deal, which was supported by a group of international banks such as Citibank, JP Morgan Chase, BNP Paribas, and Bank Exim.

Motta said the loan was agreed at very low rates for the guarantees provided by the Exim Bank.

http://www.newsroompanama.com/business/2033-copa-and-boeing-sign-largest-ever-panama-us-business-deal.html

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EX-IM BANK SUPPORTS $132 MILLION US AIRCRAFT SALE TO PANAMA
Largest Ever Ex-Im Bank Transaction To This Country

The Export-Import Bank of the United States is providing a $113 million long-term guarantee to support the $132 million export by The Boeing Co., Seattle, WA, of four B737-700 aircraft plus two spare engines made by CFM International, Inc., Cincinnati, OH, to Compania Panamena de Aviacion, S.A. (COPA), Panama City. Each Boeing aircraft is also equipped with two CFM engines.

"This is the largest transaction ever authorized by Ex-Im Bank for a company in Panama," said Ex-Im Bank Chairman James A. Harmon. "We are delighted to finance US exports that support economic growth in this important Central American market while sustaining US jobs at thousands of Boeing subsuppliers at home."

Ex-Im Bank has supported Panamanian customers for over 50 years. This latest transaction is more than double the previous record-setter, a $60 million financing of a gas turbine export in fiscal 1994.
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Full text in http://www.exim.gov/pressrelease_print.cfm/070FCCF7-0A18-EFDE-9CA82347DE2AAF8B/

http://mire.gob.pa/noticias/vicepresidente-y-canciller-varela-orador-en-firma-de-contrato-entre-copa-airlines-y-la-comp
http://www.dialogo-americas.com/en_GB/articles/rmisa/features/regional_news/2010/12/03/feature-03
http://www.ascendworldwide.com/2010/12/copa-airlines-completes-order-for-32-boeing-737ngs-valued-at-usd-26bn-seeking-financing-from-eximban.html
http://www.allbusiness.com/transportation/air-transportation-airlines/5896820-1.html

Panama and Taiwan start talks for signing of Double Taxation Agreement

Photo: With this meeting the Panamanian delegation, lead by the president, Ricardo Martinelli concludes its Asian tour. Photo / Courtesy of the Presidency

During a meeting with Panamanian businessmen and Taiwan, the president, Ricardo Martinelli, announced that the two countries begin talks on signing an double taxation agreement.

"Panama respects foreign investment and we are open to receive new investments," said Martinelli to Taiwanese businessmen who mentioned that with the signing of the Free Trade Agreement, Taiwan companies have invested heavily in developing the service transportation, technology, among others.

On another topic, Martinelli presented to entrepreneurs in Taiwan's competitive advantages offered by the country to foreign investment.

"In Panama they have opportunities to invest in agriculture, real estate, among other areas, where already several companies that have entered this Asian country," he said.

For its part, Taiwan's deputy foreign minister, Thomas Hou Ping-fu noted that Panama is Taiwan's staunchest ally in Central America that have maintained diplomatic relations for more than a century and that these bilateral ties have increased after the entry into force the Free Trade Agreement between both countries, as Taiwanese investments in Panama have increased by over 215 million Dollars.

More on Taiwan-Panama business
http://aprochipa.blogspot.com/search/label/negocios

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U.S. Exporters Open Latin America Regional Office in Panama

Photos: Above: Gabriel Aguilar, Panama Canal Administrator Alberto Aleman Z., Ambassador Barbara Stephenson, USGC Regional Director Kurt Shultz, Jorge Lombardi. Aguilar and Lombardi are members of Lombardi Aguilar Group www.laglex.com, legal counsel for the Panama office. Below: USGC Board members during ribbon-cuttting ceremony at Ocean Business Plaza.

U.S. Grains Council Opens Latin America and Caribbean Regional Office
Contact Marri Carrow at 202-789-0789
Thursday, 18 March 2010 00:00

U.S. Grains Council Chairman Rick Fruth announced the official opening of the Council's newest international office in Panama City, Panama. The USGC Latin America and Caribbean Region office represents a key presence in the region as the Council continues its work of Developing Markets, Enabling Trade and Improving Lives.

"The failure of the United States to ratify pending free trade agreements in the area has caused a significant loss in grain business and trade. It also has had a consequential effect on the economic development of our friends and allies in the Latin American region," said Fruth. "By establishing an office in Latin America and the Caribbean region, the Council is strategically positioning itself to defend U.S. markets while simultaneously enhancing the quality of life of our trading partners."

Kurt Shultz was named the first director of the Panama City office. Shultz has worked for the Council since 1999 and previously served for seven years as USGC regional director for the Mediterranean and Africa before transitioning to his current post.

See full text in http://www.grains.org/news-events/2266-us-grains-council-opens-latin-america-and-caribbean-regional-office -

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La embajada estadounidense presidida por Barbara Stephenson, realizó un coctel de bienvenida a miembros del Consejo de granos de Estados Unidos

En el Hotel Marriott se organizó un elegante coctel con motivo de la visita de miembros de los miembros del Consejo de granos estadounidenses, los cuales establecerán una oficina regional para América Latina y el Caribe en Panamá, con la finalidad de afianzar el comercio entre las Américas. "La posición geográfica clave y punto de comercio internacional hace de Panamá un lugar muy atractivo para abrir esta oficina regional y hacer negocios", dijo el dirigente empresarial Rick Fruth. "Uno de los propósitos de nuestra organización es lograr un acercamiento entre Estados Unidos, Latinoamérica y el Caribe, para mejorar y profundizar el comercio de granos", expresó.

http://www.laestrella.com.pa/mensual/2010/03/18/contenido/214801.asp

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Consejo de Granos de los Estados Unidos abrió una oficina regional en Panamá

El Consejo de Granos de los Estados Unidos abrió una oficina regional en Panamá para cubrir sus actividades en Latinoamérica y el Caribe y por tal motivo, en conjunto con nuestra Embajadora ofreció una recepción para sus colaboradores y contactos en el área gubernamental y privada.

El Consejo de Granos de los Estados Unidos representa a productores y comercializadores de cebada, maíz, y sorgo de su país que exportan hacia el resto del mundo y en conjunto con el Departamento de Agricultura de los Estados Unidos contribuye al desarrollo económico mundial y a la rentabilidad de la agricultura.

La Exportación de Granos representa el 17% del total de carga transportada por el Canal de Panamá y de ese porcentaje, un 90% son granos originarios de los Estados Unidos.

http://spanish.panama.usembassy.gov/fas.html

Two different views from Illinois and Colorado about business in Panama

http://finance.senate.gov/sitepages/hearings.htm

Statements for the Record: Any individual or organization wanting to present their views for inclusion in the hearing record should submit a typewritten, single-spaced statement, not exceeding 10 pages in length. Title and date of the hearing, and the full name and address of the individual or organization must appear on the first page of the statement.

Statements must be received no later than two weeks following the conclusion of the hearing.
Statements should be mailed (not faxed) to:
Senate Committee on Finance
Attn. Editorial and Document Section
Rm. SD-219
Dirksen Senate Office Bldg.
Washington, DC 20510-6200b



Hearing of the U.S. Senate Committee on Finance On "The U.S.-Panama Trade Promotion Agreement"

Thursday, May 21, 2009 10:00 a.m.

215 Dirksen Senate Office Building

Testimony by Mr. James Owens

Chairman and CEO, Caterpillar, Inc. Peoria, Illinois on behalf of the U.S. Chamber of Commerce Business Roundtable and the Latin American Trade Coalition

Caterpillar Washington Office 1425 K Street, NW, Suite 400, Washington, D.C. 20005, (202) 466-0672

Chairman Baucus, Ranking Member Grassley, Members of the Committee:

I’m Jim Owens, Chairman and CEO of Caterpillar, Inc. Today, I have the honor to testify on behalf of the U.S. Chamber of Commerce, Business Roundtable and the Latin American Trade Coalition in support of the U.S.-Panama Trade Promotion Agreement (also known as the Panama TPA or "TPA").
First a word about the organizations that I represent: - Caterpillar is the world-leading producer of construction and mining machines as well as diesel and gas turbine engines. We are also one of America’s largest exporters.
- The U.S. Chamber of Commerce is the world’s largest business federation, representing three million businesses of every size, sector, and region.
- The Business Roundtable is an association of chief executive officers of leading U.S.
companies with $4.5 trillion in annual revenues and more than 10 million employees.
- The 1,200-member strong Latin American Trade Coalition is a broad-based group of U.S. companies, business and agricultural organizations, and local chambers of commerce and other groups representing the largest and most dynamic sectors of our economy.
My company and the business organizations I represent today firmly believe that international trade has a critical role in fostering economic growth for America’s workers, farmers and businesses. The Panama TPA and agreements like it promote sustainable economic growth both here at home and in the economies of our trading partners - in this case a close neighbor and ally, Panama.
The United States has negotiated, signed and implemented successful trade agreements in the Western Hemisphere with Canada, Mexico, Chile, Central America and the Dominican Republic, and Peru. The Panama TPA promises to build on impressive U.S.
export gains in the region.
I’m pleased to report that Caterpillar exports have dramatically benefited from all these free trade agreements (FTAs). Since the FTAs have gone into effect, Cat exports last year quadrupled to the NAFTA countries, tripled to Chile, and nearly doubled to the CAFTA-DR countries.
We believe the Panama agreement will be no exception. The Panama TPA is a frontloaded, ambitious, and comprehensive agreement, with considerable benefits to both the United States and Panama. Most of the tariff cuts on American products will occur as soon as the agreement goes into effect.
The agreement will substantially improve market access for American farm products, consumer and industrial goods, and services in Panama, and it will bolster the rule of law, investor protections, internationally recognized workers’ rights, and transparency and accountability in business and government. The agreement’s strong intellectual property rules and related enforcement provisions will help protect and promote America’s dynamic innovation-based industries and creative artists. The opportunities created by lowering tariff and non-tariff barriers to U.S.-Panama trade and investment promise to expand two-way trade opportunities and lift living standards in both countries.
Beyond the purely commercial benefits, the agreement will also strengthen the century-old U.S.-Panama geostrategic partnership. From the time of the Panama Canal’s construction, the United States and Panama have made common cause on issues from security to commerce. Panama has major ports to both the Atlantic and the Pacific, and the Canal is a major transit point for world trade. With one-third of its population speaking English fluently and a fully dollarized economy, Panama is a good friend and partner of the United States. The TPA offers critical support and stronger ties to this close ally in Latin America, a region where attitudes toward the United States and the values it represents - including democracy, transparency and governmental accountability - have taken a decided turn for the worse in many countries.
In Panama, the May 3 election of Ricardo Martinelli to succeed Martin Torrijos as President of Panama signals a continued commitment to close ties to the United States at a time when a number of countries in the region are taking a different course. President-elect Martinelli has called the TPA his new administration’s "number one priority." Panama’s legislature displayed similar enthusiasm with a strong vote in favor of the TPA shortly after its signing, which incorporated new labor and environmental provisions reflected in the May 10 (2007) Bipartisan Agreement on Trade. Both the Panamanian administration and the legislature have been responsible partners in working to meet the additional requests that have subsequently been raised by the U.S. Congress and administration.
Looking forward, the agreement with Panama is an important step in the U.S. strategy to promote trade liberalization and economic integration with the region. As well as being a gateway from the Pacific to the Atlantic, Panama is a literal and figurative bridge between Central and North America on one end and South America on the other. U.S. total exports to trade agreement partners in the Western Hemisphere reached $471 billion in 2008. This region represents a significant and growing market that has largely avoided the worst of the current economic crisis. We urge Congressional consideration of the trade agreements with Panama and Colombia as the next step in this important strategy.
Opening Markets Above all else, the TPA further opens Panama’s market to products and services made by American workers, farmers, and companies. Panama’s purchases of U.S.
manufactured goods and farm products reached $4.6 billion last year, and the $4.2 billion U.S. merchandise trade surplus with Panama in 2008 was among the largest with any country. Goods exports to Panama from Illinois - where Caterpillar is headquartered - have grown quickly in recent years, surpassing $110 million in 2008, led by rapid growth in exports of machinery.
The United States is far and away Panama’s largest trading partner, with a 33% share of Panama’s imports, and purchasing 36% of all Panamanian exports. The $5.25 billion expansion of the Panama Canal is now moving ahead and presents significant opportunities for U.S. companies to provide goods and services to the government of Panama as they embark on one of the largest public works project since the Three Gorges Dam in China.
We are also excited about construction of a new metro system in Panama City and the Petaquilla mine, which will be the 5th largest copper mine in the world.
The trade agreement will grant U.S. firms outstanding access to the Panamanian market and the chance to compete in selling everything from heavy equipment to engineering services.
U.S. export success in Panama comes despite a fundamental imbalance in the proverbial playing field. The United States unilaterally opened its market to Panama and its neighbors through the Caribbean Basin Initiative in 1983 and expanded that access through successive acts with the support of strong bipartisan majorities in Congress. Currently, under the Caribbean Basin Trade Partnership Act (CBTPA), fully 96% of all imports from Panama already enter the U.S. market duty-free. By contrast, Panama’s average applied duty on imports of manufactured goods is 10%, and agricultural products face even higher tariffs. In other words, Panama enjoys virtually free access to our marketplace, while U.S. products continue to be taxed at steep rates when entering Panama.
The unilateral preferences have always been subject to re-authorization by Congress with no guarantees that they would be continued. Without the extension of these preferential programs, Panama risks immediately losing a significant part of its exports. Losing access to the U.S. market would hurt the Panamanian economy resulting in lost jobs and a lower standard of living.
The TPA makes Panama’s favorable access to our markets permanent and provides additional benefits in the form of improved market functioning and enhanced economic growth. In other words, the TPA will provide continuity in a long-term U.S. policy with regard to Panama - one that boosts economic development and reinforces democratic consolidation.
The TPA will also cut Panama’s tariffs on U.S. products, and as a result it will transform an imbalanced trade relationship into a more mutually beneficial, reciprocal partnership. The day the agreement enters into force, 88% of Panama’s tariffs on U.S.
consumer and industrial goods and a majority of the tariffs on U.S. farm exports will be eliminated. In turn, the agreement locks in Panama’s access to the U.S. market, creating a new level of certainty for investors and traders in that country.
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The Rule of Law
Intellectual Property: The agreement will strengthen protection and enforcement of U.S. trademarks, patents, and geographic indicators, internet domain names and copyrighted works, creating new opportunities for U.S. innovation-based and creative industries in Panama. In specific terms, the Panama TPA includes strong intellectual property enforcement mechanisms and penalties provisions, including the criminalization of end-user piracy and counterfeiting and the authority to seize and destroy not only counterfeit goods but also the equipment used to produce them. The agreement also provides necessary mechanisms to fight the problem of trans-shipment of counterfeit goods with specific provisions that are aimed at goods-in-transit.
Investment Protections and Dispute Settlement: U.S. direct investors in Panama will benefit from the strong investment chapter in the agreement, particularly the sections dealing with investment protections and dispute settlement. The agreement provides for rights that are consistent with U.S. law and also contains fully transparent dispute settlement procedures that are open to the public and allow interested parties to provide their input. As such, these trade agreements provide an opportunity for the partner countries to improve their investment climate by undertaking legal and judicial reforms and resolving investment disputes (e.g., the criminalization of commercial disputes).
Increased Transparency: The agreement’s dispute settlement mechanisms provide for open public hearings, public access to documents, and the opportunity for third parties to submit views. Transparency in customs operations will aid express delivery shipments, and will require more open and public processes for customs rulings and administration. For customs procedures, Panama committed to publish laws and regulations on the Internet and, to the extent possible, will publish proposed regulations in advance and allow interested parties an opportunity to comment on the proposals. Moreover, transparency in these areas is an essential tool in combating corruption and promoting habits of transparency in government.
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Like much of Latin America, Central America struggles against corruption, which undermines growth, security, and stability. The Panama TPA contains critical provisions to enhance transparency and accountability in governance, providing the countries with important tools to fight the scourge of corruption. As an example, the agreement provides for the criminalization of bribery in government procurement, providing for better and more efficient procurement on the part of the Panamanian government entities but also affording a more competitive marketplace.
Environmental stewardship has long been a priority for Panamanians as the Canal is dependent on protection of the forests in the huge watershed that allows this engineering marvel to function. The Canal expansion now underway is expected to allow 70% of the fresh water that was previously lost from the locks to be recycled, saving 28-35 million gallons per ship, 40-50 times per day.
The Panama TPA also promotes U.S. security interests by forging a deeper partnership with Panama through a framework for government-to-government relationships that is grounded in the tangible national interests of all parties. Such a framework is vital to enhancing cooperation in numerous areas, including tax information exchange; it also sets an example for other countries around the world as we pursue our global security goals. By promoting economic growth in Panama, the TPA will give a boost to its economy and provide its citizens with long-term growth opportunities.
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That concludes my remarks. At this time I would be pleased to answer any questions.
Thank you very much.

Full text in http://finance.senate.gov/imo/media/doc/052109jotest.pdf

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The Meneren Corporation
4610 South Ulster Street, Suite 150 • Denver, CO 80237 • (303) 221-3369 • Fax (303) 972-8669
7 June 2008

Senate Committee on Finance
Attn. Darci Vetter
Rm. SD-219
Dirksen Senate Office Bldg.
Washington, DC 20510-6200b

Subject: Corruption in Panama, Human Rights Abuse and Trade Agreements

Dear Darci and Committee Members:
I am writing you regarding a serious foreign relations matter regarding the Republic of Panama and the corruption of its legal system and the regular and organized abuse of US Citizens and their civil and human rights—all of which should be considered in any discussion of trade agreements.
I am one of many Colorado businessmen (and a number of CO Corporations and LLC’s) who have been actively doing business in Panama for the past 3 years. During that time, I have witnessed first-hand the extend of the corruption of the Panama legal system, and the systematic robbing of US and Canadian investors (both professionals and retiree’s) by cabals of Panamanian attorney’s, prosecutors, law enforcement officials and other government officials—
all the way to the Supreme Court. I having seen it firsthand and discussed it in detail with the Americans and Canadians who have suffered financially and personally because of it. It is a travesty that should not be rewarded with a Free Trade Agreement of any form.
The most public example of this corruption can be seen in the case of the handling of the estate of Wilson Lucom, a past advisor to the US Secretary of State and his attorney, Richard Lehman, a Florida attorney and US citizen, who has been for 3 years attempting to prevent one of the Panamanian oligarchy’s from stealing the $50+M estate of Wilson Lucom—which Lucom left to the orphans of Panama in the largest ever bequeath of its kind.
The Panamanian government/authorities have relentlessly abused the civil and human rights of Mr. Lehman as he tried to protect the Lucom state, to ensure the money reaches the poor children of Panama and the Charity formed to accept it. This story has received major press coverage in the US and Panama.
You can see the full litany of false charges, false arrests, assaults on the Civil and Human Rights of this US citizen in the documents filed with the Organization of American States, at: http://www.lehmantaxlaw.com/RSL_/62667387_1.PDF http://www.lehmantaxlaw.com/RSL_/62667382_1.PDF
It is important to note that in November 2008 the head of the Panama Governments National Council of Transparency for Corruption, Alma Montenegro de Fletcher, herself published a finding that found “extreme abuse of the Panamanian civil and penal system”, noting the false arrest of a US Citizen who was defending the interests of the children of Panama, Mr. Lehman, a Florida attorney and long time friend and lawyer for Wilson Lucom. The details of Alma’s letter to the Panama Supreme Court can be found at the following (translated) website:
http://translate.google.com/translate?hl=en&sl=es&u=http://www.setransparencia.gob.pa/noticias/noticia_nota_caso_wilson_lucom.htm&ei=kcWVSdqUIoHasAPA1ei4Bw&sa=X&oi=translate&resnum=5&ct=result&prev=/search%3Fq%3D%2522alma%2Bmontenegro%2522%2Blucom%26hl%3Den
To be clear, neither I, nor my business associates are a part of the Probate dispute that Mr. Lehman is battling in Panama. However, when Mr. Lehman was recently detained illegally in Panama—again—I was so upset that a US Citizen could be so abused by the Panamanian government and corrupt legal system that I wrote a “Call to Action” that was circulated among the expatriate community in Panama. As a result, I have received numerous other horror stories from US and Canadian businessmen and retiree’s detailing the systematic pillage of their retirement monies, trust funds, and properties by lawyers acting in concert with local and federal government officials (prosecutors and judges), all with impunity! One of these relates how the Panamanian attorney that stole her retirement monies told her to her face that he robbed her and that there was nothing she could do about it because he was a member of the Panamanian legislature. I would be most happy to share the details of these and other similar cases with you or your staff.
As a businessman, I have done business in many of the ugly parts of the world (Congo, Yemen, Kazakhstan, China etc.) and I understood their corrupt systems before setting foot on the ground. However, Panama holds itself out to US retiree’s and businesses as being a US friendly country that has a US currency, US provided infrastructure and institutions, statutory protections for US Citizens (including a guarantee of “equal access” under the law), and preferential agreements with the US government (FTA’s). US and Canadian citizens are entranced by this façade to make major investments in Panama totally unaware of the extent of corruption of their judiciary and other government officials. This is a recipe for disaster for US interests, and damages the future of the Panamanian people as well.
When we contacted the US Embassy in Panama over a year ago to describe how our firm/project was being manipulated by the corrupt courts and officials, we found a sympathetic ear and could see some effort was being made to press the Government to “clean up their legal system”. Unfortunately, when the Ambassador and key staff changed, the Embassy position turned to one of indifference coupled with a clear desire not to press the issue with the Government. As a result, US Citizens like Mr. Richard Lehman and many others who we have documented, have been, and continue to be abused with impunity.
As a US Citizen, I am shocked that our Government allows this to continue—with impunity and that our Government is willing to turn a blind eye to it by rewarding Panama with a trade agreement that prospers Panama. I ask that you have your staff research the human rights case mentioned and provided above and use it as a symptomatic reason for opposing any further Free Trade Agreements with Panama until it cleans up the corruption. Until then, I also ask that US State Department US Citizen advisories be updated to sternly warn US investors and retiree’s of the escalation in the organized abuse of foreigners by a corrupt judiciary working in concert with unscrupulous lawyers and government officials.
Thank you for your attention to this urgent matter.

William A. Tolbert
President

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Senate Finance Committee Hearing on "The U.S. - Panama Trade Promotion Agreement" May 21, 2009 http://finance.senate.gov/hearings/hearing/?id=d88a7f79-c7e0-8ee8-4f2d-226447ffbbe7

Panama FTA will create US jobs http://mypanamalawyer.blogspot.com/2009/05/panama-fta-will-create-us-jobs.html

US-Panama Free Trade Links http://www.uspanamatrade.org .

Panama FTA will create US jobs

May 2009

5-21-09 Hearing on "The U.S.-Panama Trade Promotion Agreement"

To view this hearing click here. http://finance.senate.gov/hearings/other/hearing052109.ram

Hearing on "The U.S. - Panama Trade Promotion Agreement"

May 21 , 2009, at 10:00 a.m., in 215 Dirksen Senate Office Building

Member Statements:

Max Baucus, MT

Charles Grassley, IA

Witness Statements:

The following witnesses are scheduled to testify:

The Honorable Everett Eissenstat, Assistant U.S. Trade Representative for Western Hemisphere Affairs, Washington, DC

Mr. James Owens, Chairman and CEO, Caterpillar, Peoria, IL

Ms. Thea Lee, Policy Director, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Washington, DC

Mr. Sam Carney, President-Elect of the National Pork Producers Council, Adair, IA

Transcript http://www.votesmart.org/speech_detail.php?sc_id=462754&keyword=&phrase=&contain=

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Panama and Protectionism

May 21 2009, 6:03 pm by Daniel Indiviglio

The Senate Finance Committee held a hearing today to discuss creating a NAFTA-like free trade agreement with Panama. As with every political issue, it has its opponents. But given the specifics concerning the U.S.'s current trade situation with Panama, this agreement seems like kind of a no-brainer.

The age-old protectionist argument against free-trade agreements was given by Thea Mei Lee, policy director of the AFL-CIO, at the hearing:

As long as we continue to run trade deficits on the order of five percent of GDP, the arguments that we need more trade liberalization to succeed in the global economy ring hollow - especially to our members, who have seen too many jobs go offshore while their wages and benefits stagnate.

Really? Because fellow panelists James Owens, Chairman and CEO, of Caterpillar and Mr. Sam Carney, President-Elect of the National Pork Producers Council who represent manufacturing and farming - the two industries supposedly hit hardest from free trade - both testified in favor of the agreement. They support the agreement because it will better facilitate the export of their products, produced by the hands of U.S. workers, to Panama.

Committee chairman Senator Max Baucus (D-Mont.) also supports the agreement. He did a good job of explaining why a free trade agreement with Panama in particular will benefit the U.S. and its workers:

The Panama agreement also provides new opportunities for American farmers, ranchers, and businesses. Panama already exports most of its goods to the United States duty-free under our trade preference programs. This trade agreement will level the playing field. It would provide the same duty-free treatment to our industrial and agriculture exports to Panama.

This agreement will, for example, immediately eliminate all duties on more than half of our agricultural exports to Panama. That includes high-quality American beef from states like Montana.

This agreement will also immediately eliminate tariffs on 80 percent of U.S. industrial exports to Panama.

The agreement provides U.S. manufacturers and farmers the opportunity to be more competitive when exporting goods to Panama. In other words, it would create U.S. jobs, not destroy them. Meanwhile, Panama will gain very little from the agreement, other than more U.S. imports, as most of its exports to the U.S. are already duty free.

That's why the National Association for Manufacturers also supports the agreement. I spoke to Frank Vargo, one of their trade experts, who is very frustrated that some people are convinced that free trade agreements cause the loss of U.S. jobs. He was kind enough to provide the following graph, based on Bureau of Labor Statistics, which shows manufacturing jobs falling before and growing after NAFTA was put into place.

He also says that the U.S.'s massive trade deficit (which the AFL-CIO complained about above) is mostly due to trade with non-free trade agreement countries like China and Japan. Of that deficit, the portion resulting from free trade partners is a small part, according to Vargo.

One big question mark in the free trade discussion is where the Obama administration stands. While its position is clear on many issues, trade is not one of them. But if today's committee hearing creates some momentum to get a Panama free-trade agreement through Congress, we may find out where the president stands soon enough.

Full text in http://business.theatlantic.com/2009/05/panama_and_protectionism.php

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Pork Producers Urge to Pass Panama Trade Agreements

Washington, D.C, May 22 -

A U.S. trade agreement with Panama will provide new market opportunities for a wide range of American agricultural products, the National Pork Producers Council yesterday told a Senate committee, and it will level the playing field for U.S. pork producers and other food producers.

NPPC President-Elect Sam Carney, a pork producer from Adair, Iowa, testifying before the Senate Committee on Finance, noted that most products from Panama enter the United States at a zero tariff rate because of the Caribbean Basin Economic Recovery Act and the Generalized System of Preferences, while most U.S. agricultural products going to the Central American country are subject to an average tariff of 43 percent.

"Implementing the pending trade agreement with Panama will level the playing field so that U.S. producers and exporters of food and farm products receive reciprocal market access," said Carney. "It also will open to U.S. pork producers, other agricultural sectors and U.S. businesses a market of almost 3.4 million consumers."

U.S. pork exports to Panama currently are restricted by a small quota and out-of-quota duties as high as 80 percent. Under the Panama Trade Promotion Agreement, U.S. pork variety meats would receive immediate duty-free treatment, and the trade deal would expand market access for U.S. pork muscle meat through tariff rate quotas (TRQs). The TRQs will be phased out in 15 years, and when the agreement is fully implemented, U.S. pork will have unlimited duty-free access to the Panamanian market.

In addition to the favorable market access provisions, the agreement resolves significant sanitary and technical issues. Panama, for example, will recognize the meat inspection system of the United States as equivalent to its meat inspection system.

According to Iowa State University economist Dermot Hayes, the Panama trade agreement will add 20 cents to the price producers receive for each hog marketed, with pork exports to Panama expected to be worth about $23 million a year.

http://www.nppc.org/News/PressRelease.aspx?DocumentID=24731

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National Foreign Council (NFTC) Commends Senate Finance Committee for Holding Hearing on U.S.-Panama FTA
http://www.nftc.org/newsflash/newsflash.asp?id=236&mode=View&articleid=2810

Consumer Electronics Association (CEA)® Urges Senate Action on U.S.-Panama Trade Pact
http://finance.yahoo.com/news/CEA-Urges-Senate-Action-on-bw-15315709.html?.v=1

Retail Industry Leaders Association (RILA) Applauds Senate Finance Committee for Pressing Forward on Panama Trade Agreement
http://www.rila.org/news/topnews/Pages/RILAApplaudsSenateFinanceCommitteeforPressingForwardonPanamaTradeAgreement.aspx

Caterpillar Chairman Urges Passage of U.S.-Panama Trade Promotion Agreement
http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/05-21-2009/0005030797&EDATE =

Camp (R-MI), Brady (R-TX) Congratulate Senate Finance Committee for Holding Hearing on U.S.-Panama Trade Promotion Agreement
http://www.house.gov/apps/list/press/tx08_brady/5_21_09_BradyCamp.html

Obama Delays Panama Trade Pact After Unions Object (Update2)
http://www.bloomberg.com/apps/news?pid=20601110&sid=aHclwpTOYGm

US-Panama Free Trade Links
http://www.uspanamatrade.org

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Gary Shapiro: Obama's Panama Opportunity

President Barack Obama will soon be making his first trip to Latin America to attend the Summit of the Americas. This visit is an important opportunity for the President to promote core U.S. values of democracy and freedom. Before his historic trip, President Obama should lay the foundation of these principles by signaling that his Administration will seek quick passage of pending trade agreements with Panama and Colombia that have long stalled in Congress and whose future is uncertain.
Passage of these agreements would immediately strengthen the relationship with these important allies and signal positive U.S. economic engagement in this vital region. Our economy needs exports. Over 95 percent of the world's population lives outside of the United States. We must look beyond our borders to increase market access for U.S. businesses to grow and create American jobs. The Panama and Colombia free trade agreements (FTAs) will help level the playing field for U.S. exports of goods and services. In fact, today some 5,600 American businesses export to Panama. Over 4,000 of these are small or medium-sized companies. Passage of the Panama agreement will empower these companies to expand their market opportunities and in doing so boost U.S. exports - one of the few bright spots in the economy. President Obama should call on Congress to pass the U.S.-Panama FTA without further and needless delay. These FTAs would not only eliminate tariffs, boost U.S. exports and increase economic engagement, but they also would also solidify America's presence in Latin America, a key strategic region.
Too often we forget that this region has been historically unstable. Today, we battle for the hearts and minds of the Continent against Hugo Chavez and his allies. Now more than ever, the United States must assist our Latin American friends and pass these pending trade agreements. With U.S. Trade Representative Ron Kirk in office, we should quickly advance the U.S. trade policy agenda. While labor unions have slowed action on the Colombian agreement, there is no reason to delay the Panama FTA.
We face a pivotal decision: Does the United States promote policies that lead to domestic job creation, or do we pursue a protectionist agenda that sets an example of our Latin American allies that shuns the economic freedoms we have long sought? Plus with Panama, we have another strong reason to move quickly: Panama is soon accepting bids for Latin America's largest public works project - a multi-billion dollar modernization of the Panama Canal. The Panama FTA gives US companies an equal shot in this huge project.The Panama FTA should pass before the President's trip, but he can and should signal that he also wants action on the Colombia FTA.
Given the Congressional move to protectionism on "Buy American" in the stimulus package and the treaty violating restriction on Mexican trucks in to the United States, President Obama needs something soon to calm the world that we are not closing our borders from the world. Passage of relatively non-controversial FTAs with our pro-democracy friends in is an obvious answer. If President Obama is serious about promoting our exports, if he is serious about tackling the ills of our economy, if he is serious about strengthening our friendships in Latin America, he must endorse the pending U.S. free trade agreements with Panama and Colombia and seek swift Congressional approval in Congress.

Posted March 20, 2009 12:20 PM (EST)

Gary Shapiro is the president and CEO of the Consumer Electronics Association.

Books on Panama legal stuff

Before learning about blogging, My Panama Lawyer used to write a lot of articles for foreign publications. They are available from these Amazon links:

Enforcement of International Property Protection between Mexico and the United States (Fordham Intellectual Property Media & Entertainment Law Journal , Vol. V, No. 1, 1994). Panama Section of "International Intellectual Property Law" (John Wiley & Sons, 1995).
Panama Section of "International Taxation of Low-Tax Transactions" (BNAI, 1996).
Panama Section of "International Banking Law and Regulation" (Oceana, 2000).
Panama Section of Legal Systems of the World: A Political, Social, and Cultural Encyclopedia (ABC-Clio, 2002).
Panama Section of Trademark Practice and Forms (compiled by Stephan Kinsella).
Articles on Latin American business law in “Latin American Law and Business Report” and “Inter-American Trade Report”.
. .

Gates unlocked to surprise prosperity

By Richard Lapper and Adam Thomson

Tuesday Jul 24 2007 07:10

Rubén Blades sits in his air-conditioned office in the financial district of Panama City and then suddenly leaps to his feet. He seizes a newspaper on a nearby surface and, with one exaggerated movement, waves it from one side to the other.

"Did you feel that," he asks. "Did you feel it? That was the baseball bat being pulled back and we haven't even started to swing yet."

Mr Blades, the country's tourism minister, veteran salsa vocalist and national hero, is convinced that Panama is on the brink of great things.

It is easy to see why he is so confident. A combination of surging world trade volumes and a boom in port development, infrastructure and commercial and residential property is bringing Chinese-style growth to the country and inviting comparisons with international business centres such as Dubai.

Last year, the economy grew 8 per cent. This year it could expand by at least 9 per cent and probably more than 10 per cent, a rate of growth that would be the quickest in the hemisphere and among the fastest in the world.

"The world has discovered Panama," says Guillermo Chapman, an economist and former finance minister. "It is an upbeat panorama."

Underpinning much of what is happening in Panama is the new importance that its geographic location is assuming in the light of the growth of trade between Asian manufacturing centres and the markets of north America and Europe.

Since Panama took full control of its canal from the US at the end of 1999, overall traffic has expanded by more than one-third and, spurred in particular by the growth of Chinese manufacturing exports, the number of containers used to package electronics, textiles and other factory products transported across Panama has nearly tripled. Sovereignty has allowed the country to push ahead with ambitious plans to double the waterway's capacity.

A new channel is to be cut, parts of the existing canal deepened and widened and giant concrete and steel locks are to be put in place. These will be big enough to accommodate so-called post-Panamax ships – enormous vessels that are too big to fit the existing lock basins.

Nine months ago, President Martín Torrijos, a moderate left winger who took office in 2004 and has stabilised public finances, secured a political mandate for the $5.25bn project when he won a referendum on the issue. That will allow the first excavation works to begin later this year, although the entire project will not be complete until 2014 or 2015.

Full national control of the canal and the "Zone" – the strip of land alongside the canal that was once a US colony – is also giving Panama more opportunity to develop business related to shipping, ranging from shipyards to suppliers of provisions and bunker fuels.

"Businesses are showing an interest in the maritime cluster in a way that wouldn't have been possible before 2000," says Carmen Gisela Vergara, deputy minister of international trade.

Some of the most notable developments are taking place in the port sector. Operators say that Panama is becoming a regional hub, where container consignments can be broken down and reassembled and sent as part of smaller loads to smaller ports along the coasts of north and south America.

All four privately owned ports are planning to expand their capacity to handle more containers and three new Pacific coast ports are planned as part of multi-billion dollar investments designed to double container capacity by 2010.

In turn, though, the maritime hub, plentiful land, improving regional air connections and the growth of tourism is making Panama attractive to other businesses, such as finance, energy and property development.

HSBC and Citibank have both bought up Panamanian banks in the past year and some sizeable investments are being contemplated in the energy sector. Occidental of the US and Qatar Petroleum, for example, are conducting a feasibility study for the construction of a 350,000b/d refinery near the Costa Rican border, possibly costing up to $9bn.

Nowhere are the signs of Panama's new-found opulence more impressive than in the construction sector. Cranes dot the Panama City skyline with dozens of high-rise blocks being built. Much of the development is aimed at "baby boomer" retirees and second home buyers from the US, Canada and Spain, attracted by relatively cheap prices and a favourable tax regime.

Prices have risen in the past few years but, according to Juan Francisco Pardini, president of the Business Panama legal and property group, local properties sell on average for a third of the price that they would fetch in neighbouring Costa Rica, a much longer-established centre for north American retirees.

In total, according to Samuel Lewis, the vice-president, direct foreign investment is expected to reach $2.5bn this year. In construction, total investment projects in the pipeline – including those by local investors – amount to $10bn, he says. Reforms being piloted by Mr Torrijos' government could allow Panama to capitalise further on this fortunate convergence of circumstances.

It recently introduced legislation that makes it much simpler and quicker to set up small companies, for example. It has approvedlegislation allowing a streamlined tax, migration and regulatory framework for multinationals that choose to set up their headquarters in the country. And the government attaches special importance to the Free Trade Agreement with the US that the US Congress is expected to approve later this year.

Indeed, Mr Torrijos refers to the FTA – along with the canal expansion and energy plans – as being one of the "three motors" that can pull the country towards developed world status.

In particular, the FTA may help give some impetus to the complex business of legal and judicial reform on which Mr Torrijos has only just embarked. As Mr Pardini explains, the FTA is important for Panama because it will oblige the country to adopt "clearer rules of the game" in its dealings with foreign companies and investors, helping the government overcome bureaucratic or other vested interests that might oppose greater transparency, for example.

"The new generation of free trade agreements are about much more than trade," says Mr Pardini.

If Mr Torrijos' development vision is to come to fruition, he will have to ensure that prosperity is more widely shared, however. Panama is remarkably unequal. Although average per capita income is more than $5,000, 40 per cent of the population live in poverty. The division also has a geographical aspect, with particularly large concentrations of poor people in Colón on the Caribbean coast, and in some rural areas.

The danger is that rapid growth could at least in the short term make the situation worse. "Wealth is being concentrated more and more and this is very bad news," says Mr Chapman. "If we don't implement very effective policies, growth will make our society more unequal."

Mr Torrijos has begun to make some headway, introducing a selective income transfer programme in which 38,000 poor families are given $35 a month in exchange for ensuring that their children are vaccinated and sent to school.

Such programmes have been successful in Brazil, Mexico and elsewhere in Latin America but in general have been on a much bigger scale and Panamanian critics say the effort has to be more ambitious. "This is positive but it is not sufficient," says Raúl Leis, president of Ceaspa, a left-wing think tank.

As Latin America has found to its cost in thepast, large socially alienated and deprived communities can make political stability more precarious thanit seems. In addition, the government will need to ensure that the development of new businesses andnew communities does not overwhelm the energy and water infrastructure, for example.

Managing prosperity then could prove to be a difficult challenge. As Mr Pardini puts it: "When you haveso much unexpected growth there is no planning about how to deal with it. We are not accustomed to this."

Full text and subscription at http://us.ft.com/ftgateway/superpage.ft?news_id=fto072420070720126049

Panama Attorney Delivers Presentation Before Chamber of the Americas

Attorney Alvaro Aguilar delivered a presentation on Panama real estate laws before US investors with the 2007 VIP Real Estate Mission to Panama organized by the Denver-based Chamber of the Americas

Panama, Panama, April 03, 2007 --(PR.com)--
Lombardi, Aguilar & Garcia (http://www.laglex.com/) attorney Alvaro Aguilar delivered a presentation on Panama real estate laws for US investors, co-authored by Kevin Mullin of the Denver, CO, law firm of Mullin, Dean & Heimos, LLP (http://www.mdhlex.com/). The presentation was part of the 2007 VIP Real Estate Mission to Panama organized by the Chamber of the Americas (http://www.chamberoftheamericas.com/) & Continental Airlines. Real estate businessmen from Colorado and the rest of the US attended the event.

Mr Aguilar spoke about the procedure for acquiring title to property and financing a property purchase in Panama. While Panama is a booming real estate market attracting buyers from the U.S. and Europe, due diligence is necessary when purchasing rural properties. Current regulations offer tax incentives to property owners and builders and encourage foreign retirees to reside in Panama. Slides of the presentation may be downloaded from the law firm website.

Co-author Kevin J. Mullin, J.D., CPA, LL.M. (International Taxation), has been practicing law for over 20 years with a focus on advising foreign investors on their U.S. real estate and other investments, and international business, estate and tax planning. His law firm of Mullin, Dean & Heimos, LLP, focuses on international tax, real estate and business, including foreign persons investing in the US and US persons investing abroad, especially in Latin America. Its specialties include U.S. and foreign real estate and closely-held businesses; multi-jurisdiction estate planning and wealth preservation; cross-border joint ventures, global licensing of intellectual property, including e-commerce; and shari'a compliant instruments. Both law firms work together on an on-going basis to provide guidance to US clients from both the US and Panamanian tax, real estate and business perspectives.


Full text in http://www.pr.com/press-release/34166

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