Overview of Trade and Investment Between Colombia and Panama
Bilateral trade and expenditure concerning Colombia and Panama have developed at a relatively continuous rate at any time considering the fact that the two nations signed a Free of charge Trade Agreement in September 2013. Because then, Colombia’s natural useful resource/commodity producers have benefited from tariff-totally free exports to the Panamanian current market. Conversely, Panama exports created items and other completed solutions to Colombia, as aspect of a free circulation of products and solutions concerning the two Latin American nations.
A brief glance at the 10-year-outdated Colombia-Panama FTA, and it is evident that Colombian exports to Panama considerably outweigh trade flows in the other course. In 2020, Colombia imported just 1.6 per cent of the worth of merchandise that it exported to Panama. That number has come up since the pandemic-induced lull in world trade, but Colombia nevertheless holds a big trade surplus with Panama.
Trade and Financial investment: Top 10 Colombian exports to Panama
In phrases of trade and investment decision, figures revealed on the Investing Economics web site reveal 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 thousands and thousands USD):
- Crude oil – $89.9m
- Pharmaceuticals – $32m
- Plastics – $30m
- Animal, vegetable fat and oils – $19.25m
- Electronics gear – $18.46m
- Perfumes and cosmetics – $17.27m
- Construction/constructing materials – $14.79m
- Industrial chemicals – $13.84m
- Equipment components – $12.44m
- Paper products – $12.86m
No matter if you are a overseas trader hunting for a bullish field to set your funds into, or a corporation trying to get to enter the Colombian industry, it’s significant to look at all the trade and expense traits prior to executing business in Colombia.
Trade and Financial commitment: Prime 10 Panamanian exports to Colombia
In terms of trade and expenditure, figures revealed on the Buying and selling Economics web-site show that Panamanian exports to Colombia arrived at $40.6 million USD in 2021 – significantly a lot less than the $426 million truly worth of items Panama imports from the Andean nation. Here’s a breakdown of Panama’s exports by sector and their values (in millions USD):
- Iron and metal – $6.12m
- Mineral fuels, distillation solutions – $5.25m
- Precious stones and jewelry – $3.37m
- Plastics – $3.26m
- Prescribed drugs – $3.1m
- Animal fats, vegetable oils – $2.63m
- Sugar, sugar-dependent solutions – $1.79m
- Tough liquor – $1.76m
- Aluminum – $1.74m
- Footwear – $1.38m
Trade and expenditure in Colombia, Panama: Critical FDI stats
- Right after the United States, Panama is the 2nd major nation of origin for Colombian FDI inflows
- Immediately after the United States, Colombia is the 2nd biggest state of origin for Panamanian FDI inflows
Not prolonged after the two international locations signed the bilateral trade pact, Panama and Colombia negotiated a monetary/tax details sharing offer in a bid to battle tax evasion and funds laundering, information experiences stated at the time.
For decades, Panama has appreciated the spoils of being a tax haven for foreign traders who wish to defend some or all of their taxable earnings in their property nations around the world. Colombian trade and investments property in the Central American nation must now be declared. In trade for agreeing to share economical information and facts with tax authorities, the administration of ex-Colombian president Juan Manuel Santos agreed to eliminate Panama from a record of countries it considers tax havens.
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