(I) Market Overview
Located at the narrowest part of the Central American Isthmus, Panama is the “throat” connecting North and South America and is known as the “bridge of the world”. The Panama Canal is one of the most important canals in the world. Nearly 8% of global trade passes through the canal each year, and it is known as the “barometer of global trade”. In recent years, Panama has become an important global logistics, financial, aviation and shipping center, and a natural and important place for China’s “Belt and Road” to connect with Latin America.
1. Advantages of the Panama market
The Panama market has a huge radiation range, with the largest free trade zone in Latin America and the second largest free trade zone in the world – the Colon Free Trade Zone. Re-export trade radiates to 588 million people in 33 countries and regions in Latin America.
The Panama market is highly open and is one of the most open countries in Latin America to foreign trade. It has signed more than 20 Free Trade Agreements, reaching 60 countries around the world, penetrating more than 1.3 billion consumers, and the per capita purchasing power can reach 29,000 US dollars. Except for special commodities, Panamanian importers can import freely without applying for import licenses.
Panama has a loose monetary and financial policy. Bank deposits are not subject to tax, there is no foreign exchange control, and the exchange risk is low. It is the first country in the world outside the United States to use the US dollar as legal tender.
Panama has a good investment environment and has the world’s second largest banking system after Switzerland. It has a stable investment rating and a Moody’s rating of Baa2. The proportion of overseas investment ranks first in Latin America, with a total of nearly US$6 billion. Nearly 300 multinational companies have set up their regional headquarters in Panama.
2. Advantages of Panama’s exhibition industry
(1) Strong internationality, thanks to its convenient transportation, central location in the Americas, diverse population, and the largest number of free trade agreements.
(2) The degree of professionalism and industry is higher than other emerging markets, and companies can participate in exhibitions in a targeted manner.
(3) Large trade volume, strong procurement demand, developed financial industry, high proportion of foreign investment, stable economic development, and transactions in US dollars.
(II) Introduction to Typical Exhibitions
1. Panama International Tire Exhibition
The organizer of the exhibition is Latin Auto Part Expo, which is held once a year. In 2018, it attracted 358 exhibitors from 22 countries, with an exhibition area of 4,500 square meters. Among them, 76 exhibitors are from China, with an exhibition area of 630 square meters. Judging from the exhibition effect, Chinese-made headlights, exterior parts, brake pads and bearings are relatively popular. Buyers mainly come from Central America, the Caribbean and South America, such as Mexico, Brazil, Argentina, Chile, Peru, Venezuela, Colombia, Cuba, Ecuador, Costa Rica and the United States.
2. Panama International Auto Parts Exhibition
The organizer of the exhibition is Latin Auto Part Expo, which is held once a year. In 2017, the Panama International Auto Parts Exhibition attracted 357 exhibitors from 18 countries, with an exhibition area of 4,000 square meters. 3,000 professional visitors from 60 countries visited the exhibition. 92% of the visitors in 2017 were CEOs, presidents and managers from the decision-making level.