Can Latin American Providers Meet the Demand?
February 2nd, 2012
By Bill Huber, Partner, ISG, and Kristen Elvinger, Research Associate
Concerns exist over the capacity of Latin American service providers to absorb rapid growth. Several global providers currently have a presence in Latin America, and tax and other trade incentives will help attract more outsourcers to the region. And, many Latin American countries are positioned to further develop emerging areas of specialization. Indeed, lessons learned from India, China, and some Eastern European countries suggest that specialization and quality-focused differentiation will be the keys to success, especially for countries with small populations.
Is Freedom of the Press Under Fire in Panama?
January 11th, 2012Source: Digital Journal
The President of Panama, Ricardo Martinelli, has been accused of trying to cut down the freedom of the press in the Latin American country by owners of media companies and by opposition party politicians.
Mr Martinelli, 59, made his fortune in the supermarket business before becoming a politician and being elected president in 2009. El Pais newspaper, in a report on Jan 6, quotes Guillermo Adames, the owner of Radio Omego Stereo in the country’s capital as saying Martinelli has a bad dermatology problem – he has thin skin when it comes to tolerating criticism and dissent. They sent the taxman to come see me after I questioned the government in a radio commentary and in the newspaper La Prensa. I think this was part of a campaign of intimidation so that there would be no such criticism from journalists or media owners.
Other media owners, including …
Panama’s Economy Projected to Grow 8.5 Percent
December 16th, 2011Source: Reuters
Panama’s gross domestic product for the third quarter of 2011 rose 10.4 percent from a year earlier, the government statistics agency reported on Thursday.
Driven by heavy government infrastructure spending — including the $5.25 billion expansion of the Panama Canal — Panama’s diverse services-based economy has been boosted by private construction, foreign investment and international trade through the canal and ports.
Panama’s roaring economy could expand by around 10 percent in 2011 and remain among Latin America’s top performers in 2012, according to government projections.
The International Monetary Fund expects Panama’s economic expansion to exceed 8.5 percent growth this year but slowing slightly in 2012.
The Central American country’s Finance Minister, Frank De Lima, recently told Reuters he expects the economy to expand by 7.5 percent next year and called the projection “conservative.”
Heading into more global economic turmoil in 2012, Panama is considered to be on even stronger footing that it …
LatAm Free Trade Zones: Are they Really Built to Support BPO and IT?
November 16th, 2011By Jeff Pappas
Over the years, the US has been Latin America’s primary outside investor and leading trading partner, followed by Western Europe. Latin America’s leading imports in past years have included cars, chemicals, electrical equipment, farm machinery, and pharmaceuticals, while its leading exports include bananas, coffee, cotton, meat, wood, and rubber.
FTA with US Has Far-Reaching Implications for Panama
November 14th, 2011Source: International Living
U.S. President Barack Obama recently put the final signature on what some are calling the last major trade agreements of his administration.
With a simple signing ceremony, Obama made Panama—along with South Korea and Colombia—one of only 20 countries in the world to have a Free Trade Agreement (FTA) with the U.S.
The Associated Press reports that the agreement “could be worth billions to American exporters and create tens of thousands of jobs.” For Panama, the implications are just as far-reaching—for big business and small business alike. Looking to start an import-export business? If you plan on trading between Panama and the U.S., the situation is looking more favorable than ever. Considering the fact that Panama is one of the region’s highest ranked import-export markets, that is saying something.
And in a country that already boasts astonishing variety—from choice of restaurants and entertainment to the selection in shops, …
Panama’s Martinelli Rejects “Tax Haven” Charge
November 7th, 2011Source: MercoPress
Panama expects Sarkozy to apologize for describing the country a “tax haven”
The Panamanian government “categorically” rejected Saturday French President Nicolas Sarkozy’s “unfair” and “offensive” characterization of the country as a tax haven. “Panama is not a tax haven,” said Panamanian President Ricardo Martinelli.
“Sarkozy is looking for scapegoats to cover its financial mismanagement at the edge of the crisis” said Panamanian minister
“I assume this must have been a mistake and I hope that in the coming days, when his ministers teach him that Panama does not meet all the requirements for being a tax haven, that he (Sarkozy) corrects himself immediately.”
Foreign Minister Roberto Henriquez added that the government ”categorically rejects that our country is a tax haven,“ adding that the G20 was ”looking for scapegoats to cover its financial mismanagement at the edge of a crisis.”
On Friday, Sarkozy named 11 countries that fail to meet transparency …
Peru and Panama Strengthen Trade Ties
October 28th, 2011Source: andina
Trade between Peru and Panama will significantly increase once the Free Trade Agreement (FTA) signed between both countries comes into effect starting next year, Panama’s agency for the Attraction of Investments and the Promotion of Exports (Proinvex) said.
Proinvex project manager Johnathan Rodriguez noted that Panama is an importer par excellence and Peru could take advantage of that by selling fresh products that may enter the market with preferential tariff rates.
“Peru may boost its agricultural and manufactured exports to Panama. There could even be a free trade zone from which Peruvian products may be distributed to Asia, Europe or North America,” he said Thursday.
In addition, Rodriguez mentioned that Panama is keen to invest in Peru’s financial sector, that is, banking, insurances, bonds, infrastructure and logistics.
Yesterday, Peru’s National Port Authority (APN) held a working meeting with a trade delegation composed of several authorities and entrepreneurs from Panama.
According to the …
FTAs with South Korea, Colombia and Panama Win US Congressional Approval
October 13th, 2011Source: The New York Times
Congress passed three long-awaited free trade agreements on Wednesday, ending a political standoff that has stretched across two presidencies. The move offered a rare moment of bipartisan accord at a time when Republicans and Democrats are bitterly divided over the role that government ought to play in reviving the sputtering economy.
The approval of the deals with South Korea, Colombia and Panama is a victory for President Obama and proponents of the view that foreign trade can drive America’s economic growth in the face of rising protectionist sentiment in both political parties. They are the first trade agreements to pass Congress since Democrats broke a decade of Republican control in 2007.
All three agreements cleared both chambers with overwhelming Republican support just one day after Senate Republicans prevented action on Mr. Obama’s jobs bill.
The passage of the trade deals is important primarily as …
TechNet Urges Congress to Pass FTAs with Colombia, Korea and Panama
October 12th, 2011Source: MarketWatch
TechNet, the bipartisan policy and political network of technology CEOs that promotes the growth of the innovation economy, today weighed in with Congressional leadership on both sides of the aisle in support of the pending U.S. Free Trade Agreements [FTA] with Colombia, South Korea and Panama.
The letter from TechNet executives was sent to U.S. Senate Majority Leader Harry Reid (D-Nevada), Senate Minority Leader Mitch McConnell (R-Kentucky), U.S. House Speaker John Boehner (R-Ohio), and House Minority Leader Nancy Pelosi (D-California).
The following is the text of the letter TechNet sent to Congressional leadership:
“As business leaders committed to the growth of our country’s Innovation Economy, we appreciate your continued leadership in seeking to ensure America’s long-term economic strength. We share your commitment to keeping America strong and competitive in today’s global economy, and respectfully urge you to support the pending United States Free Trade Agreements [FTA] with Colombia, South Korea …
Lack of Innovative Drive Isolates Panama
October 12th, 2011By Patrick Haller
In 2013 Panamanian banks will start providing reports to the US authorities about US citizens who hold accounts there. Once this procedure goes into effect, it is estimated that Panama stands to lose around $2 billion in GDP. Some see innovation as the only way to overcome such a loss. Panama has ambitious plans to grow its tech sector by 2018 – but serious deficiencies in human capital and an inconsistent focus on BPO investment are major hurdles.
