Exports excluding copper rebound with a 13% increase as of March 2024

Panama achieves a record in accumulated exports in the first quarter of 2024, reaching $1.2 billion, with standout products including seafood, meat, cardboard, packaging, and coffee. Panamanian companies are seeking to expand their presence in Europe and the Caribbean Excluding copper, Panamanian exports up to March 2024 grew by 13% compared to the first quarter of 2023, as disclosed by Francisco Mola Ortega, Deputy Minister of Foreign Trade at the Ministry of Commerce and Industries (MICI).

“We just broke record figures. Almost reaching $1.2 billion, we achieved a 13% increase,” he said.

Mola Ortega pointed out that among the range of products that Panama offers are: seafood, meat products, cardboard, packaging, and coffee. “We actually have a fairly wide range of products,” added the deputy minister while participating in the launch of the National Accreditation Council (CNA) recognition.

Export Behavior

Data up to last February indicates that Panamanian goods exports amounted to $170.3 million, of which $122.4 million correspond to exports registered by the agricultural, agro-industrial, industrial, and fishing sectors, and $47.9 million to value-added exports from special regimes, marking the second-highest value recorded since 2010.

According to the latest report published by the Commercial Intelligence Office (Intelcom) of MICI, based on data from the National Institute of Statistics and Census of the Comptroller’s Office, the performance in January and February reflected an increase of more than 9%, compared to the same period in 2023, which recorded exports of $150.4 million.

Bananas remained the leading product, representing 15.3% of the total exports, followed by frozen shrimp at 10.2%, medicines (antihistamines and antipyretics) at 7.9%, raw teak at 7.3%, iron or steel waste at 5.4%, and crude palm oil at 3.8%.

Other products that were exported for the first time included glass cleaners or degreasers based on quaternary ammonium (tariff subheading 340250190000) and pastes, powders, and other preparations for scrubbing (tariff subheading 340540000000).

Accumulated data suggest that the main destinations of Panamanian exports were: the Netherlands, with $18.8 million; Taiwan, with $15.5 million; and the United States, with $15.1 million.

New destinations for Panama

As Panamanian exports grow, Panamanian companies are also seeking new markets, particularly within the European bloc and in the Caribbean.

Businesses like Formetal, S.A., and Ecotopia Teak plan to expand their marketing efforts in these regions, as expressed by their executives to the MICI team, who are carrying out the ‘Getting to Know Your Exporter’ program.

Caribbean, for example, is a natural market for us, and there are significant opportunities for our companies in the industrial, agro-industrial, fishing, and agricultural sectors. We continue to promote exports to this destination to make ourselves known and we keep raising our hand, saying that Panama has the technology, production, and logistics to be a significant player in that region,” noted Eric Dormoi, National Director of Export Promotion at MICI.

During a tour of Formetal, S.A., the MICI representative also highlighted the trajectory of this exporter, with a presence in more than five countries, dedicated to the manufacture of metal-based products such as iron and steel doors, steel profiles, light steel structures, roofs, among others.

“We held a meeting with the general manager, Esteban Lam, and the export manager, Alejandro Bistrain, where they informed us that they will soon be opening up to two new Caribbean markets. That’s excellent news, without a doubt,” he added.

Meanwhile, the institution’s team visited the Ecotopia Teak plant, a teak wood reforestation company certified by FSC, located in Chepo, east of Panama City, which recently inaugurated its new teak classification and measurement line using laser technology.

This technology is the first of its kind in the region, marking a significant milestone in terms of production and exportation, as their value-added products reach Germany, Denmark, and soon, other countries in the European Union.

“Value-added exports are the way forward. Adding value to our raw materials diversifies the country’s export offerings and boosts our figures. So far in 2024, teak wood has experienced a growth of over 70% compared to the same period in 2023, indicating significant recovery,” noted Dormoi.

Through the ‘Get to Know Your Exporter’ program, MICI experts have visited over 100 companies between 2019 and 2024, spanning various productive sectors. It has proven to be a successful initiative in supporting exporters nationwide.

• Netherlands, with $18.8 million; Taiwan, with $15.5 million; and the United States, with $15.1 million.

• Bananas were the leading product, comprising 15.3% of the total exports, followed by frozen shrimp at 10.2%, medicines (antihistamines and antipyretics) at 7.9%, raw teak at 7.3%, iron or steel waste at 5.4%, and crude palm oil at 3.8%.