Economy

APEX: Panamanian Exporters  / Association /Tariffs /Donald Trump /United States Experts in the field believe that it is unlikely the United States will impose tariffs on Panama for the simple reason that it exports many more products to Panama than Panama exports to the United States. Amid the tariff policies that U.S. President Donald Trump has imposed on Mexico, Canada, and China, Panamanian exports could be shielded from any retaliation.   Todd Martinez, Senior Director, Sovereigns at Fitch Ratings, during an event by the rating agency, told La Decana that Panama does not export many goods to the United States, so Trump’s tariff threats would not be directly aimed at a country with less than $1 billion in exports, especially now that it lacks mining activity.   “We see some shielding in that Panama does not export many goods to the United States, so the tariffs imposed on everyone would not have a very strong impact on Panama, but they would have an indirect impact on trade through the ports located in the Canal,” Martinez explained.   Bianca Morán, President of the Panamanian Exporters Association (Apex), emphasized that “it is highly unlikely that the United States would decide to apply tariffs to Panama, for the simple reason that the United States exports much more product to Panama than Panama exports to the United States.»   Morán reminded that the tariffs the United States is applying are to countries experiencing production deficits, such as Mexico and Canada.   However, she clarified that “if taxes are applied to us, we would be out of competition because production in Panama is very expensive. For example, electricity is expensive and inefficient. However, the only advantage we have is logistics, as containers are much cheaper for us.”   The President of Apex mentioned that Panamanian producers in the U.S. market could benefit from increased sales if Mexican or Canadian products are removed from the system.   The Senior Director, Sovereigns at Fitch Ratings emphasized that he does not believe Trump would impose taxes on the services sector, as Panama obviously depends heavily on trade with other countries. “We see it shielded in a certain sense, but it has undoubtedly been exposed in other ways, such as with the Panama Canal,” he said.   Market The United States remained the main destination for Panamanian exports during 2024, with a total of $184.5 million out of $964.3 million in total exports, representing 19.1%, according to data from the Ministry of Commerce and Industry.   Bananas, frozen shrimp, raw cane sugar, crude palm oil, iron or steel waste, fish oils and fats, fish meal, raw teak, antihistamine and antipyretic medications, decaffeinated roasted coffee were the main products exported.   The President of Apex shared that much of this 19% consists of essential products, mostly from the food sector.   «Although what we export is small at the macroeconomic level, this figure generates jobs in a sector that is not so easy,» defended Morán, who confessed that this week, some Panamanian producers are seeking business opportunities at the Seafood Fair held in Boston, United States.   While some advantage could be gained from the existing trade agreements between Panama and the United States to improve the presence of national exports, Morán pointed out that, unfortunately, this agreement has never been fully utilized, despite having a list of more than 100 products.   She mentioned that she does see some positive benefits in that Panamanian exports could take advantage of the tariff tensions imposed by the United States to seek more markets and diversify. This way, she said, there would be no dependency on the northern market.   For example, she confessed that the German government is interested in developing or boosting the export capacity of Panamanian producers so that they are not dependent on exports to the United States. This same proposal is repeated in countries like Spain and the European Union bloc.   Todd Martinez, Senior Director, Sovereigns at Fitch Ratings: “We see some shielding in that Panama does not export many goods to the United States, so the tariffs imposed on everyone would not have a very strong impact on Panama, but they would have an indirect impact on trade through the ports located in the Canal.” About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles

APEX: Panamanian Exporters Association SIP: Panama Industrial Union The guilds agreed that the country has focused more on being an importer rather than an exporter. They insist that Free Trade Agreements have not been fully utilized either.   Panama is lagging behind in key areas to boost the local industry and attract Foreign Direct Investment (FDI), such as institutional strength and human capital, according to the 2025 Annual Economic Report of the Panama Industrial Union (SIP).   The report, titled Competitiveness and Growth: The Future of the Industrial Sector Amid New Economic Challenges, states that regional competition to attract FDI has intensified, and Panama is not among the top competitors.   It details that in 2022, most of the FDI entering Panama came from the service sector, totaling $2.268 billion— a low figure compared to the $3.422 billion generated by the Dominican Republic in 2023. Similarly, FDI in manufacturing in Panama reached only $331 million in 2022, whereas Costa Rica managed $2.592 billion in 2023.   During the presentation of the report, SIP President Raúl Montenegro criticized the fact that, despite the industrial sector being largely concentrated in food production (53%), Panama has become an importer of agri-food products instead of an exporting country.   He explained that, according to the study, over the past 21 years, exports have dropped from $804 million to $402 million, while imports have risen from $595 million to $1.132 billion.   Montenegro stated that while the decline in exports can be observed by sector, the report shows that fish and seafood exports were around $413 million, but in 10 years, they have dropped to just over $152 million.   Free Trade Agreements (FTAs) He also argued that the current export issue is due to Panama’s poor utilization of Free Trade Agreements (FTAs).   «Panama has signed more than 20 FTAs. And what has that accomplished? Instead, we have been flooded with imports. We have made it clear to the President of the Republic, José Raúl Mulino, that we want to compete on equal terms. If other countries are doing it, we can do it too,» Montenegro stated. He also pointed out that while the industrial sector represents 4.6% of Panama’s GDP, it has maintained an average growth rate of 8% over the past 24 years.   He explained that this decline is partly due to the expansion of the Panama Canal being incorporated into the country’s economic structure, both before and after the project, similar to what happened with the mining industry, among other cases.   Export Challenges Bianca Morán, President of the Panamanian Exporters Association (APEX), stated that although exports increased in 2024, the figures still do not compare to those from the last decade, before Panama signed the FTA with the United States, when exports were significantly higher.   According to Morán, Panama must comply with international export agreements to ensure the quality of Panamanian products is recognized. To achieve this, she emphasized the need to develop a national brand, strengthen the export sector, and improve workforce training.   «The support we have received for exports has always been closely tied to the government in power. We would like to have access to an institution like other countries do, as well as a diplomatic body capable of promoting Panamanian production,» she stated.   Urgent Need for Agro-Industrial Transformation While Panama has the potential to develop sectors such as pineapple, palm, cocoa, and fish, SIP President Montenegro admitted that the country lags behind others in the region in agro-industrial transformation. This is partly because Panama still dedicates a significant portion of its land to less competitive crops such as rice and corn.   «With bananas and plantains alone, we barely hold 5% of the market share. Everyone talks about the richness of our land, both in Puerto Armuelles and Bocas del Toro, but then we ask ourselves—what are we waiting for?» Montenegro emphasized.   APEX President Morán reinforced that «for exports to be facilitated, there must be clear rules that allow all industrial sectors to increase their exports. This includes having a strong market strategy, modernizing the system, and increasing the number of skilled workers.» According to SIP’s report, only 7.5% of university graduates are linked to the industrial sector.   «We must align our production with global market demands, not the other way around. We need to identify market niches,» Morán stated.   An example of this, according to SIP President Montenegro, is the opportunity Panama has in the agri-food industry, pharmaceuticals, and integration into the semiconductor value chain, particularly in light of the growing nearshoring trend.   He also stressed the importance of developing a multisectoral national strategy that directs advanced education towards these industries while prioritizing and strengthening ProPanamá. About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles

Business owners agreed that they are working on diversifying and strengthening the export offer to reach other destinations. Exporters are exploring new markets and customers, looking towards Argentina, Brazil, Paraguay, Uruguay, the Netherlands, Belgium, and Germany, said sector members.   However, they noted that Panama must strengthen the diversification and value-added aspects of its export offer. Additionally, there is a need to minimize bureaucracy and enable food processing plants, which are still pending.   Bianca Morán, president of the Panamanian Exporters Association (APEX), acknowledged that there is «a great opportunity» with «the European Union’s legislation on deforestation-free products.» Panama already complies with all the requirements of this legislation, and the only thing left to do is digitalize; this is an opportunity.»   The businesswoman emphasized that in the Scandinavia region, there is potential because these countries face challenges related to food security and goods supply due to climate issues.   Meanwhile, Rosmer Jurado, a member of APEX’s board of directors, stated that Europe is «a great market, as long as Panama ventures into the value-added segment.»   Jurado mentioned that «we have a treaty with Israel, and we could take advantage of that opportunity.» He also highlighted that «specialty coffee is one of the leading products arriving in Europe, but we could, for instance, turn tropical fruits into finished products, such as pineapple concentrate.»   Both agreed that products like bananas, shrimp, fish, coffee, rum, and teak wood, among others, have found strategic markets in countries like the United States, the Netherlands, Taiwan, India, and China. However, Panama still relies «too much» on basic products and must shift towards exporting goods with higher added value and differentiation, as seen in products like medicines, detergents, custom liquors, and specialized packaging.   Carlos Hoyos, Deputy Minister of Foreign Trade, highlighted the importance of opening up MERCOSUR, as it includes four member markets with massive consumption. This could represent a significant increase in exports, not just of goods but also of services. «We want to consolidate our position in Asian and European markets,» he stated.   Biography of Bianca Morán   Bianca Morán has been the manager of Ecotopia Teak since 2012, a wood processing company. She is the creator of Panama Teak Sustainable Forestry, a registered brand for promoting and marketing Panama’s certified teak. The brand debuted on March 15, 2022, at the Dubai Woodshow and won the 2023 Commitment CSR award for sustainable business development.   The export sector generates over 100,000 jobs, but currently, there are 24,000 fewer salaried workers than in 2012. 73% of local exports are shipped via maritime routes. About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles

The association will focus on enabling the pending processing plants, promoting the export spirit among young people, and complying with European regulations for deforestation-free products.   The new board of directors of the Panamanian Association of Exporters (APEX) for the 2025-2026 period took office today, Wednesday, January 29, in a commemorative event held at a hotel in the capital city.   During the event, re-elected president Bianca Morán reaffirmed her commitment to continue working toward strengthening the export sector, promoting the quality, competitiveness, and diversity of Panamanian products in international markets.   For this period, she stated that the association has set three main goals that will serve as the roadmap to continue driving our exports:   Enable the pending processing plants in the region, ready to export under the highest food standards. «These plants represent a great opportunity to boost our productive capacity and meet international demands with quality and competitiveness, immediately generating new jobs as they are operational and have installed growth capacity,» Morán detailed in her speech.   2.  Foster the export spirit in young people. It is essential to inspire and prepare the new generations to see exports as an opportunity for personal and professional development. «This includes technical training, access to specialized programs, and strengthening their skills in foreign trade, alongside the Ministry of Commerce and Industries (MICI), with whom we aim to grow a new generation of exporters and develop our ecosystem, which is a pending task,» she explained.   Comply with European regulations for deforestation-free products. «This regulation, which represents a unique opportunity for those of us already exporting to Europe, requires the digitalization of processes and ensuring traceability of product origins, along with its chain of custody. While Panama does not need regulatory adjustments to comply with this standard, we must modernize our technological platforms to facilitate its implementation and meet the EU’s requirements,» Morán emphasized. However, to create an export culture in Panama, Morán said, we need to change our mindset and make use of all the studies we already have to direct resources effectively and ensure that state institutions are run by qualified individuals with a development-oriented mentality.   «We remain a slow country, full of costly bureaucracy and the discretionary power of officials who are not well-regarded by investors or international markets,» questioned the re-elected president of the APEX 2025 board of directors.   In this regard, Morán advocated for modernizing outdated legislations in this globalized world and revitalizing commercial promotion, which, due to a lack of resources, has lagged behind compared to other countries in the region.   On the other hand, Morán also highlighted the potential of value-added exports from other countries that Panama can also tap into. She mentioned that, for example, the Netherlands has developed value-added food industries through its ports, becoming the second-largest exporter globally after the United States.   In the Americas, Uruguay has maintained growth in its exports and reexports, using geographic advantages and investing in infrastructure to develop certified value-added products with raw materials produced by its neighboring countries.   «Panama may be small in size, but our potential is immense. With clear strategies like market diversification, identifying specific niches, and developing customized products, we can turn our limitations into opportunities and continue positioning ourselves in international markets to prove that Panama is a worthwhile investment,» Morán stressed, inviting entrepreneurs to join this challenge with commitment and optimism.   «It is our job to continue conveying confidence that betting on Panama is a good business decision, and the future of our exports is in our hands,» Morán concluded.   The inauguration ceremony was attended by entrepreneurs, APEX members, and board directors, as well as high-ranking officials from the National Government, including Carlos Hoyos, Deputy Minister of Foreign Trade and Industries, who highlighted the efforts and dedication of the export sector as a key driver of Panama’s economic development.   About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles

The main export products of the country are bananas, shrimp, fish, coffee, rum, and teak wood, among others, which have found strategic markets in countries such as the United States, the Netherlands, Taiwan, India, and China, according to APEX data.   By the end of 2024, national goods exports (excluding copper) totaled $1.3 billion, reflecting an estimated 10% growth compared to the previous year, stated Bianca Morán, President of the Board of Directors of the Panamanian Association of Exporters (APEX) for the 2025-2026 term.   Morán emphasized that with the previous figures, Panama positions itself as a resilient and constantly evolving country. However, she noted that it is crucial to recognize that while these figures are significant, they remain “modest” when compared to those of other countries in the region, whose export volumes represent what Panama exports in just one month.   “We have been a success story in the export of services, staying at the forefront, and we are the envy of the region. Let’s bet on goods to generate quality products and improve the distribution of wealth in our country,” Morán stated during the inauguration ceremony as president of the new board of directors of APEX.   At the same time, Morán pointed out that despite these limitations, Panama’s progress in recent years, particularly in key sectors like fishing and agro-industry, cannot be overlooked, as these sectors have shown notable growth.   She detailed that in the last three years, the fishing sector increased its share of national exports from 13% in 2021 to 25% in 2024, while the agro-industrial sector increased its share from 17% to 26% during the same period.   “These numbers reflect Panama’s potential to diversify and strengthen its export offering without copper,” stated Morán, breaking down the main national export products and key markets.   According to Morán, the main export products include: bananas, shrimp, fish, coffee, rum, and teak wood, among others, which have found strategic markets in countries like the United States, the Netherlands, Taiwan, India, and China.   However, “we are still too dependent on basic products, and we must move towards exporting goods with greater added value and differentiation, as demonstrated by successful examples in medicines, detergents, custom liquors, and specialized packaging,” Morán expressed.   Employment Engine   Exports, on the other hand, also currently contribute to more than 100,000 jobs nationwide. However, today there are 24,000 fewer salaried workers than in 2012, and informal employment is on the rise.   “The export sector not only drives the economy but also generates well-being in our communities. We are convinced that, by working together, with a government that fosters the private sector, supports innovation, and acts as a facilitator, we will achieve our goal: to consolidate Panama as a reference for sustainable and quality exports,” Morán emphasized. About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles

Most of the wood produced in Panama is tuca, of which 15 % is of medium quality, 5 % of high quality and 80 % of low quality, in an increasingly demanding market. Panamanian timber exports to Europe are low, mainly due to the recession in Germany, reveals the Panamanian Exporters Association’s (Apex) Report on the Panamanian Teak Export Outlook and Strategic Roadmap Proposal for Certified Commercial Reforestation.   The document also raises an imbalance between the oversupply of low quality teak and the growing demand for premium teak, so it urges strategies to diversify markets and products along with management changes in the farms that are classified as premium producers.   Two weeks ago, the Panamanian teak industry sent the first container to the United States and received the first sale to Italy, which will be shipped at the end of January.    In the last 10 years, for example, the price (of wood) of low quality fell, on the contrary, the high quality rose. The difference in price was three times between low and high quality teak, and it is expected that soon the difference will be 20 times per meter between low and high quality.   According to the report, India purchases 50,000 containers of teak and 12,000 containers of processed teak annually, but has not been able to absorb the excess supply generated by Latin America.   According to APEX, in 2024 Panama exported 6,500 containers of tucas, representing 9% of the Indian market, which is the largest in the world. It also increased shipments to Vietnam, but exports are still down.   APEX figures indicate that 95% of Panama’s worked wood production is mainly purchased by India, but, the demands of that market have increased, since a minimum of 12 years and 50 centimeters in circumference is required, which leaves a surplus of inventory on the ground.   “Eighty percent of Panama’s production -for the Indian market- is low quality tucas,” Apex acknowledged. For its part, the wood used to manufacture outdoor furniture, maintains stable prices, but with a decrease in recent demand in Europe and the United States, due to changes in post-pandemic consumption. Fifteen percent of Panama’s wood is medium quality tuca.   The report also stressed that there is a high demand for wood from native forests, for use in yacht flooring, luxury furniture, windows; however, it is prohibited to import this raw material to the European Union and the United States. Although Panama has the ideal conditions to produce wood of this quality, APEX indicated that a focus on premium production and FSC certification is required to access very demanding markets in terms of quality. In Panama, 5% of toucan production is of high quality.   To diversify the market and products, APEX believes it is important to promote exports to certified markets focused on Europe and the United States and to boost local production to meet domestic demand, replacing imported products with competitive, quality alternatives.   In terms of promotion, the association recommended including teak in the exportable offer promoted by the Ministry of Commerce and Industries (MICI).   It also recommended publishing updated studies on exports and deforestation on the platforms of the MICI and the Ministry of Environment.   Likewise, to define the participation of the diplomatic corps in international fairs and events. In addition, to align efforts between the public and private sectors to establish a strategic plan to position teak as a premium product.   In the opinion of Bianca Morán, president of APEX, the Panamanian forestry sector has a very high potential, and there is a good opportunity for the country’s forestry sector to become an important player in the international market. About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles

The Ministry of Environment presented the applications of new technologies for forest management in Panama. Lourdes García Armuelles Panama East is characterized by having the highest concentration of such plantations. In Panama, 98% of wood-related exports mostly consist of teak, a non-native species, confirmed Bianca Moran, President of the Panamanian Exporters Association (Apex).   «98% of Panama’s exports are teak. We’re talking about between 7 and 10 40-foot containers annually, valued at over $30 million,» Moran reported during a press briefing on Tuesday, June 25th.   Panama East is known for its predominant presence of these types of plantations, although there is also some presence throughout the country, including in the province of Chiriquí.   The accumulated hectares of existing forest plantations reach 80,000, as informed by the Apex president. While teak remains one of the country’s largest export commodities, Moran clarified that the activity «has been fluctuating,» depending heavily on market demand.   «Teak is a commodity, much like copper and gold. So, it depends on the demand in the market. For example, this year in Europe, one of our largest markets, is experiencing an economic recession,» she emphasized.   Teak is primarily used for outdoor furniture. Its significant presence in Panama has positioned the country as one of the largest certified producers in the region.   To continue leveraging these advantages, the Apex president called for promoting the arrival of more certified forestry investors. The event continued with a deep dive into sustainability and the use of renewable and recyclable raw materials, presented by Denise Cisneros from Tetra Pak. Additionally, Bianca Morán Johansson shared insights on how forestry cultivation in Panama is contributing to sustainable development in the region, creating dignified job opportunities, and promoting innovative practices. This sector is the largest contributor to CSS in Darién. Alvaro Castillo de la dirección Forestal, sección Patrimonio Natural del Ministerio de Ambiente Roberto Barrios | La Estrella de Panamá Álvaro Castillo, from the Natural Heritage section of the Ministry of Environment’s Forestry Directorate, mentioned that Panama promotes legal timber trade while also respecting forest preservation.   He explained that to oversee the export process, the entity plays a role in inspecting wood processing areas and verifying that the timber reaches the market through legal channels. This involves forest registration, operational certification, export guides, sales invoices, and other procedures.   «With this entire package, the export transportation proceeds to the port. From there, Customs takes over,» said Castillo, who acknowledges the interest shown by companies in complying with these regulations. About us Ecotopia Teak, S.A., we are a family-owned company dedicated to reforestation, harvesting, and exporting wood from commercial plantations. We work under high production standards and with social responsibility to obtain high-quality wood according to the needs and demands of national and international markets. Additionally, we actively contribute to the local economy by creating employment opportunities in the communities where we operate. Our commitment is to lead the industry in sustainable reforestation and wood production, preserving our natural resources and building a greener and more sustainable future. Facebook-f Youtube Instagram More articles