Page 195 - Caribbean-Central America Profile 2018

PANAMA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Research Center, Higher Education Centers, Panama qualifies for Overseas Private and the territory of San Blas. Each province is
General Services Enterprise, Specialized Investment Corporation (OPIC) programs in turn divided into electoral districts, which are
Centers for the Provision of Health and and has a signed agreement with the World divided into precincts.
Environmental Service Companies, are Bank’s Multilateral Investment Guarantee
one hundred percent (100%) exempt from Agency (MIGA). Several bilateral investment The President and Ministers of State hold
income tax for its foreign operations. agreements are also in force. Executive Power. The President and two Vice
Presidents are elected for a five-year term, and
cannot be re-elected for a consecutive term.
CITY OF KNOWLEDGE TRADE PROMOTION
The City of Knowledge is a scientific, AGREEMENT: UNITED STATES Election is by majority of direct popular votes.
The President chooses the Ministers of State.
technological and entrepreneurial park located OF AMERICA AND PANAMA Judicial power is vested in a Supreme Court,
by the Panama Canal. The City of Knowledge The Trade Promotion Agreement (TPA) with tribunals, and other courts as established by
operates by means of the Decree Law 6 of the USA and Panama was signed into law on law. Supreme Court justices are named by a
February 10, 1998. October 21st, 2011, and entered into force in council (Consejo de Gabinete) composed of the
both countries on October 21st, 2012. president, vice presidents, and ministers of state.
Permitted Activities:
• Scientific The TPA established a bilateral free trade area ELECTIONS
• Technological that eliminates tariffs on the vast majority of General elections were held in Panama on 4 May
• Human Development goods which satisfy the Agreement’s rules of 2014. Incumbent Vice President Juan Carlos
• Cultural origin. There are specific provisions in the Varela of the Partido Panameñista was declared
Agreement on customs administration and the victor with 39% of the votes counted. The
Fiscal Incentives trade facilitation that would promote bilateral next elections (Legislative and Presidential) are
trade in goods. The TPA also liberalizes cross-
• Exoneration from Income Tax border trade in virtually all services, with due in May 2019.
• Exoneration from Import Tax specific chapters focused on financial and
• Exoneration from ITBMS [real estate telecommunication services. It builds upon GOVERNMENT LEADERS
transfer taxes and service] existing WTO agreements, as well as other President of the Republic
• Exoneration from Real Estate Tax agreements and international commitments, by Juan Carlos Varela Rodríguez
• Exoneration wire transfers from foreign strengthening the rules that govern investment, Palacio de Las Garzas,
country clubs intellectual property rights, labour, the Corregimiento de San Felipe,
environment, and government procurement. Panama 1, Panama
PROINVEX PANAMA Tel: (507) 527-9600
PROINVEX is an agency for investment attraction NATIONAL STOCK EXCHANGE
and export promotion, ascribed to the Ministry of Since its creation in 1990, the Panama Stock Vice President of the Republic
Commerce and Industries (MICI). It manages a Exchange has been an important part of the Isabel de Saint Malo de Alvarado
One-Stop-Shop Integrated Information System development of Panama's role as a regional San Felipe, Street 3
that allows the investors to easily identify all the financial centre. It is a corporation organized Bolivar Palace, Panama Building 4
instruments that the National Government has under the Laws of the Republic of Panama. Panama.
available for the Direct Foreign Investment. Its shareholders base is made up of the main Tel: (507) 511-4100
local banks, including Banco Nacional de Fax: (507) 511-4022
PROINVEX PANAMA Panamá (National Bank of Panama) as well
Plaza 50, Oficina #4 as commercial, insurance and industrial MINISTRIES
Calle 50, Panamá, Panama corporations and concerns, businessmen, Ministry of Agricultural Development
Tel: (507) 504-5300 professionals and stockbrokers. Most Avenida Revertida, Altos
Email: proinvexpanama@mici.gob.pa transactions centre on government bonds. de Curundu Edificio No. 576
Web: www. proinvex.mici.gob.pa Panama 5, Panama
Panama Stock Exchange Tel: (507) 507-0600
Ave. Federico Boyd y Calle 49
TRADE AGREEMENTS Edificio Bolsa de Valores de Panama Ministry for Canal Affairs
Bilateral preferential trade agreements exist Panama, República de Panama Autoridad Del Canal De Panamá
with Canada, Costa Rica, Chile, El Salvador, Tel: (507) 269-1966 Administration Building
Guatemala, Honduras, Nicaragua, Colombia, Fax: (507) 269-2457 Balboa, Ancon Panama
Dominican Republic, and Mexico. Peru, www.panabolsa.com Tel: (507) 507-3100
Singapore. Email: nfo@pancanal.com
Panama also has non-preferential bilateral trade GOVERNMENT
agreements in effect with Germany, Bulgaria, The three forms of Government in Panama Ministry of Commerce and Industries
Czechoslovakia, Hungary, Romania, Russia and are Legislative, Executive and Judicial. The Plaza Edison, Sector El Paical, Floors 2 and 3
Poland. Panama is a beneficiary of the Caribbean Legislative Assembly (Asamblea Legislativa) Panama
Basin Initiative (CBI), which provides for one- is composed of legislators elected from each Tel: (507) 560-0600
way free trade access for specific Panamanian electoral district. A Legislator is elected for a five- Fax: (507) 261-1942
exports to the U.S. year term. Panama is divided into nine provinces Email: contactenos@mici.gob.pa

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