News

A recent flurry of news emphasizes Panama’s growing role in global trade, a key driver in Panama City’s growing real estate market. The deals include a new trade agreement with Israel, described as Panama City’s first trade deal with a Middle East country.

“This is our very first agreement with a Middle Eastern partner and hence it represents important opportunities to Panamanian exporters and businessmen. It has a vast coverage of goods, services and investment,” Meliton Arrocha, Panama’s minister of trade and industries, told reporters.

The deal includes special provisions focused on Panama’s small- and medium-sized companies in innovation and technology transfer fields, according to coverage.

“The agreement is expected to serve as another springboard for Israeli service providers — especially in software, communication, information security, engineering and R&D — thus expanding the potential of this and related markets,” Israel’s Ministry of Economy spokesman said in May.

Panama City’s status as a regional economic powerhouse is an important part of the local real estate market. More trade brings in more international multinational conglomerates and their executives provide a steady stream of renters and buyers. Any good news for trade is good property.

With that in mind, it was also noteworthy to hear Russia has also announced a desire to expand trade with Panama.

“Speaking in support of the intensification of relations with the Republic of Panama, together we are working on improving the legal framework. We are open for closer cooperation in the economic and financial agenda,” Russian President Vladimir Putin said in a recent diplomatic meeting

Moscow is already working with Panama City in training local staff, including law enforcement officers, the president said.

In related news, the World Trade Organization recently ruled in favor of Panama in a long-running dispute with Colombia, in a move that is expected to help the Colon free trade zone. The WTO declared Colombia was wrong for placing tariffs on textiles, clothes and shoes from Panama.

Jeff Barton is managing director of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.