‘Panama is the best place in Latin America to live and do business’

“Today Panama is the best place in Latin America to live and do business,” disclosed Ambassador Rubén Eloy Arosemena Valdés of Panama in Seoul at a recent interview with The Korea Post conducted on the occasion of the National Day of Panama on Nov. 3, 2016.

He said, “It has been ranked by the IMF, World Economic Forum and the Latin Business Chronicle as one of the most competitive and globalized economies in Latin America based on factors such as direct foreign investment, import and exportation figures, GDP growth, low inflation and security” He stated that Panama is also politically stable and has the US dollar as its currency and a nearly first-world communications and transportation infrastructure. “Panama,” he declared, “I would say has it all, and that's why it’s being called the Business Hub of the Americas.” Here are excerpts from the interview:

Question: What are the areas in your country where you want Korean companies to invest and what are the areas where you wish your businessmen to invest in Korea?

Answer: Direct investment by Korean citizens currently is in the order of US$ 979 million. Panama invited Korean shipyard companies to get installed in our country for the repair of ships given the high traffic of ships transiting the Canal and now Post Panamax vessels, which do not have that kind of services. Similarly we have made a call to the Korean companies to participate in the National Plan of Investment of the Government of the Republic of Panama and we reiterate the willingness for Korean Companies to establish in Panama their regional headquarters and take advantage of the networked infrastructure able to connect main productive centers of the country given the geographical strategic position empowering the economy to serve as a gateway to Latin America.

Today Panama is the best place in Latin America to live and do business. It has been ranked by the IMF, World Economic Forum and the Latin Business Chronicle as one of the most competitive and globalized economies in Latin America based on factors such as direct foreign investment, import and exportation figures, GDP growth, low inflation, security, is also politically stable and has the US dollar as its currency and a nearly first-world communications and transportation infrastructure.

Panama seems to have it all, and that's why it’s being called the Business Hub of the Americas.

Q: What are the important developments scheduled between Korea and your country, including the possible visit of your Head of Government to Korea?

A: The 7th round of FTA negotiations between Korea and the Central American countries (Panama, Costa Rica, Nicaragua, Honduras, El Salvador and Guatemala) will be held in Seoul, on October 24 to 31, 2016. The bilateral meeting between Korea and each CA’s countries consisting on Trade in Goods, Trade Remedies, Rules of Origin, Service & Investment, Government Procurement, IPR, Institutional Matters, and Cooperation. We will also discuss details concerning the signing ceremony and final conclusion of the negotiations.

There is the interest of the President of Panama for an official visit in the first half of 2017, with the purpose of strengthening maritime and port dynamics between the two countries, During his visit, he will also promote in Korea business opportunities offered by Panama as a logistics platform, connectivity, and socio-political stability, in order to encourage Korean investors to expand their businesses into Panama as well as the promotion of the center of humanitarian assistance (CLRAH) - humanitarian Hub.

Q: What is the volume of bilateral trade, its outlook in the next 12 months?

A: South Korea occupies position 14 of 84 countries as a trading partner of the exports of Panama representing 1.8% of the FOB value as of 2015 and is the 7th largest trading partner of 102 countries of imports made by Panama to 2015 with 3.5% of the Total CIF value.

We share the expectations of sequenced Panama’s economic relations and trade with Korea with the free trade agreement with Central America by opening the doors of new markets through Panama.

Q: What are your competitive fields of industry and products attractive to Korea and what are the Korean products and services that your country might wish to import?

A: We consider that certain industrial, agricultural and fishing products, have and continue to have export opportunities in the South Korean market; Since these products have been exported over the years and continue exporting at present, these products we can mention the following: decaffeinated coffee, roasted and decaffeinated, shrimp and frozen prawns, waste and scrap of copper, aluminum, iron and steel. On the other hand, we can mention that given the current commercial exchange of South Korea with other countries of Central America, Panama would have opportunities to export to the Asian country products as sugar cane, pineapple, flour and pellets of fish, sauces and condiments, and carton "that are produced by Panama and currently does not export to South Korea, but South Korea buys them from countries like Guatemala, Honduras, Costa Rica and Nicaragua.

Panama’s product for the Korean market:-
Fishery, Frozen Shrimp, Manioc, Yam, Cashew-nut (shelled), Banana, Pineapple, Papaya, watermelons, Coffee, Coffee husks and skins, Coffee substitutes, Rum, Tuna preparations, Shrimp preparations, Chicken preparations, Beef, and hamburger meat, Pork.
Import from Korea:-
Autos, Auto Parts, Electronic Appliances, Tires, Textile Articles, Beverages, Machinery, Wires, Electric Accumulators and parts, Plastic Products.
Others: Non-metal products, Plaster, Glass products, Steel products, Aluminum products, Textile machinery, Furniture and lighting.

Q: Who are the Korean companies (in addition to the Jaebeol business groups) actively engaged in the promotion of economic cooperation between Korea and your country?

A: There are 18 Korean Companies that have to do with maritime and mining markets, which will benefit directly with the opening of the Expanded Canal in Panama and this are some of the Leading Korean Companies in Panama:
Kia Motors (Grupo Silaba, exclusive distributor), Hyundai Motors (SEM), Autos Hyundai (Petro-Autos, exclusive distributor), Hyundai Trucks (Bering Motors distribuitor), Hyosung Corporation (SEM), HS AD Inc. (SEM), Daewoo Electronics, Daewoo International, Hankook Tires, Auto Battery DELCOR and GLOBAL, Hyundai Heavy Industries (Plantas Térmicas y Motores de Barco / Regional Offices), HS Ad Inc (Publicity and Marketing) SEM.

Q: Please introduce your Head of Government in detail, including major achievements.

A: Juan Carlos Varela Rodríguez, born on December 12, 1962, an industrial engineer from the University of Georgia Tech, businessman and entrepreneur married to journalist Lorena Castillo and father of three children was elected President of the Republic of Panama in May 2014 for the constitutional period July 2014 to June 2019. He was formally Vice President and served also as Panama’s Minister of Foreign Affairs.

In the private sector led the growth of a Panamanian company with over 100 years of history, which has created thousands of jobs in our country: Varela Hermanos, S.A. There he served as Director since 1985 and served as Executive Vice President until January 2008. With a great social view from the private sector, Mr. Varela supported and promoted projects for culture, sport, education, folklore, and the environment.

Elected Vice President of the Republic of Panama in July 2009 and in only two years in Government, he fulfilled the social promises made during his campaign, including: program 100 to 70, the increase of the minimum wage, the project Curundu and Universal Fellowship Scholarship, among others.

On March 17, 2013, Juan Carlos Varela became the presidential candidate by the Panameñista Party and on August 25 of that same year, was proclaimed the candidate of the "First People’s" Alliance, formed by the Panameñista Party and the Popular Party, backed by country-independent sectors.

Since the discovery of the isthmus of Panama we have always been a meeting point of civilizations at the service of the world and global trade. Today we are more stable and growing Latin American economy. We are the Hub of the Americas, which facilitates communication and connectivity of the Mainland with the rest of the world. Panama has more than 100 transnational regional headquarters and we are a country where reigns the law and legal certainty, with an economy open to foreign investment and a Government committed to transparency, accountability, separation of powers and the strengthening of democratic institutions.

According to the report's Global competitiveness 2016-2017 of the World Economic Forum, Panama rose 8 sluts on the annual ranking as the country that achieved the highest improvement this year, leading the region in macroeconomic environment, market, financial development and sophistication of business efficiency. This historic leap in competitiveness is a further sign of the strength of our economy. Panama passed from the 50th position to 42 recorded an advance of eight positions, preceded by Chile which ranks 33 in a measurement of 138 countries. i.e., Chile and Panama are the most competitive countries in the region in accordance with the WEF.

The Foreign Direct Investment (FDI) in Panama will continue to grow at a sustainable pace and the country receives more than 45 percent of all FDI in Central America. In addition, which has FDI inflows higher in proportion to GDP in Latin America, increasing the 16.9% in revenues from FDI from 2014.

Regarding the transportation and logistics progress the line 2 of the subway (under development) and upcoming subway line 3 and the fourth bridge over the Panama Canal, which will mean jobs for thousands of Panamanians and, once completed, will positively impact the lives of residents of the areas East and West of the capital city.

With the inauguration of the Expanded Canal last 26th of June, the carrying capacity of vessels that pass through the Canal increased including the connection to thousands of people, promoting the peaceful collaboration and strengthening trade relations for a better future. The over $5bn project will boost ship capacity upwards of 50%. With the largest ships now carrying up to 13,000 shipping containers, larger volumes of electronics, T-shirts, grains and other commodities promise to bring Eastern and Western Hemisphere markets closer together.

Q: Please introduce in detail the National Day of your esteemed country.

A: November is said to be the month of national festivities, full of patriotic sentiments all around the country, the flag and patriotic symbols are displayed everywhere due to three days of great historical importance:

A brief overview of what exactly is celebrated in November will help understand at least what it is all about. On November 28, 1821 Panama declared its independence from Spain. In an open town meeting Panama was declared a sovereign entity and was freed from the control of the Spanish Monarchy. This formal declaration of independence was preceded by the First Cry of Independence in the Villa de los Santos (a small town in the interior of the country) on November 10, 1821. After the independence, fearing an invasion from Spain who still had a very strong Armada and lacking a budget to run its affairs Panama looked towards a stronger neighbor to protect it and became part of the Republic of Colombia.

During this month the whole country dresses itself in national colors of red, blue and white which are the colors of the flag. Public offices, private enterprise and private residences sport flags and red, white and blue wreaths and streamers.

On this date, November 28, 1821, the isthmus of Panama is declared independent of Spain, and voluntarily joined the Gran Colombia, a union that lasts until November 3, 1903, 82 years later.

November 3, 1903

After achieving independence from Spain on November 28, 1821, Panama became a department of Colombia. The Gran Republic of Colombia was by then composed of Colombia, Venezuela and Ecuador. In 1903, the United States and Colombia signed the Hay-Herran Treaty to end the construction of the Panama Canal, initiated by France, but the Colombian Congress did not pass the Treaty on August 12, 1903. This motivated the anger of the Panamanians who wanted the canal finished, so were the United States that decided to support the independent movement for by sending a warship to Panama to protect Panamanians from the Colombian armies, and in November 1903, as a result of the separatist feat carried out by the revolutionary Government Junta composed of: José AGUSTÍN ARANGO, FEDERICO BOYD, TOMAS ARIAS, MANUEL ESPINOSA BATISTA, NICANOR DE OBARRIO, RICARDO ARIAS, CARLOS CONSTANTINO AROSEMENA and MANUEL AMADOR GUERRERO. To proclaim independence in public a ceremony in the Plaza de la Catedral, the President of the open Cabildo, Don DEMETRIO H. BRID formed a Provisional Government Board on November 4, which was composed of patricians José AGUSTÍN ARANGO, FEDERICO BOYD, TOMAS ARIAS and MANUEL ESPINOSA BATISTA. This interim Board acted until February 19, 1904. It is then when Dr. MANUEL AMADOR GUERRERO is chosen unanimously as the first President of the Republic of Panama. Exercised his Government on February 20, 1904 until September 30, 1908.

The Separation of Panama from Colombia was formalized on November 3, 1903 with the establishment of the Republic of Panama from the Republic of Colombia's Department and thus being recognized by the International Community as a Sovereign Independent Country.

It is very important to point out that the Panamanian history which has been shaped by the recurrent theme of the transisthmian commerce is celebrating the 113th Anniversary of the Separation of Panama from Colombia.

4th of November 1903

Flag day. Devised by Manuel Encarnación Amador, eldest son of Dr. Amador native of Santiago (now days capital city of the province of Veraguas), It was made by Doña María DE LA OSSA de AMADOR, wife of Dr. Manuel Amador Guerrero, and ANGELICA DE LA OSSA BERGAMOT, his sister-in-law, was the wife of Geronimo De la Ossa, author of the lyrics of the national anthem. The flag was baptized on December 20, 1903, in a public act carried out in the Plaza of Independence. Definitely recognized as our national emblem by the Act No. 4 of 1925 and ratified as such by law No. 28, 1941.

Q: What is your view of Korea and the Korean people before and after your arrival here?

A: When I got to Korea my knowledge of the country was very limited, just general and basic information about political issues, its economic performance regarding that it’s the fourth largest economy in Asia and the 11th largest in the world; but, a little skeptical since I had learned that Koreans were very complex people, but to my surprise since my arrival two years ago up to date I have to admit that I have been captivated by its history, distinctive rich and pali pali culture and the variety of the good gastronomy. There are mixed feelings for the old tradition and the new modern technological state of the art city. It’s a country full of dynamism with a high educational competitiveness and of course the best part of my experience here is the coexistence and recreation in nature, I would definitely miss my early walks to the mountain close to the house. And of course I can’t leave out and very important are the security issues which makes the country and its people very reliable.

Q: What are the attractive tourist destinations of your country?

A: Known as the “Crossroads of the Americas,” Panama enjoys a modern infrastructure, making travel through the tropical paradise easy and convenient, the southernmost country of Central America, offers an appealing medley of exciting cities, quiet villages, coffee plantations, beaches, mountains and rainforest; although, many visitors may come to Panama for the Panama Canal, turists may enjoy the Pacific and Atlantic oceans in one day considering that the original meaning of the word “panama” means “abundance of fish,” and fishing is just one of the many water sports and activities that visitors to Panama can enjoy.

The Outdoor Adventures offers many thrilling experiences for the travelers. Mountaineering and rafting in the finest whitewater, magnificent mountains containing coffee farmhouse, stunning snorkeling journey to the Pacific, trekking through the cloud forests, horseback ride, and family adventure trips tempts everyone to visit this place often. Rio Piedra otherwise called as Stony River is the main source of outdoor activities.

World Heritage Sites – Panamá Viejo and Casco Viejo were designated a UNESCO World Heritage Site in 1997. The beautifully restored Spanish colonial city, Casco Viejo, is the mecca for history buffs. Catedral Metropolitana de Panamá, National Theatre of Panama, Church of San Jose, The Flat Arch, and Panama Canal Museum are the highlights of this historic old quarter. Panamá Viejo – the remnant of the old Panama City – preserves its original layout and is a testimony to the devastating pirate attacks.

Metropolitan Natural Park – Established in 1985 and located within city limits, this place draws in nature lovers with its several walking trails. Some of the birds nesting here are Dusky Antbird, Blue-gray tanager, and Broad-winged hawk. Cerro Cedro and Los Caobos are the lookout points in the park. The Visitor’s Center provides all the essential information for a nice trip.

Biomuseo – Designed by the architect Frank Gehry, the museum is an absolute eye-catcher. It epitomizes the rising of the Isthmus of Panama from the Pacific Ocean. It has over 43,000 square feet of exhibition space. The area includes a public atrium, shop, cafe, and outdoor exhibits displayed in the botanical park.

Bird Watching - Panama is home to more birds than in the United States and Canada combined.

Whale Watching - The Azuero Peninsula is another favorite location off Pedasí or around the Isla Iguana Wildlife Refuge where Orcas may be seen in February and March. Further west is the Coiba National Park and the Gulf of Chiriquí National Marine Park. September and October are reckoned to be good months in these waters for Humpbacks and also Sperm Whales. Other toothed whales may be seen including Beaked Whales and the Short-finned Pilot Whale.

The Panamanian government recently decided to declare the Perlas Archipelago part of a marine corridor and whale sanctuary. The Perlas Islands in the Gulf of Panama is, one of two archipelagos in the Tropical Eastern Pacific. The 1,688-km2 management zone includes 250 mostly uninhabited rock islands and islets.

Darien National Park is a large natural park and preserve located in Eastern Panama’s Darien province, covering 5,790 square kilometers (2,235 square miles). The park contains the Alto Darien Protection Forest, designated in 1972, covering about 700,000 hectares of the park. The park was made a national park in 1980, and became a UNESCO World Heritage site in 1983 is noted for its many ecosystems, with habitats ranging from rocky and sandy beaches, to mangroves, swamps, and tropical forests. Wildlife across the park includes the macaw, parrot, tapir, and harpy eagle. Animals from the endangered species Red List include the Spotted Paca, Guatemalan Black Howler, Night Monkey, Black-headed Spider Monkey, Central American Agouti, American Crocodile, and Capybara.

The park is also one of the few protected areas in the world that is also inhabited by two indigenous tribes that live within the park: Chocó and Kuna. There are also a number of archaeological sites found within the park.

Bocas del Toro - On the Caribbean side, Colon Island, the capital of the Bocas del Toro Province, is a favorite spot for scuba divers, and as the dives are shallow, it’s particularly suited for particularly for beginners. An extensive coral reef features colorful varieties of tropical fish. Discovered by Christopher Columbus in 1502, the area remains one of the most popular tourist attractions in Panama. In Bocas del Toro, visitors routinely hike through the lush rainforest to enjoy empty stretches of beautiful shoreline. Bocas del Toro is also the place for Dolphins. Dolphin Bay (Laguna Boccatorito) is named for an abundance of Bottlenose dolphins. June and July are the best month for this species here and also in nearby Bastimentos National Marine Park. Atlantic Spotted Dolphins and Tucuxi Dolphins also stop awhile in their travels around the coast.

San Blas islands - Located in Eastern Panama, the San Blas Islands is the best place to explore the rich culture of Panama’s indigenous people, the Kuna. The Kuna people view this area as their own but are warm and welcoming to visitors. One member of the tribe is stationed on many of the area’s tiny tropical islands, and for a nominal fee, they allow visitors exclusive use of the island for the day.

Sendero Los Quetzales - Near the small town of Cerro Punto is one of Panama’s most beautiful trails. The 9 km (5 miles) route starts east of town and takes between four and seven hours. The trail winds through the cloud forest of Parque Nacional Volcán Barú and follows the Río Caldera, crossing it several times en route. It ends in the mountains above Boquete. The trail can also be hiked in reverse, but it’s entirely uphill from Boquete. Because the trail is not well marked it is recommend to hire a guide or join an organized tour.

Santa Catalina - The international surfing community has tried to keep this idyllic spot a secret, but the word is out that Santa Catalina offers world-class surfing. Located on the Chiriquí Gulf, the town doesn’t offer a lot in the way of amenities, but its beautiful beach surrounded by jungle forests makes it an ideal destination for those who wish to enjoy Panama’s natural beauty.

Q: Please introduce yourself in detail, including your career, family and hobbies.

A: I was born on April 11, 1960, currently married to Ana Lorena Sosa. I have two daughters of previous marriage.

I studied my elementary and high school in La Salle School graduating in 1978, on the same year elected President of the Graduate Student Association of La Salle School.

Member of the Academic Council of the Santa Maria La Antigua University of Panama graduating in 1986 in Laws and Political Science: in 1987 I studied LL.M. in International and Comparative Law from the Southern Methodist University of Dallas, Texas, U.S.A.

Former member to the Inter-American Lawyers Federation

LL.M. in Port & Multimodal Transportation Management from the Universidad Pontificia Comillas, Madrid, Spain; Master Degree in Maritime Law with emphasis in International Law from Santa Maria La Antigua University and active member of the Iberoamerican Institute of Maritime Law.

On October 8, 2016, the Academic Council of the Maritime International University of Panama granted me with an Honorary Doctorate, as a recognition for being the promoter of the creation of the Maritime University during my tenure as Administrator of the Maritime Authority of Panama (AMP), I managed the modification and update of the maritime strategy of Panama, the law of ports, among others and reached an agreement between Florida State University and the AMP to move the offices of the University to the current campus in La Boca. Aattained agreements of shipment between various shipping lines for the benefit of the UMIP cadets.

As Ambassador and General Consul in South Korea, I am very grateful to Mokpo National Maritime University, Korean Maritime and Ocean University (KMOU) and the Shipowners Association of Korea for the one year scholarship program granted to Panamanian cadets of UMIP to practice on ships in the Asian country.

I accept this Honoris Causa as a tribute to all the men and women who contributed to the project of the UMIP to become a reality; that part of the approach that was made in the National Assembly when the law was passed which highlighted the University by transparency, without partisan political interventions.

Regarding to my professional career, I worked in R & R Arosemena & Associates;

Illueca & Associates;Moreno & Arjona Bureau Maritime Litigations; Former Vice President of the Republic of Panama 2004-2009;Minister of the Presidency of Panama 2008

Administrator of the Panama Maritime Authority 2004-2007 and President of the National Assembly and Legislator for several terms since 1989-2004.

Hobbies: Biking & Fishing

Editor’s note:

Ambassador Ruben Eloy Arosemena Valdes of Panama is known to have received in a very solemn ceremony celebrated on last October 9, 2016 from the International Maritime University of Panama the Doctorate “Honoris Causa” For his support and contribution to the academic training of Panamanians in the maritime industry.

The doctorate honoris cause is an honorific title that grants the International Maritime University of Panama (UMIP) and the honoree receives the same treatment as those who obtained it in a conventional way.

During his tenure as Vice President of the Republic of Panama and Administrator of the Maritime Authority (AMP), Ambassador Arosemena managed the modification and update of the maritime strategy of Panama, the law of ports, among others.

During his administration he was the promoter for the creation of the International Maritime University of Panama and responsible for negotiating an agreement between Florida State University and the Panama Port Authority to move the offices of the University to the current campus in La Boca where is located now days. He also attained agreements of shipment between various shipping lines for the benefit of the UMIP cadets.

As Ambassador, General Consul and former Vice President of Panama in Korea, Arosemena Valdés has managed a scholarship program between the UMIP and Korea Universities, Mokpo National Maritime University, Korean Maritime and Ocean University (KMOU) and the Ship Owners Association in order for Panamanian cadets to have one year of practice in the Asian country.