Panama by wanghonghx

VIEWS: 12 PAGES: 20

									    Panama
Market Intelligence Report
                      AGENDA
I.    INTRODUCTION
II.   OBJECTIVE
III. BACKGROUND
IV.   SOCIAL SYSTEM
V.    INFRASTRUCTURE
VI.   SUPPLIES & SERVICES
VII. LABOR
VIII. REAL PROPERTY
IX.   BUSINESS PRACTICES
X.    U.S. COORDINATION
XI.   U.S. STATUTES & PUBLIC LAWS
XII. CONCLUSION
        INTRODUCTION

The purpose of this document is to
provide a detailed overview of Panama
from the perspective of commercially
available resources.
            OBJECTIVE

To analyze the area of operation for its
potential to support contingency
operations through indigenous sources of
supplies and services
 GEOPOLITICAL CONSIDERATIONS
• Government
      -Democratic
• Politics
      -Nine parties
      -Arnulfista Party (PA) is in power
      -Democratic Revolutionary Party (PRD)
      -Christian Democratic Party (PRC)
      -Reform is slow
      -Wide range of ideologies between parties
                            MILITARY
• Structure
       -Panamanian Public Force
• Capabilities
       -Defense of borders and internal social disorder
       -Minimal assets
• Paramilitary Organizations
       -FARC
• Stability
       -Segmented into 12 zones
       -Autonomy within the officer ranks
               CIVIL POLICE
• Structure
     -Comprised of smaller units
     -National Dept of Investigations (DENI)
     -Traffic Police
     -Tourism Police
     -Community Police
     -Immigration Dept
     -The First Public Order Co.
 ECONOMIC CONSIDERATIONS
• Economy
    -Sufficiently stable with fair balance of import/exports
    -National GDP of 16.9 billion with highest per capita
    -Well developed service sector
    -Strength of the US dollar
    -Tax system in place ranging from 4 to 30%
    -Has the second largest free trade zone
                  SOCIAL SYSTEM
• Close knit family structure
• Highly developed historical trading practices
• National holidays are as follows:

         Month         Date                  Holiday

   January              9     Mourning Day
   February             19    Carnival
   May                  1     Labor Day
   November             3     Independence Day from Colombia
   November             4     Flag Day
   November             10    The Uprising of Los Santos
   November             28    Independence Day from Spain
   December             8     Mother’s Day
                INFRASTRUCTURE
• Logistical OPS
   -Transportation
         • Roads
         • Air
         • Rail
         • Port and Waterways
         • Public Transportation
   - Utilities
         • Electric and Gas
         • Water and Sewer
   - Communications
         • Telecom
         • TV, Radio and Print
         • Internet
  ACCESS TO, AND AVAILABILITY
   OF, SUPPLIES AND SERVICES
• Market Research
• Problem Areas
• Commercial Practices
• Colon Free Zone (CFZ)
LABOR MARKET CAPABILITIES
 – Workforce
    • 1.1M workers, unskilled labor pool dominates
    • 82% private sector, 18% public service
    • Unemployment 13-14% average
    • Minimum wage $.80 - $1.50/hr, high pay for C. America
    • Skilled trades: maritime, chemicals, paper products, mining,
       food processing, metal working, clothing and construction
 – Labor Unions
    • Strong, regulated hiring and firing
    • Protests frequent, sometimes violent
 – Major Employment Sectors
    • agriculture 20%, industry 18% and services 60%
            REAL PROPERTY
– Warehousing
   • Abundant in port areas, vacant bases and city centers
– Office Space
   • City Centers and Hotels
   • Retrofitted offices at former military installations
– Land
   • 364,000 acres at former bases actively marketed in CZ
   • Mountainous areas not practical for use outside of cities
   • Coastal property regulated by GVT development
   • Private property not actively marketed
– Housing
   • Permanent and temporary housing is scarce
     SIGNIFICANT BUSINESS
          PRACTICES
– Business hours (typical)
   • Public and Private Sectors: M-F, 0800-1700
   • Half days on Saturdays for most businesses and banks
– Holidays/Business calendar
   • Discussed in Social Section of presentation
– Business attire
   • Business dress in most cities (American styles)
   • Latin casual outlying areas
– Greetings/Courtesies/Formalities
   • Typical mix of Spanish and American tradition
   • Formal and informal parties to conduct business
     SIGNIFICANT BUSINESS
          PRACTICES
– Women in Business
   • General Equality exists
   • Female is current president
– Experience with US GVT procurements
   • Long standing relations beginning in 1903
   • US military contracts until late 1999
   • Ongoing activities with US GVT
   • Well established base of American companies present
– Legal Considerations
   • Panamanian law prohibits monopolistic and anti-competitive
     behavior.
   • Government corruption is part of doing business, private
     sector has adapted some of the same corruption.
            US COORDINATION
• Office of the Military Attaché and Office for Military
  Cooperations.
   – Western Hemisphere Affairs
     OASD/ISA/WHA – 4C800
     2400 Defense Pentagon
     Washington, DC 20301-2400
     703-697-6380
   – Ambassador Linda Ellen Watt
     Avenida Balboa and Calle 37
     Apartado Postal 6959
     Panama City 5
     507-207-7000
         US COORDINATION
• Treaties and Agreements with Host Nation
  – Panama Canal Treaty of 1977
  – Bilateral Investment Treaty
  – Overseas Private Investment Corporation Agreement
• Status of Forces Agreement
• Mutual Support Agreements
  – Caribbean Basin Initiative
  – USAID, Inter-American Development Bank
 US STATUTES AND PUBLIC LAWS

• Embargos
• Notifications
• Other
  – Drug Trafficking
  – AIDS
            CONCLUSION
This operation should find a mature spirit of
cooperation with Panamanian businesses and
government, which can provide a variety of
goods and services. There is an existing,
understaffed US Army contracting office in
Panama. Recommend preparation of a robust
CCO staff for this operation that can work in
conjunction with the existing office to maximize
effectiveness of US contingency contracting.

								
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