Friday, June 29, 2007

United States and Panama Sign Trade Promotion Agreement


WASHINGTON, D.C. – U.S. Trade Representative Susan C. Schwab and Panamanian Minister of Commerce and Industry Alejandro Ferrer today signed the United States – Panama Trade Promotion Agreement, a comprehensive trade agreement that will eliminate tariffs and other barriers to the trade in goods and services between the United States and Panama. “Today’s signing marks the beginning of a new era in the long-standing, yet still evolving commercial partnership between the United States and Panama. This is an historic agreement between two countries that for over a century have been joined by bonds of shared values, community, and friendship,” said Ambassador Schwab. “This agreement includes important commitments on market access as well as ground-breaking labor and environment provisions, a result of the bipartisan agreement between the Bush Administration and Congressional leadership. This agreement will promote increased economic growth and prosperity for both of our nations and will generate significant economic opportunities for U.S. workers, consumers, manufacturers, farmers and ranchers by leveling the playing field for U.S. exports to Panama. In turn, the agreement will serve as a catalyst to further develop and diversify Panama’s economy and promote investment between the two countries.” (more) (Photo: Ambassador Susan C. Schwab, United States Trade Representative)
Minister Ferrer stated, “This agreement reinforces the shared vision of both countries that trade can become a major tool for economic and social growth.” He continued by saying, “This is really a partnership for growth and we are confident it will create significant opportunities, and new jobs, especially for small and medium Panamanian companies and in our rural areas; as well as promote entrepreneurship, innovation, and competition necessary to succeed in the 21st century economy.”
“This agreement with Panama is instrumental in our strategy to advance democracy, the rule of law, security, and market-based development within our hemisphere,” Ambassador Schwab continued. “Panama is a valued partner of the United States on many fronts – from counternarcotics to antiterrorism – and we will work with Panama to enhance its role as a commercial and financial crossroads in today’s global economy. We look forward to continuing to build bipartisan support for the United States – Panama Trade Promotion Agreement in the U.S. Congress in order to quickly approve this agreement.”
Background
The United States and Panama launched negotiations on a free trade agreement in April 2004 and have incorporated amendments derived from the bipartisan trade agreement between the Bush Administration and Congressional leadership. The United States had a goods trade surplus with Panama of $2.3 billion in 2006, and is Panama’s largest trading partner. Total goods trade between the United States and Panama was $3.1 billion in 2006. Panama is a growing market for U.S. products. U.S. goods exports to Panama increased 25 percent from 2005 to 2006.
Panama is predominantly a services-based economy, with services accounting for about 80 percent of economic activity. The Panama Canal is the focal point of Panama’s economy, with much of the country’s economic activity tied to the canal’s infrastructure and to the logistics and financing of international shipping. The trade agreement will provide U.S. exporters significant opportunities to participate in the $5.25 billion expansion plan for the Panama Canal, which is due to begin in 2008 and is expected to be completed by 2014.
Like many other developing countries, Panama already enjoys broad duty-free access to the U.S. market through various trade preference programs designed to promote economic development, such as the Caribbean Basin Initiative (CBI) and the Generalized System of Preferences (GSP). In 2006, 96 percent of U.S. goods imports from Panama entered the U.S. duty-free under current preference programs and our most-favored nation duty-free rates. Meanwhile, only 25 percent of U.S. industrial exports and 34 percent of U.S. agricultural exports entered Panama duty-free. The trade agreement will eliminate tariffs on U.S. exports to Panama and secure permanent duty-free access for exports from Panama to the United States. In addition, the agreement will help support democratic and economic reforms undertaken by Panama’s leaders and spur additional reforms of Panama’s domestic legal and business environment that are important to encourage investment, enhance regulatory transparency, and strengthen protections for workers and the environment.

Tuesday, June 12, 2007

If You Build it They Will Come...

Panama Canal expansion to begin August - official
BALBOA, Panama, June 6 (Reuters) -


The first stage of a $5.25 billion expansion of the Panama Canal should begin ahead of schedule by the end of August, a top canal official said on Wednesday. Dredging works at the southern mouth of the canal on the Pacific will start in August instead of October as previously announced, Panama Canal Authority deputy administrator Jose Barrios said. The first onshore excavation works are scheduled to begin before the end of calendar 2007, Barrios told Reuters in an interview. Panama is aiming to build a third lane of locks to increase the canal's capacity and allow larger ships to travel between the Pacific and Caribbean. It hopes to have the third lane operational in time for the canal's centennial in 2014. The bidding specifications for the dredging would be ready next month, slightly late, Barrios said, but the bidding process would be short. "Even if we don't get (the specifications) on time we are going to get ahead of schedule," he said. He said bidding terms for the excavation work had been published and that more firms than expected had expressed an interest in the tender.


The excavation project involves removing 8 million cubic meters of soil and rock where a the new lane will skirt around the current Miraflores and Pedro Miguel locks at 24 meters above sea level.


That work will begin after Panama's fiscal new year in October.
Barrios forecast strong growth in the canal's cargo tonnage, but smaller growth in the number of ships passing through.

For fiscal 2007, Barrios estimated the waterway would carry 320 million tonnes of cargo, an increase of 10.3 percent from earlier estimates.



Northbound container traffic from Asia is seen as the main thrust behind the rise in tonnage, although an increase in southbound grain cargo has also been noticed, Barrios said.
For fiscal 2008, he said the canal's "conservative" projection is for cargo flows to increase 6 million tonnes or 1.9 percent.

Rice Hails Strong U.S. Relationship with Panama


05 June 2007
Rice Hails Strong U.S. Relationship with Panama
Secretary deplores repression in Venezuela, Cuba
By Eric GreenUSINFO Staff Writer

Secretary of State Condoleezza Rice shakes hands with Panama's President Martin Torrijos in Panama City, Panama, June 4. (© AP Images)
Washington – The Panama Canal, now being widened to make the waterway even more competitive in the global market, is a prime example “of how friendly states can make potential sources of conflict a source of cooperation,” according to U.S. Secretary of State Condoleezza Rice.

In hailing the excellent U.S.-Panama relationship June 4, Rice said the Panama Canal Treaty has been a “great success” for commerce in the Western Hemisphere and around the world. That treaty, signed in September 1977, transferred control of the canal from the United States to Panama in 2000.

Rice told the 37th General Assembly meeting of the Organization of American States (OAS) in Panama City, Panama, that the Central American nation has provided “excellent administration” of the canal since 2000.

In October 2006, Panamanian voters approved the largest modernization project in the canal's 93-year history. The multibillion-dollar expansion will allow the world's largest ships to fit through the passageway, which links the Atlantic and Pacific oceans. The expansion is scheduled to be completed in 2014. (See related article.)
Speaking prior to her meeting with Panamanian President Martin Torrijos, Rice said she hoped the U.S. Congress would ratify a free-trade pact with Panama that will put the two countries’ bilateral relationship “on an even more sound footing.” (See related article.)


Transcripts of Rice’s interview with CNN Espanol, her remarks with Torrijos and remarks en route to Panama are on the State Department Web site.

Thursday, June 07, 2007

Despit Real Estate Slowdown, Vacation Homes are still Hot - Inman News Features -


Wednesday, June 06, 2007

Nearly every day, we read about the increasing popularity of second homes in a remote Mexican seaside town, or the lure of buying a Tuscan villa or the exotic real estate possibilities in Panama. But how many North Americans are actually rolling the dice and choosing to purchase a second home outside the U.S.?

Accurate, tangible data on Americans buying abroad is nearly impossible to find, and the recent National Association of Realtors' annual Investment and Vacation Home Buyers Survey did nothing to help consumers who seek international second-home statistics. While the survey revealed that domestic vacation-home sales increased 4.7 percent in 2006 to a record 1.07 million, the poll did not contain any questions targeting international purchases.
While NAR indicated that it was possible that some of the 1,412 respondents surveyed in April purchased outside of U.S. borders, "the size of the survey wouldn't have provided enough meaningful responses."


According to the U.S. State Department, more than 4 million Americans live abroad, excluding military and government personnel. Mexico is by and far the largest with 25 percent, or 1 million American transplants, followed by Canada with more than 688,000. Central America is not far behind. In fact, an Urban Land Institute study on tourism developments estimated that up to 100,000 Americans live in Costa Rica alone.


However, international Realtors, residential developers and others providing second-home market services now say those numbers are outdated because of the torrid purchasing activity over the past 18 months.

Amada Sturges, director of Escapehomes.com, an online marketplace for buyers and sellers of second homes and resort properties, said the number of Americans interested in purchasing second homes in foreign countries jumped considerably on the site last year.
"More than ever people are looking for better value and natural beauty, both of which are often difficult to find in the U.S.," Sturges said. "Many international countries, such as Mexico and Nicaragua, are great alternatives and are now making it easier for foreigners to buy and live within their borders."

Austin, Texas-based HomeAway Inc., an online company specializing in vacation rentals, said its revenue from owner listings was up 50 percent domestically the past year and about 40 percent in Europe. About 18 percent of buyers of vacation homes who participated in the survey stated that they wanted to rent their property to others. That number was up from 13 percent in 2005, according to the NAR report.


"The vacation-home market has been extraordinarily robust here in the States and in Europe over the past four to five years," said Brian Sharples, founder and CEO of HomeAway. "We thought there would be more of a downturn because the appreciation had not been as high in early 2006 as in previous years, but people are still buying and building."
HomeAway, which raised a record $160 million last year for acquisitions and marketing, predicts the number of second homes available as vacation rentals will continue to grow rapidly. The company's portfolio of vacation rental sites includes HomeAway.com, VRBO.com, CyberRentals.com, A1Vacations.com and GreatRentals.com in the U.S., plus Europe's Holiday-Rentals.co.uk (UK), HolidayRentals.fr (France), Abritel.fr (France), FeWo-direkt.de (Germany) and HomeAway.es (Spain).

"The demographics for second homes are really in the sweet spot for the next few years," Sharples said. "The boomers' ages are in the area where they are hitting the top of their incomes and they have been enjoying considerable gains on these types of properties the past few years."
The NAR survey showed that the typical vacation-home buyer in 2006 was 44 years old, had a median household income of $102,200, and purchased a property that was a median of 215 miles from his or her primary residence. About 42 percent of U.S. vacation homes were closer than 100 miles, and 32 percent were 500 miles or further.

"The NAR survey also did not touch on the number of U.S. vacation homes and resorts that are purchased by Europeans," Sharples said. "We are seeing a phenomenal number of people from the UK and Germany buying in Florida and in other areas of the East Coast. The demographics are very similar to the age and income brackets in the states.
"However, while we might be thinking our resort prices are expensive, Europeans are looking at us as a bargain. Their pound is now worth close to two bucks. If you can get close to double your money in real estate here, you start to understand that it makes a lot of sense."
That's true even if the information is anecdotal. Real estate data that charts purchases by foreigners -- anywhere -- simply is difficult to find.