(Globalatlanta) Panama’s role as a logistics hub and Uruguay’s position as an entry point into a key South American trade bloc offer Atlanta companies better access to markets in the Americas, the U.S. ambassadors to those countries said during a presentation Nov. 15 at the Metro Atlanta Chamber.
Some 40 Atlanta businesspeople attended the event, which was co-hosted by the Georgia Hispanic Chamber of Commerce. The ambassadors shared the strengths of the countries where they serve in hopes of furthering President Obama’s goal of doubling U.S. exports over the next five years.
“The ambassadors and the State Department were in town for the Americas Competitiveness Forum, and so we took advantage of their presence in town to connect our local companies with experts in these markets,” said Ric Hubler, director of global business growth for the Metro Atlanta Chamber.
U.S. Ambassador to Panama Phyllis Powers outlined Panama’s advantages for Atlanta companies to locate operations there, calling the country a “logistics hub for the Americas.” U.S. Ambassador to Uruguay David Nelson spoke about the opportunities for using Uruguay as a distribution hub for exports to Mercosur, a trade bloc that includes Argentina, Brazil, Paraguay and Uruguay, with Bolivia, Chile, Colombia and Ecuador as associate members.
In addition to Panama’s well-known canal, direct air routes make it an ideal location for access to the entire Western Hemisphere, Ms. Powers said during her presentation. Its dollarized economy, established banking sector and stable economic and political environment ensure safe investments, she added. The country’s history of U.S. involvement with the Panama Canal has made for a local population with an affinity for American goods and services, she said.
The $5.25 billion expansion of the canal, which is expected to enable the passage of the world’s largest cargo ships by 2014, plus Panama’s $13 billion investment in announced infrastructure projects, represent opportunities for foreign businesses, Ms. Powers said. Panama houses the world’s second-largest free trade zone, handling some $18 billion in trade in 2009, she noted.
Mr. Nelson emphasized Uruguay as a stable platform for American companies that want to establish a presence in the Mercosur region, a region with a combined gross domestic product of $1.9 trillion and a combined population of 250 million that enjoys reduced tariffs on goods and services being traded between members of the economic pact, he added.
Uruguay is also a logistics center for South America, with a new cargo terminal at the region’s only natural deep-water port on the River Plate in the capital city of Montevideo. Mr. Nelson pointed to the country’s favorable tax structure for foreign-owned businesses, which gives them exemption from current and future national taxes, customs fees for goods and raw materials in transit and social security taxes for foreign workers. Uruguay allows for offshoring activities in free-trade zones as well as the free movement of foreign-owned capital and dividends, he added.
Metro Atlanta Chamber members can utilize the chamber’s contacts in Uruguay, Panama and throughout the hemisphere to access markets and build business relationships, added Jorge Fernandez, the chamber’s vice president for global commerce.
“We try to create a network as a base that can help Atlanta-based companies enter their market of choice. We do that by leveraging the collective resources of our members here that have a presence in Latin America, the Caribbean and Canada,” Mr. Fernandez told GlobalAtlanta during the Americas Competitiveness Forum.
Mr. Fernandez noted that while the U.S. does not have free-trade agreements with Panama or Uruguay, those countries’ trade relationships with their neighbors could offer opportunities for Georgia companies. The U.S.-Panama Free Trade Agreement, which was ratified by Panama in 2007, is still awaiting a vote in the U.S. Congress.
Even without the pact, Panama has strong links within Central America, including with Cafta members Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.
U.S. embassy contacts in Panama and Uruguay can also be of assistance to Atlanta companies, both ambassadors noted, with each outlining their host country’s advantages for U.S. investors.
“You never know if passing on that kind of information will trigger opportunities for an Atlanta company to increase its exports. I hope so,” Mr. Nelson told GlobalAtlanta in an interview at the Americas Competitiveness Forum.
Mr. Nelson moderated a separate event during the forum on market opportunities in South America. He told GlobalAtlanta that both meetings raised Atlanta’s profile in Latin Americans’ eyes. “In Uruguay, people tend to think of the U.S. as Miami and New York, but this event raised the Southeast’s profile,” he said.
Mr. Fernandez told GlobalAtlanta that the forum also helped to showcase Atlanta and the metro chamber, giving attendees from around the hemisphere a “chance to see what Atlanta and our companies here have to offer.” The ambassadors’ event at the chamber was an “excellent opportunity” to help further extend Atlanta companies’ connections in the region, he added.