GOVERNMENT & INDUSTRY IN PANAMA

1. Government policies in Panama related to industry

The Panamanian government has developed several policies to support industry, especially in areas like logistics, construction, and services. Some key policies include:

• Tax incentives for companies in special economic zones (Panamá Pacífico, Colón Free Zone).

• Public-private partnerships (PPP) to develop infrastructure.

• Investment laws that attract foreign companies.

• Support for micro, small, and medium-sized enterprises (MiPyMEs) through the AMPYME agency.

• Industrial policy plans to increase national production and reduce dependency on imports.

2. Current Challenges in Panama

Despite these efforts, Panama still faces important issues:

• High unemployment, especially among youth.

• Low productivity in some industrial sectors.

• Heavy dependence on foreign companies and services (like the Canal and logistics).

• Informal labor market that lacks social protections.

• Corruption and weak enforcement of some policies.

• Limited support for innovation and national manufacturing.

3. Proposals and solutions 

To improve Panama’s government Industry relationship and boost national development, here are some effective proposals:

Promote local production

• Support industries that create jobs inside the country (e.g., agro-industry, sustainable manufacturing).

• Reduce dependence on imported products by investing in national factories and training.

Invest in technical education and innovation

• Create stronger links between schools/universities and industry needs.

• Offer more scholarships and training programs in trades, technology, and logistics.

Strengthen MiPyMEs

• Simplify access to financing and reduce bureaucracy for small businesses.

• Provide mentorship and digital tools to help them grow.

Transparency and anti-corruption measures

• Ensure public funds are used effectively.

• Monitor industrial contracts and incentives with clear accountability.

Green industry development

• Support industries that are environmentally responsible and create long-term value.

• Promote clean energy, recycling, and eco-tourism industries.