The CEO of International CEOE and permanent secretary of the Council of Ibero-American Entrepreneurs (CEIB), Narciso Casado, closed a virtual seminar in which Panamanian companies were introduced to the programs and tools that PROPANAMÁ offers and a more detailed view of the market. European and existing business opportunities, in order to strengthen and strengthen bilateral relations. The meeting was attended by the executive director of ProPanamá, Carmen Gisela Vergara; the director of the Center for Studies for Central American Integration, Eduardo Espinoza; and the head of the Department of Knowledge Management and Business Promotion, Luis Sánchez. The event followed up on the presentation made by the Executive Director of Panama, Carmen Gisela Vergara, of the Virtual Business Wheels, on November 25 at the CEOE headquarters.
The conference was organized by the Center for Studies for Central American Integration (CEIE) of the Secretariat for Central American Economic Integration (SIECA) in support of the Central American Trade Network (REDCA), and the Agency for the Attraction of Investments and the Promotion of Exports, ProPanama. The main objective of the meeting is to know in depth the commercial opportunities of Panama with the market of the European Union.
ProPanama Services
In her speech, the executive director of ProPanamá, Carmen Gisela Vergara, spoke of the various services that the investment agency offers and that are of great interest in the current context of the crisis. Among them, he mentioned the Protect Yourself Panama Program, which supports the exporter with innovative tools and allows, thanks to technology, to promote its offer in international markets. Likewise, he reported on the virtual seminars with technical and international experts; the Virtual Business Roundtable, which with the support of SIECA fosters business with various markets; a platform for virtual fairs, which provides a space for the exporting producer sector and where there is an exhibition area, different pavilions and live chat. The first virtual fair, he announced, will be held from June 22 to 26 with the United States.
Likewise, Vergara referred to the Ideatón Panamá, which consists of a national contest to develop innovative ideas that help to get out of the crisis; and discussed a program with the United Nations International Trade Center to support women entrepreneurs with the ability to export, providing access to international buyers. He also mentioned the joint work he carries out with the Inter-American Development Bank (IDB), through Connect Americas, an online platform that offers a database of companies and entrepreneurs and helps SMEs in their commercial transactions. Finally, he also emphasized business meetings, when physically permitted, to publicize the Export Support Program and identify existing opportunities.
Panama's trade opportunities with the EU
The director of the Center for Studies for Central American Integration, Eduardo Espinoza, focused his intervention on three central axes: international markets and the global economic situation, Panama's trade relations with the EU and possible post-Covid scenarios in the European market. Regarding the first point, Espinoza explained that international trade and industrial activity before the crisis were already experiencing an international slowdown, generated, in large part, by the weakness of business confidence and the contraction in demand for China with an impact on many markets. According to the International Monetary Fund (IMF), a fall in world GDP of 3% is expected in 2020 and then a certain recovery is expected.
Likewise, the director of the CEIE reported the high spread of Covid in the G7 countries, which are essential actors in global value chains. Contagion through the supply chain, he explained, could limit access to inputs and highly industrialized countries and suppliers would make their prices more expensive for countries that depend on these goods. "It could give an impulse of repatriation of the value chains to their place of origin, but personally I think that a process of regionalization will be observed," he stressed. In this sense, he considered that electronic commerce will gain preponderance and will be a key element to overcome the crisis.
Regarding trade relations between Panama and the EU, Espinoza highlighted the importance of trade in services, since the tertiary sector represents 68% in Panama and around 77% in the European Union. In addition, he pointed out that almost 29% of Panamanian exports go to the EU, of which 87% are food and beverages. Regarding imports, Espinoza indicated that they are more diversified and focus on capital goods, industrial supplies or transport goods, among others.
Regarding the European market, 65% of its imports are manufactures, while 22% are concentrated in fuels. The clustersAccording to Espinoza, it is where there is greater productivity, more than the industrial companies that are not established in them. On the other hand, the emerging industries of the EU are expected to be the creative and experience industries, which are the ones that have hired the most labor in recent years. The European market is also beginning to target the orange economy and there is potential in the blue economy for countries with maritime resources.
By way of conclusion, Espinoza highlighted a favorable situation in the event of a reshoring of global value chains, thanks to a structure of trade agreements that ensure adequate access conditions. Likewise, he considered that an intelligent specialization that takes into account the emerging sectors is required, since they will be the "drivers from the future". Lastly, he spoke of a new paradigm for doing business, which contemplates transforming traditional schemes and using tools such as electronic commerce.
Central American Business Network and Virtual Business Wheels
The head of the Department of Knowledge Management and Commercial Promotion of the CEIE, Luis Sánchez, presented the Central American Business Network and the Virtual Business Wheels, whose project was launched in October 2019 and its business directory already consists of 14,862 companies, thanks to alliances with the regional private sector. So far, he reported, 10 business rounds have been held and more than 2,100 business meetings have been facilitated. Sánchez stressed that this system is very useful for companies, especially MSMEs, since it has helped them develop business and achieve international contacts through this service. The virtual format requires prior registration and indicated that the number of business rounds has increased due to the crisis, since it allows maintaining contact between companies and with it, trade between countries.
Closure
The CEO of International CEOE and permanent secretary of the Council of Ibero-American Entrepreneurs (CEIB), Narciso Casado, emphasized during the closing of the seminar on the permanent and unconditional support of CEOE in promoting business between Panama and the EU. In this sense, he mentioned the collaboration protocol between the CEOE and ProPanamá that was signed on November 25, as it represents a good example of the commitment we have on both sides of the Atlantic to continue developing our relationships both nationally and regionally , supporting each other and highlighting the competitive advantages of both countries as a gateway to Europe and Latin America. In fact, the protocol aims to intensify and promote bilateral relations, as well as to promote technological and industrial cooperation.
Casado also focused on the importance of information in the current context, since it represents the natural antidote to the “great isolation” that we face. For this reason, he indicated, the Central American Business Network represents a tool that combines information interconnection, digitization and region in one place. Three aspects, he added, that are decisive in a highly competitive environment worldwide and that will facilitate the identification of business opportunities, market access, statistics, regulations or business directories.
Casado stressed that Panama is much more than a canal, it is the most dynamic economy in Latin America and, despite its size, it has experienced significant growth in the last decade, with an average rate of 7%, the highest in the entire Region . One of the most valued factors in Panama, he assured, is its excellent geographical position, since it represents the quintessential "commercial and logistics hub" of Latin America. In addition, he stressed, the Central American country has not only limited itself to taking advantage of its position to connect the world at the maritime and airport level, but has also made significant efforts in the field of innovation and digitization. "The laying of 7 fiber optic cables in which Spanish companies have invested is an example of the level of trust and the degree of commitment existing between our countries," he pointed out.
Digitization and public-private partnerships
The CEO of CEOE Internacional assured that technologies have proven to play a fundamental role in the identification, prediction and monitoring of the virus, as well as in the implementation of telework, which will become the new norm after the crisis. The pandemic, he explained, has exponentially accelerated the digital transformation of companies and workers, joining us in a permanent master's degree in training, surely the largest in history. "All this will undoubtedly result in greater productivity, better quality of life and in favor of the environment," he stressed.
For this reason, stressed Casado, the private sector and governments need to work together, promoting public-private collaboration and guaranteeing access to the infrastructure necessary for digitization throughout the world and in the rest of the needs that arise. of the response to the COVID-19 pandemic, such as agility in the distribution of aid to the most vulnerable people and sectors. "For a global crisis requires a global response," he insisted.
Role of business organizations
The also permanent secretary of CEIB highlighted that business organizations will be decisive as a social agent, as well as to act as an interlocutor between companies and the State in the current context. In fact, he stressed, the business sector has understood that COVID-19 is a social crisis, which not only concerns governments but all companies globally, which have collaborated to provide medical equipment, transform their capabilities. productive and, ultimately, create important partnerships and collaborations with each other to combat the pandemic. Another positive aspect of this crisis, he added, is that the need for companies to adopt business models focused on a strategy has become evident "multistakeholder”In the long term, taking into account all stakeholders (society, workers, shareholders, the environment, etc.) in their decision-making.
Post Covid scenario and growth forecasts
Among the main challenges after the pandemic, the CEO of CEOE International highlighted the need to ensure the continuity of supply chains, face export restrictions, guarantee the safety and health of its employees and maintain the operation of information systems. In the social sphere, Casado reported that great changes are expected in social interactions, cultural and behavioral transformations. Society will become more aware of the importance of effective leadership and governance systems.
On the other hand, Casado said that the foreign sector will be one of the main engines of the economic recovery, since the crisis will boost the diversification and internationalization of companies. Competition in the coming months, he stressed, will be largely determined by the financing capacity of companies, and that, in turn, will depend on the risks they are willing to take. To do this, "we are fighting from CEOE and BusinessEurope so that, both nationally and multilaterally, the instruments to support exports and investment are endowed with greater funds and that they are more flexible in assuming risks," he said.
In short, the CEO of CEOE International considered that the crisis generated by COVID-19 represents an opportunity to learn and assured that society will generate a greater sense of community through connectivity on-line. "Crises are often followed by deep, permanent and multidimensional social and economic changes, but we have to put all our efforts to make these changes for the better," he concluded.