Panama

Panama and the UK have shared diplomatic ties since 1908. The US brought the highest amount of foreign direct investment (FDI) into Panama in 2018, with the UK coming in eighth position in the FDI stakes. The 2015 FDI figures saw the UK in fourth spot after the US, Colombia and Switzerland (with a total of 6% of FDI into Panama).

In order to maximise the potential of more than 15 commercial treaties that have been signed by the Republic of Panama, the country's Ministry of Trade and Industry has recently created a special office within the ministry called the 'commercial intelligence unit' (INTELCOM). This unit will provide knowledge to Panamania-based companies, including on what products the main commercial partners of the country are importing, who their main suppliers are, and details of opportunities that national products have under the commercial treaties. The main objective of INTELCOM will be to gather commercial intelligence relating to foreign trade, in order to efficiently reorientate Panama's productive strategies and decision making, in actions to support export development. INTELCOM will also develop business intelligence through different tools such as market research and interviews with local exporters and Panama's embassies and consulates throughout the world. This valuable information will be processed, analysed, interpreted and disseminated, in order to take advantage of business opportunities that have been identified and may be developed in Panama. INTELCOM will also oversee the strengthening of technology transfer related to the production and commercialisation permitted under the commercial treaties, in order to increase the productivity and competition of the private sector in Panama.

New laws in key offshore jurisdictions came into force at the beginning of 2019 which require entities engaging in specific types of business to demonstrate adequate economic substance in that jurisdiction. Failure to comply with substance requirements could lead to grave consequences, such as incurring significant fines or being struck off by local registries.