Why Panama

Panama is one of the most strategically advantageous hubs in the world for manufacturers looking to penetrate the Americas. Its geographic position—anchored between North and South America and home to the Panama Canal—creates unmatched connectivity for both Atlantic and Pacific trade routes. Manufacturers operating from Panama gain access to world-class ports, the Colon Free Zone (the second largest free trade zone on earth), efficient air cargo links via Copa Airlines’ Hub of the Americas, and a tax-free warehousing environment that dramatically reduces landed costs. This central location allows companies to reach buyers in the U.S., Mexico, Central America, the Caribbean, and South America faster, with lower freight expenses and the ability to consolidate or break bulk shipments efficiently.

Beyond logistics, Panama offers an exceptionally business-friendly ecosystem that includes favorable tax incentives, flexible corporate structures, dollarized currency, and one of the strongest banking sectors in Latin America. Operating in the Colon Free Zone or under Panama’s special economic regimes allows manufacturers to avoid import duties, repatriate profits freely, and maintain simplified customs procedures. The country’s stable regulatory environment, bilateral trade agreements, and open-door foreign investment policies make it easy for global brands to establish regional headquarters, manage payments, and conduct cross-border transactions with confidence. Together, these regulatory, financial, and logistical advantages position Panama as the ideal central hub for manufacturers seeking to expand across the Americas