Panama and the United States have a long history of economic cooperation. A broad array of multinational companies in Panama do business in the US. You’ll also find strong and growing business connections between Panama and Texas. Much of this is due to Texas’s economic strength and the similarities between their business communities.

In a state-by-state comparison, Texas trails only California for the state with the highest GDP in the U.S. at $2.56 trillion. That would make Texas’s economy the eighth largest in the world, outpacing nations like Canada, Russia, and Italy. Texas also boasts more than 10% of Fortune 500 companies, 52 to be exact, making their headquarters within the state. The state’s economy has outpaced even the US economy recently, growing faster for the last six consecutive quarters.

That kind of economic power gets noticed. As a result, Panama discovered the value of doing business with Texas. Panama has many multinational companies, and the country is working hard to create a business alliance with Texas. The Panama-Texas Triangle is an effort between the US-Panama Business Council (USPA), a syndicate of Panamanian and US businesses, and PROPANAMA. This mission aims to promote trade, economic development, and an alliance between Panama and Texas.

Multinational Companies in Panama: Forming Strong Bonds With Texas

Existing Connections Between Panama and Texas

There are already several factors that provide synergy between the two destinations. The Port of Houston is one of the largest ports in the world. It handles more waterborne tonnage than any other port in the United States. The Port of Houston and Panama Canal already have historical links. That’s why it makes natural sense that Texas would be Panama’s number one trade partner from the United States. The port also has a Latin American office in Panama City. Travel between Texas and Panama is also increasing. The trade mission also highlights the connection between Bush International Airport in Houston and Tocumen International Airport in Panama City. Nonstop flights from Austin to Panama City have also recently started. All this leads to strong connections between Texas and Panama.

Strong Business Ties

Several multinational companies in Panama base their operations and headquarters in Texas. Halliburton, Dell Technologies, and United Airlines are just a few of the Texas-based companies with offices in Panama. Panama has long been a hotspot for multinational corporations to set up international or regional headquarters for Latin America. That is due to the business-friendly environment Panama’s government has created. Panama’s burgeoning expat community also makes it easier for multinational corporations in Panama to attract employees to live there.

Multinational Companies in Panama Building New Connections

Texas is one of the more pro-business states in the U.S. As both promote business growth, it makes sense that a relationship between Texas and Panama would come to fruition. The Panama-Texas Triangle is the latest effort to strengthen their ties with official trade agreements. The most recent 2023 Panama Texas Business Summit (PTBS) was in Panama City. It will be in San Antonio in 2024. The PTBS is a private initiative set up with the support of the Panamanian government and the State of Texas. It focuses on nine economic sectors. This conference covers tourism, banking, agriculture, technology, construction, coffee, the food industry, ports and maritime services, and real estate. It focuses on how cooperation between Texas and Panama could maximize the economic impact for both places in these sectors. The Panama-Texas Triangle takes these ideas, creates an alliance, and creates synergies within many of those economic sectors.

The Importance of This Economic Alliance

Both places are pro-business and are home to many Fortune 500 companies. Several of these companies are headquartered in Texas and have bases of operations in Panama. Recognizing this, Texas and Panama understand the synergistic opportunities that naturally present themselves in such a climate. Another factor is that Panama uses the US dollar as its currency. That makes Panama a strong draw for companies across the United States, not just Texas. There is no need to worry about exchange rates when doing business in Panama. The U.S. dollar goes much farther in Panama than anywhere in the U.S.

Panama also has many other built-in advantages that make it a desirable place for companies from Texas to invest. Multinational companies in Panama enjoy the political stability that Panama’s government provides. Panama is an international financial center for banking and insurance, allowing for 100% foreign ownership of companies doing business there. It has a strategic geographical location, making it particularly attractive to Texas. Panama’s location makes shipping and transportation to and from Panama relatively straightforward. There is abundant office space and residential living space for international workers.

A Great Environment for International Professionals

It’s also easy to get work requirements and appropriate visas in Panama. The Ministry of Commerce and Industry is the only office you need to set up an MHQ License and visas for foreign employees and their families. Panama also has favorable tax laws and exemptions, incentivizing foreign investment.

One group of workers doing exceptionally well in Panama, whether from Texas or anywhere else, are digital nomads. Those tech workers who can work from anywhere use Panama’s easy immigration laws to flock to the country in droves. Their money goes further, and many of them can afford luxury living in Panama that they could not afford stateside. Current homes for sale in Panama have the latest and greatest connectivity. Panama has also positioned itself as the leader in technology in Latin America.

A Mutually Beneficial Partnership

Pedro Arias de Ávila, Panama City’s mayor, wants to turn Panama City into a technology hub. As recently as 2021, Panamanian President Laurentino Cortizo traveled to Texas to tout it as Panama’s number one trading partner. Since then, both sides have worked hard to strengthen that bond through initiatives like the Panama-Texas Triangle and the PTBS.

Texas is a valuable partner for Panama due to the abundance of Fortune 500 companies headquartered there. The relative geographic proximity and the number of deep-water ports make Texas the most accessible state to Panama. These include Port Arthur, Port of Beaumont, Port of Brownsville, Port of Corpus Christi, Port of Freeport, and Port of Houston.

Texas has a wide range of companies from various sectors that do business in the state. It includes everything from technology and energy to agriculture and transportation. Panama’s economy is primarily service-based. Many Texas companies provide valuable services and equipment to keep Panama’s economy moving forward and strong. There is already plenty of synergy between what Texas and Panama can provide for each other. An official economic relationship between them promises to be mutually beneficial while increasing these connections.

There are other reasons why companies from Texas will find it beneficial to do business in Panama. With so many multinational companies in Panama, there is already a strong business community. The real estate sector in Panama is conducive to professionals and digital nomads wanting to live and work in Panama. Panama real estate is also an excellent place for companies and individuals to invest. There are always plenty of homes for sale in Panama. It is also an outstanding and attractive place for expats to live. Neighborhoods like Costa del Este, San Francisco, and Casco Viejo provide luxury real estate in Panama. Many luxury neighborhoods also have proximity to almost all the business centers in the city. Panama is a welcoming nation, and the existing expat population makes assimilating into Panamanian culture easier for newcomers.

Multinational Companies in Panama Have Strong International Relationships

Panama and Texas have worked for several years to forge a strong relationship that benefits both parties. Both places have expanding economies and governments that are conducive to pro-business environments. This growing relationship has already created an economic boon for both areas, with significant potential for even greater economic success. The Panama-Texas Triangle and the PTBS are examples of the mutual benefit of economic partnership between states and other countries. Working together, Panama and Texas can each achieve economic heights that would have been difficult to achieve alone.

Real Estate Opportunities in Panama

There are many real estate opportunities in Panama for a wide variety of buyers. Click here if you’re looking for luxury real estate in Panama. We have our finger on the market’s pulse and would love to assist you in finding your Panama dream home.

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