Q How relevant is the Panama Canal to U.S. commerce?
A It is our understanding that 15 percent of all U.S. trade passes through the canal each year. About 70
percent of all cargo and 56 percent of all vessels transiting
the canal have a U.S. origin or destination.
Q How did your group get started, and what is its objective?
A We were created in 2008 as a nonprofit entity to connect the hemispheres. Our main objective is to
educate private enterprises and public
institutions in awareness, marketing, and
promotional positioning, and to facilitate
emerging business opportunities between
the United States and Panama and how
they relate to the rest of Latin America.
We launched as the United States
Panama Business Council, Southeast, Inc.
with a focus on the Southeast region of
the U.S. In 2012, we changed our name
to the Panama Gateway International
Association Inc. to expand the group’s
mission to be the “go-to” business education forum. We are headquartered in
Atlanta, and our board members are
spread out across the country.
We are involved in the U.S. National
Export Initiative, the Advisory Committee on Supply Chain
Competitiveness, and the U.S.-Panama Trade Promotion
Agreement. Our work also involves the expansion of the
canal and Panama’s goal of becoming Latin America’s most
visible product distribution hub.
We also act as a liaison between industry and government, which is an important step toward ensuring regular
contact with manufacturers, distributors, and exporters.
Q Much of the discussion in the U.S. has centered on how the canal may alter shipping and distribution
patterns as megaships will be able to sail directly to the East
Coast instead of docking at Los Angeles/Long Beach. Do
you think that’s an overstated case?
A The new canal has forced all importers, exporters, logistics centers, shippers, distributors, and manufacturers to evaluate their current condition and consider
options for improved efficiency going forward.
Q What have you heard from U.S. importers as it relates to their changing their distribution networks once the
canal is operational?
A The good news is that importers and exporters are in expansion mode, and we would like to think this is
amplified by the expansion of the canal.
Q Do you think U.S. interests have been too U.S.-centric in the debate over the canal and have lost sight of
what the canal is ultimately designed to do for Panama?
A U.S. interest is equal to every other country’s interest in determining
how the expansion will impact their economic growth. It boils down to competitive positioning to reach new global markets. The U.S. and Panama have gone to
great lengths to cooperate, as evidenced
by a comprehensive bilateral free trade
agreement signed in 2011. The agreement
should significantly liberalize trade in
goods and services. A secondary benefit
is commercial opportunities with other
countries that already have free trade
agreements with the United States.
Q Whatistheviewamong Panamanian officials of the canal’s value to the
country and to the world?
A The main purpose of the canal expansion program is to increase Panama’s ability to benefit from growing
traffic demand. This growing demand is manifested both
in cargo volume increases as well as in an increase in the
size of vessels that will use the Panama route. Our role is
to expand on the existing memoranda of understanding
between the Panama Canal Authority and U.S. ports to
expand export/import opportunities through the knowledge of each other’s capabilities.
Q What advice would you give U.S. business interests as they weigh whether the canal reshapes trade and
transport flows on multiple continents?
A The expanded canal will and already has reshaped trade and transit flows. The question is how do
companies adjust to the new reality. Part of that answer is
having a broad knowledge base of the opportunities and a
deep network of specialists through which to ask strategic
questions.
