Question by kingkong: Do you think that an Import/Export business that will export products from Panama to the Caribbean work?
Do you think that an Import/Export business that will export products from Panama to the Caribbean Islands and possibly south America will be a good idea? It will be based in Panama and in 3 caribbean Islands and south america. Does it sound feasible?
Best answer:
Answer by Seryan
Yes. Using the Free Trade Zone in Colon, (the second largest in the world – after Hong Kong) you can drop ship in container sized shipments more efficiently and at less cost than any other port to other port cities in the Caribbean or South America.
(You might also consider shipping from Colon to Limon, Costa Rica’s only Caribbean Port. Costa Rica and Panama have just signed a free trade agreement.)
BUT…it does depend on what kind of goods you are selling and what the market is in each of the three islands that you wish to sell to. Will you be competitive? Do you have a product that they want?
Do you have sales reps in each island? Or a sales rep who will travel and sell. Nothing can happen until you have a sales order. And it takes shoe leather to get the order when you’re new.
After you get buy-sell relations started, and get return orders, you will have a stable business.
There are many of this type operating out of Colon, taking advantage of the location and the Free Trade aspect.
Good luck! It’s a good idea.
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1 Response
I think it will work if you’ve got a good source for goods and a good source for distribution with profitable margins.
The free zone is very political and can sometimes be extremely difficult to get started in. The waiting list just to get a space in the free zone is 2 – 3 years.
Technically, there is a law that makes the entirety of the city of Colon a part of the free zone and open to the same advantages. Only 2 streets have been legally included and without some external pressures, the rest won’t be until it’s in the politicians best interests (they make quite a bit of money not expanding).
However, there is a new entry in this market called the Panama International Merchandise Mart. They’re building it now and it will be much larger and nicer than the free zone.
Posted on January 23rd, 2011 at 10:10 am
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