Speeches 2005

March 17, 2005

Ambassador Watt Remarks at the Real Estate Conference, Miramar Intercontinental Hotel

Those of you who know me already know that I have dubbed myself Panama’s number one tourist.

I have a deep affection for this country and have made it my goal to get to know every province. I have traveled from the highlands to the lowlands, from the jungle to the plains, from Atlantic to Pacific, from the Darien (seven times) to Bocas del Toro.

So, I feel that I can speak to you this morning with some authority about Panama’s potential.

In my view, Panama is poised to take off as a country for real estate investment by foreigners, especially my countrymen and women, who are seeking a comfortable, affordable place to retire or to establish a second home. Of course, real estate in Panama is like anywhere else and buyers need to exercise due diligence. But with good planning and good local counsel, you will find Panamanian real estate to be an excellent option.

The real estate market is part of a larger good-news story of U.S. investment in Panama and a commercial and trading relationship that is growing closer all the time. Negotiations for a free trade agreement between our two countries continue, leading toward what I think will be a boon for U.S. investment in Panama. As an aside, let me urge my Panamanian colleagues here today to get out in support of the FTA, which I am convinced will lead to improved well being for all Panamanians, consumers and producers alike.
Our commercial ties are part of a larger bilateral political and economic relationship that is growing broader and deeper at the same time. Panama and the United States have always had a close, and sometimes tumultuous, relationship throughout our 100 years of shared history. Since the 1999 transfer of the Canal and the land surrounding it, we have entered a grand new era in our bilateral relationship. This new era is built on the foundation of clear, shared mutual interests and shared commitments to democratic government and economic liberalism. We also agree strongly on the need for vigilance in regional and maritime security and our governments work closely together on law enforcement issues.

These shared values are not new, but in the government of President Martin Torrijos, they have found renewed focus and a rededication to pursue our common goals and objectives. The United States believes it has found a true partner in the present government and we look forward to many years of positive cooperation.

The Torrijos administration is pro-business and pro-investment. The free trade agreement now under negotiation is one step toward an even better investment climate. The ministry of commerce is advancing on plans to make business registration easier via “one-stop shopping.” But the government is not only working on the easy stuff. President Torrijos has taken on the difficult task of fiscal reform and improved tax collection. Social security reform is now on the agenda—as difficult a task here as in the United States. He and his team are committed to improving the business climate because they see investment and increased commercial activity as the key to Panama’s success, economically and in social policy. An important public discussion is underway regarding the need to modernize and clean up the justice system. Progress in that area will go a long way toward making Panama the regional business and investment center of choice that it deserves to be.
U.S. citizens who choose to purchase residential real estate in Panama are part of increasing U.S. direct investment in Panama. These retirees, besides investing in real estate, will make purchases on the local economy and will hire local people for skilled and semi-skilled labor. Some might even start small businesses and create even more employment. Many contribute to their communities as volunteers teaching English, improving libraries, and beautifying neighborhoods and public areas. We even have U.S. embassy officials here in Panama “voting with their feet” and deciding to retire here – joining forces with their fellow citizens to enjoy Panama’s quality of life.

In the interest of full disclosure, let me say that there have been a few bad apples and scam artists trying to make a fortune selling real estate they don’t own – or that doesn’t even exist. It’s important to deal with reputable people here as anywhere.

As with the tourism industry, the way to improve Panama’s attractiveness in residential real estate is through concentrated and coordinated marketing. There is no other option. I hope all Panamanians will get together and tell Panama’s story of the incomparable confluence of natural beauty, dynamic business and government and inviting culture, so that many will come to know Panama. I know that many tourists want Panama to remain their own secret, and I understand that desire. But Panama does not want to remain a secret. Marketing is the only way. Given the large and diverse market in the United States appealing to the growing population of retirees, Panama’s best option is to create a strong brand that will attract investment.

Meetings like this and the daylong seminar that the National Association of Realtors just offered on e-buying are key to the expansion and success of the real estate market.

I am bullish on Panama and think the country has much to offer a U.S. citizen looking for a place to retire. Let me join, then, the choir here that is encouraging investment in the real estate market, especially residential real estate. Panama has much to offer: modern infrastructure, an agreeable climate, peace and tranquility, natural beauty and, its biggest selling point, the people of Panama.

Bienvenidos to Panama. Thank you.