speeches 2009

Ambassador Stephenson's Speech at the 2009 Annual Chamber Community Conference in Plantation, Florida

Remarks as prepared for delivery

August 9, 2009

Ambassador Barbara Stephenson

I am extremely delighted to be here this morning in my home state of Florida.  Tripp, thank you for your kind introduction.

As a child of Wildwood in Florida’s great Northwest, I have seen firsthand the benefits of sound economic development - and I see the promise of the work that is before us.

Known worldwide for its tourism industry, Florida offers so much more with its fascinating mix of tourism, agribusiness, high and low tech, as well as small and large companies.

I was just in Orlando where I met with business groups to talk about business opportunities in Panama for Florida companies.  I was genuinely pleased to visit a part of the region’s High Tech Corridor that has contributed to the area’s economic growth.

The phenomenal transformation of Florida is due in no small part to the endeavors and vision of all of you here today, businesspeople and economic development experts alike, along with your colleagues throughout the state.  Equally true, fulfilling a bright future will, in no small part, reflect the creativity, energy and commitment of this same remarkable assemble of dreamers and doers.

When we talk business and global trade we wisely focus on the profit margin and other tangible information that are taught to successful businessmen and women in our business schools or learned in the school of hard knocks.

We should not forget that when we talk about business and trade, we are also talking about something more than statistics; we are talking about jobs and the people who hold them – those individuals who work for you and who buy your wares and services; your neighbors.  In essence, we are talking about the economic health of our communities, our state and our nation.

U.S. companies expanding into overseas markets can be a positive contributor to building prosperity at home.  After all, the majority of the world’s customers lie beyond our shores.

Let me tell you something about Panama and some of the potential customers that can benefit your companies and your communities.

In the middle of a worldwide financial crisis, Panama has managed to show positive economic growth, and projections are for growth of two-three percent next year.  Panama is weathering this storm because it adopted good macro-economic policies over the last 10 years, and successive governments have taken steps to keep the country’s fiscal house in order.

Although modest in size and population, Panama has a penchant for U.S. goods and services.  You’ll see many U.S. brands in the stores and on the job, plus a wide variety of U.S. franchises operating successfully in Panama.

It is a market ripe for U.S. SMEs.  Let me give you two examples.  Ambient Technologies employs 40, and offers environmental, geotechnical, water resource, drilling and field-testing services.  The company has won several local contracts with local engineering companies.  The firm has done well in Panama, and is very active in other international markets.

Another success story is Polyguard Products, which specializes in mechanical and architectural products for the construction sector and has 80 employees.  In late 2007, Polyguard traveled to Panama to find a market for its products.  It has made significant business deals with Panamanian companies, and anticipates additional sales in the near future as it is preparing a strong sales campaign.

Another element that makes Panama an attractive place to do business is the well-run and profitable Panama Canal.   Nearly two-thirds of the vessels using the Canal are on their way to or from the U.S.  Annually the Panama Canal Authority purchases some $250 million in products and services for its routine canal operational requirements.  Certainly many of the supplies are sourced in Panama; however several U.S. firms have found opportunities for their products and services.

There is also the ongoing $5.25 billion Panama Canal expansion program.  The Panama Canal Authority recently awarded the design and construction of the new locks to a Spanish-led consortium.  We were disappointed that the American-led consortium did not win the bid, but we will continue to promote maximum content in the construction of the locks.  We will also continue to assist U.S. companies to explore opportunities for their materials, products and services ranging from equipment and machinery, construction materials and services to supporting engineering and other professional services.
If you add to the Canal operation;

-  the ports on the Atlantic and Pacific entrances of the Canal plus the Panama Canal Railroad;
-  the airport, with its frequent connections to Latin America;
-  the five internet pipelines, making Panama City one of the most connected cities in the world;
-  the regional banking and financial sector;
-  And the Colon Free Trade Zone

what you have is an efficient and competitive, world-class logistics hub that moves a large volume of people, goods, services and information daily and rapidly.

Let me say a few more words about the Colon Free Zone, the second largest free zone in the world.  The Colon Free Zone, located on the Atlantic entrance to the Panama Canal, is an effective platform for exporters to reach throughout Latin America and the Caribbean.  To give you a sense of scale the 2008 Colon Free Zone’s dollar turnover was $19 billion.  Florida exporters should take a serious look at the Colon Free Zone as a means to project their sales regionally.

While there are advantages to doing business in Panama, there are challenges as well.  Panama’s dispute resolution mechanism lacks capacity and at times, can lack transparency.  The country’s infrastructure lags behind its impressive growth causing urban congestion and strained municipal services.  The educational system is not producing the workforce the country needs to move up the development chain.

The previous and new Panamanian governments have engaged in actions indicating their serious attention to these challenges.  The current government is contemplating projects that could open opportunities for investment – building airports in the interior, expanded road networks, and an underground Metro.

I spoke at some length about Panama because expanding the commercial ties that bind Panama and the United States is an important goal of my Embassy.  The United States is Panama’s preferred trade partner and we want to keep it that way.

I want to assure you that the Embassy is doing all that we can to inform and support U.S. companies looking at business opportunities in Panama.

My Department of Commerce Commercial Section provides U.S. companies with business intelligence and counseling plus valuable contact information and assists U.S. firms who wish to talk with decision makers.

At the Embassy, we use a team approach, bringing together different agencies to protect and promote U.S. commercial interests.  This certainly includes the Department of State Economic Affairs and Consular Sections, along with Homeland Security, USAID and many others.  My goal is to deliver the information and assistance that U.S. firms require to evaluate and conduct business in Panama.

To help you to identify and evaluate global opportunities, I urge you to take full advantage of the tremendous resources available to you, many of which are represented here today: the U.S. Departments of Commerce and State, Enterprise Florida; the Chambers, the Economic Development Council and Florida’s Great Northwest.

Do not hesitate to talk with the experts who can assist you to evaluate opportunities in Panama, or other global markets as well.

Certainly, those in business have to be vigilant and creative to identify and evaluate opportunities.  In the end, businesses bear the risks and generate the economic activity.  However, the local, state and federal governments along with the business organizations have to assure that our services are calibrated and collaborative and that we deliver the sort of services that our businesses need to effectively compete in today’s global marketplace.

Our success in this endeavor has a direct relationship with opportunity and prosperity in our communities, our state and our nation.

Thank you.