business

Export industry competes for grant

la prensa

export republic: The Panamanian Association of Exporters awaits word on their request for a $1.5 million grant from EuropeAid, which hopes to strengthen the export sector in Latin American countries.1117913

Panama could receive a $1.5 million portion of the EuropeAid stimulus fund aimed at supporting exporters in Central America, Mexico and Cuba. That sum is currently under review by the European Commission, which is responsible for overseeing distribution of the $17 million grant.

Organizers of Al-Invest IV 2008-2013 explained that the main objective of the donation is to help small businesses throughout Latin America go global with their products.

Before handing over the grant money, EuropeAid officials perform a “thorough analysis and series of consultations” and will subject winning countries to rigorous monitoring to ensure that the funds will be spent “responsibly and effectively.”

The Panamanian Association of Exporters applied for the $1.5 million as part of its plan to boost exports. If granted, the money will be paid in quarterly allotments over a four-year period.

Association President Máximo Gallardo commented that, as a condition of the agreement, exporters will have to match 30 percent of the total monies invested in the country.

Lourdes Pérez, legal advisor for the association, confirmed that their plan focuses on promoting enterprises within the agriculture industrial, manufacturing, traditional crafts and tourism sectors. She added that the association’s proposal included a comprehensive and diagnostic analysis of the country’s current export status, with strategic plans for improvement, training, consultancy and technical visits.

According to statistics from the Department of General Accounting, the country’s exports totaled $721.5 million during the first half of the year.

Trade with countries within the European Union accounted for some 38.3 percent of that total, consisting chiefly of bananas, melon and other agricultural products. Commercial relations with the United States made up another 34 percent.

A report by the Ministry of Trade and Industry indicated that though “America remains the country’s number one trading partner,” the European Union proved the leading importer of Panamanian goods during the first half of this year due to the export of non-traditional products.

Gallardo suggested that the export sector’s principal weakness is the average Panamanian’s lack of “export mentality,” a situation he attributed to the country’s traditional role providing services rather than goods.