India-Panama relations are deep-rooted, dating back to the middle of the 19th century. In fact, it was the first country in Central America where India established a resident mission. In a freewheeling interaction with The Dollar Business, Dr. Gilberto Llerena García, Ambassador of Panama to India, reasons why he sees India as a natural ally when it comes to trade and development.

Interview by Ahmad Shariq Khan | April 2016 Issue | The Dollar Business

TDB: Panama was the first country in Central America where India established a resident mission. How do you see this long-held association gaining momentum in the times to come?

Dr. Gilberto Llerena García (GLG): It is important for our country that today we have an Asian ally as important as India. Being one of the fastest growing and sustainable economies, it makes it imperative for our country to widen our cultural, economic, and commercial relations and remain associated with this growing major economy. One of the factors that will work toward achieving this closeness and strengthening of bilateral ties is that both countries believe in similar principles and a democratic style of life, and have a common objective – which is to improve the quality of life of its citizens. Panama also offers India and the world, the Panama Canal, which is currently undergoing a massive expansion programme, one of the most important waterways in the world for trade that allows countries in the east a quick and rapid communication channel with the west. It is only timely that Panama and India should draw closer ties. At the dawn of the 21st century, distances are far less of an obstacle to strengthening bilateral links than they were even a few decades ago. With an expanding middle class, diminished travel costs, and readily available information, all is in place for tourism and business to grow multi-fold between the two countries.

TDB: What key areas or sectors would you like to see India using its expertise in Panama for the mutual benefit of both the countries?

GLG: As Indian industry continues its expansion into newer markets, Panama is its logical next in Latin America. Given its geographical location, Panama can prove to be an ideal global logistics base for Indian companies. Studies carried out by the Panama Canal Authority suggest that the Canal, ports located at the Canal’s Atlantic and Pacific outlets, and the free zone, will continue to predominate the trade in the region in the near future. When it comes to investments, there is a lot of scope for further development in infrastructure and manufacturing sectors – expansion of Tocumen Airport Terminal, increasing the capacity and efficiency of existing container terminals, addition of two new container terminals on the bank of the Canal, setting up refineries, pipelines, shipbuilding, etc., are several projects where Indian companies can participate. Science and technology is another area where India can help Panama in a big way.

Further, Panama’s evolution as a trans-shipment centre means there is an ever-growing demand for quality education, training, and capacity-building, and we can definitely draw lessons from India’s knowledge-based economy.

TDB: Of late, representatives of several export promotion councils from India have visited Panama. Also, hundreds of Indian companies participated in the ‘Made-in-India’ exhibition held at Expocomer in Panama City. How do you view this?

GLG: For Indian companies, Expocomer in Panama City is an ideal place to know the line of products at the local and regional level, to present new products to the market, evaluate competencies, obtain representation of their products in Panama and use the Colón Free Trade Zone as the link for importing, storing, assembling, repacking, and re-exporting products, with a view to commercialise a product in the Caribbean, Central America and South America. In fact, theses are the reason why participation of Indian companies in Expocomer has only increased over the last few years.

No doubt, India’s technological boom, its prodigious curve towards economic growth, its demographic advantage, and its low-cost highly qualified human resource are reasons for Panama to consider India above other countries. But then, at the same time, Indian companies can benefit from the country’s locational advantage and from the progress Panama has made in light manufacturing.

TDB: India remains a staunch proponent of South-South Cooperation, which also constitutes a fundamental pillar of its foreign policy. What role, according to you, has the Indian Technical and Economic Cooperation (ITEC) programme played in enhancing the said cooperation, particularly when it comes to Indo-Panama trade relations?

GLG: South-South Cooperation can be defined as exchange of experience and resources between countries that have common development goals. It is based on criteria such as solidarity, equity, efficacy, mutual interests and sustainability. In this sense, India has definitely made an important contribution to the Republic of Panama through its policy of international cooperation and through Indian Technical and Economic Cooperation (ITEC) programme.

Under the programme, India provides the technical know-how and expertise as well as training opportunities, consultancy services and feasibility studies to Panamanian citizens and companies, both in Panama and in India. The programme not only complements our government’s efforts to promote an efficient economic and social climate in our country, but also offers innovative partnerships for mutual benefit.

TDB: How do you see Indian government’s ‘Make in India’ programme?

GLG: Panama praises the ‘Make in India’ initiative as one that takes full advantage of all that India has to offer, particularly its talented human resources pool. At the same time, as bilateral ties strengthen and companies from both countries become acquainted with each other’s markets, joint investment opportunities will emerge. However, I do have to admit that both governments must play an active role, based on political will, to facilitate trade and investment between them.

TDB: Panama’s geographical location makes it the gateway to many Latin American markets. It also enjoys many FTAs. How do you visualise Indian investments into Panama in future?

GLG: Panama’s strategic location at the center of the western hemisphere and its open economy as signalled by its myriad free trade agreements, make it an ideal springboard for Indian companies looking at global growth. From here, they have easy connectivity to the rest of the region. The multimodal complex of Panama Canal; the Tocumen International Airport-COPA Hub; the Financial International Centre FIC; the Colon Free Zone; the Logistics International Center; the Container Seaports – are infrastructure available to further expand international trade, particularly with countries from Asia, such as India.

TDB: Tourism is one area which has reaped good profits for both countries. Please tell us about your recent endeavours to strengthen this segment.

GLG: Panama’s tourism industry has enormous potential, particularly given the country’s geostrategic and historical position as a connection hub. Until recently, inside as well as out of Panama, the general perception was that the Panama City is all about Panama Canal. However, today, thanks to our government’s constant efforts to promote tourism, Panama is known as the melting pot of cultures, and as a result tourists inflow into the country have increased significantly in the last few years.

The growth in tourism sector has encouraged the Panama Tourism Authority to develop a Master Plan for Sustainable Tourism Development, which aims at boosting visitors inflow, increasing the time period of the stay of visitors, and positioning tourism as a tool for sustainable development. In order to achieve these objectives, Panama is showcasing all its natural, cultural, and commercial attractions to the world. Even when it comes to business visitors, we are ideally located with our proximity to both North America and Latin America.