Tropiland

Panama expects to build and operate an ethanol plant in three years, after it resumed an agreement with Brazil.

Juan Urriola, Energy Secretary, explained that in less than 60 days the Martinelli administration will make an announcement related to the construction of this plant.

The Ministry of Agricultural Development (MIDA), is negotiating with sugar cane growers to increase the number of available hectares to supply ethanol production.

The regions that produce the most sugar cane in Panama are Natá, Aguadulce, Alanje, Santiago, Santa Marta, Pesé and Ocú.

Even though alternative energy projects are well received due [...] Continue Reading…

Love it or hate it Venezuela is a major oil producing country who’s effect on global economy (given the fact that oil prices dictate all economic trends) is far reaching.
Social anger over power and water rationing, elections that may bolster opposition to President Hugo Chavez, new nationalizations, a floundering economy, and diplomatic tensions with neighbor Colombia are all risks to watch for in Venezuela this year.
More specifically, here are some major key risks out of Venezuela in the months to come:

Instability caused by street protests, particularly over an electricity and water crisis that looks set to get worse before [...] Continue Reading…

The Martinelli administration recently  announced that Panama’s Gross Domestic Product (GDP) grew by 2.4% in 2009 from 10.7% in 2008. Despite the huge decline, it is still an economic growth and, as such, it is commendable given the fact that it occurred in the midst of the infamous  global economic downturn.
Economic activities linked to external demand plummeted, due to their connection to world markets, but economic activities linked to domestic demand grew, and helped to offset the GDP contraction during 2009. Economic sectors linked to external markets that contracted were agricultural and seafood exports, [...] Continue Reading…

For most of us, paying taxes is only slightly more popular than a visit to the dentist. But somehow, despite all the wailing and gnashing of teeth, most of us manage to file our taxes on time every year. And with tax return season now fast approaching, most of us stragglers are putting aside our anxiety and filing our returns.
There are, however, some people who are dodging their obligations as taxpayers, and it’s not because they’re procrastinating. They may be motivated by greed, or by a sense of entitlement, or by a [...] Continue Reading…

A fundamental principle of the Canadian income tax system is that Canadian residents are obliged to report and pay tax on their worldwide income, including both domestic and foreign-source income. Therefore, the income of a resident of Canada that falls within the gambit of the Income Tax Act is subject to Canadian income tax regardless of the country in which the income is earned or generated. Many other countries also levy income taxes on worldwide income.
The main impetus for the requirement to report specified foreign property that exceeds $100,000 [...] Continue Reading…

It’s been well documented and debated that work safety policies and procedures in Panama are a joke. In most cases, they are not implemented and, if they are, they extend far enough to get employers off the hook. This dismal situation, especially in the so called booming construction sector (that’s another post by itself), was demonstrated in all its glory this week.
Construction claimed one more life, when a screen became detached and fell down on Iván Rosero, a worker on the  Bay Star project located in Avenue Balboa. In the same incident two other workers were also injured.
After the [...] Continue Reading…

Panama’ president, Ricardo Martinelli, made a surprising announcement yesterday in Colombia. He promised the creation and commencement of a new immigration program to legalize thousands of Colombians living and working illegally in Panama.
While he was receiving the keys of the city of Medellin, by its mayor Alonso Salazar, Martinelli said that the Panamanian government will shortly implement “a program of reintegration and  legalization of all the undocumented Colombians in Panama”.
“They are honest and hard-working, and many of them are not a part of the formal  Panamanian economy. Further more, they cannot cover their basic needs living secretly.” added president [...] Continue Reading…

A number of existing trade agreements, especially the Central America Free Trade Agreement (CAFTA) are a nightmare for importers and exporters alike.
I already posted on why CAFTA will be detrimental to Panama. let’s now examine why CAFTA is not what its name implies from the US point of view.
Importers are burdened with regulations that are restrictive and expensive to implement, while exporters can’t sell their goods in the United States unless they comply with the regulations and other stipulations.

Economists categorically state that there are no “truly free” free [...] Continue Reading…

It is no secret that Panama has become a “Made In China” Mecca. If you buy anything from a pin to a helicopter in Panama, chances are its coming from the land of Mao. That, of course, includes a lot of construction material like drywall.
I never thought I’d be writing about drywall, but there is a new and disturbing Consumer Product Safety Commission report that really made me re-think putting up drywall in my house in Panama.
The report called for the removal of all possible problem drywall, all fire safety alarm devices, all electronic components and wiring, [...] Continue Reading…

No matter how you slice and dice it there is not enough electrical energy in Panama to satisfy the growing demand. especially during a long and dry spell like the one Panama is going through this year due to El Nino.
Recognizing the problem, the Martinelli administration is moving in fast approving some $3,9 billion (!) for the execution and completion of  22 new power generation projects during the next four years.
These projects will generate approximately 1,061 Megawatts (MW). This is a much needed capacity increase since currently Panama’s power generation ability runs at approximately 1,208 MW, a number very [...] Continue Reading…

Gallup conducted a poll the day after the House voted, finding that the public supported the House’s vote by a 49%-40% margin. Health reform had become more popular, Gallup found, since its March 4-7 survey found 45% support/48% opposition.

In a poll released this past week, Gallup saw the bump disappear: 47% said Congress had done a “good thing” by passing health care, while 50% said it had done a “bad thing.”

That poll was conducted March 26-28, beginning five days after the House voted.

Democrats (81% “good thing”/15% “bad thing”) and Republicans [...] Continue Reading…

I’ve been hearing a lot of “blah, blah” lately about how the real estate market in Panama, and in Boquete in particular, is starting to come around and how the tides are changing and what not.
Well, to all those who inundate the web and media with “all-is-nice-and-rosy-in-Boquete” type of propaganda, I have news for you: if you build it, they will not come! Not in the middle of a recession still going and especially not from the US.

Between 2008 and 2009, the municipality of Boquete approved the construction of 34 residential complexes; 23 of the 34 are [...] Continue Reading…