has a Free Trade Agreement with
the US and it also has an agreement
with OPIC (Overseas Private Investment Corporation) that guarantees
US investments in Panama. Panama’s
currency is the US dollar, so that
makes it attractive for business and
tourism. It is the country with the
highest economic growth in Latin
America for the last 10 years. The
Canal, which was expanded at a cost
of $5.5 Billions, doubled its capacity.
Last year 341 million tons of cargo
transited the canal which comprises
6% of the world’s seaborne trade.
The United States is the number one
trading partner of Panama and the
five top users of the Canal are the
United States, China, Chile, Japan
and Peru. The expansion of the canal, with bigger ships carrying two or
three times more cargo, is lowering
transportatio n costs, making products more competitive. In the case
of Texas it has opened up markets for
liquid natural gas (LNG). Cheniere,
at Sabine Pass, is already exporting
through the Canal and the change in
legislation will encourage more U.S.
exports. The United States can now
be competitive in LNG, LPG, resins
and other exports which is a huge
development for Texas, the US, and
Panama.
Panama treats foreign investors as
if they were Panamanians. The investments are respected and this has
been a very important factor in attracting foreign investment. Last year
Panama received 45% of all foreign
investment in the Central American
Isthmus.
Melissa: How has the Panama
Canal expansion affected the
people of Panama?
Ambassador Sosa: You have
to remember that it has only been
16 years since Panama assumed full
control of the administration of the
36 iF Magazine | NOVEMBER 2016
Panama Canal. The Canal is well
managed and is a source of pride for
Panamanians. This pride stems from
having 99% of the employees of the
canal being Panamanians. Today the
canal is the engine of growth for
Panama, but it wasn’t always this way.
Before the canal was turned over to
Panama the US looked at it more as
a military asset but for Panama it is
the engine of growth. Panama has
been able to surround the canal with
economic clusters, creating jobs and
promoting growth. In addition the
canal is the number one tourist attraction of Panama.
Melissa: What do you see for
Panama moving forward?
Ambassador Sosa: I want you to
look at this. The first train that passed
through the streets of Houston was
in 1856. In 1856 Panama inaugurated its railroad between the Pacific
and the Atlantic. That was the first
transoceanic railroad in the world.
in 1903. In addition both have the
same entrepreneurial spirit.
Melissa: Do you have any events
coming up in the near future to
encourage business in Panama?
Ambassador Sosa: Recently we
organized a trade mission to Panama
In 1902 when President Theodore with thirty-two public and private
Roosevelt signed the directive to ne- sector leaders. There is an event comgotiate the Panama Canal Treaty, that ing up this month. It is the initiative
same year he signed an agreement to of bi-national business organizations
invest in creating the Houston Ship and the consulates of Latin AmeriChannel. In 1904 the canal and the ca. It is hosted by the US-Mexico
Ship Chanel started construction and Chamber of Commerce, the Colomboth were inaugurated in 1914. Co- bia Texas Chamber of Commerce and
incidence? I call it fate. Today we see US-Panama Business Council. These
a promising future and the strategic three organizations have teamed up
partnerships that exist as well as the with the Greater Houston Partnerrole that the canal is playing for Texas’ ship, University of Houston, and the
exports and establishing Texas as the Houston First Corporation to create
gateway to the central region of the the “Houston Gateway to the AmerUnited States to me is destiny!
icas” Conference & Expo. They will
be holding this event again this year.
There is another point of interest. The concept is to elevate the visThe flags of Texas and Panama have ibility of Houston and Texas in Latin
red, white and blue and both have America and vice versa. This year we
stars. Texas has one star symbolizing continue to strengthen the concept
a new republic. Panama has two stars of Texas being the natural partner of
symbolizing the conservative and Latin America in the United States.
the liberal party coming together af- It will be taking place on October
ter a civil war to forge a new nation 24th through the 26th.