Panama Turns to Mexican Investors to Pour Money into the Canal Zone, Surrounding Areas

Panama has officially invited Mexican investors and developers to join an enhancement project of the Canal Zone and its surrounding areas, including the cleanup of former shooting fields used by the U.S. military in the past.

Panamanian Ambassador to Mexico, Ricardo Aleman, and Julio Ross, manager of the Inter-Oceanic Region Authority (ARI for the Spanish acronym) discussed in Mexico City the possibilities of investing in seaport works, tourism, industrial development, trade and housing projects.

The governments of both nations inked an investment protection agreement in an effort to wipe out Panama’s double taxation policy and create new tax incentives in the country with a view to provide a judicial safety net for businesspeople.

The accord will be officially signed in September during Panamanian President Martin Torrijos’ visit to Mexico City. The plan also targets the development of 7,000 hectares of vacant lots located in the Canal Zone’s surrounding areas that remained under U.S. jurisdiction for 85 years.

At an initial price tag of $6 billion, the expansion plan includes the building of seven seaport facilities and hotel compounds, among other projects.