For Florida, Panama Presents Promising Trade Prospects
March 29, 2014 
More than a century ago, when American engineers and builders were working to build a transoceanic waterway across the Isthmus of Panama, the challenges they faced went far beyond engineering. The workers had to build communities from the ground up to provide them and their families a place to live during construction. Many struggled to survive in an environment where the heat and humidity would rarely let up, and yellow fever and malaria were endemic. Those Americans would hardly recognize Panama today.
While it is still hot and humid in Panama, its capital city is a modern skyline full of skyscrapers and construction cranes. Much like South Florida, Panama City’s economy is centered around banking, commerce, and tourism. I have always considered Florida, or more specifically Miami, to be America’s international gateway to and the financial center of Latin America. But, after traveling to Panama in January, I recognize we have serious competition to retain this title.
On A Mission
I traveled to Panama for three reasons. First, with the expansion of the Panama Canal near completion, I wanted to learn about how Florida, including Florida agriculture, can benefit. Next, Panama is a growing market for fresh, high-quality produce, and there are significant opportunities for Florida agricultural products. Finally, we sought to collaborate with Panamanian officials on efforts to protect our agriculture industries from the threat of pests and disease.
The expansion of the Panama Canal is a game-changer in global trade logistics. The newly constructed, larger locks will enable post-Panamax ships, with more than double the cargo capacity, to pass through the canal. The use of larger vessels operating at deeper drafts could improve the ability of Florida agricultural products to compete in global markets. With our ports being the closest on the eastern seaboard to the Panama Canal, Florida is poised to benefit from increased trade when the expansion of the canal is complete in 2015. The canal administrator and chief engineer assured me the expansion is on track for completion.
Bill Johnson, director of Port Miami, joined the delegation on our trip to Panama and is working to ensure Florida’s ports will be prepared to welcome the additional cargo traffic that will result.
Also part of the delegation were Florida growers. Leaders in the citrus, strawberry, and blueberry industries joined us in Panama to promote “Fresh From Florida” products to this growing market for high quality produce. The U.S. Panama Trade Promotion Agreement took effect in October 2012, and we already are seeing positive results. While some free trade agreements result in fewer exports of U.S. products to the partner country, this trade agreement has resulted in an influx of Florida goods to Panama. Exports of Florida agricultural products have grown by 70% over the last two years, up to more than $168 million in goods. The Florida delegation in Panama met with the minister of agriculture, the vice minister of trade, and Panamanian retailers to promote Florida agricultural products. As a result of these meetings, Panamanians will enjoy new Florida produce varieties — never before sold in their country.
Common Interests
Panama and Florida both struggle to protect our agriculture industries from pests and disease, and we can benefit from collaborating to detect, prevent, and address these threats. International tourists and cargo sometimes bring with them unwelcome pests like the giant African land snail or the Asian citrus psyllid. In our meetings with the Panamanian officials, we shared our efforts to prevent the introduction of pests and disease by educating international travelers about the threat and urging them to declare agricultural items for inspection. We hope to expand our public awareness campaign to include Panama airports and seaports. Given Panama City serves as the Central American hub for passengers and cargo, we’re confident this partnership can benefit agriculture industries in both Florida and Panama.
I’m excited about the opportunities. The rapid growth and modernization of Panama City will serve as some healthy competition and motivation for Florida to maintain its edge as the international gateway to Latin America.
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