The logistics sector is concerned because Panama, which has the best port infrastructure in Latin America and a canal that joins two oceans, has not taken advantage of its infrastructure to increase exports of agricultural products; in fact, these kind of exports have been in decline.
According to experts from the logistics sector, the country shouldn't only sell logistics services. Panama must increase its agricultural production, be it to export or to meet the needs of the ships transiting the Canal.
The expansion of the canal presents great business opportunities which should be seized by the country.
However, producers say there is a lack of motivation towards the activity due to the unfair competition generated by imports and the little incentive it receives from the authorities.
"The Panama Canal and the national ports serve to export agricultural products from all over Latin America, however, exports from Panama are declining more every day," said the president of the Panama Chamber of Shipping, Rommel Troetsch.
According to the latest statistics from the General Comptroller, by April 2016 Panamanian exports had decreased by 12.6% compared to the same period last year.
Until April, banana exports had decreased by 4.8%; melon exports by 28.2%, and pineapple exports by 40.5%.
Troetsch said Panama could compete with a lot of agricultural products passing through Panamanian ports.
The Panamanian port system is used to export avocado, mango, pineapple, and seafood products, he said.
"The Panamanian authorities could analyze what products Latin America exports through Panama to see if Panama has the conditions to produce said products and export them," he said.
Troetsch said this wasn't an easy task and that it should involve the government, which should support producers to seek marketers for their crops, provide them with certified seeds for export, and the necessary funding.
According to data from the Central American Economic Integration Secretariat (SIEC), Panama ranks last in Central America exports with 144.8 million dollars.
According to producers, the export activity has fallen drastically due to the lack of incentives by the authorities.
"Domestic production is smaller every day because there is no incentive for it," said Maximino Diaz, a producer.
He said that the agricultural sector's current problem was the lack of motivation caused by imports and the lack of financial support from State agencies. "The Executive is not in tune with the needs of domestic production," he said.
Source: panamaamerica.com.pa