by Astrid Chang 
What is the role of nearshoring in Panama? Why is the isthmus positioned as an ideal destination for the development of this business modality? We explain…
Near-shoring brings outsourced production centers closer together and minimizes the difficulties that these circumstances entail.
In an interview with La Estrella de Panamá, Enrique Aguirre, 3M’s general director for Central America and the Caribbean, said that nearshoring is a country strategy today with sights set on great opportunities for economic growth.
For Aguirre, observing the changes that occur globally as a result of various factors, whether due to war or any other reason, lead some companies more than others to consider this type of approach to nearshoring, and in the case of Panama, which has an enviable geographical location, he believes that our country has the necessary conditions to invest in the development of manufacturing companies that want to position themselves here and export to the region.
In this regard, the government has encouraged the implementation of nearshoring through Law 159 of August 31, 2020 EMMA (Special Regime for the Establishment and Operation of Multinational Companies), which encourages companies to relocate to Panama and be closer to their end customers.
Some of the benefits offered by EMMA to corporations that have this license are: exemption from income tax, exemption from the use of fiscal equipment, exemption from the notice of operation, exemption from import tax. It also offers immigration incentives. 
Projections
According to the Inter-American Development Bank, the potential gain for Latin America and the Caribbean from nearshoring opportunities in the short and medium run could represent an increase of up to $78 billion dollars.
Last year Panama alongside Costa Rica and the Dominican Republic promoted the trade and political bloc called the ‘Caribbean Triangle’, in order to publicize the special development and nearshoring zones for attracting investment, according to an article in the global business magazine América Economía.
The fact is that Panama’s trajectory, its logistics structures and the competitiveness of its free trade zones are a plus for the development of nearshoring in our country.
The national government estimates annual earnings of $802 million dollars from the relocation of nearshoring production.
Potential opportunities for increased exports from the isthmus would be $81.3 million in earnings with the United States, $549.2 million in earnings with Latin America and the Caribbean, and $171.5 in medium-run opportunities for a total of $802 million.
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