The United States Department of State has selected Panama as one of the seven countries worldwide with which it will establish a collaboration to strengthen the global semiconductor value chain, through the International Fund for Technological Security and Innovation (ITSI Fund), created by the CHIPS and Science Act of 2022.
The news was confirmed this Thursday during the tour to Panama carried out by the Secretary of Commerce of the United States, Gina Raimondo, in order to strengthen the ties of collaboration between the two countries.
The Panama Canal, connectivity, a favorable environment for business and legal security, were the factors that the United States took into account to make the decision, said the Secretary of Commerce of the United States
He added that there are already representatives of American semiconductor corporations who are willing to invest in this initiative.
Cortizo, for his part, stressed that “this collaboration in the semiconductor supply chain will promote the interests of both the United States and Panama.”
Initiative
In August 2022, President Joe Biden signed the CHIPS and Science Act of 2022, a new U.S. legislation that allocated new funds to boost national semiconductor manufacturing and research in the United States.
The CHIPS Act created the ITSI Fund that provides the Department of State with $500 million ($100 million per year over five years, starting in fiscal year 2023) to expand global semiconductor manufacturing, ensure secure semiconductor Through new programs and initiatives with our allies and partners, the U.S. Embassy in Panama explained, in a statement.
With this inclusion, Panama will be able to receive or apply for economic benefits within what they have called the CHIPS and Science Law of 2022,” reported the Minister of Commerce and Industries (Mici), Federico Alfaro, during a tour he made with Raimondo through the Panama Canal, specifically the Miraflores locks, along with several authorities.
According to the embassy, “The United States sees Panama basic elements of today’s economy. This collaboration will seek to develop new opportunities to attract investment from the industry and expand the technical workforce in both countries.”
It will begin with a review of the currently Panama semiconductor industry, its regulatory framework and labor and infrastructure needs. The result of this analysis will provide information for a possible future collaboration in the development of this important sector to ensure that both countries benefit from this state-of-the-art technology.
Trade relationship
“The close commercial relationship between the United States and Panama expands even further through this cooperation to explore the development of state-of-the-art technology that would benefit both countries,” said the United
The United States is determined to diversify the global semiconductor supply chain, and Panama, which is one of our great regional partners, wants to be part of this initiative. This cooperation opens up enormous economic, technological and knowledge opportunities for Panamanians,” he added.
The minister of Mici stressed that Panama is the first country in Latin America to visit the Secretary of Commerce of the United States.
He added that in the meeting with the President of the Republic, issues such as the trade balance and strategic relations between the two countries were discussed.
To continue encouraging the US “These are elements that give greater peace of mind to American investors and it was part of what we discussed today,” he said.
For President Cortizo, “The United States and Panama have been partners for a long time. We share a common history and interests, such as democracy, hemispheric security and global trade.”
Raimondo stressed, for his part, that this commercial relationship is “solid” because the “good” democracy, rule of law and anti-corruption presented by Panama has been worked and deepened every day.
We definitely come here to work on commercial exchange, specifically on the issue of semiconductors, which is very important for the commercial distribution chain and national security, a reason why there is also General Laura Richardson, commander of the United States Southern Command,” stressed the Secretary of Commerce of the United States.
Richardson agreed with Raimondo and reiterated that “Panama is a strategic partner for the United States.”
TPC
The possible renegotiation of the trade promotion treaty was another of the discussions put on the table. However, the Mici minister clarified that the United States Secretariat of Commerce does not see the issue of the TPC, but independent American entities, such as the Ministry of Agriculture.
Obviously we talked about the issue and the concerns that Panama had. We are pleased that the secretariat has shown that it can listen to Panama’s concerns and serve as a conduit for those concerns,” Alfaro said at the end of the tour of the Miraflores locks.