The recent adoption of legislation necessary for the entry into force of the TPA with the U.S. includes opening the gates for the installation of large retailers.

Panama’s Constitution expressly reserves retail trade for Panamanians, because of this, the method found to align themselves with agreements made for the Trade Promotion Agreement (TPA) with the United States, was to modify the rules for companies involved in wholesale trade, introducing the classification of “multi-service businesses.”

According to an article in Prensa.com “The launch of the Trade Promotion Agreement (TPA) with the United States completely changes the definition which previously existed for wholesale trade in the country.”

“In negotiating the deal it was agreed with American businesses investing more than $3 million and also providing services, even though they would be selling directly to consumers, would be classified as ‘ multi-service businesses” In this way, companies like Walmart could be established in the country. This was established in the letter accompanying the TPC regarding the term “retail commerce” tab of Annex I by Panama. In addition, the draft law dictates 515-dispositions acquired in the TPC-amending the definition for wholesale trade, aligned to the aforementioned letter. It also leaves open the possibility for investors from other countries. ”

Source: Prensa.com