Panama has strategically positioned itself as a regional logistics and manufacturing hub, thanks to its location at the nexus of the Americas, its world-class maritime infrastructure, and its pro-business regulatory framework. The country’s industrial development is supported by a network of industrial parks in Panama that cater to a wide range of sectors, including logistics, manufacturing, food processing, pharmaceuticals, and electronics assembly. These industrial zones benefit from exceptional connectivity, competitive labor costs, and supportive government policies designed to attract foreign direct investment.

Key Industrial Parks in Panama

Some of the most prominent industrial parks in Panama include:

1. Panama Pacifico

Located on the western side of the Panama Canal near Panama City, Panama Pacifico is a flagship mixed-use development and one of the most advanced industrial parks in Panama. It offers Class A infrastructure, including high-speed fiber-optic internet, redundant power systems, and logistics platforms designed to streamline distribution to markets across the Americas.

Panama Pacifico is home to global companies such as Dell, BASF, 3M, and Pepsico. It has strong access to the Tocumen International Airport and the Port of Balboa, facilitating efficient air and maritime shipping. Tenants enjoy benefits from Law 41, which includes tax holidays, expedited immigration services, and customs facilitation.

2. Zona Libre de Colón (Colón Free Zone)

The Colón Free Zone is one of the largest duty-free zones in the world and a central pillar in Panama’s trade and re-export economy. Located near the Atlantic entrance of the Panama Canal, it primarily serves wholesale trade but also supports light assembly and manufacturing.

The zone’s tenant mix includes companies in electronics, textiles, automotive parts, and consumer goods. It offers 100% duty exemptions on imports and re-exports, along with income tax benefits and streamlined bureaucratic procedures. The area is well connected to the Port of Colón and benefits from dedicated customs facilities

3. Panamá Norte Logistics Hub

Situated along the Panama-Colón corridor, this hub includes industrial parks like Parque Industrial Costa del Este and Parque Sur. It caters to logistics and light manufacturing operations and is highly attractive due to its proximity to both the capital and the Caribbean ports.

These industrial parks in Panama have attracted firms in the food distribution, pharmaceutical, and third-party logistics (3PL) sectors. Connectivity is strong via the Corredor Norte and Corredor Sur highways, and costs are competitive with average lease rates ranging from $6 to $9 per square meter per month for Class B and C warehouses.

4. Howard Industrial Park

Also located in the Panama Pacifico area, Howard Industrial Park specializes in logistics and manufacturing, particularly for high-tech and aerospace clients. It benefits from its proximity to the former U.S. Howard Air Force Base is now a modern air logistics platform. The park offers ample space for build-to-suit facilities, and companies benefit from on-site customs clearance and bonded warehousing.

5. City of Knowledge (Ciudad del Saber)

While not traditionally industrial, Ciudad del Saber is a scientific and technological park that supports innovation and sustainable development. It is particularly attractive for pharmaceutical, biotech, and IT companies. Its clustering of research institutions and partnerships with universities makes it a center for high-skill job creation and training.

Labor Availability, Cost, and Training

Panama boasts a labor force of over 1.7 million, with approximately 30% residing in the Panama City metropolitan area, where most industrial parks are situated. Labor costs are competitive compared to those in the U.S. and Western Europe. Minimum wages vary by sector but average around $2.90 to $3.75 per hour. Skilled labor for manufacturing and logistics is increasingly available in Panama due to the country’s investment in technical training programs.

The National Institute for Professional Training and Education for Human Development (INADEH) offers sector-specific training, including in logistics, welding, machinery operation, and IT. Additionally, partnerships between industrial parks and private technical schools have increased, especially in Panama Pacifico and Colón.

Labor laws in Panama are relatively strict and are governed by the Labor Code. These laws favor worker protection, with clear stipulations for wages, working hours, severance pay, and social security contributions. Union activity is prevalent, particularly in large logistics and manufacturing firms, but remains moderate in scale. Most industrial parks have collective agreements in place that ensure industrial peace.

Infrastructure: Transportation, Utilities, and Energy

One of the defining strengths of industrial parks in Panama is their access to world-class logistics infrastructure. The country is home to the Panama Canal, which handles over 300 million tons of cargo annually. Two major container ports—Balboa (Pacific side) and Colón (Atlantic side)—are among the busiest in Latin America.

The Tocumen International Airport is a regional hub with cargo facilities and direct flights across the Americas and Europe. Highway access via the Inter-American Highway and the Corredor Norte/Sur networks ensures seamless movement of trucks between ports and industrial areas.

Utilities are generally reliable, especially in Panama City and surrounding industrial zones. Electricity costs range from $0.16 to $0.22 per kWh. Water is plentiful and cost-effective, with infrastructure in place for industrial-scale use. Telecommunications are strong, with 4G LTE and high-speed broadband widely available. Fiber-optic services and redundancy systems are particularly prevalent in newer industrial parks, such as Panama Pacifico.

Tax Incentives and Regulatory Environment

Panama is recognized for its ease of doing business and investor-friendly regulatory framework. Special economic regimes govern many industrial parks in Panama, offering tax incentives and other benefits to attract investment. The most notable laws include:

• Law 41 (Panama Pacifico): Offers exemptions on income tax, dividend tax, import/export duties, and VAT.
• Law 32 (Colon Free Zone): Provides full exemption on import/export duties, no income tax on re-export activities, and reduced withholding tax.
• Multinational Headquarters Law (SEM Law): Attracts regional HQs by exempting corporate income tax on foreign-source income and providing visa and work permit benefits.

Panama imposes relatively low corporate income taxes (25%) outside of special zones, and a VAT rate of 7% applies. Environmental regulations exist and are enforced by the Ministry of the Environment, especially for industries with potentially hazardous emissions or waste. However, permitting processes have been streamlined for operators in approved industrial parks.

Real Estate and Operating Costs

Lease rates for industrial space vary depending on the location and class of facility. On average:

• Class A warehouse space: $8–$12/m²/month
• Class B/C facilities: $5–$8/m²/month
• Build-to-suit construction costs: $500–$750/m²
• Facility management services: $0.50–$1.25/m²/month
• Security services: $0.75–$1.50/m²/month
• Waste disposal: $300–$600/month for medium-sized operations

Electricity, water, and telecommunications are billed separately but are predictable and generally stable. Operating costs in industrial parks in Panama are lower than in many Caribbean and South American locations, particularly when factoring in the cost savings from efficient logistics.

Logistics and Freight Costs

Panama’s status as a global logistics hub allows companies to reduce freight costs and delivery times to customers across the Americas. Some average logistics costs include:

• Truck transport (local): $0.15–$0.25 per km
• Container shipping (to U.S. East Coast): $1,200–$1,800 per 40-foot container
• Air freight (to North America): $2.00–$4.50 per kg, depending on volume
• Intermodal transport (Canal to Atlantic ports): Minimal due to proximity

Companies in Colón or Panama Pacifico often benefit from consolidated shipping and bonded logistics services, which enable duty-free transshipment and improved customs efficiencies. Parks near Tocumen Airport or the Port of Balboa also enjoy lower lead times for high-value goods.

Tenant Mix and Cluster Benefits

One of the strategic advantages of industrial parks in Panama is their growing concentration of international tenants, which yields cluster benefits. For instance:

• Panama Pacifico hosts companies in the IT, aerospace, and consumer goods sectors, allowing for the shared use of logistics and training infrastructure.
• Colon Free Zone features businesses in electronics, apparel, and household goods, leading to scale economies in warehousing and customs processes.
• Panama Norte supports 3PLs, food processors, and packaging firms, which benefit from shared cold storage and transport networks.

The track record of these parks in supporting multinational corporations is strong. Government coordination with industrial zones ensures that site development, permitting, and expansion are handled efficiently. As a result, these parks continue to draw investment from Asia, Europe, and North America.

Conclusion

Panama’s industrial park landscape is well-positioned to support modern manufacturing, logistics, and distribution operations. With competitive labor costs, skilled talent, robust infrastructure, and generous fiscal incentives, the country provides an ideal platform for companies seeking access to North and South American markets. The rise of industrial parks in Panama, like Panama Pacifico and the Colón Free Zone, underscores the country’s commitment to becoming the region’s foremost industrial and logistics hub. Whether for light assembly, high-tech manufacturing, or regional distribution, these parks offer the connectivity, talent, and business environment that global companies demand.

Guatemala is making notable strides in enhancing its international trade relations, and a key development on this front is the nation’s ongoing efforts to join the Free Trade Agreement (FTA) between Central America and South Korea. As the global economy continues to evolve, such initiatives represent strategic moves to position Guatemala as a more competitive and diversified participant in international markets.

The Guatemalan Free Trade Agreement with South Korea is not merely a diplomatic gesture—it is a calculated economic strategy aimed at stimulating trade, attracting foreign investment, and unlocking new growth opportunities for the country’s most vital sectors.

Congressional Support Marks Key Milestone

The proposal for Guatemala to join the existing Central America–South Korea Free Trade Agreement (FTA) has gained traction within the country’s legislative branch. On June 17, during a special session of Congress, lawmakers reviewed a bill that would allow Guatemala to adhere to the trade pact formally. The initiative has since been referred to the Committee on Economy and Foreign Trade for detailed evaluation.

If the committee issues a favorable opinion, the bill will move forward for a full congressional vote. Lawmakers from multiple political parties have already expressed support, suggesting a high likelihood of successful ratification.

Congresswoman Lucrecia Samayoa, President of the Guatemala–South Korea Parliamentary Friendship Group, emphasized the significance of the agreement, describing it as a “historic opportunity for Guatemala to access one of the most important Asian markets under preferential conditions.”

Private Sector Backing and Strategic Importance

The proposed Guatemalan Free Trade Agreement with South Korea has also garnered enthusiastic support from the private sector, particularly from organizations such as the Business Commission for Trade Negotiations and International Trade (CENCIT).

In a formal statement, CENCIT described the initiative as a “decisive step toward market diversification” and emphasized the potential to restore preferential access for key agricultural exports. According to the commission, aligning with the trade pact will:

– Restore competitiveness for Guatemalan exports, especially agricultural goods.

– Prevent further loss of market share in South Korea.

– Encourage foreign direct investment in Guatemala.

– Strengthen the country’s productive sectors.

– Support sustainable economic development across various industries.

This broad-based support from both government and business entities underscores the consensus that the trade agreement could significantly benefit Guatemala’s long-term economic outlook.

Economic Sectors Poised to Benefit

South Korea is one of Asia’s most dynamic and technologically advanced economies. Its demand for high-quality agricultural and textile goods aligns well with Guatemala’s export profile.

According to Minister of Economy Gabriela García, the proposed FTA would primarily open new trade avenues in the agricultural and textile sectors. For instance, coffee remains Guatemala’s top export to South Korea, accounting for approximately 46.8% of trade to that market.

In addition to coffee, the agreement could bolster exports of:

– Cardamom, a high-value spice that already has niche popularity in Asia.

– Sugar, which enjoys competitive pricing on global markets.

– Fruits and vegetables, benefiting from shorter supply chains and rising demand for organic and specialty products.

– Textiles and garments, as global fashion retailers seek alternatives to Chinese manufacturing hubs.

By securing preferential access through the Guatemalan Free Trade Agreement with South Korea, local exporters would enjoy reduced or eliminated tariffs, making Guatemalan goods more competitive in a market of over 50 million consumers.

Market Diversification and Risk Mitigation

Guatemala’s economy has long been reliant on a limited number of export destinations, primarily the United States and neighboring Central American countries. However, global disruptions, trade disputes, and shifting supply chain priorities have exposed the risks of over-dependence on a narrow set of markets.

Joining the Guatemalan Free Trade Agreement with South Korea represents a strategic pivot toward market diversification. By reducing reliance on a single market or region, Guatemala can:

– Mitigate the impact of global economic volatility.

– Foster resilience in its export sectors.

– Develop new business relationships in Asia.

– Gain a foothold in supply chains tied to Korea’s major industries, including electronics, automotive, and chemicals.

This diversification could also serve as a launchpad for Guatemala to negotiate or strengthen trade relationships with other Asian economies such as Japan, Vietnam, and Indonesia.

The Importance of Timely Accession

Guatemala’s delay in joining the Central America–South Korea FTA has already cost it valuable market share. Other countries in the region, such as Costa Rica, El Salvador, Honduras, Nicaragua, and Panama, have already implemented the agreement and are reaping its benefits.

If Guatemala finalizes its accession soon, it can begin to reverse these losses and compete on a level playing field. According to CENCIT and other business leaders, the country is at a critical juncture. A delay of even a few more years could make it increasingly difficult to catch up.

Moreover, businesses that have moved operations to other Central American nations due to tariff advantages may be incentivized to return or invest in Guatemala if parity is restored.

Strengthening Bilateral Relations

Beyond the economic benefits, the Guatemalan Free Trade Agreement with South Korea would deepen bilateral ties between the two nations. South Korea has already demonstrated its interest in supporting Guatemala’s development goals through technical cooperation and investment in areas such as education, infrastructure, and technology transfer.

An FTA would elevate this relationship, offering more structured mechanisms for collaboration. Potential areas of cooperation include:

– Technology and innovation transfer.

– Infrastructure development and financing.

– Educational exchanges and scholarships.

– Renewable energy partnerships.

A stronger bilateral relationship could also result in enhanced diplomatic cooperation on regional and international issues, further embedding Guatemala within the Asia-Pacific economic framework.

Impacts on Employment and Rural Development

The expected increase in agricultural exports and investment could have significant ripple effects on employment, particularly in rural regions. Agriculture remains a major employer in Guatemala, and improved market access could boost incomes for farmers, cooperatives, and small agribusinesses.

Similarly, expanded textile exports could revive industrial zones and provide stable employment, especially for women who dominate the garment sector.

The development of new supply chains and export logistics—warehouses, cold storage, and transportation—could spur infrastructure development and generate new jobs in engineering, logistics, and trade compliance.

Conclusion: A Critical Window of Opportunity

The Guatemalan Free Trade Agreement with South Korea is more than a trade policy—it’s a transformative strategy to reposition the country in the global economy. With strong backing from lawmakers, government ministries, and the private sector, Guatemala is poised to join an agreement that could unleash substantial economic benefits.

By acting decisively, Guatemala can reassert its regional competitiveness, unlock diversified growth opportunities, and strengthen its international partnerships. For the country’s farmers, manufacturers, exporters, and consumers, the FTA represents a forward-looking commitment to sustainable development, innovation, and economic resilience.

As Congress moves closer to ratification, momentum must be maintained to ensure that Guatemala does not fall further behind in the race for global market access. The time to secure the Guatemalan Free Trade Agreement with South Korea is now.

Uruguay is quickly gaining recognition as one of the region’s most active players in the pharmaceutical sector in Latin America. Starting out as a nation dependent on its agricultural exports, the country has developed over time to become a significant manufacturing hub in the region.

Thanks to high-value-added manufacturing, an efficient supply chain, a skilled workforce, and favorable trade regimes, Uruguay is quickly becoming a preferred destination for companies seeking to serve regional and global markets in the pharmaceutical sector of Latin America.

A High-Growth Rate Industry

The total amount of production in the pharmaceutical sector in Latin America, including Uruguay’s human and veterinary pharmaceuticals and medical devices, is USD 928 million. This indicates how relevant the sector is for the national economy, representing 11% of the industrial GDP and 1% of the total GDP of the country.

According to Uruguay XXI, the country’s export and investment promotion agency, the pharmaceutical sector employs some 7,800 people in more than 175 companies across the value chain, from research and development to final distribution.

135 companies produce human pharmaceuticals and medical devices, while 40 companies develop veterinary health products. Uruguay thus has a diversified industry, with abilities that go from the creation of finished goods to providing value-added services such as logistics and back-office support.

Companies within the pharmaceutical and veterinary sectors operate under different business models. These include models such as drug development, production, commercialization, and more sophisticated services like customer support, regional logistics, and back-office operations. This layered approach has helped foreign direct investment (FDI) in the sector create a solid industrial cluster that continues to evolve in size and sophistication.

Because Uruguay sits between Argentina and Brazil, two of the largest economies in South America, companies operating in the pharmaceutical sector in Latin America benefit from a competitive advantage in regional distribution. Political stability, a transparent legal framework, and world-class logistics infrastructure have made the country an attractive entry point to the wider Latin American market.

A Logistic Gateway

One of the unique characteristics of Uruguay’s pharmaceutical ecosystem is its ability to serve as a logistics and trade gateway. According to Uruguay XXI, the amount of pharmaceutical products that transit through the country has been on a steady increase since 2010, which is a defining characteristic of the country’s role in the pharmaceutical sector in Latin America.

Recent years have seen the value of pharmaceutical products that transited through the country rise from USD 500 million to more than USD 900 million, indicating a steep growth in Uruguay’s role as a re-export platform. Products originating in the United States and Europe (Italy, Germany, Switzerland, Ireland, and France) are reprocessed and sent to other countries in Latin America.

This logistic model—driven by the existence of free trade zones (FTZs) and Uruguay’s state-of-the-art port and airport infrastructure—has allowed global companies to operate more efficiently while reducing import/export taxes and transit time.

Strong Production and Export Performance

Uruguay has also become a serious contender in pharmaceutical production. Uruguay’s Gross Production Value (GPV) of the sector amounts to USD 884 million in 2024, underscoring the country’s role in the pharmaceutical sector in Latin America. Human pharmaceutical exports, which had experienced a three-year declining trend, have rebounded since 2021 and are showing solid performance in 2024, largely driven by FTZ operations, which account for 55% of all human pharmaceutical exports.

A total of 32 companies participated in Uruguay’s pharmaceutical exports in 2024, amounting to USD 226 million. This represents 1.7% of the country’s total exports and highlights the sector’s strong contribution to foreign trade.

Growth in Medical Devices and Veterinary Products

Uruguay’s pharmaceutical industry also includes medical devices and veterinary health products. Medical devices—particularly implantable technologies—have shown consistent growth in recent years. In the past year alone, exports of medical devices grew by 11%, reaching USD 44 million. This highlights Uruguay’s increasing role in the pharmaceutical sector in Latin America, not just in medication production but also in the development of high-tech medical products.

Uruguay’s veterinary pharmaceutical segment is particularly important, given its large livestock industry. Products for cattle, horses, sheep, and companion animals account for 22% of total pharmaceutical output. This diversification enhances Uruguay’s commercial viability and export strength.

The pharmaceutical sector in Uruguay employs 7,800 people. Of these, 6,470 work in the human pharmaceutical segment, and around 3,500 are employed by export-focused companies, many of which are foreign-owned or part of international groups. These companies not only generate employment but also help transfer global best practices and expertise to the local industry.

An additional 1,600 people are involved in logistics, distribution, and customer support, mostly concentrated in the Montevideo metropolitan area. These roles require specialized knowledge in supply chain management and regulatory compliance.

Another 580 individuals work with companies supplying foreign pharmaceutical brands to the local market, while the veterinary segment generates 1,300 direct jobs.

Uruguay is also nurturing a biotech startup ecosystem, which employs roughly 250 highly skilled professionals in fields such as bioengineering, diagnostics, and molecular research. This growth signals Uruguay’s ambitions to become a center for innovation within the pharmaceutical sector in Latin America.

Advantages Driving Uruguay’s Pharmaceutical Growth

The reasons behind Uruguay’s emergence as a leader in the pharmaceutical sector in Latin America include the following:

• Strategic Location: Situated between Argentina and Brazil, Uruguay is a natural hub for regional distribution. This location offers logistical advantages for serving the Southern Cone markets with efficient road, air, and maritime connectivity.
• Free Trade Zones: Uruguay boasts several FTZs such as Zonamerica and Parque de las Ciencias, which provide tax exemptions, modern infrastructure, and streamlined customs processes—ideal conditions for pharmaceutical companies.
• Strong Institutions and Regulatory Transparency: Uruguay’s predictable regulatory framework, adherence to international quality standards, and investor-friendly environment foster confidence among global stakeholders.
• Skilled Workforce: The education system provides a steady stream of engineers, technicians, and scientists. Collaboration between academic institutions and private enterprises helps align training with industry needs.
• World-Class Infrastructure: Facilities such as Carrasco International Airport, deep-water ports, and a robust digital infrastructure enable Uruguay to manage complex supply chains, including cold chain logistics for sensitive pharmaceuticals.

Going Forward

With rising demand for pharmaceutical products across Latin America, Uruguay is well-positioned to expand its role as a hub for innovation, manufacturing, and distribution. Its combination of strong production capabilities, logistics infrastructure, and a reliable business environment sets it apart from regional competitors.

Supported by public policy, private investment, and international partnerships, Uruguay is poised to strengthen its leadership in the pharmaceutical sector in Latin America, reaffirming its place as a top-tier destination for life sciences and healthcare innovation in the years ahead.

A New Era for the Argentine Automotive Industry

The automotive market in Argentina is undergoing unprecedented change, from internal reform and regulatory change to external investment and interest from brands overseas. After years of an insulated and protective environment, the automotive market in Argentina is opening up, embracing new competition and allowing for more options for buyers and sellers.

One of the main drivers of this change is the arrival of a slew of new brands, many of them Chinese, looking to stake a claim on the automotive market in Argentina. These brands have to compete for market share with long-established players, while dealerships and car makers must adapt to a new reality that has consumers at the center of the equation.

Macroeconomic reforms, along with reduced restrictions on imports, have created a more open environment for the automotive market in Argentina.

More precise rules of engagement, more stability in the business environment, and fewer import barriers have made Argentina’s automotive sector more attractive to overseas players. As Santos Doncel Jones, an industry expert and partner at Price Waterhouse Coopers, puts it, “We’re coming from a very closed market, with just those who were capable of manufacturing locally able to survive. Today, we’re coming from a market that’s open and has options.”

History Lesson: Scarcity is giving way to competition

Traditionally, the automotive market in Argentina was defined by a scarcity of options for the average buyer. Imports were restricted, while the pricing of vehicles fluctuated wildly due to the high inflation rate. Many people relied on bank financing, but loans weren’t always accessible. All of these factors created a market that was virtually monopolized by those who could make vehicles in Argentina, leaving many customers to accept whatever they could get.

The scarcity of options left dealerships with plenty of leverage over customers. However, in the modern market, those conditions are being turned on their head. Brands are going to have to fight to attract, convince, and retain customers, all of whom will be much more informed about what’s on offer.

Larger market for new vehicles: The industry’s fleet is getting older

Perhaps one of the most telling indicators that there’s an opportunity in the automotive marketing in Argentina is that the average age of the nation’s vehicle fleet is relatively high. According to Redoo, a consulting firm that helps businesses digitize and streamline their operations, just 13% of vehicles currently in circulation in Argentina are under five years old. An astounding 65% of the cars on the road in the country are more than ten years old.

Vehicles in Argentina generally last longer than in Europe and other more advanced countries in Latin America, where the vehicle-renewal cycle tends to be between five and ten years. In Argentina, approximately 20% of the fleet falls into that age bracket, indicating a significant opportunity for replacement and modernization as new vehicles come onto the market and more financing options become available.

Investments worth USD 650 million are expected in Argentina as new players enter the market and establish themselves

With the entry of new players, especially importers of overseas brands, the amount of money being invested in the automotive market in Argentina is expected to rise. Doncel Jones states that the new entrants could bring in about USD 650 million to the country over the next two years, including the cost of building out networks and the physical presence of dealerships.

One estimate is that a new dealership is expected to cost between USD 2 million and USD 4 million to get off the ground, not including the investment made by the importers themselves. Aside from the capital investment, these projects could create more than 2,000 direct jobs, helping to support the broader economic recovery.

The amount of investment expected in Argentina could have a significant impact on the overall structure of the automotive sector. New entrants are expected to be especially disruptive to dealerships and could lead to a more fractured but more competitive landscape in the future.

The new reality for dealerships: In it to win it

For the dealership networks that already exist in Argentina, the shift towards a more competitive and open market is an opportunity to reinvent themselves. “They have to go back to actually selling—to competing and creatively winning over customers,” said Doncel Jones. It’s not just the external market changes that dealerships will have to adapt to. These organizations will have to restructure themselves, trimming out unnecessary layers and streamlining processes.

With inflation decreasing, bloated costs and operations have become more visible. Dealerships will have to fix those problems now if they want to compete.

Legacy players will have to do a better job of servicing their vehicles if they’re to survive

Automakers that have a history of doing business in Argentina will also feel the pressure. As new entrants chip away at the market, the competition will be tougher. Jones says that these companies will have to “up their game” by improving their processes, cutting costs, and optimizing their workflows.

Customer service will be a non-negotiable priority. With consumer tastes changing rapidly, customers will expect better service, better customer service, and better value for their money. If they don’t get it, brands will find themselves falling out of favor.

The shift to digital is no longer an option, it’s a necessity

One of the major indicators of change in the automotive market in Argentina is the rapid uptake of technology in the sector. Tools like CRM platforms, data analysis, AI-powered marketing automation, and online sales platforms are crucial for gaining insight into customer tastes and behaviors.

Across the automotive sector in Argentina, widespread adoption of these technologies will allow companies to target their audiences more effectively, deliver more customized buying experiences, and keep their customers for longer.

The landscape of the Argentine automotive market could be more fragmented than ever

Historically, the Argentine automotive market has been fairly top-heavy, with a small number of big players. Toyota and Volkswagen have traditionally been the dominant brands in Argentina, accounting for about 20% and 17% of the market, respectively. However, that dominance could be coming to an end.

Doncel Jones says that the market will become more fragmented going forward, making it more similar to the rest of the world, where a 12% to 14% market share is considered sizable. In this market, brand loyalty, product innovation, and responsiveness will be more important than legacy players and historical dominance.

The answer for local automakers may be more exports as the domestic market plateaus

Though market share may be down for local players, that doesn’t mean that overall sales volumes won’t go down if the market plateaus. With the growth of the automotive market in Argentina, perhaps to 750,000 to 800,000 annual sales, local production facilities can continue to operate by targeting the export market in Latin America and other countries.

“If you want to maintain production, you’re going to have to turn towards the export market,” says Jones. Regional integration and the expansion of trade agreements could make this happen.

Good news on the horizon: Sales of vehicles are growing

Vehicle sales are already on the upswing. According to ACARA (Asociación de Concesionarios de Automotores de la República Argentina), new vehicle registrations grew 59.1% year-over-year in May 2025, reaching 55,363 for the month. Year-to-date, registrations totaled 272,837 units, a 78.9% jump compared to the same period in 2024.

With this trend continuing, 2025 could finish with approximately 650,000 vehicle registrations, suggesting that the automotive market in Argentina is coming back from a tough period.

Its neighbors have been taking advantage of a more open market environment for years.

While Argentina is opening its market, some of its neighbors—Chile, Uruguay, and Brazil—have long been open to international manufacturers and have maintained relatively stable macroeconomic environments.

In those markets, the entry and competition of global brands has become commonplace, and infrastructure for dealerships and after-sales support has been built out. If Argentina’s transition to a more open market is executed successfully, it could see the country catch up and even overtake some of its neighbors in innovation and diversity.

The bottom line is clear: There’s no going back

To summarize, the bottom line is that the Argentine automotive market is changing, becoming more competitive, more dynamic, and more customer-focused. Players in the market, from legacy players to dealership networks to new entrants, will have to adapt quickly if they’re to be viable in the new landscape.

“In the short term, legacy brands will have to adapt to a much more informed consumer and a much more open market,” said Santos Doncel Jones.

Strategic Positioning Fuels Panama’s Leadership as the Leading Logistics Hub in Latin America

Panama has long served as a global hub, connecting the Americas and the rest of the world, but in 2024, the country became an even more essential player in global trade as the pandemic disrupted flows and preferences shifted. Behind the changes in the balance of power was the world-class infrastructure, exceptional air and maritime connections, and the critical positioning of the Colón Free Trade Zone. Panama’s strategic location between the Americas made it a natural center for transshipping to North America, Central America, and South America.

The Panama Maritime Authority (AMP) announced that over 9.5 million TEUs were transported in 2024, a 15.1% increase compared to the previous year. This made Panama one of the top 10 hubs in the world, positioning the country as a growing center in global logistics.

Interborders Expands in Panama to Become the Preferred Hub in the Region

As one of the leading players in the Latin American logistics space, Interborders – a multinational firm specializing in Foreign Trade, Logistics, and Customs Services, among other services – decided to cement its operations in Panama. Earlier this year, the Argentina-based firm opened a new headquarters in Costa del Este, Panama City. Interborders will continue its business and investment strategy with the new regional office and its logistics operation in Colón. With this development, the firm consolidates its role in the strategic position that Panama occupies in Latin America.

The firm’s new corporate headquarters represents an annual investment of USD 200,000. It complements the company’s operation in Colón, adding 20,000 m2 of workspace to the logistics area. This means that the company is present in two of the most important cities in Panama, Colón and Panama City. With its operations in these two locations, Interborders can provide a 360° logistics service to its clients in the hemisphere, including the entire logistical process, such as warehousing, distribution, and transportation through different modes of transportation.

“This represents a turning point in Interborders’ history,” said CEO Lucas Bianchi. “We will become the most important company, thanks to new solutions and a first-class logistics offering.”

Panama’s superior performance as the leading logistics hub in Latin America

Panama is one of the strongest and most appealing options for international trade and logistics due to its investments in ports, its excellent multimodal connectivity, and efficient regulatory framework. The Colón Free Trade Zone, the second-largest free zone in the world, has a strategic role in facilitating the free movement of goods throughout the region. Coupled with the Panama Canal, one of the most efficient in the world, the country forms an efficient logistics system that few competitors in Latin America can replicate.

In the World Bank’s 2023 Logistics Performance Index (LPI), Panama achieved a score of 3.1, placing it 57th in the world. This score was driven by the high performance in customs efficiency and port infrastructure, allowing Panama to remain among the top-ranking logistics markets in Latin America, along with Chile and Brazil. These rankings reflect the position that Panama has as a logistics hub in Latin America, an attractive region for companies to establish their supply chains.

New Investment in Human Resources in Panama

Interborders’ decision to open a new office in Panama also aims to expand the company’s human resources in the country by the end of 2025. The new office will offer jobs for local talent and boost the region’s economy, investing nearly USD 700,000 in Panama in 2025 between the company’s Colón logistics operation and the new corporate office in Costa del Este.

Interborders’ decision to invest in Panama’s logistics ecosystem stems from the strategic value of its position. According to CEO Lucas Bianchi, “Panama City is the place where major decisions for the region are made. It adds to our presence in Colón and allows us to service different client profiles.”

Panama has been Interborders’ choice since the company started its operations in the country a year ago. This strategic decision was taken after noticing Panama’s ability to connect the hemisphere, a factor that will allow the company to efficiently serve clients in South America, Central America, the Caribbean, and North America. Panama has demonstrated its role as a strong regional link for the supply chain, making it the preferred option for logistics.

As more customers, partners, and the logistics industry are turning their attention to Panama, the growth in business is noticeable. This is the motivation for the investment and increase in the Panamanian operation, making Panama the preferred hub in the hemisphere for foreign trade, logistics, and customs services.

Innovation is at the forefront: AI and logistics in 2025

Regional and international speakers recently  met at a roundtable to discuss logistics in the face of geopolitical changes, new technologies, and changes in trade. Interborders’ Country Manager in Panama, Miguel Vallejos, talked about the advantages that Panama’s transport tri-connection has on business to navigate tariffs and the volatility of the markets. “Diversification of routes and the adoption of new technologies are key for the region’s competitiveness,” he stated.

One of the most interesting speakers was Jorge Barnett Lawton, Director General of the Panama Logistics Innovation and Research Center at Georgia Tech. Lawton stated that Artificial Intelligence (AI) is a key tool in the future of logistics. According to him, artificial intelligence enables the detection of risks, better flow, and more efficient decision-making throughout the supply chain.

Another interesting panelist was Yohane Mavel López, board member of Women in Supply Chain Panama (Wins Panama). She argued that logistics professionals need to be very flexible when making decisions about the future of logistics. In this new era of alliances and conflicts in global trade, only those with resilient and intelligent logistics systems will remain competitive. Panama is the leading option in Latin America, with the necessary tools to compete.

Attendance from various ambassadors and representatives of several countries in the region confirmed that they are watching Panama’s growth in logistics. It is worth mentioning that different countries and private companies, such as those from Argentina, had ambassadors and representatives at the roundtable to review Panama’s new proposal. Since global trade is heavily influenced by China, the US, and the European Union, Latin America needs to be nimble in its decisions.

Logistics companies, like Interborders, have a strong relationship with Panama and remain confident in the Panamanian logistics ecosystem. Interborders will grow exponentially and expect to serve over 100 regular clients in 2025. They also plan to reach a monthly volume of 900 TEUs, a considerable achievement for the company and a target in line with Panama’s growth plans.

Despite everything, participants were optimistic. Attendees shared similar opinions about Panama’s unique characteristics, as the following aspects make it the leading option in Latin America as a logistics hub:

• Panama is the strategic center in the Americas.
• Panama’s infrastructure is modern, technologically advanced, and efficient.
• The government supports these innovations and improvements, giving logistics a competitive advantage.
• Panamanian companies are adapting to new technologies such as AI, blockchain, and automation, which will become key in the cargo movement, cargo tracking, and cargo security.

What’s Next? Panama Must Expand to Maintain Its Success

Although Panama has taken significant steps to remain the leading logistics hub in Latin America, there are still many challenges that must be overcome. Some of the critical points for development are the following:

• Global standards are becoming more environmentally conscious, and more and more efforts are being made to integrate this concept into daily life. Low-carbon logistics and the circular economy are some of the proposals that will play a vital role in Panama.
• The adoption of artificial intelligence, blockchain, and automation will transform the movement of goods, tracking, and security.
• The workers are as essential as logistics infrastructure in this digital transformation. A well-trained and skilled workforce will lead the region’s development.

For Interborders, Panama is not a crossroads but the heart of the region. More and more companies will have operations in Panama as they make investments in multimodal hubs, digital tools, and the workforce. They will do this to increase their efficiency and adapt to a rapidly changing region.

The Country Positioned as the Leading Logistics Hub in Latin America

Panama is the number one option in Latin America for logistics for various reasons. These reasons are the location, the high investment in the ports, and a solid regulatory framework that enables the continuous growth of the Panama logistics ecosystem. It also motivates companies like Interborders to invest in this important hub in the hemisphere. As companies continue to innovate, develop, and expand, Panama will become the leading logistics hub in Latin America.