Exhibition name: Latin Tyre&Auto Parts Expo
Exhibition time: July 31-August 2, 2024
Exhibition location: Panama Convention Center
Organizer: Latin Expo Group
Exhibition cycle: once a year
Exhibition introduction
Since 2010, the Latin Expo Group, the organizing committee, has held the Latin American and Caribbean Tire Exhibition in Panama. With good buyer publicity and professional exhibition operation, the exhibition area has increased by 80%, and the exhibitors’ continuous participation rate has exceeded 95%. The Latin American and Caribbean Auto Parts Exhibition, which started in 2014, filled the gap of no professional auto parts exhibition in the Caribbean. After 2019, due to the sudden outbreak of the epidemic, we had to suspend the exhibition. In the 2023 exhibition, the Auto Parts Exhibition will cooperate with the Tire Exhibition again, using a larger exhibition hall to build a professional procurement platform for buyers and sellers.
Panama is a key point connecting Central, South and North America, radiating more than 20 countries and 120 million people. It is known as the “Hong Kong of the Caribbean” and the “Dubai of the Caribbean”. For auto parts manufacturers and traders from various countries, if they want to enter the markets of Central, South America and the Caribbean, Panama will be the best place to settle down. Panama has also been opening up to foreign trade in recent years, hoping to highlight its status as a trade center in Central and South America through various reciprocal treaties and visa-free treaties with Central and South America.
Market Introduction
The Republic of Panama is the southernmost country in Central America. The Panama Canal, which connects the Atlantic and Pacific Oceans, is located in the center of the country, runs through the middle of the country, and is the dividing line between South and North America. The geographical advantage has led to the development of its financial industry and re-export trade, which play an important role in the economy. Panama’s economy continues to maintain a rapid growth momentum. Although the global economic environment has not improved significantly, the economies of some countries in Latin America have declined, and the global shipping market is still at a low level, the new Panamanian government continues to increase government investment and encourage the attraction of foreign and private investment. With the investment and start of large-scale infrastructure construction projects such as Panama City Metro Line 2, Colon Old City Renovation, and roads, ports, and housing, the unemployment rate and price index continue to remain low, and the momentum of economic growth has been maintained.
Panama is an important trading partner of China in Latin America. The total bilateral trade volume ranks third in China’s trade with Latin American countries. At the same time, Panama is also China’s second largest export market in Latin America after Brazil. China and Panama have established trade development offices for 10 years. In recent years, China-Panama economic and trade relations have continued to maintain a good momentum of development, bilateral trade has developed steadily and rapidly, and bilateral investment cooperation has become increasingly active. At present, China is the second largest source and destination of goods passing through the Panama Canal, and the second largest user of the canal after the United States. At present, China’s investment in Panama is mainly concentrated in the fields of shipping, trade, communications, and finance. There are more than ten Chinese companies engaged in investment cooperation in Panama. In recent years, more and more Chinese companies have come to Panama to inspect and invest in Panama, and the team of Chinese companies stationed in Panama has continued to grow and develop.
Why choose the Panama market?
1. Stable policies, simple procedures, tax incentives
Panama is a beneficiary of the US Caribbean Basin Plan and the Generalized System of Preferences. Therefore, products produced in Panama can be exported to the United States and Europe without quota restrictions and enjoy preferential tariffs (but must comply with the origin regulations). The Panamanian government has specially legislated to provide guarantees and preferences, and investors enjoy legal protection: the procedures for registering a company in the free zone are simple and the approval is fast. Goods entering the Colon Free Trade Zone can be imported, stored, processed, repackaged and re-exported without paying import duties or other taxes; no consular fees or any other fees are charged for cargo ships entering and leaving the free trade zone to foreign countries; sales tax, production tax, and investment tax are exempted in the free zone; import tax is exempted for machines, raw materials, and equipment used for production; capital gains tax is not required for capital transactions of assets held for more than two years; for foreign investment, only lower taxes are charged on the profit portion.
2. Circulation of US dollars, superior location, and developed logistics
Panama circulates US dollars, so investors do not have to worry about the depreciation and appreciation of the currency. Panama has more than 90 international banks. Major banks have branches here, and trade settlement and capital transactions are safe and convenient. Deposits in Panama banks are not subject to tax, there is no foreign exchange control, and profits can be freely remitted in and out. Located at the Atlantic mouth of the Panama Canal, it has many excellent ports, docks, and a large number of international shipping and logistics companies, which are conducive to warehousing and cash sales and commodity turnover. In addition, Panama is an aviation hub in Central America. It has opened routes to 65 cities in 30 countries in the Americas, which is very convenient for personnel exchanges and air transportation of goods.
3. Market advantages
There are about 10 companies engaged in auto parts import and export in the Colon Free Trade Zone, of which 5 are Chinese companies, accounting for half of the auto parts import and export trade. At present, there are a total of 460,000 cars in use in Panama, of which 70% are passenger cars, 6% are buses, and 22% are trucks, vans and trailers. Panamanian consumers prefer small passenger cars, and most of the cars in use are concentrated in urban areas. The competition in Panama’s auto parts market is very fierce, with Japan, South Korea, and Taiwan accounting for 60% of the market share. The main reasons are low prices and the fact that Japanese and Korean cars have considerable advantages in the local market. Of this 60% market share, 20% is imported through the Colon Free Trade Zone.
Exhibit range
◎Parts and components: drive system and accessories, driving system and accessories, chassis parts and accessories, brake system and accessories, body parts, standard parts, car interior, alternative energy, charging accessories, remanufactured parts
◎Electronics and systems: automotive motors and electrical appliances, vehicle lighting, circuit systems, driver assistance systems/vehicle safety, comfort electronic products
◎Automotive products: automotive films, vehicle electronics, automotive oils and lubricants, seats, pedals, car clothes, sunshades, perfumes, car refrigerators, mahogany trims, door linings, seat cushions, steering wheel covers
◎Car modification: car decoration, outdoor products, modification tools, luggage racks, top boxes, car modification, Modification clubs, design improvements, customer customization, communication entertainment, special vehicle equipment and improvements, new energy vehicles, modified tires, rims, hubs, tire pressure monitoring systems, trailers and accessories, RVs
◎Repair and maintenance: repair tools, car maintenance and repair equipment, workshop repair and painting, repair station construction and management
◎Gas stations and car washes: car refueling, car washing and maintenance gas station planning and construction, gas station equipment, car washing and maintenance supplies and equipment, lubrication and equipment
◎Tires and raw materials: tires, outer tires, inner tubes, rims, hubs, tire peripheral accessories, tire repair, testing and tire changing equipment, tire tools and services, tire rim production equipment and raw materials, tire retreading equipment and raw materials
Post time: Aug-02-2024
