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The Panama Free Trade treaty has come before senate committees for confirmation hearings. Panama already has a preferential trade status with the United States. What the treaty will is make American products less expensive in Panama. Also, by increasing imports into Panama business relationships will be forged that will allow Panama to act as a springboard for more US exports into Latin America.

The United States Senate ratifies all treaties with foreign countries. Thus the treaty worked out and signed by representatives of both governments has been waiting for submission to the US Senate. What typically happens is that if there is a question of the treaty not receiving the two-thirds majority needed the administration does not submit it. This has been the case with the treaty between Panama and the USA and also with Korea and Colombia with the USA.

Now that world economies are weakened by the recession there is a concern in all quarters that anything inhibiting trade will slow the recovery. With trillions of dollars invested world wide in stimulus programs it is unlikely that, in the end, the free trade treaty will not pass.

The arguments against the treaty are weak. Panama is not a huge industrial power that threatens US jobs. The things that Panama exports to the USA are cantaloupes and watermelons. And, Panama already has favored trade statues.

What will happen with a treaty is that US exports, including farm products will receive favorable treatment in Panama. The fact that Panama imports and then exports to countries throughout Latin America will likely help US trade into Latin America with Panama acting as the middleman.

With the expectation of more transit through the Panama Canal in a few years, more trade with the USA, and an improved port infrastructure Panama investment will likely thrive in coming years. Likewise commercial as well as Panama residential real estate will resume their upward climb.

For the wise investor now is the time to be looking at real estate in Panama. Prices are holding steady as investors are waiting for signs of a recovery before spending their money. However, the signs of a recovery are there with manufacturers putting in orders for raw materials, which are currently under priced, in expectation of a stronger world economy in 2010 and 2011. It would be wise now for real estate investors in Panama to emulate the Asian manufacturers and invest in property at the western junction of world trade while prices are still low.

It is likely that the Senate will pass the free trade agreement and that things will move forward. It is also certain that as the recession lifts that North Americans as well as the British, Spanish, the rest the EU will find their way to do business or retire in Panama. The boom that Panama real estate had was not a fluke. It will restart once there is more ready cash as Panama has more of the things buyers are looking for. Whether it is seacoast living, an exciting Latin American capital with first world services or a mountain hideaway with nature at the doorstep Panama is the place you want to be.

If you are interested in property in Panama come to see us at ABPanama where we have over 23 years experience managing real estate portfolios.