Not knowing the expectations and behavior of International consumers is a weakness that Panamanian exporters are facing, situation that impedes them from positioning themselves in the European market.
In addition to this, there is the lack of knowledge by some businessmen of the trade agreement between the European Union (EU) and Central America, which gives them tangible and very good opportunities to place their products in a market of 580 million people.
This agreement, specifically, points out that nearly 98% of the products that are produced in Central America have zero tariff to enter Europe, which benefits products such as bananas, beef, rice, flowers, textiles, sugar, tuna, frozen shrimp, cassava, fruits, etc.
David Cabrera, consultant of the Regional Project to Support the Economic Integration and for the Implementation of the Association Agreement (PRAIAA), pointed out that something that affects almost all the Central American countries and Panama is the lack of knowledge of the market and of European consumers.
He added that this situation affects a little the positioning of products manufactured in the region in the markets of the Old Continent.
He stressed that Panamanian businessmen should diversify and minimize the risks of an international operation of export to reach this market.
The consultant added that currently markets are seen from the point of view of demand and not supply, something that is very practiced in the countries of the EU.
"Currently, it is very complex to manufacture products and see where to place them, as there is now the need to manufacture the products depending on who is going to buy", stands out Cabrera.
He said that another issue which is very taken into account when times to import to Europe comes are phytosanitary standards for the production of consumer products, something that is very rigid in Europe.
The expert stressed that an aspect that should be improved in order boost exports from Panama to the continent is to improve the industrial sector and for the authorities to promote the best conditions to encourage the export.
Among the countries where businessmen have more opportunities to place their products, according to the expert, are Germany, France, Holland, Spain and Italy, as well as some emerging Nations.
According to statistics from the Secretariat of Central American Integration (Sieca), exports from Panama to the major countries of the European Union during the year 2015 were quite low.
For example, only to Germany, Panama exported 28 million 680 thousand dollars during the past year, while to Spain the figure was about 17 million 444 thousand dollars; to Denmark, 6 million 919 thousand dollars; to France, 3 million 399 thousand dollars, and to Belgium, 3 million 208 thousand dollars.
The President of the Panamanian Association of Exporters (Apex), Juan Bulnes agrees with these numbers emphasizing that Panama "is scoring very low" in the shipment of products to European markets.
He added that this situation due, in part, to a little ignorance exporters have on what the rules to send their products to the EU are, as well as the lack of a little more support from local authorities.
The President of Apex commented that in this sense we must "wake up" to seek greener fields in this great niche.
Meanwhile, Ricardo Sotelo, President of the Union of Industrialists of Panama (SIP), points out that this decline in exports to the continent has been due to lack of a strategy as a country that encourages export.
He noted that many industrialists who could export are perhaps not doing it due to the lack of knowledge of the appropriate information on the processes to do so.
For his part, Ricardo Salas, exporter of watermelon, pointed out that Europe does give a little more attention to processes of cultivation and manufacture of products, while in America pays more attention to aspect of price.
He added that Panamanians should try to take greater advantage of the trade agreement with the EU and seek the knowledge necessary to reach this market of more than 500 million people.