July 27, 2010

Panama's seafood exports tumbling

In the first five months of the year, Panama's shrimp exports fell 14.2%, while the exports of both fresh and frozen fish fell 47%.

A heavy decline in sea food exports brought about by the cancellation of a tax credit, has pushed several Panamanian fishing companies to the brink of bankruptcy.

Industry officials said that the reason for decline was the decision by the government to end the tax certificate programme, which subsidised the industry. The incentive was cancelled because it violated rules established by the World Trade Organisation, which allows subsidies only for agricultural production.

Former Deputy Economy Minister Domingo Latorraca said that the sector had time to prepare for the change, which had been in the works since 2003.