Doing Business in Panama

DOING BUSINESS IN PANAMA

Business Customs & Etiquette

Punctuality is appreciated by business people, as is giving your host enough time to plan for your arrival. Thus, you should make appointments at least one week in advance. When you meet with your Panamanian colleagues, a handshake is a normal greeting. Do not rush into a meeting with talk of business right away. Your associates are more likely interested in getting to know you first. The exchange of business cards is important. If it is possible, get them printed in Spanish. This goes for any other literature you will be using for business matters.

Executives and general managers are expected to wear suits, whereas low-level managers usually wear panabrisas, shirts left untucked and worn over trousers. Foreign businessmen should always wear dark suits on their first visit, but later may wear panabrisas if their business associates do at the next meeting. Businesswomen should wear dresses or skirts and tailored blouses. Since Panamanian women are now moving into higher managerial positions, there should be no difficulties for women doing business.

Be aware of the importance of titles: "Licenciado" for a BA holder; "Doctor" for a Ph.D., lawyer or medical doctor; "Arquitecto" for an architect and "Ingeniero" for an engineer.

There are some anti-American feelings felt in Panama. To prevent an uncomfortable situation by saying something that may offend, avoid discussing local politics, the former Canal Zone and racial issues.

Business Hours

Office hours are usually Monday to Friday, 8:00 a.m. to Noon, and then 1:00 p.m. to 5:00 p.m.

Importance of Relationships

Expect to invest a considerable amount of time developing good rapport and a pleasant, relaxed relationship before discussing business. Establishing an atmosphere of trust is a precondition to a successful business relationship.

Good topics for small talk are football (soccer), Panamanian history, literature and places to visit as well as information about your home town and region. You will probably need two or three visits to the country before you can expect to do serious business. Like other Latin Americans, Panamanians value deep, long-lasting relationships.

Orientation to Time

The clock ticks at a different speed for the fun-loving Panamanians. You might find yourself waiting an hour or more for your local counterpart. Visitors should always make it a point to be punctual.

Hierarchy, Status and Respect

In Panama one's status depends more on social class, education and family background than on personal achievement. Business visitors can enhance their status by displaying a lively interest in intellectual pursuits, dressing elegantly and staying in top hotels.

Expressive Communication Style

A warm and friendly people, Panamanians tend to be talkative, nonverbally expressive and open about showing emotion in public. Don't be offended if you are sometimes interrupted in mid-sentence -- conversational overlap is not rude in Panama. Do however avoid direct confrontation during negotiations.

Never expect to get down to business quickly. Panamanians need some time to get to know you.

Meeting and Greeting

Men and women shake hands warmly when introduced and again when departing. Visiting men should expect to shake hands with another male for a considerable length of time -- take care not to withdraw your hand prematurely.

Touch Behavior

Panama is definitely a high-contact culture. After they get to know each other two men will shake hands and touch each other on the elbow or forearm, perhaps slap each other on the back or shoulder. Male friends will exchange the embrace while women friends brush cheeks with a kissing motion of the lips.

Interpersonal Space

In another sign of friendliness Panamanians stand very close to each other when talking.

Eye Contact

Panamanians maintain strong eye contact with the person they are conversing with.

Dress Code

Male executives tend to wear fashionable three-piece suits. Office