A new initiative known as the ‘Caribbean Triangle’ seeks to promote business and cooperation between Costa Rica, Panama, and the Dominican Republic — three of the most developed and investment-friendly economies in Central America and the Caribbean.
Holding its first meeting on September 8, representatives of the three nations came together in Costa Rica’s capital San Jose to promote an alliance based on democratic principles, respect for human rights, and the promotion of trade.
Among the issues on the agenda were the development of trade relations, the promotion of special development zones, and growing opportunities related to nearshoring.
Nearshoring — which in the Western Hemisphere often means companies based in the United States and Canada shifting outsourcing from the likes of Asia to Latin America and the Caribbean — is a growing trend that some of the region’s more developed economies are in a particularly strong position to capitalize on, given their deeper pools of skilled workers.
That includes all three of the Caribbean Triangle countries, which have growing startup scenes, enjoy particular government support for innovation, and are traditionally popular destinations for foreign investment.
Among those in attendance were the foreign ministers of each country, including Costa Rica’s Rodolfo Solano Quirós, Panama’s Erika Mouynes, and the Dominican Republic’s Roberto Álvarez Gil.
“With this meeting, Panama will continue its position as an articulating country in the region, favoring new spaces for rapprochement and political ties, reinforcing its commitment to regional security, environmental protection and global agreements to minimize the effects of climate change,” Mouynes was reported as saying.
Caribbean Triangle brings together 3 top investment destinations
The Caribbean Triangle sees three of the most developed and prosperous countries in Latin America and the Caribbean come together to promote greater cooperation and business — in a move that investors operating in these countries will find of particular interest.
Because in seeking to promote cooperation and business between the three, it can be expected that moves will be forthcoming to promote cross border trade and lower the barriers for doing business between the three nations.
That should make the three countries additionally attractive destinations for foreign investors interested in multi-jurisdiction market entry, especially given that all three are already highly popular destinations for retirees, investment, and holidaymakers.
That popularity is in part because the three Caribbean Triangle countries have some of the lowest crime rates in the region, as well as highly developed and prosperous economies with sizable services sectors.
They are also all known for their distinctly pro-business and pro-investment outlooks, offering significant incentives to investors, as well as each operating networks of free trade zones (FTZs) — a topic that came up for discussion during the first meeting.
Recently, all three countries have been moving to reactivate their economies following the economic turmoil of the global pandemic, with Costa Rica introducing a number of incentives to promote more foreign investment, while the Dominican Republic has sought to promote its critical tourism industry.
In a positive sign of that reactivation, the Dominican Republic has reported that tourist numbers have now recovered to 96% of their pre-pandemic levels. Meanwhile, the Caribbean nation and Panama are slated to be two of the five fastest growing economies in the region in 2021.
Biz Latin Hub can assist you doing business in Latin America and the Caribbean
At Biz Latin Hub, we have local teams in place providing corporate legal and accounting services in all three of the Caribbean Triangle countries, as well 15 other markets around Latin America and the Caribbean. Our comprehensive portfolio of services includes company formation, tax advisory, hiring & PEO, and due diligence, meaning we can offer a tailored package of integrated services to suit every need.
If you are interested in expanding into Latin America and the Caribbean, or would like to have all of your business support covered by one provider, contact us today to discuss how we can support you.
Or read about our team and expert authors.