Panama Diamond Exchange Aims for 200+ Members in Coming Year

(Source: http://www.idexonline.com/portal_FullNews.asp?id=30734/ )

The Panama Diamond Exchange, formed in 2006 by a group of diamond dealers based in what has been called ‘the Switzerland of South America,’ has set a goal of signing over 150 new members in the next year. The exchange currently has 37 member firms and is processing 50 more.

“We want to have over 200 members within a year from now,” says PDE President Erez Akerman, adding that the exchange has seen rising interest from trade members in the region following its acceptance into the World Federation of Diamond Bourses (WFDB) in May.

“This was a very significant step for us, both with how we were viewed by the government of Panama and in the rest of the region. Following the acceptance of our membership application, over 250 businesses from the region approached us, some who wanted more information, many who were interested in joining,” Akerman explains.

The diamond and jewelry industry in South is very developed, Akerman says, adding that the exchange is servicing an existing trade that lacks both structure and a central hub through which to run business.

It is envisioned that the exchange in Panama will serve as this gateway to the industries in South and Latin America, for both rough and polished diamonds, precious gems, jewelry materials, manufacturing technologies and other various services to the industries.

The PDE’s goals for the coming year include launching an extensive website that will provide news and information for the region and about the region, in English, Spanish, Portuguese and perhaps even Hebrew, as well as a comprehensive contact list for all the jewelers and diamond dealers in the region.

In addition, the exchange has employed the services of a large marketing firm in South America to launch a PR “attack on the entire region,” promoting the PDE to the thousands of diamond and jewelry businesses in the area, many of whom may be unaware that the first diamond exchange in the region is up and running in Panama.

For this, they are working also with the World Jewellery Confederation (CIBJO) and regional governments and foreign ministries.

Panama is expected to complete its membership process with the Kimberley Process in the coming months, and the exchange is currently in the process of negotiating a trade agreement with the Israel Diamond Exchange that will “provide specific benefits to each exchange and its members” in the areas of trade and cooperation, Akerman says.

Panama is home to the second largest free trade zone after Hong Kong, which, has been extended to the Panama Diamond Exchange, making all diamond and jewelry exports and imports tax free. Panama’s economic growth is currently hovering around 11.4 percent (11.2 percent in 2007).