Panama Seeks Investment Boost, Canal Expansion with Switzerland & Singapore
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Panama is actively courting deeper economic ties and foreign investment, particularly in key infrastructure projects surrounding the Panama Canal, following high-level meetings at the World Economic Forum in Davos. President José Raúl Mulino engaged in bilateral discussions with the leaders of Switzerland and Singapore this Monday, aiming to capitalize on the nation’s recent economic gains and strategic positioning.
Strengthening Ties with Switzerland
President Mulino’s meeting with Swiss President Guy Parmelin focused on bolstering the already significant economic relationship between the two nations. Switzerland currently ranks as the third-largest investor in Panama, with a substantial $5.5 billion invested across commercial, financial, and manufacturing sectors. A key takeaway from the discussion was Panama’s recent accession to Mercosur, the Southern Common Market – the fifth-largest trading bloc globally.
“This positions the country as an access platform for the Swiss pharmaceutical industry to South America,” a senior official stated, highlighting the potential for increased trade. Bilateral exchange was a central theme, with Panama exporting coffee to Switzerland and importing pharmaceuticals, watches, optical devices, and alcoholic beverages in return.
Parmelin also expressed keen interest in the strategy behind Panama’s merchant navy, the largest in the world, and the country’s overall logistical capabilities, driven by the Panama Canal. Mulino, in turn, detailed ongoing projects within the interoceanic waterway, including plans for a new water reservoir, two future megaports, and a gas pipeline. Both leaders underscored the importance of the recently opened Panamanian embassy in Bern and Panama’s request for Switzerland to formally recognize the Treaty of Permanent Neutrality and Operation of the Panama Canal, reinforcing Switzerland’s role in safeguarding global trade.
Singapore as a Strategic Partner
Shifting focus to Asia, President Mulino also met with Singaporean President Tharman Shanmugaratnam, extending an invitation for increased business engagement from Singaporean companies. The emphasis was on sectors including aviation, technology, energy, and logistics, leveraging Panama’s connectivity to access the Latin American market.
Discussions again centered on the Panama Canal projects, specifically the development of the two planned megaports. Panama also expressed interest in Singapore’s participation as a “strategic enclave” in the burgeoning semiconductor industry. Mulino further invited Singapore to adhere to the Panama Canal Neutrality Treaty.
Shanmugaratnam indicated a willingness to explore the resumption of Singaporean aviation operations in Panama, a move he believes would be further facilitated by Panama’s new membership in Mercosur. “Intervening so that his country’s aviation industry resumes operations in Panama,” Shanmugaratnam stated, “once again reflecting the advantage that is now added by being part of the Mercosur bloc.”
The Panamanian delegation accompanying President Mulino included ministers Felipe Chapman (Economy and Finance), José Ramón Icaza (Canal Affairs), and Julio Moltó (Commerce and Industries), alongside Kristelle Getzler, the Secretary of Economic Affairs and Competitiveness of the Presidency. These meetings signal Panama’s proactive approach to diversifying its economic partnerships and solidifying its position as a crucial global trade hub.
