Panama: Hub of the Hubs

Panama’s Foreign Minister, Javier Martínez-Acha, started by celebrating the ongoing relationship between Panama and the UK: the UK is one of the largest foreign investors in Panama, continuing to finance projects across the country. The UK and Panama have just signed a Security Memorandum of Understanding (MoU), further deepening their alignment on security and organised crime. This agreement will address concerns of any cyberattack that could threaten the Canal.

The Minister went on to explain why Panama is the ‘Hub of Hubs’. Panama is logistically important: it is the bridge between the Americas, is crucial to global trade, and serves as the distribution point for a multitude of transnational companies. Panama is positioning itself as a trusted partner that is neutral, reliable, and predictable. To underline this reputation, the Minister explained that the Panama Canal is run independently, with its own accounts and a plethora of investment options that secure its future operations. Panama remains committed to increasing the number of countries that are committed to the Canal’s ongoing neutrality and openness to ships of all nations.

Looking to the future, the discussion turned to the diversification of the Panamanian economy. The technology industry will play a key role in this process, with multiple US firms choosing Panama to base their new production and data centres because of its location and extensive trade connections.

The Minister addressed the current government’s attention to migration across the Darién Gap, explaining the importance of ongoing cooperation with the USA, and the centralisation of entry routes into the country. Reflecting on the situation in Venezuela (a key driver of regional migration), he explained that Panama is supportive of democratic elections in the country and remains well informed on US plans.

Canning House extends its thanks to Minister Martínez-Acha for joining us and sharing his thoughts on Panama’s approach to foreign affairs.