Panama

Political relations

Since the creation of the State of Panama goes hand in hand with the construction of the Panama Canal, the work of Frenchman Ferdinand de Lesseps is a perfect representation of French-Panamanian shared heritage. In addition to our similar positions on many multilateral issues, our relationship with Panama is currently focused chiefly on two priorities: economic diplomacy and cooperation in the areas of higher education and Francophonie.

France supports Panama in its efforts to improve tax transparency, particularly since the launch of a bilateral working group in 2019. Panama’s Director General for Revenue was received in Paris by the Director General of Public Finances (DGFiP) in spring 2022, confirming the real progress and fresh momentum at the bilateral level when it comes to the sharing of tax information.

Our bilateral ties in the area of security and judicial cooperation have been deepened recently. National Navy ships made several calls in 2021 and 2022, and the Director of the Anti-Narcotics Office (OFAST) visited, confirming the real interest in jointly and effectively fighting drug trafficking and organized crime. Significant advances have been made judicially thanks to a visit in May 2022 by the Public Prosecutor of the Nation, Javier Caraballo, to Paris, a meeting with the Justice Minister, and the signing in July 2023 of two bilateral agreements on extradition and mutual legal assistance.

France and Panama are cooperating to tackle major common challenges, particularly climate change and protection of the environment and biodiversity. Panama joined the Alliance for the Conservation of Rainforests and the Preventing Zoonotic Disease Emergence (PREZODE) initiative. Lastly, the continuum between the One Ocean Summit in Brest (February 2022), Our Ocean Conference in Panama (March 2023) and the third United Nations Ocean Conference jointly held by France and Costa Rica in 2024-2025 will constitute a new focus for cooperation.

Economic relations

France’s economic presence in Panama has been greatly strengthened since the 2000s (e.g. trade, direct investment and major contracts). Panama is currently one of our main clients in Latin America, and our largest trade surplus in the area.

French companies have participated in many large-scale projects: construction and management of two wastewater treatment and purification networks (Société Degrémont, Suez), construction of a third bridge over the Panama Canal at the end of 2012 (Vinci), boring, maintenance and management of the first underground line inaugurated in April 2014 (participation of the Alstom, Thales, Cim-Tso, Sofratesa and Systra consortium) and of the second line inaugurated in 2019. Véolia is operating the capital’s only household waste treatment site. Thalès, JC.Decaux, Servier, Sanofi, LVMH and Colas Rail are also doing business in Panama, along with ETI and PME (including in tourism). In December 2022, Sofitel opened a luxury hotel and Air France-KLM has a daily flight between Paris and Panama.

French investments are being made by some 100 businesses, including 30 subsidiaries of major companies, active in Panama. Most also use this country as a regional platform. The opportunities for French companies are concentrated in the sector of transport and sustainable cities because Panama has made significant investments in infrastructure (8% of the government budget in 2023). In October 2022, a group of companies made a visit to Panama organized by MEDEF International.

With €419 million in trade in 2023, Panama is our 7th largest customer and generates our 3rd largest trade surplus in Latin America. In 2023, trade between France and Panama was up nearly 25% compared with 2022.

Our exports, standing at €438 million in 2023, make France Panama’s 17th largest supplier. They are mainly pharmaceutical and chemical products (36%) and perfumes and cosmetics (27%). Our imports stand at €19 million, making France Panama’s 42nd customer. They are mainly agrifood industry products (beverages, animal fat, leather and leather goods).