According to the National Competitiveness Center (NCC), it is necessary to meet these challenges at a time when the Brexit and the recent presidential campaign promises in the US threaten the progress made by globalization.

From 2009 to 2015, the cumulative value of the investment of operators in the European Union (EU) based in Panama accounted for 3% ($ 746 million) of the total foreign investment, compared with 21% ($ 4.891 million) invested by companies from United States. During this period (2009-2015) the biggest European Union investors in Panama were Germany, Spain, and the Netherlands.

Currently, Panama is part of the Association Agreement between Central America and the European Union (AA), which is the first international trade agreement signed by Panama as a member of a group of countries (Central America) with another association of countries (the European Union).

The Association Agreement was signed on the 29 of June of 2012, and it was adopted in Panama by Law on the 27 of April (Official Gazette 27,269). The agreement has been in effect since August 1, 2013.

According to existing trade agreements, from 2011, Panama sent its highest valued exports (in dollars) to the European Union. In the last two decades they averaged a quarter (25%) of the trade balance.

Despite this, the trade gap is significantly tilted in favor of EU imports because domestic exports declined by 2.4 times over a period of 3 years due to a lower volume of sales of fruits, such as bananas, melons, pineapples, and watermelons, and fishery products and some of their derivatives.

The CNC also stated that there is little diversification of the exportable supply. The first international trade agreement signed by Panama entered into force in 2003, and producers have been waiting for the government to implement policies that support domestic production ever since.

Source: panamaamerica.com.pa