Stressing Panama’s geographic location as a gateway to North and South America, the country’s foreign minister Janaina Tewaney Mencomo batted for increased Indian investments in the Central American nation. Mencomo revealed that a business delegation of Indian pharmaceutical companies will be visiting Panama to explore possible investments. Speaking of the broader India-Panama relationship, Mencomo stated that New Delhi’s outreach and focus to Latin America has sharpened in recent years. Mencomo, who is the highest level visitor from Panama in 15 years, also argued her country’s relations with India and China, both of whom are emerging partners, should not be compared to each other.
There has definitely been a gradual increase in India’s outreach to Latin America during the last five years. Countries engage on the basis of common interests and values. There has also been increased trade with the region, which may reach around USD 42-43 billion this year. So trade is a common interest but there are also common values. You can see common values since Panama and India are both democracies. There is also a strong influence of the Indian Diaspora in the Caribbean and in Panama itself. Panama was the first diplomatic mission of India in Central America and it remains home to the largest Indian diaspora in Central America. India’s footprint is growing globally and Latin America is a region that Indian business will be thinking of in terms of expansion.
While Latin America is a growing partner, Panama is only India’s 10th largest trade partner in the region. What are the opportunities for bilateral trade and investment?
Trade between Indian and Panama peaked in 2021 at USD 548 million and that is a higher number than some countries that are geographically closer to India. The economic relationship is more strategic. While Panama is a country of only 4.5 million people, it is a door to the region. It is geographically located in such a way that you can reach the United States, Mexico, Colombia and Venezuela in a short time. Panama is also a democracy and its growth is sustainable. Panama also uses the dollar, which makes our economy more stable. When you think about Panama, it’s impossible to think about just numbers. You have to think about the country in a strategic way considering that you can reach the rest of the region from Panama. The country also has the Panama canal and among the best logistics systems in the continent. The strategic asset is to have Panama as a hub and then enter the region.