The Central American country, which is best known for its canal, its stout-but-slowing economy and tax-sheltering ways, holds a general election. The United States will be happy to see a new Panamanian government that is less welcoming to China, its arch-rival, but might be out of luck.
Seven candidates – four affiliated with political parties and three independents – are in the race to replace President Juan Carlos Varela, who is not eligible for another 5-year term. Voters will also elect members of the 71-seat National Assembly and mayors.
The new government inherits a country the World Bank describes as “one of the fastest growing economies in the world, with an average annual growth rate of 5.6 per cent over the last five years.” The country flourishes as a tax paradise behind a curtain of secrecy that was blown aside with the so-called Panama Papers leak in 2016. There is talk of arresting the recent slowdown in the economy, but no early indication from candidates that financial transparency will be a priority on their agenda, or that they are eager to backtrack on deals with China.
Under Varela and the Panameñista Party and its legislative allies, Panama cut ties with Taiwan in 2017 and switched allegiance to China. Since then, the two countries have signed 28 diplomatic and investment agreements, negotiations for a free trade agreement are reported to be at an advanced stage, and Chinese contractors have won major contracts for a port, convention center and a new bridge over the canal.
The New York Times describes Panama as a fulcrum in American dominance of the Western Hemisphere, and the Panama Canal as critical to the strategic and economic needs of the United States. It is the biggest user of the Panama Canal, followed by China.
Jose Blandon, a former congressman and mayor of Panama City, is the ruling party’s candidate. AS/COA, a regional publication, reported in April that he is running behind his two main rivals. Laurentino “Nito” Cortizo of the Democratic Revolutionary Party (PRD), which has held the presidency for 20 of the last 50 years, is leading polls by double digits. Rómulo Roux, a lawyer who succeeded Martinelli as president of the Democratic Change (CD), polls second. Former Attorney General Ana Matilde Gómez is the only one of the three independent presidential candidates polling above 5 per cent, according to AS/COA.
Democratic Change holds the most seats in the legislature, closely followed by the Democratic Revolutionary Party. Varela’s Panamenista Party ranks third, and governs with the support of a loose coalition of legislators from other parties.
AS/COA reports that the top issues for voters are corruption, crime, and unemployment, in that order.
Panama cuts ties with Taiwan, recognizes ‘One China (USA Today Jun 2017)