Celebrating a Month of Recognition that there is only one China in the World – July 2017
The Republic of Panama and the Republic of China has signed an agreement in Beijing on Monday, June 12th, to start diplomatic relations, since previously they only had commercial relations. As a result, the Panamanian government has broken ties with Taiwan leaving it with only 20 diplomatic allies, of which 11 are located in Latin America and the Caribbean.
Currently, the most appropriate mechanism for establishing a free trade agreement between the two countries is being analyzed in order to strengthen the current trade relationship.
China is playing a leading role in the development of million-dollar infrastructure projects in the country. The Container Port of Colon, a project started on June 7 that represents the investment of USD $ 1.1 billion. The second phase of the new port that includes the development of the logistic park. The clean energy project “Gas to Power Panama” representing an investment of over USD $ 900 million. The construction of the Cruise Terminal in Isla Perico, Calzada de Amador (Pacific) representing an investment of USD $ 197 million. All these projects generate not only workplaces but direct foreign investment.
Likewise, China is the second most important user of the Interoceanic Canal and the first supplier of merchandise in the Colon Free Zone. In addition, more than 30 Chinese companies from sectors such as telecommunications, banking and finance, technology, construction and logistics have settled in Panama. Of these companies, several have acquired the license of Multinational Company Headquarters (SEM) taking advantage of the investment benefits that Panama offers in labor, immigration and tax matters.
This strategic decision has generated great expectations for Panama, where the commercial and investment potential especially of the logistics and technology sector is forecast with great positivism.