Panama City is hosting the second Latin America and Caribbean International Economic Forum this week, drawing regional presidents and global business leaders. The event, organized by the Development Bank of Latin America and the Caribbean (CAF) in partnership with Panama, aims to become a premier platform for regional dialogue. It commenced on Wednesday with a focus on economic integration and navigating a complex global landscape.
Panamanian President José Raúl Mulino opened the gathering. Brazilian President Luiz Inácio Lula da Silva is scheduled to deliver a keynote address, underscoring the forum’s high-level political engagement. The attendance list includes the presidents of Bolivia and Ecuador, alongside numerous ministers and hundreds of corporate executives from across the Americas, Europe, and Asia.
A Regional Space for Global Challenges
Organizers position the forum as a regional counterpart to major global gatherings. Ambassador Alexandre Peña Ghisleni, director of the Department of Economic, Financial, and Services Policy at Brazil’s Foreign Affairs Ministry, clarified its purpose.
“There is great expectation that this forum can be consolidated as a space for regional debate,” Ghisleni said. [Translated from Spanish] “It is not an alternative to Davos, but an important complement.”
The event’s timing is significant, following recent geopolitical statements from global powers that have put the region’s international relations in sharp focus.
Analysts note the forum provides a crucial venue for leaders to formulate a collective stance. Lucas Souza Martins, a professor at Temple University, pointed to the symbolic choice of Panama as host.
“It is telling that this forum is taking place in Panama, which was Trump’s first target in Latin America when he threatened to reopen the Panama Canal,” Martins said. He argues recent U.S. rhetoric seeks to coercively reassert a sphere of influence, making regional coordination more urgent.
Fernanda Cimini of the Brazilian Center for International Relations is attending. She is watching how leaders respond to warnings about a fragmenting international order, similar to those heard at the World Economic Forum.
“The question is whether we understand that we are operating in a context of rivalry, and whether Latin America can position itself so as not to become merely a zone of influence,” Cimini stated.
Security and Economic Agendas Converge
Beyond macroeconomics, the agenda tackles pressing regional security issues. Cimini highlights discussions on violence and its direct economic consequences.
“Organized crime affects investment, predictability, politics, and democracy,” she said. She notes that combating trafficking is now a frequent justification for external intervention, making it a dual economic and sovereignty issue for organized crime.
This intersection of security and development is a growing concern for investors and governments across central america and the wider region.
Concurrently, substantial business networking is underway. Approximately 300 regional exporters are meeting with 150 international buyers from the United States, Germany, India, and other nations. These roundtables, held Thursday and Friday, aim to translate diplomatic discussions into concrete trade and investment deals.
Brazil and Panama Advance Bilateral Ties
On the sidelines, significant bilateral progress is expected. President President Lula is set to sign an Agreement on Cooperation and Investment Facilitation with Panama. The treaty establishes clear rules to protect investments in both directions. Panama is already the seventh-largest destination for Brazilian corporate capital, with a stockpile nearing $9.5 billion.
Trade growth presents both opportunity and challenge. Commerce between the two nations surged 78% last year to $1.6 billion, driven by Brazilian oil exports. Gisela Padovan, secretary for Latin America and the Caribbean at Brazil’s foreign affairs ministry, acknowledged the imbalance.
“This has slightly unbalanced our trade,” Padovan said. [Translated from Spanish] “The diplomatic corps and the ministries of Industry and Trade need to work to identify more opportunities to import Panamanian products and rebalance this exchange.”
This specific bilateral agenda item reflects broader forum goals of fostering sustainable, reciprocal economic partnerships.
The forum organizer, CAF, is a key multilateral development bank for the region. It allocated $34.7 billion to social-impact projects last year. By convening this economic forum, the institution seeks to catalyze both public policy and private sector action across Latin America and the Caribbean International economic landscape. The event continues through Friday, with outcomes likely to shape regional cooperation strategies for the coming year.