PANAMA CITY, Panama – Panamanian President José Raúl Mulino and Paraguayan President Santiago Peña Palacios committed to strengthening bilateral ties and accelerating Panama’s full integration into the Mercosur trade bloc during an official state visit on Monday. The leaders outlined a concrete plan, announcing that Panama will formally present its accession letter on December 2 in Brasilia.
The strategic meetings, held at the Palacio de las Garzas, focused on leveraging Panama’s logistical platform to create new commercial gateways for Mercosur nations. President Peña pledged his country’s full support to fast-track Panama’s admission process, aiming for finalization at the next bloc summit in Paraguay.
Following bilateral and expanded meetings with their respective cabinets, President Peña emphasized the mutual benefits of the partnership.
“We want the Panamanian logistics platform to access new markets and with this, we will all win,” argued Peña. “We will be the bridge so that Panama can join Mercosur as quickly as possible, with the aim of this becoming a reality at the next bloc summit in Paraguay.”
He highlighted Mercosur as a 35-year-old organization with clear rules and processes that respect the internal politics of each member country. [Translated from Spanish]
Charting a Course for Regional Integration
President Mulino confirmed the decisive step for Panama’s economic alignment.
“We are already drawing, in black and white, a route regarding the integration process of Panama with Paraguay, ahead of the announcement we will make on December 2 in Brasilia,” he stated during a joint press declaration.
He further stressed the necessity of regional cooperation, adding,
“Without a doubt, integration is the future. We cannot each remain the owner of our own chapel, because (that way) we will not grow.”
[Translated from Spanish]
The integration is designed to utilize Panama’s strategic position as a connectivity hub, linking Mercosur countries in South America with North America and other global markets through the Panama Canal, the country’s airport network, and its maritime ports.
Economic Opportunities and Sectoral Alliances
The accord opens significant opportunities for Panamanian exporters. Local products such as pineapple, watermelon, melon, yucca, and papaya were specifically identified as having strong potential in the Paraguayan market. President Peña indicated that Paraguay’s interest lies in using Panama’s developed logistics to access regional markets, including the Caribbean and Central America.
Beyond agriculture, the leaders explored potential alliances in the financial sector, pharmaceutical manufacturing, and real estate development, using Panama’s established market as a reference point. President Peña expressed his admiration for President Mulino’s initiative and work in promoting regional integration, stating this partnership would generate progress and development for both nations through increased investment and job creation.
“For a long time, we have longed for Panama to look to the South. Panama, a nation that has known how to integrate with the world, not only through that fantastic work of the Panameñans, the Panama Canal, which allows the Atlantic to be united with the Pacific, but also through what the Tocumen airport has been, which we Paraguayans know very well has become our main platform for integration, not only for the rest of the countries of Latin America, but for the world,”
declared President Peña. [Translated from Spanish]
Diplomatic Proceedings and Future Engagement
The day’s events began with a private meeting in President Mulino’s office, where he was accompanied by the Minister of Foreign Affairs, Javier Martínez-Acha. President Peña was assisted by Paraguay’s Foreign Minister, Rubén Ramírez Lezcano. The discussions later expanded into a full cabinet meeting in the Council of Cabinet room.
The Paraguayan delegation included Ambassador to Panama Enrique Jara Ocampos, the president of the National Animal Health Service (SENACSA), José Carlos Martín Camperchioli, and other senior officials. The Panamanian side was represented by Ambassador to Paraguay Humberto Girón-Soto and the ministers of the Presidency, Agricultural Development, Economy and Finance, and Commerce and Industries.
Looking forward, President Mulino invited President Peña to participate in the Economic Forum of Panama to be held by CAF at the end of January 2026, framing it as a key opportunity to bring business leaders from both countries closer together.