Panamanian authorities have formally announced a strategic push to attract German foreign investment into key economic sectors, including pharmaceuticals, technology, logistics, and finance. The initiative was advanced during a high-level meeting between Panama’s Minister of Commerce and Industries, Julio Moltó, and Thomas Steffen, State Secretary of Germany’s Federal Ministry for Economic Affairs and Energy, on the sidelines of the ongoing XVI UNCTAD Ministerial Conference in Geneva, Switzerland.
The bilateral meeting, held this week, was centered on fostering new investment opportunities and enhancing technical and commercial cooperation between the two nations. Minister Moltó underscored Panama’s unique competitive advantages as a regional operations hub, positioning the country as an ideal gateway for European companies seeking access to Latin American and Caribbean markets.
“Panama’s recent incorporation as an Associate State of MERCOSUR opens a stage of greater integration and trade opportunities,” stated Minister Julio Moltó [Translated from Spanish]. He emphasized that this new status positions Panama as a strategic ally for Europe and an ideal platform for re-exporting products to other markets in the region.
Minister Moltó further highlighted the nation’s legal stability and transparent business environment as foundational elements offering secure and predictable conditions for multinational corporations. He noted that over 180 multinational companies have already established operations in Panama, facilitating long-term investment projects.
German Interest and Strategic Partnership Potential
In response, German State Secretary Thomas Steffen acknowledged Panama’s strategic value. He reiterated Germany’s interest in strengthening bilateral economic and corporate cooperation, aligning with broader European Union objectives in the region.
State Secretary Thomas Steffen “recognized the potential of Panama as a strategic partner for Europe,” according to an official readout [Translated from German]. He also highlighted the significance of the pending trade agreement between the European Union and MERCOSUR, expressing confidence that negotiations could be concluded soon under the current Brazilian presidency.
Both delegations concurred on the importance of promoting innovation, sustainable investment, and economic integration as drivers of joint development between Latin America and Europe. This alignment signals a mutual commitment to deepening economic ties beyond the immediate sectors discussed.
Panama’s Logistical and Trade Advantages
The Panamanian proposal to German investors is backed by the country’s robust logistical infrastructure and favorable trade terms. Panama’s global reputation is heavily supported by the Panama Canal, a critical artery for global maritime trade.
Furthermore, the nation’s network of 23 commercial agreements grants preferential access to more than 60 markets. Its unique connectivity with ports on both the Atlantic and Pacific Oceans makes it a pivotal hub for international trade, re-export, and regional investment. This infrastructure is a cornerstone of the nation’s investment promotion strategy.
The dialogue in Geneva represents a concerted effort by the Panamanian government to diversify and strengthen its economic partnerships with leading European economies like Germany, leveraging its geographic and trade advantages to secure high-value foreign direct investment.