Panamanian President Jose Raul Mulino endorsed a major trade pact between South America’s Mercosur bloc and the European Union during a signing ceremony in Paraguay this week. He framed the long-negotiated agreement as a vital counterweight to rising global protectionist trends that he argued harm the world economy.
The president attended the event as an honorary witness, using his platform to praise the complex two-decade negotiation process. He contrasted the swift implementation of harsh regulations with the painstaking effort needed to build consensus for open trade. Mulino’s presence underscored Panama’s strategic interest in the deal despite not being a Mercosur member state.
“Extreme regulations are made overnight, but agreements like the one signed today take years and years,” Mulino said. [Translated from Spanish] He warned against a global trend toward Protectionism and a fear of the competitiveness inherent in open commerce.
The president positioned the signing not as an end but as a beginning for enhanced transatlantic commerce. He acknowledged the significant political hurdles European leaders overcame to finalize the agreement, describing it as arduous work requiring broad consensus-building across economic sectors within their nations.
Defending Mercosur’s Agricultural Role
Mulino specifically highlighted the Mercosur bloc’s role as a global food producer. He defended the quality and competitive production of the region’s agricultural goods, calling them the basis for adequate nutrition. Addressing common restrictions on meat imports, the president shared an anecdote suggesting critics would change their stance once they experienced the product quality firsthand.
He expressed particular gratitude to European Commission President Ursula von der Leyen. Mulino credited her as an important ally for Panama and the region, instrumental in supporting Panama’s removal from certain international financial watchlists. “You were instrumental and we thank you very much,” he stated during the ceremony. [Translated from Spanish]
Panama’s Strategic Position as a Logistics Hub
The Panamanian leader dedicated a portion of his remarks to outlining his country’s unique value as a complement to regional trade, not a competitor. He detailed Panama’s extensive connectivity, including 576 weekly air frequencies linking 42 cities across Mercosur member and associate countries. Daily flights to Europe and the capacity of the Panama Canal and port system were also emphasized.
Panama’s ports handled 9.9 million containers in 2025, Mulino noted, reinforcing the nation’s claim as a pivotal logistics platform. He argued this infrastructure increases competitiveness for all regional partners by ensuring their products reach diverse global markets efficiently. This focus aligns with other infrastructure pushes by his administration, including progress noted on the mulino participated Puerto Armuelles wharf project.
Advancing Bilateral Talks with Brazil
In a significant bilateral update, President Mulino revealed that Panama and Brazil have progressed on an initial proposal for a future commercial negotiation. The framework reportedly considers existing asymmetries and aims for a favorable balance for both parties. Talks have advanced on tariff alignment and on sanitary, phytosanitary, and customs measures to guarantee traceability and product health.
The terms of reference for these negotiations are expected to be signed on January 28 during a forum in Panama hosted by the CAF development bank. Mulino extended an invitation to other regional countries to participate in this upcoming event, signaling a broader diplomatic engagement effort.
Domestic Ratification Provides “Life Insurance”
Mulino explained his decision to submit the separate Panama-Mercosur association agreement to the National Assembly for ratification, even though foreign policy is constitutionally an executive branch power. He admitted it was a political risk but noted the deal was approved unanimously by lawmakers.
“Today Mercosur is law of the Republic of Panama and that is life insurance,” the president declared. [Translated from Spanish] He argued this legislative approval grants the agreement greater legitimacy and ensures its continuity over time, regardless of future political changes. This move for legislative backing mirrors other policy debates currently before the asamblea nacional.
Concluding his address, Mulino called for a world with fewer barriers and more communicative channels. He advocated for fewer rigid borders and more connecting hubs to foster a prosperous global economy. His remarks consistently championed multilateralism, open world trade, and economic freedom as pillars of his government’s foreign policy.