By maintaining political stability and implementing robust infrastructure investments alongside progressive tax incentives and focusing on innovation and sustainability, Costa Rica strengthens its appeal as a prime destination for Foreign Direct Investment (FDI). The country’s improved position in the Global Business Complexity Index demonstrates its established reduction in business barriers and enhanced environment for international companies.

Improving Competitiveness Through Simplicity

Costa Rica’s ranking of 58th in the Global Business Complexity Index 2025, down from 51st in 2024 and 45th in 2023, highlights a noteworthy trend: Business operations in the country are becoming simpler to conduct. The TMF Group’s index assesses business complexity by analyzing 250 indicators in 79 jurisdictions, which account for 93% of global GDP and 88% of net global foreign direct investment flows. The assessment of foundational business processes, including company incorporation and payroll management, along with benefits administration and regulatory compliance, establishes this index as a dependable measure for global market access evaluation.

The regular decline in complexity rankings proves that Costa Rica is successfully advancing its business environment through meaningful reforms. Through streamlining bureaucratic processes, Costa Rica creates a business-friendly environment that attracts foreign enterprises and meets global investment standards.

Digitalization and Regulatory Streamlining

The digital transformation initiatives in Costa Rica have played a key role in advancing its business environment. The government’s introduction of digital solutions for tax submissions and permit processing has greatly simplified administrative operations for domestic and international firms. The reforms achieve operational setup speed reductions while simultaneously improving transparency and accountability.

The streamlined incorporation procedures now enable foreign investors to access the market more rapidly. Improved collaboration between institutions like PROCOMER and the Ministry of Economy, Industry, and Commerce (MEIC) has resulted in predictable business timelines and reduced regulatory obstacles.

Expanding Free Trade Zones and Strategic Corridors

The free trade zone (FTZ) system in Costa Rica stands out as one of the top incentives available to foreign investors. Investors benefit from multiple tax advantages within these zones, such as no income tax for specified years, being free from import duties on capital goods, and diminished social security payments. The nation has more than 400 companies participating within its free trade zone regime as of 2024, which create jobs for over 100,000 people while contributing significantly to national exports.

FTZ expansions outside the Central Valley are driving regional development and market diversification. The decentralization of economic activities in Costa Rica helps reduce urban congestion while balancing regional disparities. Investments in trade infrastructure support the expansion through new road corridors alongside improved port facilities and airport modernization.

Key infrastructure projects include:

• Route 32 receives upgrades to create a direct connection between San José and the Caribbean port of Moín.
• The San Carlos Highway enhances transportation links throughout northern areas.
• Efficient international trade operations depend on the modernization process of Moín and Caldera ports.

Costa Rica’s place in the Global Business Complexity Index shows better performance because of strategic national efforts that promote economic resilience and better global trade network connections.

Sustainability as a Cornerstone of Economic Policy

The leadership of Costa Rica in sustainability practices creates a distinctive advantage for attracting foreign direct investment. The nation produces more than 98% of its electricity through renewable sources while pursuing ambitious carbon neutrality targets. Companies entering the market will face more complicated operations when introducing sustainable practices, but these practices match the Environmental, Social, and Governance standards used in ESG investments.

Global investors now prioritize sustainable infrastructure alongside clean energy options and eco-friendly supply chain practices. Costa Rica’s commitment to environmental sustainability protects its biodiversity while establishing it as a progressive business hub, which boosts its standing in the Global Business Complexity Index.

Security and Transparency Measures

Many people fail to notice that Costa Rica’s business environment benefits from both a solid institutional framework and democratic governance. Costa Rica maintains its position as one of Latin America’s most stable democracies, through its minimal corruption levels and strong judicial independence and rule of law. These factors provide investors with a secure and predictable environment that reduces typical political risks found throughout the region.

The government’s implementation of stronger border control measures, enhanced customs operations, and anti-money laundering policies demonstrates its commitment to increasing transparency. These efforts build international partner trust and boost adherence to global standards, which leads to better results in the Global Business Complexity Index for the country.

Talent Availability and Labor Challenges

Costa Rica maintains a skilled workforce with strong representation in STEM fields, but faces talent deficits in certain specialized areas. The influx of multinational corporations into the life sciences, medical devices, and technology sectors has generated a competitive labor market in the country where demand exceeds supply.

Public-private partnerships are funding upskilling programs along with bilingual education and technical training to address this issue. The National Institute of Learning (INA), along with public universities, continues to enhance its educational programs to address industrial requirements. To maintain a favorable ranking in future Global Business Complexity Index editions, companies must address existing talent shortages.

Currency Appreciation: A Double-Edged Sword

Costa Rica retains numerous benefits but also encounters obstacles that threaten its competitive position. The recent appreciation of the Costa Rican colón (CRC) stands out as the primary financial challenge. The increased strength of the currency results in higher export prices and elevated operational costs for businesses that need to change U.S. dollars into colones for their local payments.

Export-focused businesses located in free trade zones stand to face tighter profit margins and lose competitive ground against other Latin American markets due to this economic shift. Policymakers should track exchange rate movements while exploring methods to maintain Costa Rica’s status as an economical manufacturing and service hub.

Connectivity and Transport Efficiency

The logistics network of Costa Rica is becoming better, yet continues to experience operational inefficiencies. The two major seaports of Costa Rica, located at Moín in Limón on the Caribbean coast and Caldera in Puntarenas on the Pacific coast, serve vital roles in trade operations. The logistics network continues to struggle with ongoing capacity constraints and delays.

Costa Rica maintains a sophisticated air transport infrastructure, which includes Juan Santamaría International Airport and Daniel Oduber Quirós International Airport, to provide international passenger and air cargo services. Costa Rica needs to allocate more resources to road network development and customs modernization to manage increasing logistics demands.

A Resilient Platform for Investment

The steady rise of Costa Rica in the Global Business Complexity Index stems from purposeful initiatives to streamline business operations, alongside efforts to boost economic sustainability and build investor trust. Costa Rica stands as the leading Latin American choice for foreign investors through its distinctive mix of environmental leadership and strong institutions, alongside its political stability and trade openness.

The nation maintains competitive resilience for international business through its proactive reform strategies and infrastructure development despite enduring talent shortages and logistical inefficiencies.

A Historic Step Toward Economic Integration

Through decisive actions, Ecuador and Canada Accelerate Strategic Trade Agreement talks that will transform their economic connection. At Ecuadorian President Daniel Noboa’s inauguration ceremony, both nations signed a mutual declaration that demonstrates their dedication toward completing the awaited trade agreement. The landmark agreement received approval from Ecuador’s Minister of Production, Luis Jaramillo, along with Canada’s Minister of Export Promotion Maninder Sidhu.

The Ecuador and Canada Accelerate Strategic Trade Agreement initiative, scheduled for signing in 2025, intends to boost joint economic growth while creating new export opportunities and establishing Ecuador as Canada’s key strategic partner throughout South America. The move to speed up negotiations demonstrates to the global community that Ecuador and Canada are advancing their strategic trade talks with urgency and shared interest.

A Comprehensive Trade Pact

The negotiation process started in March 2024 and successfully completed six discussion rounds by February 2025. The agreement allows Ecuador to obtain special access to Canada’s market with 39.8 million consumers. Ecuador relies on this market access to broaden its export range and decrease dependence on its conventional trade partners such as the United States, China, and the European Union.

The signed declaration will significantly affect investment and trade, according to Ecuador’s Ministry of Foreign Affairs. The declaration will strengthen diplomatic and commercial ties between the two countries. The agreement contains comprehensive frameworks for multiple sectors, like goods and services, while also covering investment protection, sustainable development, and e-commerce.

Sectoral Opportunities for Ecuador

The economic landscape of Ecuador shows potential growth across multiple important industry areas. The new agreement eliminates tariffs on duty-subjected goods, which will enable Ecuador to expand exports of floriculture products and processed foods like canned tuna, along with textiles, ceramics, auto parts, footwear, and plastics. Canadian consumers will soon discover Ecuador’s renowned toquilla straw hats alongside tagua handicrafts, which will strengthen their market position.

The Ecuador and Canada Strategic Trade Agreement effort aims to benefit small and medium-sized enterprises (SMEs), since they typically face difficulties with export costs and international regulatory barriers. Removing tariffs will enable SMEs to enter Canada’s profitable consumer market with greater ease. Economic inclusion, along with job creation and innovation, will be the expected outcomes of the accelerated strategic trade agreement discussions between Ecuador and Canada.

Agricultural and Labor Protections

The Ecuadorian negotiation team focused on safeguarding sensitive economic sectors while developing the agreement. The agreement includes special protective measures for small-scale farmers growing rice and producing dairy, alongside those who grow corn and produce sugar and meat products. The implemented measures demonstrate an intentional approach to ensure food security and social equity through free trade principles.

The agreement between both governments will maintain high standards for labor practices and environmental protection. The agreement includes components that support fair wages, safe working conditions, and the promotion of climate resilience. The agreement matches Canada’s forward-thinking trade strategy, which emphasizes both sustainability and gender parity.

Addressing the Trade Deficit

The trade volume between Ecuador and Canada remains modest but shows consistent growth patterns. Between January and November 2024, Ecuador sent USD 269 million in non-oil goods to Canada but bought USD 333 million worth of goods, mainly including capital equipment and raw materials, from Canada. Ecuador faced a trade deficit amounting to USD 64 million.

The Ecuador and Canada Strategic Trade Agreement initiative intends to restore balance to this commercial relationship. Ecuador sends over 200 different products to Canada, which primarily consist of minerals and metals—its leading export category—as well as shrimp, cocoa, flowers, and vehicles. Five sectors represent 82% of Ecuador’s total exports to Canada. Ecuadorian exporters hope that the new agreement will help value-added products find success in the Canadian market.

Strengthening Strategic Investment

The section of the agreement on investment protection stands out as particularly promising. While Canada remains outside the top group of foreign investors in Ecuador, its influence continues to grow with increased investment activity in the mining and energy sectors. The Canadian mining business Lundin Gold allocated $68 million for the expansion of the Fruta del Norte gold mine in 2024, which stands out as one of Ecuador’s major mining projects.

The Ecuador and Canada Strategic Trade Agreement is anticipated to lead to increased Canadian corporate entry into the Ecuadorian market. Investment priority areas are renewable energy, infrastructure development, technological advancement, and agribusiness. The investment chapter will provide legal certainty, which will make Ecuador a more appealing destination for investment from Canadian companies.

Regional and Geopolitical Alignment

Through its pursuit of this agreement, Ecuador strengthens its integration into regional commerce dynamics. For more than 15 years, Colombia, Peru, and Chile have enjoyed enhanced market access and improved investor relationships as a result of their free trade agreements with Canada. Ecuador faced a threat of reduced competitiveness and market share compared to its neighbors without an equivalent agreement.

The Ecuador and Canada Strategic Trade Agreement effort will enable Ecuador to build a strategic geopolitical plan that broadens its global partnerships. This development plays a crucial role in positioning Ecuador as a trustworthy and consistent force in worldwide trade activities. Through its accelerated efforts with Canada to finalize a strategic trade agreement, Ecuador positions itself as a key member of progressive open-market economies.

Tourism, Cultural Exchange, and Professional Mobility

The agreement aims to enrich cultural connections and promote direct interactions between individuals. The agreement contains cooperative elements for educational exchange and professional mobility, along with tourism development. Young professionals, alongside students and entrepreneurs, will experience simplified cross-border collaboration and knowledge sharing.

The agreement’s cooperation and e-commerce chapters aim to update current business methods while promoting digital commerce alongside technological advancements. Small and medium enterprises will gain advantages from Canadian institutions’ knowledge transfer and digital capacity-building programs.

Challenges and Strategic Considerations

Despite the optimism, challenges remain. Ecuador must improve its logistical systems and customs operations while ensuring product standards compliance to maximize benefits from the agreement. Small producers will need technical support and access to financial resources in order to fulfill Canadian import standards.

Canada has to determine how to integrate its emerging relationship with Ecuador while maintaining its existing regional partnerships. The implementation phase will focus primarily on aligning regulations, resolving disputes, and mutual recognition of standards.

Conclusion: A Transformational Milestone

Ecuador and Canada Strategic Trade Agreement negotiations represent a pivotal moment in Ecuador’s international trade strategy, rather than just a diplomatic act. Through this trade agreement, Ecuador expects to unlock its export potential alongside strengthened bilateral investments and improved integration into worldwide supply networks.

The completion of the trade agreement in 2025 between Ecuador and Canada provides businesses, policymakers, and civil society with a chance to develop a future that is more inclusive and prosperous while also resilient. This trade agreement may become a standard framework for upcoming bilateral and multilateral partnerships throughout the Americas, if properly impemented.

In conclusion, Ecuador and Canada Accelerate Strategic Trade Agreement efforts with clear objectives: This agreement aims to strengthen economic relationships while boosting competitiveness and encouraging sustainable growth. By continuing down this path, both nations will establish a new phase of bilateral cooperation that offers potential benefits for generations to come.

The Dominican Republic has taken a significant step toward transforming its logistics and trade infrastructure with a landmark agreement between the Dominican Government and DP World Dominicana. This partnership, centered around a planned US$760 million investment, reflects the country’s bold vision to become the leading logistics hub in the Caribbean and Latin America.

Strengthening the National Logistics Ecosystem

In a recent high-profile visit to the DP World Dominicana facilities in the Caucedo Peninsula, the Dominican Port Authority (APORDOM), led by Executive Director Jean Luis Rodríguez, reaffirmed the government’s full support for the development of the national logistics ecosystem. The purpose of the visit was to gain firsthand insight into the progress made in expansion projects and to discuss future collaboration that aligns with President Luis Abinader’s agenda to boost the country’s productive sectors.

“We must continue contributing and reinforcing the vision that the Dominican Republic should establish itself as the logistics and cruise hub of the region,” Rodríguez stated during the visit. “You have the full support of the Port Authority, in line with the mandate of the President to continue supporting the country’s productive sectors.”

The visit served not only as a show of government backing but also as a platform to share DP World Dominicana’s expansion roadmap and its contribution to the Dominican Republic’s global trade ambitions.

A Groundbreaking Memorandum of Understanding

Central to the partnership between DP World Dominicana and the Dominican Government is the recent signing of a Memorandum of Understanding (MoU), which lays the foundation for negotiations surrounding the creation of the DP World Economic Zones. These zones aim to integrate a wide array of logistics services, including port operations, manufacturing facilities, and free trade zones, into a single, highly efficient ecosystem.

If fully realized, this development would position the Dominican Republic as the first country in the Americas to feature a logistics platform that brings together industrial parks and free zones with a state-of-the-art port terminal. The high level of integration between these facilities is expected to streamline operations, reduce costs, and elevate the country’s status as a competitive logistics and trade destination.

A US$760 Million Vision for the Future

DP World Dominicana has committed to investing a staggering US$760 million into the realization of this project. This substantial capital injection will cover the expansion of the Caucedo port terminal, the development of new free trade zone infrastructure, and the integration of advanced systems and security technologies to support efficient and secure international trade.

The initiative is not just about physical expansion—it is about reimagining how trade flows through the Dominican Republic. With this project, DP World Dominicana envisions a future where manufacturers, logistics providers, and global traders can all operate from one strategic location, benefiting from seamless integration and world-class infrastructure.

Early Investments Already Underway

In addition to the long-term vision, DP World Dominicana has already made considerable investments to enhance existing operations. From 2024 to date, the company has invested approximately US$66.6 million in a series of initiatives aimed at boosting port performance and security.

These include:

• Upgrades to operational infrastructure to support increased cargo volumes.
• Capacity expansions that allow the terminal to manage more TEUs (twenty-foot equivalent units).
• Advanced security systems to ensure safe trade and compliance with international standards.
• Digitalization of port processes, which enables better tracking, transparency, and coordination across logistics chains.

These enhancements not only elevate the port’s current capacity but also demonstrate DP World Dominicana’s commitment to long-term, sustainable development.

A Model for Sustainable, Integrated Growth

“At DP World Dominicana, we are committed to a vision of sustainable growth to strengthen the position of the Caucedo port as a leading logistics hub in Latin America,” said Manuel Martínez, CEO of DP World Dominicana. “We are investing in the development of an innovative model that integrates services such as free trade zones, manufacturing, and logistics, all in one location, to boost the country’s connectivity and competitiveness. We value the support and collaboration of APORDOM, which plays a key role in consolidating the Dominican Republic as a critical player in regional trade.”

This vision aligns with broader global trends, where modern logistics hubs are increasingly adopting integrated models that combine physical infrastructure with digital solutions, creating environments where goods can move more quickly, securely, and with greater efficiency.

Port Capacity and Capabilities

Currently, the DP World Dominicana terminal boasts an operational capacity of 2.5 million TEUs per year. It is equipped with a modern fleet of port machinery, including:

Eleven gantry cranes are used for loading and unloading large containers from cargo ships.

Thirty-two rubber-tired gantry cranes (RTGs) enable efficient container stacking and yard management.

These capabilities position the Caucedo port among the most modern and competitive in the region, enabling it to handle high volumes of cargo traffic while maintaining rapid turnaround times.

The DP World Economic Zones: A Unique Model in the Americas

DP World Dominicana is also spearheading the development of the DP World Economic Zones, which aims to integrate industrial activities, logistics services, and port operations in one cohesive space. This model is unique in the Americas and offers substantial advantages for businesses looking to establish operations in the Dominican Republic.

To date, 150,000 square meters of space have already been developed within the economic zones. Plans are underway to expand this to 220,000 square meters by 2027, further enhancing the country’s ability to attract and support global manufacturers, logistics firms, and exporters.

By centralizing operations within a single geographic area, the DP World Economic Zones reduce logistical complexity and create opportunities for businesses to scale efficiently while enjoying the benefits of tax incentives, modern infrastructure, and proximity to a global port.

Government Commitment to Oversight and Collaboration

Executive Director Jean Luis Rodríguez emphasized the importance of government oversight and active engagement with key logistics stakeholders, such as DP World Dominicana. “This visit reinforces our commitment to the oversight and support of key stakeholders in the national port system. The initiatives being carried out by DP World position the Dominican Republic as a regional benchmark in integrated logistics and secure trade,” he said.

His remarks reflect the Dominican Government’s broader economic development strategy, which includes creating world-class infrastructure and attracting foreign direct investment to strategic sectors such as logistics, trade, and manufacturing.

A Collaborative and Forward-Thinking Delegation

The APORDOM delegation during the visit was composed of high-level representatives from various branches of the Port Authority, including:

• Alan Checo, Deputy Director
• Rolando Martínez, Advisor
• Adonis Modesto, Chief of Staff
• Indhira Corte, Logistics Director
• Moisés Richardson, Head of Access to Public Information

This robust participation underscores the government’s commitment to deep collaboration and transparent oversight in the execution of large-scale infrastructure projects.

On the side of DP World Dominicana, key figures included:

• Manuel Martínez, CEO
• Arlina Peña, Senior Director of Public Affairs and Communications
• Roberto Muñiz, Commercial Director
• Paola Firpo, Legal Director
• Héctor Incháustegui, representing Terra RD Partners

Together, these representatives discussed the future of port development, trade facilitation, and national competitiveness.

Looking Ahead: A Logistics Hub for the Hemisphere

The collaboration between the Dominican Government and DP World Dominicana is more than just a port expansion project—it is a bold move to position the Dominican Republic as a gateway for hemispheric trade. The integration of free trade zones, manufacturing capabilities, and digital logistics into a single ecosystem is a model that could set the standard for other countries in the region.

With continued investment, government support, and private-sector innovation, the Dominican Republic is well on its way to becoming the preeminent logistics and trade hub of the Caribbean and Latin America.

This US$760 million investment not only signals confidence in the country’s strategic location and stable business environment but also promises significant long-term economic benefits, including job creation, increased exports, and enhanced global competitiveness.

As the Dominican Republic moves forward with this ambitious plan, the world will be watching—and many may soon follow its example.

The Guatemalan private sector enthusiastically backs the new partnership between the United States and Guatemalan officials to modernize Puerto Quetzal, which represents a critical infrastructure development intended to reshape Guatemala’s economy. The partnership, which includes U.S. Army Corps of Engineers expertise, is heralded as a critical advancement to improve Guatemala’s logistics operations and establish it as a key regional trade player.

A Strategic Alliance for National Growth

The principal business coalition in Guatemala, known as the Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF), provided firm backing to the initiative. Through its public announcement, CACIF described the project as a strategic alliance that will enhance essential trade infrastructure and regional security.

Business leaders regard the plan to modernize Puerto Quetzal as essential to improving raw materials entry procedures, while eliminating cargo handling delays and enabling efficient exportation of Guatemalan products to international markets. They emphasize that this initiative stands as a construction project while serving as a base for future economic success.

Why Puerto Quetzal Matters

The primary maritime entrance point for Guatemala is Puerto Quetzal, which stands on the Pacific coast. Business leader Charles Bland asserts that 60% of national maritime cargo passes through Puerto Quetzal, demonstrating its fundamental position in Guatemala’s economy. The port manages more than 45% of Guatemala’s exported goods and approximately 30% of its imported products while connecting the country to key markets across Asia, North America, and South America.

The port has suffered from persistent operational delays and insufficient capacity for many years. Puerto Quetzal must modernize due to complaints from shipping and logistics companies about extended vessel wait times and unloading delays. Many businesses face increased expenses because ships experience delays of 20 to 50 days at port, which leads to supply chain inefficiencies that harm their competitiveness and reliability.

U.S. Involvement Brings Confidence and Transparency

The project benefits from a key partnership with the U.S. Army Corps of Engineers, a globally respected organization with technical expertise and oversight capabilities. Business leaders in Guatemala view this partnership as a guarantee of high-level execution and responsible financial management.

Charles Bland described this announcement as one of the best they have ever received. The planned expansion gets support due to the involvement of both the U.S. government and the U.S. Army Corps of Engineers. The partnership ensures financial accountability and guarantees the construction of a premier port necessary for economic development.

Bland pointed out that the plan to modernize Puerto Quetzal serves as an investment in Guatemala’s future economic competitiveness. The partnership between Guatemala and the United States shows Guatemala’s dedication to trade infrastructure improvements, while U.S. participation raises investor trust through expected transparency.

A Long-Term Vision Beyond Politics

The Guatemalan-American Chamber of Commerce (AmCham) expressed strong backing for the agreement by calling it a clear demonstration of U.S.-Guatemala bilateral cooperation. “It is not just a commitment of the current administration,” AmCham said, calling the agreement a national project that represents a long-term vision.

The agreement covers a duration of 30 years so that future generations will benefit from its implementation. During his recent regional visit, U.S. Secretary Rubio reminded observers that “America First does not mean America alone,” according to AmCham, while Puerto Quetzal’s modernization signifies a shared dedication to regional prosperity and connectivity.

AGEXPORT: Building a Regional Logistics Hub

AGEXPORT issued swift praise for the initiative. The organization considers the effort to modernize Puerto Quetzal to be a critical move toward establishing Guatemala as the primary logistics hub in Central America. AGEXPORT regards the port’s expansion as essential for enhancing efficiency and expanding capacity to fulfill increasing trade needs.

The modernization of Puerto Quetzal will unlock Guatemala’s potential to export goods from manufacturing, agriculture, and mining industries. AGEXPORT stated that the initiative focuses on trade facilitation, innovation promotion, and export quality standard enhancement to increase competitiveness in international markets.

The Industrial Sector Urgently Needs Infrastructure Investment

The Guatemalan Chamber of Industry (CIG) expressed concern over Guatemala’s declining infrastructure investments throughout recent decades. The Chamber stated that efforts to modernize Puerto Quetzal will bring immediate and lasting industrial advantages through reduced transaction costs and improved reliability while expanding capacity.

The Chamber declared that strategic infrastructure development requires multiple types of efforts involving public entities, private companies, public-private partnerships, and international collaborations. Guatemala must extend its port facilities, along with road networks and energy infrastructure, to achieve effective competition in the world market.

Agricultural Sector to Benefit from Improved Competitiveness

The essential agricultural sector of Guatemala’s economy benefits greatly from the modernization of its ports. The Chamber of Agriculture of Guatemala (CAMAGRO) highlighted that insufficient logistics infrastructure has repeatedly delayed the transportation of fresh produce and agri-food exports to international customers.

Guatemala’s agricultural sector needs enhanced global market access to achieve successful modernization of Puerto Quetzal. CAMAGRO stated that quicker loading and unloading processes will maintain product quality while minimizing spoilage and enabling exporters to satisfy international buyers’ strict delivery schedules. CAMAGRO has established a definite route to increase agricultural competitiveness through support from the U.S. Army Corps of Engineers.

A National Turning Point

The Puerto Quetzal modernization project represents more than a port improvement initiative because it serves as a pivotal moment for Guatemala’s economic development. The business sector sees this project as a catalyst for widespread infrastructure investments in roads, railways, and intermodal transportation systems.

The effort to modernize Puerto Quetzal reinforces Guatemala’s trade position in the region while fostering deeper integration with American partners and boosting goods transportation through its territory. As global supply chains evolve and nearshoring becomes more common, Guatemala’s location gains strategic importance through modern infrastructure support.

Building a Future of Economic Resilience

The modernization of Puerto Quetzal underlines Guatemala’s readiness to tackle 21st-century challenges in an economy where speed, transparency, and efficiency are essential. Business leaders from agriculture through industry to commerce stand together in endorsing this important infrastructure project.

By bringing in U.S. expertise and fostering long-term collaboration, Guatemala sends a message to international investors and trading partners: The nation maintains an open business environment while demonstrating dedication to reform and a strong resolve to create a resilient and prosperous future.

The agreement’s generated momentum gives stakeholders nationwide an important chance to push through wider infrastructure reforms as they work to improve logistics and connectivity. The development of Puerto Quetzal represents a comprehensive approach to advancing the entire nation of Guatemala—not merely improving port facilities.

Panama remains focused on acquiring new opportunities and forming strategic partnerships to enhance its regional position. The nation plans to drive its economic transformation by investing in Panama’s logistics and port services with private funding and international partnerships. Panama has implemented this strategy to maintain its position and avoid being surpassed by emerging regional competitors.

While Panama stands out as a major maritime center with a strong economy and strategic location, the country must improve its logistics efficiency to maintain its position as an essential international trade hub. The Caribbean nations, together with Mexico and Colombia, are aggressively pursuing market share.

The ongoing access to new business ventures and strategic economic discussions makes Panama stand out in the current global trade policy changes. Panamanian logistics development relies on its strategic partnerships with major global players, including China.

During the forum “Logistics and Exports in the Trump Era: At the event “Impacts and Opportunities,” Capital Financiero brought together industry experts who discussed the modernization of existing infrastructure as well as the needs of key players in Panamanian logistics and the port chain.

Logistics Expansion to Meet Supply and Demand

Rommel Troetsch, who served as president of the Panama Maritime Chamber, said that Panama’s persistent port development and adaptability have established its capability to process substantial cargo volumes between the Pacific and Atlantic, making the nation a primary transshipment hub and a fundamental part of its logistics system.

Troetsch pointed out that Panama’s port infrastructure allows efficient management of diverse cargo types. The executive pointed out that constructing new ports would ensure Panama’s logistics capabilities remain robust for the future.

The Port of Balboa along with Panama International Terminal (PSA) represent the primary Panamanian ports located next to the interoceanic canal on the Pacific coast. The primary ports on the Atlantic side include Cristóbal – Panama Ports Company (PPC), Manzanillo International Terminal (MIT), and Colón Container Terminal (CCT). The Panamanian ports constitute the fundamental infrastructure for logistics operations that facilitate transshipment and trade circulation throughout the Americas.

Panama stands on the brink of its second transformation in port infrastructure. We stand at the beginning of new opportunities for port development. The acquisition of the Balboa and Cristóbal ports by BlackRock and Terminal Investment Limited will lead to increased shipping traffic and cargo volumes and require additional crew members to handle these operations.

The transaction involved selling the remaining contract years and transferring ownership to interested parties, including MSC, which stands as one of the world’s largest shipping lines, according to his clarification.

The Panamanian government retains negotiation authority over new economic conditions and strategic development for the Balboa and Cristóbal ports following BlackRock’s acquisition of 90% of these ports from Hutchison as part of a $22.8 billion transaction that also encompasses 41 ports across 23 countries.

In 2024, Panama commanded the Pacific coast market for container transshipment measured in TEUs, with a 60% market share by processing 3,616,674 units. Lázaro Cárdenas in Mexico accounted for 14%, and Callao in Peru matched this percentage, followed by Manzanillo in Mexico at 10% and Buenaventura in Colombia at 2%. Colón port led the Atlantic market with 4,846,748 TEUs, making up 42% of the market share, followed by Cartagena at 23%, Kingston in Jamaica at 19%, Freeport in the Bahamas at 10%, and Caucedo in the Dominican Republic at 6%.

Troetsch identified Cartagena as an emerging logistical threat because of its port expansion and called for Panamanian government initiatives to stimulate the Panamanian logistics sector.

He demonstrated exponential growth in TEU volume since port concessions began as evidenced by the rise from 195,097 units in 1993 to 9,569,771 units in 2024, which showcases the consolidation of a privately operated system that plays a crucial role in Panamanian logistics expansion.

“There is current demand for two new ports: The country needs to build two new ports with one location secured on Isla Margarita in the Atlantic Ocean while the second location remains undetermined. Farfán, Corozal, and Palo Seco are the evaluated options in the Pacific located within the canal area.

He revealed that building a new port would demand about $1 billion in investment and emphasized that national leadership for the project was essential to create wealth and jobs.

He concluded with the recommendation that Panama should consider port examples, including Singapore’s massive transshipment capabilities of up to 60 million TEUs; Jebel Ali’s operations with 15 million TEUs capacity; and Rotterdam’s substantial €2 billion investment in port expansion.

The Panama-David Train: A Key Pillar of Logistics Development

Felipe Rodríguez of the Panama-David-Frontera Train Committee presented details about the project’s anticipated economic benefits and societal effects during a discussion about transportation strategies between Panama’s central and western regions. Panamanian logistics will improve through the increased integration of regional supply chains.

The mega railway project valued at $8 billion is slated to begin construction during the year 2026. The project establishes transportation links between the provinces of Coclé, Herrera, Veraguas and Chiriquí with the Panama Canal logistics corridor.

Rodríguez from the Western Region Competitiveness Center (Cecom-RO) stated that the Panama–David–Frontera Train project will enhance current trade pathways while improving cargo movement to key production zones and border areas and fostering Panamanian logistics network integration.

President José Raúl Mulino announced that the train project heading to Paso Canoas border will feature 14 stations throughout the nation and create 50,000 direct and indirect jobs during its construction phase.

Former President Juan Carlos Varela (2014–2019) first proposed the Chiriquí railway project after presenting a feasibility study conducted by China Railway Design Corporation (CRDC) which aimed to support Panama’s existing air transportation and logistical and financial infrastructure.

The analysis showed that building the railway would require six years and $4.1 billion while generating up to 6,000 direct and indirect jobs.

Rodríguez highlighted that developing local labor skills would empower the population to take part in the project while simultaneously addressing unemployment issues.

Once the train starts operations, multiple beneficial projects will become possible. These include links with the Panama–Colón railway and a terminal at Panama Pacifico, as well as hubs in Arraiján and the Aguadulce port, together with the Penonomé trunk line, the Azuero corridor for rum and ethanol, and a slaughterhouse connected to Mensabé port, while new developments in Soná create a tourism and agro-industrial corridor leading to Santa Catalina beach.

The plans include a tourist and passenger stop at Las Lajas as well as a spur and stop at San Lorenzo and a Panama–Boston link together with Puerto Barú as the main logistics node in Chiriquí town and the Caribbean Dry Canal. The trunk line at Puerto Armuelles connects the border for purposes of transshipment as well as tourism and shipyard operations.

Rodríguez projects that the initiative will develop technology clusters along the route through connections between innovation hubs and industrial and agricultural sectors while making it easier for tech businesses to reach markets and resources thus growing the Panamanian logistics ecosystem.

China and Its Investment in Panama

During the forum, Xu Xueyuan, the Ambassador of China to Panama, revealed trade growth statistics between the two nations since their diplomatic ties in 2017 and presented market opportunities China provides to Panama.

Our economic and trade cooperation between our countries has experienced rapid growth. Panama and China achieved $6.38 billion in trade in 2016, which increased to $12.84 billion by 2024. She indicated the direct investment increased from $270 million in 2016 to $1.4 billion in 2023.

The Colón Free Trade Zone sources its products mainly from China, which also ranks as the second-biggest user of the Panama Canal. The country hosts over 200 Chinese businesses.

The ambassador discussed Panama’s geographic advantage, noting its role as a vital pathway for international shipping and a regional logistics center. Infrastructure development and job creation improve population well-being and strengthens Panamanian logistics’ strategic value.

She presented the Belt and Road Initiative, also called the new Silk Road, as a means to increase connectivity between countries in economic, trade, political, and financial domains via infrastructure investment funding.

The successful momentum with Panama developed through Belt and Road Initiative cooperation will continue if political and financial support from the initiative persists.

The ambassador stated that although bilateral relations between the two nations are stable they face complex challenges which neither China nor Panama have generated. The Trump administration repeatedly accused China of meddling in Panama Canal operations which led to political conflict between the two nations.

Representative Xu explained that China sees Panama as a strategic partner to enhance bilateral trade and encouraged businesses to explore export possibilities in the Chinese market with a focus on beef, pork, poultry, fruit, and coffee industries. China plans to keep sending trade delegations to Panama while they participate in trade fairs to discover fresh investment opportunities and strengthen economic partnerships.

Experts suggested that Panama needs to speed up its logistics platform development while advancing strategic projects, including the Panama-David-Border railway, and drawing international investment to boost regional competitiveness through sustainable planning that provides fair benefits throughout the nation.

The Chinese Embassy in Panama organized an event at the Bristol Hotel located in Panama City. Mambriche Media together with Plataforma Event Production and Radio Ancón and GVA Hospitality provided their support.