Panama and Paraguay, two countries committed to expanding bilateral relations and deepening regional integration, have made significant strides toward that end in recent weeks. On Monday, October 20th, Panamanian President José Raúl Mulino, R., received Paraguayan President Santiago Peña Palacios, R., at the Palace of the Herons in Panama City.
In a bilateral meeting, the presidents of Panama and Paraguay reaffirmed their commitment to political, economic, and trade dialogue as well as Panama’s interest in acceding to the Southern Common Market (Mercosur).
Advocating integration in Latin America
President Mulino R. emphasized that Panama’s membership in Mercosur will be a historical one for the country and a milestone in its regional engagement strategy. He revealed that on December 2, he will send a formal letter of adhesion to Mercosur at the upcoming summit in Brasilia to request membership in the regional bloc. The head of state stated that Panama’s inclusion in Mercosur will provide unprecedented opportunities for exporters and investors.
On the other hand, Peña Palacios, R. assured Panama of Paraguay’s support for the acceleration of the negotiation of its accession to Mercosur, with which both countries will be linked. “We want Panama’s logistics platform to open new markets and, with this, everyone wins,” said the president of Paraguay.
Peña Palacios, R. also stated that Mercosur is a consolidated and stable organization, now 35 years old, with a solid internal structure, with countries that have different internal policies and that, within that framework, they respect each other and seek to grow together.
Growth for both countries
President Mulino R. also said that the integration process will bring tangible economic benefits to both countries. Panama, for example, could expand its export sector to Paraguay and other Mercosur countries in the agricultural sector. Pineapple, watermelon, melon, cassava, papaya, and other high-demand agricultural products in the South American nation could open up an expanded market and an income source for the Panamanian government.
In a similar way, Paraguay’s agricultural sector could gain easier access to the Panamanian market. Soy, meat, and processed foods are just some of the products that the South American nation could see as an export opportunity, once the membership is formalized. Panama is also expected to serve as a logistical hub for Paraguayan goods to North America, the Caribbean, and Asian markets.
Panama’s multimodal system, which includes its world-renowned Panama Canal as well as Tocumen International Airport and a modern and efficient network of seaports, is poised to be a central gateway for the flow of Paraguayan goods, services, and people between markets in the south and the north of the continent, with significant savings in costs and time for both importers and exporters.
Panama: Integration is the way of the future
Mulino R. also reiterated the Panamanian government’s guiding principle for foreign policy and the international agenda as a whole: “integration is the way of the future and isolation is the way of backwardness.”
According to the president, bringing South and Central America together through a trade corridor that leverages each country’s comparative advantages is the way to go. In this regard, Palacio Peña, R. stressed that Paraguay and Panama share the same vision and a commitment to bringing benefits to both nations.
Taking advantage of Panama’s location
Panama’s geographical location has long made it a crossroads of global trade. The Panamanian government aims to use this strategic location to open Mercosur up to markets outside Latin America. In addition to its unrivaled canal, Panama is located at a multimodal crossroads of air, sea, and land connections, making it a natural central gateway for the movement of goods, services, and people between the north and south of the continent.
Peña Palacios R. noted that Paraguay recognizes the great potential of Panama’s logistics platform, its multimodal system, and its high connectivity as enabling factors for competitiveness across the region and for Paraguay in particular. The Paraguayan head of state went on to say that he sees Panama’s ports and its world-class airport infrastructure as a model for integration. He stated that Tocumen International Airport in Panama already serves as a key connection for Paraguayan travelers to the rest of the world.
Broad areas of cooperation and exchange
The two presidents also agreed on other areas of mutual interest beyond trade and commerce. Panama and Paraguay, for example, expressed interest in exploring opportunities in finance, pharmaceuticals, and real estate. Peña Palacios R. mentioned Panama’s thriving real estate and financial services sectors as examples Paraguay can learn from. Panama, on the other hand, has been drawn to Paraguay’s experience in agricultural innovation and renewable energy.
Investment and technology cooperation between both nations is a great opportunity to promote investment, industrial diversification, and technological exchange. Industrial and technological diversification, according to both administrations, will increase job opportunities, competitiveness, and improve the quality of life in both nations.
Extend diplomatic and institutional ties
On the one hand, a more private meeting took place in the president’s office. In attendance were Foreign Minister Javier Martínez-Acha, R. from Panama and Paraguayan Minister of Foreign Affairs, International Cooperation and Worship, Rubén Ramírez Lezcano, R. Minister.
On the other hand, there was an extended bilateral session with both delegations in the Cabinet Council Hall. Enrique Jara Ocampos, R. Ambassador of Paraguay to Panama, José Carlos Martín Camperchioli, R. President of the National Animal Health Service (SENACSA), Luis Enrique Strubing Cartes, R. Director General of State Ceremonial and Fernando Fronciani, R. Minister Director General of Protocol of the Foreign Ministry of Paraguay.
On the Panamanian side, Ambassador Humberto Girón-Soto R., Minister of the Presidency, Juan Carlos Orillac, R.; Minister of Agricultural Development Roberto Linares, R.; Minister of Economy and Finance Felipe Chapman, R. and the Acting Minister of Commerce and Industries, Eduardo Arango R.
Sustainable Development: Panama’s Trade Agenda
President Peña Palacios R. also lauded the reiteration by both nations to commit to sustainable development and inclusiveness in economic progress. Peña Palacios, R. praised Mulino R.’s leadership and stated that “today we are writing history, this is a historic moment for Latin American unity.” He complimented the Panamanian president’s efforts to integrate his country into international markets and lauded Panama’s role as a connector between continents.
Peña Palacios, R. said: “Panama has always been a country that looks at the world; it connects the Atlantic and Pacific through the canal, and it connects Latin America with the world through its airport. Today, and in this century, it is a country that looks south; it looks at integration, at building a strong and interconnected region.”
Invite the Paraguayan president to the CAF Economic Forum
President Mulino R. also invited Paraguayan President Peña Palacios R. to attend the CAF Economic Forum in January 2026, which will be held in Panama.
The Development Bank of Latin America (CAF) is organizing the event, which will provide a platform for business leaders, investors, and policymakers from across the region to meet, exchange ideas, and explore new opportunities. It will be a critical moment for Panama and Paraguay to showcase their progress in economic cooperation and attract new investment projects in logistics, agriculture, and energy.