“TO Colombia and Panama have much more in common than what separates them. From our native peoples, through our idiosyncrasies and even our typical dishes, such as chontaduro and carimañola, they make us more than neighbors,” the outgoing Panamanian ambassador to Colombia, Liliana Fernández, summarizes to this newspaper. After five years, she leaves office highlighting the strength of bilateral relations and the potential they have in different areas after 100 years of their establishment.
According to the criteria of
The diplomatic relations between Colombia and Panama They began in July 1924 with the signing of the Vélez-Victoria Treaty, after four attempts at separation between the two countries, whose final closure occurred in 1903.
Relations that have become closer over the years. An example of this was what happened in the last century when Panama fought one of the most important diplomatic battles in its history, in which Colombia’s role was fundamental.
There has been no dispute or enmity. We are very good neighbors and not every country can say that in international matters.
“In the most heated discussion we have had to recover our national sovereignty, later with the United States, diplomatic relations with Colombia were very important in recognizing the Contadora Declaration in the 1970s. This led our countries to establish excellent relations that have been maintained over the years. There has been no dispute or enmity. We are very good neighbors and not any country can say that in international matters,” says Panamanian historian Jonathan González Quiel.
And it is that Panama stands out throughout its history for advocating for avenues of dialogue to resolve conflicts.
“Independence from Spain was negotiated, separation from Colombia was negotiated, the reversal of the Panama Canal was negotiated. We have managed to play the role of negotiators within the multilateral world, seeing ourselves as a neutral actor that maintains relations with the vast majority of countries and for which we were even elected to occupy a non-permanent seat on the UN Security Council for the period 2025-2026,” says Fernández.
Hence, under the current context, where the region faces serious challenges in matters of security, migration and economy, the bet is on turning to that close historical relationship, which has served as a framework for the two countries to maintain a political dialogue at the highest level.to seek to expand the bilateral agenda on issues such as technical and scientific cooperation, the exchange of best practices and lessons learned between the institutions of the two countries, border security and the promotion of investments, trade and electrical interconnection.
Likewise, tourist and academic mobility are relevant areas that are part of the technical committees established by nations to promote them.
Figures and investment opportunities between Panama and Colombia
According to figures from the Bank of the Republic of Panama, Colombia’s Foreign Direct Investment (FDI) during 2023 was 131 million dollars. But, for the first quarter of 2024, Colombia’s FDI in Panama was 367 million dollars, that is, an increase of 180 percent, (accumulated at 11.504 billion dollars, since 1994).
In fact, Colombia ranks second among the top ten FDI issuing countries in Panama when imports from Colombia total 323,918,243 dollars in pharmaceutical products, mineral fuel, plastic, animal or vegetable oils, electrical appliances, among a wide variety of other areas.
Sharing this idiosyncrasy also makes business easier. Colombian talent is very well received in Panama, which is why the number of Colombians residing in Panama is growing.
“Panamanian banking is made up of many Colombian players, such as Argos or EPM, and there are many sectors that have opted for the facilities of Panama, which is a dollarized economy, without inflation and which allows you to open up to the world,” explains Fernández.
On the other hand, according to data from the Bank of the Republic of Colombia, Panama was the source of foreign investment in Colombia for 658 million pesos, 7 percent more than in 2020.
As for trade agreements, the Partial Scope agreement has been in force since 1995, which stands out for its tariff preferences with certain products, while The Free Trade Agreement (FTA), signed on September 20, 2013, has not been ratified by either country..
However, Panama has stated that it would be willing to move forward with the ratification of the FTA and to include an annex on customs issues, as progress is made in resolving the trade conflict.
Visas, an attraction for Colombians
Panama has many attractions in terms of taxes, employment and immigration, which, combined with its geographical position, makes it an attractive option for establishing a home in the country.
“Sharing this idiosyncrasy also makes business easier. Colombian talent is very well received in Panama, which is why the number of Colombians residing in Panama is growing. We are a country whose economy and a large part of its institutions are designed to interact with the international world and Colombians have understood this.”, explains Fernandez.
According to Panamanian authorities, an estimated 100,000 Colombians currently have an investment visa, which allows candidates to obtain a residency that can be extended as long as they have an investment in Panama and then, if they wish, apply for citizenship. Another advantage is that it does not require a fixed period of stay.
Panama has the knowledge society for technology companies, it is a knowledge city with facilities for small companies
In addition, there is a visa for retirees that allows those who can prove a pension of one thousand dollars or more to apply and reside in Panama, buy properties and receive visits from their families. “We have a growing Colombian colony. There are a number of visas that can be considered,” Fernandez said.
Likewise, many Colombian companies have requested to relocate to Panama due to the incentives for headquarters, free trade zones, warehouse rentals in free trade zones and software innovation.
Panama has a knowledge society for technology companies, it is a knowledge city with facilities for small companies and there are even Colombian universities that have a presence there.
In fact, a delegation of Panamanian businessmen was in the country a few months ago to promote their services and provide comprehensive support to Colombian companies in the technology sector, an area in which Panama has grown in recent years.
The urgent challenge of addressing irregular migration
The Darien region, located on the border between Panama and Colombia, has become in recent years one of the most complex and dangerous migration routes in the world.
So far in 2024, the UN Migration Office estimates that nearly 120,000 people, many of them minors, have crossed the dangerous jungle on their way to the United States. While, according to the organization, at least 34 migrants died last year in the middle of the journey.
For the new president of Panama, José Raúl Mulino, who was Minister of Security, limiting border crossings through the jungle while safeguarding the human rights of those who cross it is an option he wants to defend. However, he is aware that this task may be more complex than it seems.
The UN Migration Office estimates that nearly 120,000 people, many of them minors, have crossed the dangerous Darien jungle on their way to the United States.
For this reason, the presidents of Colombia and Panama, in a bilateral meeting held on July 1, agreed to work together to respond to common challenges, including migration issues in the Darien region and electrical interconnection for the energy transition.
On the subject in question, the parties agreed the creation of a Binational Comprehensive Development Plan for the Border Region that benefits the peoples and communities that have historically inhabited these territories.
“We have a very strong alliance with Panama and we work on various current regional issues, our binational affairs, especially migration, security, cooperation, development on our borders, and this is particularly significant in my case, as I am from Chocó, which is the department in Colombia that has the entire border with Panama,” said Foreign Minister Luis Gilberto Murillo in a statement after a bilateral meeting.
The leaders also defined a roadmap to address security, social, environmental and cultural issues in a coordinated manner. Emphasis was placed on coordination to dismantle criminal networks operating in border areas.
Education and tourism, areas that hope to strengthen
Given their historical connections, Colombia and Panama work together to strengthen cooperation in culture, education, science and technology.
In this sense, governments are working on a increased the offer of higher education scholarships to Panamanian students. Likewise, the Government of Panama expressed interest in cooperating with Colombia in strengthening museum networks.
In this regard, historian González Quiel highlights that: “Colombia has great weight at an academic level.”
“The first Panamanian thinkers studied at the National University of Colombia. There was a president of the great Colombia, and later president of the Republic of Panama, who graduated from the National University of Colombia. Likewise, Belisario Porras – three-time president of Panama – also studied in Colombia, so at an academic level we could enhance exchanges to get much closer.”he added.
As regards tourism, both nations are particularly interested in expanding air connections and thus promoting this area.
By 2023, 197,012 tourists from Panama entered Colombia (35 percent more than those registered in 2022, when 145,864 tourists entered), and 411,384 Colombians chose Panama as a tourist destination (26 percent more than those registered in 2022, when 325,401 Colombians left.
STEPHANY ECHAVARRÍA
International Editor
THE TIME
More news here
#Colombia #Panama #common #separates #bilateral #bets #years #establishing #relations