AGP Executive Report

Exports: Panama’s exportable products reached $1.16 billion through September, up 17.2% year over year. Registered exports rose 9%, while value-added exports from special regimes climbed 43.8%, according to the Commerce Ministry. Food Costs: The Agricultural Marketing Institute’s 2026 budget grew from $55 million to $168.9 million by September, with much of the funding going to rice and other food purchases for low-cost fairs and stores. Earthquake Recovery: President José Raúl Mulino says the government will build 2,700 homes for families who lost theirs in the earthquake; construction has begun on homes in Veraguas. Maritime Safety: Oman evacuated 25 crew members from the Panama-flagged tanker RITI after an attack sparked a fire near Musandam. The crew received medical care.

Maritime Safety: A Panama-flagged tanker carrying 27 Indian seafarers was struck by limpet mines in the Strait of Hormuz, setting its engine room on fire. The crew extinguished the blaze and all were safe; responsibility for the attack is unknown. Earthquake Recovery: President José Raúl Mulino says the government will build 2,700 homes for families who lost theirs in the earthquake. Construction has begun on 20 of 154 planned homes in Veraguas, with visits also scheduled in Herrera. Exports: Panama’s exports reached $1.16 billion from January to September, up 17.2% from a year earlier, with shrimp, bananas, palm oil, pharmaceuticals and coffee among its key products. Regional Trade: Business groups are urging Panama and Costa Rica to resolve their dispute over agricultural trade, as tensions have also affected plans for Panama to sell electricity to its neighbor.

Maritime Safety: A Panama-flagged tanker carrying 27 Indian seafarers was struck by limpet mines in the Strait of Hormuz, sparking an engine-room fire. The crew extinguished it, all were safe, and the vessel resumed its voyage; responsibility remains unknown. Iran separately claimed four tankers hit mines, a report not independently verified. Biodiversity: UN talks ended with a deal to renew efforts to halt nature loss by 2030, but key targets remain off track. Panama’s environment minister criticized wealthy countries for resisting broader contributions to conservation funding as Panama vies to host the 2028 summit. Trade: Panama’s exports rose 17.2% year over year to $1.16 billion in the first nine months of 2026, with growth in higher-value goods. Panama Canal: After its 41st advisory board meeting, the Canal said it is assessing global trade shifts, water security, revenue diversification and long-term competitiveness. Earthquake Recovery: The government changed emergency funding rules to let reconstruction contractors receive financing and advances before projects are completed.

Maritime Safety: A Panama-flagged tanker, the MT Louise 1, was hit by limpet mines in the Strait of Hormuz and caught fire. All 27 crew members were safe, and the vessel resumed its voyage. Exports: Panama’s goods exports reached $1.1578 billion from January through September, up 17.2% year over year, with officials citing growth in higher-value products. Panama Canal: Canal leaders reviewed long-term plans for water security, revenue diversification and workforce development amid shifting global trade routes. Earthquake Recovery: The government changed emergency trust rules to let contractors access financing before projects are completed, aiming to speed reconstruction after the October 9 earthquake. Diplomacy: Panama offered to host dialogue between Cuba and the United States, but neither government has confirmed talks. Trade and Security: Panama and Germany agreed to deepen cooperation against drug trafficking and explore investment opportunities; Germany also sent 60 tons of relief supplies for earthquake-affected communities.

Maritime Safety: Oman says 25 crew were rescued after a fire aboard the Panama-flagged vessel RITI, attacked near the Strait of Hormuz. The cause and perpetrators have not been confirmed. Cost of Living: Diesel has more than doubled in price since January, reaching $1.54 a litre as higher fuel costs add pressure on transport, food distribution and industry. Earthquake Recovery: A bill advanced in the Assembly could free about $20 million in municipal funds for emergency relief and recovery. Inspections also found widespread damage to rural homes lacking adequate seismic reinforcement. Infrastructure: A tunnel-boring machine has reached Albrook for Metro Line 3, which is estimated to be 82% complete, with passenger service targeted for 2028. Energy Links: Indigenous authorities in Wargandí and Guna Yala approved the consultation process for the proposed Panama-Colombia power connection; an agreement with Alto Bayano is still needed. Mining Debate: A new analysis estimates Cobre Panamá could produce a net loss of $23.11 billion for the country, rising to $95.27 billion in a tailings-dam failure scenario. Cultural Tourism: La Pintada’s Painted Hat Festival, postponed after the earthquake, is rescheduled for December 4–6 as a solidarity event supporting local artisans and communities.

Cost of Living: Diesel prices have more than doubled since January, rising 103% to $1.54 a liter from October 30. The government has set aside up to $100 million for fuel subsidies, but how much relief will reach consumers remains unclear. Earthquake Recovery: Lawmakers have advanced a proposal to free up about $20 million in municipal funds for emergency aid and repairs. The quake also exposed unsafe construction in rural areas, where more than 1,300 homes were damaged or destroyed; officials say future building must meet seismic standards. Energy Links: Panama’s planned $800 million power connection with Colombia moved closer to completion after Guna Yala approved the project, joining Wargandí. Approval from Alto Bayano is still needed. Culture and Tourism: La Pintada’s National Painted Hat Festival has been rescheduled for December 4–6. Organizers are recasting it as a solidarity event to support artisans and communities affected by the earthquake. Public Safety: Panama is adding drones, cybersecurity tools and intelligence training to its fight against organized crime, alongside expanded operations at borders, ports and sea routes.

Cobre Panamá: First Quantum reported stronger third-quarter results, saying stockpile processing advanced and all three processing trains came online in sequence. The company is awaiting a government decision after an interministerial commission’s recommendation; this does not amount to approval to reopen the mine. Biodiversity Talks: Panama is vying with Ecuador to host the 2028 UN nature summit. Environment Minister Juan Carlos Navarro criticized the negotiations as ineffective and called for majority voting instead of consensus. Earthquake Recovery: The government plans to build 2,700 homes for earthquake victims, while tourism officials continue promoting affected provinces and Pedasí says it is ready to welcome visitors. Business and Environment: Panama was removed from the EU tax blacklist and will host Latin America’s first Global Bioeconomy Summit in 2028.

Cobre Panamá: First Quantum reported stronger third-quarter results as stockpile processing advanced and all three processing trains came online sequentially. The company says it is ready to work with the government on a lasting resolution. Earthquake Recovery: President Mulino ordered 1,400 more homes for families who lost theirs, bringing the total to 2,700; temporary housing is planned while construction continues. Tourism: Pedasí operators say earthquake fears have sharply reduced visitor numbers, with the mayor seeking a six-month pause on Isla Iguana’s entry fee. Business: The EU removed Panama from its tax blacklist. Nature Diplomacy: Panama will host the first Global Bioeconomy Summit in Latin America in 2028, while also bidding to host the UN biodiversity summit that year. Environment Minister Juan Carlos Navarro urged COP negotiators to move beyond speeches and deliver action.

Biodiversity Diplomacy: Environment Minister Juan Carlos Navarro criticized UN nature talks as “a bunch of baloney” as Panama vies with Ecuador to host the 2028 summit, calling for majority voting to break deadlocks. Earthquake Recovery: President José Raúl Mulino ordered 1,400 more homes for families displaced by the Oct. 9 quake, bringing the planned total to 2,700; temporary shelters will be built nearby. Tourism: Pedasí businesses report a sharp drop in visitors since the quake, with some Isla Iguana boat tours making no trips. The mayor has asked to suspend the island’s entry fee for six months. Public Integrity: Three people, including a current and former government innovation agency official, were arrested over alleged embezzlement of $964,620 in a public technology contract. Resort Investment: Red Frog Beach in Bocas del Toro plans major solar, battery and water-system upgrades to support future growth. Regional Cooperation: Mulino thanked U.S. Secretary of State Marco Rubio for earthquake aid and discussed the selection of the next UN secretary-general.

Retiree Benefits: Panama’s Assembly labor committee approved Bill 746 in its first reading, advancing proposed discounts and medicine-related support for seniors. It still needs further debate before becoming law. Puerto Barú: The Supreme Court upheld the port project’s environmental approval, clearing a major legal obstacle. Opponents continue to warn about dredging and risks to coastal habitats. Tourism Recovery: The Tourism Authority is promoting 35 events through year-end in quake-affected provinces, though cleanup remains incomplete in some areas; visitors should check local access and conditions. Public Workforce: Officials are gathering data on retired people still working in government to assess possible voluntary-retirement proposals; no policy decision has been made. Trade and Shipping: More than 400 Panama-flagged ships were detained at Chinese ports between March and July, and about 500 ships have since left the registry, according to an analysis; Beijing denies targeting Panamanian vessels. Bioeconomy: Panama is set to host Latin America’s first Global Bioeconomy Summit in 2028, putting the country’s biodiversity and sustainable-business potential in the spotlight.

Shipping Pressure: More than 400 Panama-flagged vessels were detained at Chinese ports from March to July, and about 500 ships left the registry by August. A U.S. maritime commission says the inspections may be intended to punish Panama; Beijing denies targeting its ships. Indigenous Rights: Ngäbe communities are renewing calls for reparations over the Chan-75 dam, built without their consent and linked to displacement and environmental damage. A new report and campaign were launched during hearings at the Inter-American Commission on Human Rights. Tax Status: The EU removed Panama from its tax blacklist, but placed it on a grey list pending further OECD reviews; the move is not full clearance. Earthquake Recovery: CCRIF paid Panama $17.4 million after a major earthquake. Recovery remains a challenge in Azuero, where thousands of students are reported to be without classrooms. Trade and Business: Panama is exploring a direct maritime link with Chennai, India, as it promotes itself as a regional trade gateway. At the World of Coffee event, business leaders also urged the country to improve its competitiveness.

Indigenous Rights: Ngäbe communities are renewing calls for reparations nearly 20 years after construction of the CHAN-75 dam began without their consent. A new report says the project displaced families, damaged ancestral lands and livelihoods, and was followed by police repression of protests. Tax and Business: The EU has removed Panama from its tax blacklist and placed it on the greylist while the OECD conducts further reviews; the country is not yet fully cleared. Regional Politics: María Corina Machado’s return to Venezuela drew crowds and raised pressure for elections. Reports say she flew from Panama to Colombia before crossing into Venezuela, with her return coordinated with regional governments and the United States. Justice: Mexico arrested Sergio Rafael De Marco Cruz, known as “El Panameño,” who has been wanted for extradition to Panama since 2022 in a money-laundering investigation. Diplomacy: President José Raúl Mulino joined regional leaders in congratulating Brazil’s Luiz Inácio Lula da Silva on his reelection.

Regional Politics: Venezuelan opposition leader María Corina Machado returned home after nearly a year abroad; her journey was coordinated with Panama, the United States and Colombia, and her return could intensify pressure for elections. Coffee and Investment: World of Coffee Panama brought international buyers and producers together in Amador. The Chamber of Commerce urged the country to cut red tape and turn the event into lasting business and tourism opportunities. Climate and Trade: Chiquita’s CEO warned that El Niño could make 2027 one of the toughest years in decades for banana producers. Flooding and drought threaten crops and roads, while low water levels could also disrupt Canal shipping. Earthquake Recovery: Reconstruction is underway in Veraguas and Los Santos, with Panama’s response shifting toward data-led recovery; a regional insurance facility is set to pay the country $17.4 million after the major quake. Trade Links: Panama is exploring a direct maritime connection with Chennai, India, to expand trade in maritime services and pharmaceuticals.

Regional Diplomacy: Panama joined Mexico, Paraguay, Uruguay and Bolivia in congratulating Brazil’s re-elected President Luiz Inácio Lula da Silva and pledging stronger regional ties. Coffee and Competitiveness: World of Coffee Panama drew international buyers and producers, but the Chamber of Commerce says reducing bureaucracy and improving investment conditions will be key to turning the event into lasting business for local growers and small firms. Earthquake Recovery: In Azuero, 60 damaged homes are under construction and 1,300 have been assigned to contractors; debris clearance remains a hurdle for families waiting to rebuild. Culture and Tourism: Young people from Colón are bringing Fort San Lorenzo’s history to life through an interactive theater tour, adding a new attraction to the province’s tourism offer. Trade Links: Panama is courting Tamil Nadu businesses in shipping, logistics and pharmaceuticals, promoting the country as a gateway to Latin American markets.

Maritime and Environment: A Panama-flagged tanker was reportedly struck near the Strait of Hormuz, spilling oil that prompted beach closures in the United Arab Emirates. Heritage Tourism: Young people from Colón are turning Fort San Lorenzo into an interactive stage, using theater and music to bring local history to visitors and build skills in the cultural sector. Trade Links: Panama is courting companies in India’s Tamil Nadu as a maritime, logistics and pharmaceutical gateway to Latin America, while exploring a direct shipping link with Chennai. Coffee and Innovation: Panama hosted the first World of Coffee trade show in Latin America, drawing global attention to its producers and specialty beans. The country will also host the Global Bioeconomy Summit in 2028, its first edition in the Americas. Local Government: Darién mayor Nadine González was re-elected to lead the Association of Municipalities of Panama, calling for greater funding and autonomy for local governments alongside transparent use of public resources.

Living Heritage: Young people from Colón are turning Fort San Lorenzo into an immersive theater experience, bringing local history to life while building skills in tourism and the arts. Trade Links: In Chennai, Panama pitched itself as a gateway to Latin America for Indian maritime, logistics and pharmaceutical companies, while seeking a direct shipping link with India. Coffee & Bioeconomy: World of Coffee Panama runs through Oct. 25, drawing global attention to the country’s coffee producers. Panama will also host the Global Bioeconomy Summit in 2028, the first in the Americas. Port Dispute: The proposed $250 million Puerto Barú port in Chiriquí remains stalled amid a Supreme Court challenge and environmental concerns over mangroves. Earthquake Recovery: CCRIF is set to pay Panama $17.4 million after the Oct. 9 earthquake, as local leaders call for more reliable funding to respond to community needs.