Panama
Republic of Panama
Population
4.4M
GDP
$76.9B
Capital
Panama City
Government
Unitary presidential constit...
At a Glance
Human Development
0.8
HDI (0-1)
Democracy
6.9
EIU (0-10)
Press Freedom
—
RSF score
Corruption
—
TI CPI (0-100)
Innovation
—
GII score
Happiness
—
WHR (0-10)
Panama occupies a unique geopolitical position as the site of the Panama Canal, one of the world's most critical maritime chokepoints connecting the Atlantic and Pacific oceans. The canal was transferred from US control to Panama on December 31, 1999, under the Torrijos-Carter Treaties.
Panama has leveraged the canal to become one of the wealthiest countries in Central America, with a large services-based economy centred on banking, logistics, shipping, and the Colon Free Trade Zone. It is a founding UN member and has served on the Security Council twice.
Panama faces challenges including income inequality, deforestation, and managing transit migration through the dangerous Darien Gap, which has become a major corridor for migrants heading north.
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As Panama, your primary strategic asset is the Canal. Frame it as a global commons that Panama stewards responsibly, and defend its neutrality against any attempts at external control. This gives you leverage disproportionate to your size.
Position yourself as a connector -- between North and South America, between Atlantic and Pacific, between Western and non-Western blocs. Panama's banking and trade hub status makes you a natural advocate for trade liberalisation and maritime law.
Coordinate with Central American partners in SICA while maintaining a somewhat independent, business-oriented foreign policy. On migration, you can speak authentically about the Darien Gap crisis and advocate for regional burden-sharing.
Foreign Policy
Panama's foreign policy revolves around protecting the neutrality and sovereignty of the Panama Canal, attracting foreign investment, and maintaining good relations with all major trading powers. Panama is one of the few countries with trade agreements linking both the Americas and Asia.
Panama plays a mediating role in the region and has hosted peace negotiations, including those for the Colombian peace process. It maintains a balanced approach between the US and China, having established relations with Beijing in 2017.