The Republic of Panama has an advantageous geographical position and unique economic opportunities in international trade, due to one of the most important maritime trade routes in the world – the Panama Canal, which connects the Pacific and Atlantic Oceans. Accordingly, Panama is the most important transit point between North and South America and a well-known center of international business.
Panama is the third country in Latin America and the Caribbean in terms of foreign direct investment in Ukraine’s economy. In 2020, the total amount of investments attracted from Panama was 356,7 million USD.
The Republic of Panama has one of the largest merchant fleets, which has significantly boosted the country’s economy. Panama’s economy is based on the operation of the Panama Canal, as well as on banking, insurance, registration of ships, and tourism. These industries account for about two-thirds of Panama’s GDP and employ about two-thirds of workers.
In 2020, according to the State Statistics Service of Ukraine, trade in goods between Ukraine and Panama amounted to 4,48 million U.S. dollars. Export volume from Ukraine amounted to 2,67 million dollars, import volume from Panama – 1,81 million U. S. dollars. The Ukrainian export basis to Panama are ships, alcoholic and soft drinks, petroleum products, vegetable oil. Ukrainian imports from Panama: fruits and nuts, alcoholic and soft drinks, essential oils.
The Colon Duty-Free Trade Zone, located in Colon, Panama, is the largest duty-free trade zone in the Western Hemisphere and the second-largest jurisdiction by the number of offshore companies after Hong Kong. This international free trade center provides many additional benefits, both for taxation and for the transit of capital.
Panama’s main diplomatic interests are economic integration and regional security and development, as well as ensuring the neutrality and security of the Panama Canal.