Overview
Panama is a like-minded high-income country with approximately 4.4 million people, situated between North and South America. Its strategic location at the narrowest point of the continent between the Atlantic and Pacific oceans makes it a vital trade and logistics hub. Notably, around 6% of global maritime trade passes through the Panama Canal.
Panama remains one of only three carbon-negative countries in the world, with its forests absorbing more carbon than the country emits. It also plays a leading role in ocean diplomacy, with over 50% of its marine areas under protection.
Our partnership
The EU-Panama partnership is grounded in shared values and strong political, economic and cultural ties. As part of the Global Gateway strategy, the EU and Panama are working together to promote a fair green and digital transition.
The partnership focuses on key priorities including the energy transition, sustainable mobility, decarbonisation of the Panama Canal, digital development, water security and biodiversity protection. Panama is a host to the CopernicusLAC centre, strengthening disaster preparedness and environmental resilience across Latin America and the Caribbean.
Team Europe – comprising the EU, the European Investment Bank, and Member States including France, Germany, Italy, Luxembourg, Spain and Sweden – supports key initiatives in Panama. These include expanding access to clean energy in rural and indigenous communities, sustainable transport, and protecting vital forest ecosystems in the Darién and Talamanca regions. These efforts contribute to wider regional environmental goals, including the preservation of the Great Forests of Mesoamerica and the regional electricity integration.
For the period 2021–2027, the EU has committed significant resources to its partnership with Latin America and the Caribbean, allocating €1.28 billion to regional cooperation. Panama benefits from this framework through a combination of bilateral and regional actions supporting sustainable development and resilience.
EU-Panama partnership programming documents can be found in the 'Related documents' section below.
Our key initiatives
- Energy transition
The EU supports Panama’s efforts to expand access to sustainable energy and promote clean, inclusive mobility solutions, particularly in underserved and remote regions:
- Extending access to sustainable electricity for thousands of households in the Ngäbe-Buglé indigenous region, including schools and health centres.
- Supporting feasibility studies for clean mobility projects, such as a cable car system in San Miguelito and a planned railway line connecting Panama City to Chiriquí and the border with Costa Rica.
- Contributing to Panama’s green hydrogen strategy and regulatory framework development.
- Strengthening power generation, distribution, and transmission systems, including through investment in modern infrastructure and green bonds for renewable energy.
- Decarbonisation of the Panama Canal
To support climate resilience and reduce emissions in the Canal and surrounding areas, the EU is:
- Supporting water security and biodiversity through watershed management and adaptation measures in the Panama Canal basin.
- Promoting green shipping corridors and energy efficiency in ports, including support to regional maritime initiatives.
- Digital
Panama is an active member of the EU-LAC Digital Alliance:
- Hosting the regionalCopernicus LAC Centre, building capacity in Earth observation data use.
- Reducing the digital divide by supporting connectivity for research networks under the BELLA II programme.
- Supporting digital rights and online freedoms through local civil society initiatives.
- Governance, security and migration
The EU is working with Panama to strengthen the rule of law, citizen security and regional cooperation on migration:
- Supporting efforts to combat transnational crime, human trafficking and migrant smuggling.
- Strengthening judicial transparency and legislative capacity through civil society partnerships and parliamentary support.
- Enhancing democratic governance and access to justice, particularly for women.
- Environment
Panama’s natural ecosystems are essential for regional biodiversity and sustainable livelihoods. EU actions include:
- Promoting climate finance and sustainable development practices.
- Supporting marine conservation in the Gulf of Chiriquí, including responsible artisanal fishing and community engagement.
