Panama is a like-minded high-income country with approximately 4.4 million people, situated between North and South America. Panama’s strategic location at the narrowest area of the continent between the Atlantic and Pacific oceans makes it an important trade and logistics hub. Remarkably, around 6% of global maritime trade passes through the Panama Canal.
Panama is one of only three carbon negative countries in the world: its forests capture more carbon than the country's total greenhouse gas emissions. Moreover, Panama plays an active role in ocean diplomacy with more than 50% of its marine areas under protection.
Our partnership
The EU-Panama partnership is based on shared values and important political, economic and cultural ties. In line with the Global Gateway Strategy, the EU and Panama jointly committed to a fair green and digital transition. At the EU-CELAC Summit in July 2023, the EU and Panama presented the Global Gateway Investment Agenda, aiming to leverage quality investments in Panama’s strategic projects on climate and energy, digital transformation, health, and education and research.
Panama is an active partner in a number of regional initiatives under the Regional Multiannual Indicative Programme of the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe), in a broad range of areas from environment and climate change, digital transformation, sustainable economic recovery, to security and inclusive development. Under that framework, the EU allocated EUR 1.28 billion to the partnerships with the region for 2021-2027. The partnership with Panama focuses on tackling global challenges and opportunities in digital transformation, energy transition, climate and environmental action, including water security and the protection of strategic watersheds, as well as health resilience.
Panama and the EU actively collaborate within the framework of the EU-LAC Digital Alliance. Panama serves as the host for the regional Copernicus centre, which aims to enhance the resilience of the whole region to natural and man-made disasters through the strategic use of space data for monitoring disaster risk and supporting recovery operations. During the COVID-19 pandemic, Panama distinguished itself as the first country in the region to obtain equivalence with the EU Digital COVID Certificate.
The EU supports water security in Panama by emphasizing water management as a critical element of both adaptation efforts and the socioeconomic development of the rural population. This is achieved providing sustainable access to energy to more than 32,437 users (including mainly households, 279 schools and 103 health facilities). This support involves the extension of grids, construction of mini-grids and implementation of isolated systems powered by renewable energy sources.
Team Europe, comprising the EU, the European Investment Bank, France, Germany, Italy, Luxembourg, Spain and Sweden, rallies in support of the Five Great Forests of Mesoamerica. This includes the Darien and the Talamanca region in Panama, which are home to more than 7.5 percent of the planet’s biodiversity, such as the jaguar and the endangered Baird’s tapir. These forests account for nearly 50% of the region’s forest carbon and provide essential ecosystem services to 5 million people, including clean water, clean air, food security, and climate stability.
Multiannual Indicative Programme 2021-2027 for the Americas and the Caribbean
Our flagship initiatives
Team Europe in Panama focuses its action on several key sectors:
- Energy: To help Panama meet the objectives of its Energy Transition Agenda, Team Europe promotes quality investments in universal access, green hydrogen, generation and distribution, energy efficiency and sustainable mobility.
- Digital transformation: In support of Panama’s ambition to become a digital hub and achieve 100% Digital Coverage, the EU and Panama are set to jointly establish a regional Copernicus centre. This effort involves collaboration with Team Europe, including the EU private sector and other partners, to foster investments in meaningful connectivity, and enhance digital business innovation and education ecosystems.
- Decarbonisation of the Canal: Aiming to assist the Panama Canal in its goal to become carbon neutral by 2030, this initiative focuses on protecting water resources and ensuring water security for 2.5 million inhabitants.
- Health: This initiative involves extending support to the Regional Innovation Centre for Vaccines and Biopharmaceutics, in line with the EU-LAC health partnership.