Panama’s Survival in Trade Between US and China – The Panama Canal

As 2024 slowly crosses the finish line, Panama’s trade projection for 2025 paints a truly positive picture of how interconnected Panama is with the global economy. On the import side, the United States is Panama’s top supplier, with goods worth $2.7 billion flowing into the country. Meanwhile, China and Mexico followed with $1.762 billion and $625 million in imports, respectively. This mix highlights Panama’s reliance on diverse global partners for essential products. While China ranks second as a source of imports, it dominates as the top destination for Panamanian exports. In 2023, Panama shipped $1.316 billion worth of goods to China, leaving other buyers like Japan ($442 million) and South Korea ($233 million) way behind. However, the United States, Panama’s largest importer, ranks sixth on the export list, with just $148 million in goods sent there.

So, what exactly is moving through Panama’s trade networks? On the export front, copper reigns supreme (we need to bring back the mine in a safe responsible manner), as it brought in a $2.469 billion dollar windfall, way ahead of bananas ($148 million) and fish ($129 million).  Meanwhile, imports reflect Panama’s practical needs: fuel and oils for machinery and vehicles top the list at $2.694 billion, followed by medicines ($640 million) and corn ($160 million).  It remains to be seen how Panama, the hub of the Americas, will maintain good relations with both the US and China amid tensions between these two countries who are both helping Panama by bringing in income through the Panama Canal.