Canada-Panama relations

Bilateral relations

Canada and Panama established diplomatic relations in 1961. The two countries enjoy a multi-faceted relationship with open political dialogue and a strong and evolving trade and investment relationship. Canada and Panama have shared priorities and work together in multilateral forums in many areas, including human rights, democracy, rule of law, security, climate change mitigation and adaptation, migration issues and trade.

In Panama, Canada is represented by the Embassy of Canada to Panama, in Panama City. In Canada, Panama is represented by the Embassy of Panama to Canada in Ottawa, and by Consulates in Vancouver, Toronto and Montreal.

Trade relations

Panama is a significant bilateral trade partner for Canada in Central America, totaling CAD $718M in 2023. Canadian exports, predominantly energy products, consumer goods, farm and fishing products, industrial machinery and equipment, and electronic and electrical equipment, were valued at CAD $690.5M in 2023. Imports from Panama, consisting largely of farm and fishing products, consumer goods, industrial machinery and equipment, aircraft and other transportation equipment and parts, and forestry products and building materials, were valued at CAD $27.5M in 2023.

Panama offers niche business opportunities for Canadian companies in a variety of sectors, including energy, infrastructure, agriculture, processed foods, defense and security, pharmaceuticals, and clean technologies.

The entry into force of the Canada-Panama Free Trade Agreement in April 2013 supported a 575% increase in two-way trade over the past decade between the two countries. Parallel agreements on environment and labour cooperation were also signed at that time. The Free Trade Agreement eliminated tariffs on Canadian goods exported to Panama, improved access for Canadian service providers and offered greater protection, predictability and transparency for Canadian investments in Panama.

Canada and Panama benefit from education exchanges. Students from Panama often benefit from the support of the Panamanian government to study in Canada and are also eligible to apply to Global Affairs Canada’s Emerging Leaders of the Americas Program. Established in 2009, this program funds students from Latin America and the Caribbean to complete short-term exchanges in Canadian post-secondary institutions at the college, undergraduate and graduate levels.

International assistance

Though Panama is not a recipient of a bilateral assistance program, Canada is active through the Canada Fund for Local Initiatives (CFLI) and the Post Initiative Fund (PIF) in supporting civil society and other partner organizations working on issues related to gender equality and the empowerment of women and girls, LGBTIQ+ equality, inclusive development led by Indigenous people and communities, strengthening democratic institutions and the empowerment of women in political leadership against gender-based violence, environment and climate action. Canada also supports Panama with humanitarian assistance to respond to natural disasters and food insecurity.

Through its Technical Assistance Partnership (TAP) initiative, Canada has promoted the development of gender-sensitive and environmentally sustainable mining policies in Panama.

Canada supports Panama’s security efforts through Global Affairs Canada’s Anti-Crime Capacity Building Program (ACCBP). Since 2009, Global Affairs Canada has supported programming in Panama through the ACCBP with projects focused on tackling illicit drugs, corruption, human trafficking and migrant smuggling, cybercrime, and proceeds of crime, including money laundering.

Alongside Global Affairs Canada, several Government of Canada departments provide capacity building support and technical assistance to countries in Latin America and the Caribbean. For example, Canada provides support to countries in Latin America to better manage and respond to large-scale irregular migration and forced displacement through capacity-building assistance delivered by Immigration, Refugees and Citizenship Canada, including in the areas of asylum system strengthening, promoting regular and alternative migration pathways, and supporting socioeconomic integration of migrants and refugees.

Partnerships and organizations

To develop effective responses to today’s most pressing global challenges, Canada and Panama work closely in multilateral fora, such as:

Date modified:: 2024-08-19

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