‘Why Panama in Barbados?’ is a question that many people ask in both countries. The answer is simple and obvious: the Government of Panama has chosen to strengthen its strategic position alongside Barbados because it is an important country and a vital partner in the region. This step strengthens bilateral ties and projects Panama as a reliable and dynamic ally. Today, with Panama being an associate member of Mercosur and on the verge of joining the OECD, it can offer many useful benefits to Barbados and the entire Eastern Caribbean.

The presence of our President, José Raúl Mulino, and our Foreign Minister, Javier Martínez-Acha, at the opening of the Panamanian Embassy in Barbados in August 2025 underscored the importance of strengthening Panama's presence in this country. In line with our government’s foreign policy strategy that seeks to expand Panama's reach beyond Central America and Latin America, towards the Eastern Caribbean, this strong relationship can provide a bridge between two continents.

As stated at the time by Minister Martínez-Acha:

“The opening of the diplomatic headquarters in Bridgetown is not only a symbolic gesture, but also a strategic decision that will allow Barbadians to learn more about Panama, a Caribbean sister country that offers opportunities for business, investment, and cooperation.’

Historical Connection

The shared history between Panama and Barbados is living proof of the ties that unite our people on a human and cultural level that have existed for more than a century. It is well documented that more than 20,000 Barbadians travelled to Panama during the construction of the Canal, leaving an important mark on Panamanian identity. Today, that bond has been strengthened with the opening of embassies in both countries.

The Legacy of Panama Money

Throughout the period when approximately one-third of the population of Barbados emigrated to Panama to work on the Canal, many of them sent remittances back home to financially support their families on the island. This economic flow, often referred to as ‘Panama Money’, was fundamental in the creation of a solid and successful middle class in Barbados. This historical link is a reminder of how economic cooperation can transform societies. Today, by strengthening commercial and political ties, Panama and Barbados honour that memory and project it into the future. ‘Panama Money’ symbolises the ability of both nations to build shared prosperity, and its legacy must continue to be strengthened with new initiatives in investment, trade and cultural cooperation.

An Expanding Bilateral Trade Relationship

The relationship between Panama and Barbados is undergoing a period of strategic renewal. The opening of Panama's first embassy in Barbados and the Eastern Caribbean marks a milestone that transcends diplomacy: it opens the door to economic and trade cooperation that will bring tangible benefits to both countries and their citizens.

The Benefits for Barbados include:

• ‍Access to a global hub: Panama offers Barbados the possibility of connecting with Latin America and the world through its logistics and financial platform.‍
• Economic diversification: The alliance with Panama makes it possible to attract investment and expand sectors such as tourism, financial services and international trade.‍
• Business strengthening: Barbados can now explore ways to leverage Panama's experience in infrastructure and logistics. ‍
• International projection: From Panama, Barbados can expand its ties to Latin America through joint cooperation and attending major international trade fairs held in Panama, such as EXPOCOMER.

Benefits for Panama include:

• ‍Political and regional consolidation: Strengthening economic and trade ties not only generates material benefits but also consolidates the bonds of friendship. Barbados' cooperation and leadership open the door to a closer relationship with CARICOM, allowing Panama to establish itself as a relevant player in regional integration. From this platform, both countries can project their interest towards the African continent, broadening their diplomatic and commercial horizons.

Reaching out to Africa and Beyond

Panama's strategic vision includes not only the Caribbean and Latin America, but also Africa. Barbados, with its history and cultural ties, can serve as a platform for Panama to strengthen commercial, diplomatic and cultural relations with African countries. This outreach multiplies opportunities for cooperation, trade and investment, positioning both Barbados and Panama as relevant players on the international stage.

Working together from Barbados will allow Panama not only to show the entire region the benefits we have mentioned as the Hub of the Americas, but also to strengthen Barbados as a reliable partner and a point of connection to new horizons through the unique bridge that unites us. The bilateral relationship thus becomes an engine of regional integration and openness to the world.

From Panama's Logistics Hub to Barbados' Smart Hub

A particularly interesting aspect of the bilateral relationship with Barbados is how an extraordinary path, full of possibilities, is being forged to unite our two countries. Panama is positioning itself as the ‘Hub of the Americas’, while Barbados is moving forward to become a ‘Smart Hub’ in the Caribbean. The synergy between these two goals opens up space for innovation and modernisation of our economies. In this field, Panama can offer its experience in logistics, transport and financial services, while Barbados contributes its commitment to digitalisation, sustainability and technological innovation, as well as its expertise in tourism. Together, they can build a model of cooperation that combines physical infrastructure with digital infrastructure, creating a business ecosystem capable of competing on the global stage.

Panama Offers Global opportunities

As a member of Mercosur and the OECD, which we are hoping to join soon, Panama can be considered the most convenient and appropriate trading partner for Barbados. Panama is a leading Logistics and Maritime Centre. The Panama Canal connects the Pacific and Atlantic Oceans and thus their markets. The ports on both coasts are of great importance to world trade. We have dynamic free trade zones, including the Colon Free Zone, and a world-class airport system. This makes our country a vital link in global supply chains. In addition, beyond the transit of goods in Panama, Barbados can find companies that provide added value, such as assembly, distribution and customisation services, which consolidates our role as a strategic logistics hub.

It is also important for anyone wishing to invest in Panama to be aware of the country's financial stability and dollarization, both of which inspire confidence in investors. Furthermore, Panama's extensive trade network – more than 23 agreements granting preferential access to almost 60 markets – opens doors around the world.

In the words of Minister Martínez-Acha:

"The Caribbean is part of our identity. From Barbados and the Eastern Caribbean, Panama presents itself as a gateway, bridge and port for those who wish to approach Latin America and the world."

Panama also offers special regimes that attract large-scale entrepreneurs, such as the SEM (Multinational Company Headquarters), with tax and immigration incentives, or the EMMA (Manufacturing and Assembly), which boosts the country's industrial capacity.

In conclusion, it should be noted that the great advantage of Panama is that our country combines stability, connectivity and opportunity. It is not just a crossroads for trade routes, it is a platform for growth, innovation and regional expansion.

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