Ecuador is taking a decisive step to strengthen its presence in Central America and the Caribbean. The country seeks to consolidate Panama as its main gateway to the region through a Free Trade Agreement (FTA) that could increase Ecuadorian exports by between 10% and 15% in its first year of implementation. The proposal has the backing of both the public and private sectors and comes at a time when diversifying exportable goods is key to reducing dependence on large traditional markets: the United States, China, and the European Union.
In 2024, bilateral trade reached a record USD 6.408 billion, of which USD 6.286 billion corresponded to Ecuadorian exports, mainly oil. However, the most interesting aspect is the growth of the non-oil sector, which totaled USD 177 million with more than 450 products and the participation of 200 national exporters. This shows that the link with Panama goes beyond energy: it is a concrete opportunity for new Ecuadorian industries to expand their international presence. As José Alvear, president of the Ecuadorian-Panamanian Chamber of Commerce, pointed out: “Panama is more than a partner, it is the bridge to new markets.”

The bilateral relationship is not limited to trade in goods. Panama offers unique advantages as a financial and logistics hub. After being removed from the list of tax havens after 17 years, Ecuadorian companies now have the opportunity to access financing on better terms thanks to Panama’s solid banking system, which includes 137 international institutions. At the same time, the Central American country is a hub in global supply chains, with 17 trade agreements in force and, of course, the Canal as a strategic platform. It is no coincidence that companies such as Corporación Favorita, Pronaca, and Colineal have already replicated their business models there, laying the groundwork for others to follow suit.

But the rapprochement goes beyond economics. Ecuador and Panama have also taken important steps in environmental and maritime cooperation. The inauguration in Panama City of the Monitoring Center for the Eastern Tropical Pacific Marine Corridor (CMAR) is a concrete example of how both countries are working to protect strategic ecosystems such as the Galapagos and, at the same time, generate greater security for maritime transport. Initiatives such as this not only strengthen Ecuador’s international image as a reliable partner committed to sustainability, but also reduce logistical risks in exports.

With the FTA on the agenda and new cooperation agreements in the pipeline, Ecuador is betting on Panama to become its springboard for regional expansion. Preferential access to this market, accompanied by better financing conditions and a more secure framework for maritime logistics, will allow the country not only to increase its exports but also to reposition itself as a dynamic and competitive player in Latin American trade.