What Biden should do to stop China from controlling Panama Canal

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The Panama-U.S. relationship is a strong one, but we often take the relationship for granted. Given the challenges in Panama right now and given China’s increasing interest in Panama, there are some steps we ought to take.

Since 1989, with the fall of the Noriega government, Panama has moved from $2,300 GDP per capita to $14,500 GDP per capita. The country has diversified its economy with tourism, financial services, and is a major logistics hub not only because of the Panama Canal, but also because of its excellent aviation hub. Panama attracts significant Foreign Direct Investment (FDI) for a small country. In 2019, Panama attracted $4.8 billion in FDI. Panama has been known for its stability.

Recently, Panama joined forces with Costa Rica, the Dominican Republic, and Ecuador to form the Alliance for Development in Democracy. In essence, this partnership signals to others, including the United States, that these alliance partners are countries open to foreign investment.

Panama, along with the rest of the alliance members, is a great nearshoring candidate. The Panamanian Ministry of Trade and Industry published a report on the advantages that Panama has for nearshoring. Many of the opportunities include Panama’s

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