SIP and APEX demand clear rules in Panama to establish themselves in the market.

Panama is lagging behind in key areas to boost the local industry and attract Foreign Direct Investment (FDI), such as institutional strength and human capital, according to the 2025 Annual Economic Report of the Panama Industrial Union (SIP).

Montenegro stated that while the decline in exports can be observed by sector, the report shows that fish and seafood exports were around $413 million, but in 10 years, they have dropped to just over $152 million.

He also argued that the current issue with exports is due to Panama's poor use of Free Trade Agreements (FTAs).

"Panama has signed more than 20 Free Trade Agreements. And what has that served for? Instead, we have been flooded with imports. We have made it known to the President of the Republic, José Raúl Mulino, that we want to play on equal terms, because if other countries are doing it, we can do it too," Montenegro stated, reminding that although the industrial sector represents 4.6% of Panama's GDP, it has maintained an average growth of 8% over the last 24 years.

This decrease, he said, would be based on the incorporation of the Panama Canal expansion into the country's economic matrix, both before and after the project, as well as, at the time, with mining activity, to name a few cases.

Bianca Morán, president of the Panamanian Association of Exporters (APEX), stated that although there was an increase in exports in 2024, it does not compare to the last 10 years, before Panama signed the Free Trade Agreement (FTA) with the United States, when exports were much higher.

According to Morán, Panama must comply with international export treaties to ensure the recognition of the quality of Panamanian products. To achieve this, she said, the country needs to work on developing a national brand and export capital, as well as ensure better-trained human resources.

"The support we have received for exports has always been closely tied to the government in power."

"Therefore, we would like to have access to an institution like other countries have, as well as a diplomatic corps capable of being ambassadors for Panama's production," she stated.

Although Panama has the potential to exploit sectors such as pineapple, palm, cocoa, and fish, the president of SIP admitted that agro-industrial transformation is lagging behind other countries in the region. This, he explained, is because Panama still dedicates a significant portion of its land to crops with lower competitive potential, such as rice and corn.

"With just bananas and plantains, we don’t even have 5% of this market. Everyone talks about the goodness of our land, both in Puerto Armuelles and the Boca del Toro area, but then one asks, what are we waiting for?" Montenegro emphasized.

The president of Apex stressed that "for exports to be facilitated, there must be clear rules so that all industrialists can increase their imports, such as having a market strategy, reviewing and modernizing the system, and increasing qualified personnel," as, according to SIP's report, only 7.5% of all university graduates are related to the industry.

"We need to focus our production on what the world requires, not the other way around. We need to identify market niches," said Morán.

One example of this, according to the president of SIP, is the opportunities the country has with the agro-food industry, pharmaceuticals, and integration into semiconductor value chains, particularly in the context of increasing nearshoring.

He also sees it as vital to have a multisectoral national strategy that guides advanced education toward these sectors and to prioritize and strengthen ProPanamá.