Panama City/IBNS External Affairs Minister S Jaishankar discussed the possibility of setting up a logistics hub for Indian companies in Panama, during his talks with his Panamanian counterpart Janaina Tewaney Mencomo, who said her country shares the potential of it emerging as an energy and logistics hub and as a strategic business and investment center.

During his remarks ahead of their bilateral talks, Jaishankar said: “Among the specific issues that we discussed were those pertaining to trade and investment, the possibilities of exploring a logistics hub here for Indian companies. We discussed the challenges of affordable health of more decentralized production of medicines in the world including in this region."

"We also spend some time discussing possibilities in energy, in renewables… And one of the steps on which we agreed to proceed forward would be to welcome a Panamanian delegation to India later this year, both a government delegation and a business delegation.”

The Panamanian foreign minister, in tweets, said: “It fills me with joy to receive my counterpart at the Bolívar Palace@DrSJaishankar. Accompanied by a high-level delegation from the National Government, we share the progress and potential of our country as an energy and logistics hub and as a strategic business and investment point.”

“We also address Panama's strategy to become a pharmaceutical hub, which provides access to safe medicines and the Alliance for Development in Democracy. It is a pleasure to have you in Panama!”

Panamanian President Nito Cortizo, during his talks with Jaishankar, had also discussed cooperation with the Indian pharmaceutical industry, to make quality, effective and cheaper medicines for Panamanians.

During his address later at the Latin America Business Forum, the Indian Foreign Minister spoke about Panama emerging as a hub.

“…At the end of the day, I think all of us know that the attraction of the hub is really the enabling environment, the enabling environment in totality, that it is connectivity, it is mobility, it is the regulatory system, it is the financial system, it is the quality of governance.”

“So, what I can say is, as our Panamanian partners go about that enterprise, from the Indian side, there is surely interest. There is surely interest because, as I said, I can only see a future, short-term, medium-term, long term, where our interests in this region, our presence in this region, and our business in this region, are going to grow.

"So, there is, for us, there will always be a demand for an efficient center from where our business operations can be conducted. So, in a way, I would say, it's an interesting conversation today. Certainly, in a way it's also a challenge for our hosts.

"But it is a challenge where we are willing to work with you. And for me, one of the important takeaways from my call on the President this morning was his very strong interest in this regard, particularly centered around a certain set of priority industries.”

Jaishankar also visited the Panama Canal along with the Foreign Minister.

Indian Ambassador to Panama Upender Singh Rawat, in a recent interview, is quoted as saying that Panama is the gateway to Latin America for India, due to the Panama Canal.

“Panama is the gateway to Latin America, due to the Panama Canal and the logistics and transport hub, it is also a services hub,” he said.

He added that India’s interest lies in the Colon Free Trade Zone – one of the largest free trade areas in the world.

Bilateral trade between India and Panama stood at over $640 million between April 2021 and March 2022.