Panamanian Foreign Minister Javier Martínez-Acha celebrated Panama’s removal from the European Union (EU) money laundering list on Tuesday, July 15. He thanked national governments and the European Commission for their support in the process and called the country’s inclusion on the list “unfair.”

“They understood how unfair it was to include Panama on a discriminatory list following a situation that occurred a few years ago with the so-called Panama Papers, where one of our governments allowed our name to be used in a situation that was being used by many countries, including those in the European Union,” the foreign minister told EFE in an interview.

The European Parliament decided last Wednesday not to object to the proposal, presented by the European Commission (EC) on June 10, which removes Panama and other jurisdictions from the money laundering list, after the European Parliament had rejected the list that the European Commission had initially proposed in April 2024.

The Foreign Minister visited Brussels on Tuesday for the meeting between the EU and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, to hold the first EU-Central America Association Council within the framework of the Association Agreement between Central America and the European Union, which entered into force on May 1, 2024.

A priority from day one

The foreign minister emphasized that removing the country from the list was one of the current Panamanian government’s priorities “from day one.”

“From day one, our president made this effort an international priority. He made it clear in his inaugural address. Panama did not deserve to be on a list of this kind under any circumstances,” he explained.

He argued that Panama should not be among the excluded countries because it had proven to be a “reliable partner” for the Union over the years.

“Therefore, as a Panamanian, as a foreign minister, we are deeply satisfied that the issuance was completed almost a year after taking office,” he said.

Panama: gateway, bridge, and port

Regarding the diplomatic and political relations that Panama currently maintains with the EU, the foreign minister stated that “Panama is a gateway, a bridge, and a port for the European Union.”

He emphasized that the country is an associate member of Mercosur and that they are working through bilateral agreements to “boost the products we can export to Mercosur” and invited European companies to establish themselves in Panama.

“Panama wants to invest heavily in diversifying its economy, not only in the service sector, but also in manufacturing and, above all, in strengthening food security with investments in agriculture,” he said.

Regarding the trade war initiated by the US administration, which is affecting several countries worldwide, including Panama, whose exports to the United States currently face a 10% tariff, the foreign minister emphasized that he wants to be “optimistic” but that it is a “complex” issue.

“We can find solutions to these inconvenient situations, and through discussion, as European Commission President Ursula von der Leyen has stated, through negotiation, we feel we can find common ground and reduce the impact of a trade war, which, in my opinion, is not the most appropriate option at this time,” he said.

Greater European participation in Central America

Regarding Panama’s participation in the first Association Council, the foreign minister emphasized that his country is committed to multilateralism and greater European involvement in Central America and called for “more frequent” meetings between the two powers.

“We want the commissions and councils to meet regularly. We want to address issues of cooperation, trade, and political dialogue in cooperation. Europe can contribute a lot,” he emphasized.

At the meeting, participants strengthened their bi-regional partnership with a commitment to political dialogue, climate cooperation, trade, and sustainable investment, the Commission reported in a statement.

They also highlighted progress in trade, agreed to new meetings, and prioritized green projects, energy integration, and support for regional development.

Martínez-Acha also highlighted Panama’s “great wealth and biodiversity” and stated that to protect it, they must rely on the support of the European Union for projects that allow for a “transition toward a green economy and also to protect our oceans.”

“All of this requires big decisions, conviction, and above all, financing,” he said.