Panama and Taiwan have strengthened economic and trade exchanges and actively expanded cooperation opportunities in semiconductor and port logistics. (Drawing by this newspaper)
[Financial Channel/Comprehensive Report] After Panama severed diplomatic relations with Taiwan in 2017, there are still developments worthy of attention in economic and trade exchanges. Panamanian media recently disclosed that a delegation of Panamanian congressmen visited Taiwan to seek semiconductor investment and technological cooperation. The report pointed out that Taiwan will be Panama's second largest commodity export market in 2025, and mentioned that Evergreen Shipping also operates the Colón Container Terminal (CCT) locally and has been involved in port logistics business since 1997. The country’s lawmakers also hope to further expand cooperation in the technology industry and have proposed the idea of establishing a Taiwan commercial representative office.
Taiwan is Panama’s second largest export market
"Panamá América" reported that although Taiwan and Malaysia have not had formal diplomatic relations since 2017, technical data shows that the Taiwan market is still one of the most active and profitable trading partners in Panama's export system, and its transaction scale far exceeds that of many countries with complete diplomatic embassies in Panama.
Taiwan's important position in Panama's trade balance can be seen from a number of economic indicators. Panama's official trade data shows that Taiwan is Panama's second largest commodity export market in 2025, with related export value exceeding 100 million balboas (approximately NT$3.44 billion). In recent years, its ranking has even surpassed traditional trading partners such as the United States in certain periods.
According to Panama’s official data, Taiwan accounts for 3.7% of Panama’s total foreign direct investment stock, with an annual growth rate of 2.3%. This data makes Taiwan the seventh largest source of investment in Panama and the largest source of investment in Asia. The scale of investment is comparable to countries such as Spain, Canada and Brazil.
The report emphasized that against the background that the total foreign direct investment attracted by Panama in 2025 plummeted by 63%, the amount of investment dropped sharply from 2.454 billion balboa in 2024 to 905 million balboa in 2025. In contrast, Taiwan's capital continues to grow and has become an important financial support. Panamanian congressmen therefore suggested that we should seize this opportunity and urgently expand investment cooperation with Taiwan.
Panamanian congressmen believe that even if the two sides do not have formal diplomatic relations, Taiwan still has the value of economic and trade cooperation and is worth continuing to look for investment and technology exchange opportunities.
The report also mentioned that Taiwanese companies already have logistics and port operations in Panama. The Panama Congress delegation also met with Evergreen Marine. The Colon Container Terminal (CCT) operated by Evergreen Marine has been operating locally since 1997. Its container handling capacity will reach 1.73 million TEU (20-foot equivalent units) in 2025, an annual increase of 10.2%, providing more than 600 direct job opportunities.
Foreign Minister Lin Jialong (7th from left) took a group photo with members of a visiting delegation of Panamanian congressmen in July this year. (Picture taken from Lin Jialong’s Facebook)
Fancy Taiwan’s chip strength and hope to join the supply chain
Another focus of the congressman's visit to Taiwan is to assess how Panama participates in the global semiconductor supply chain. The delegation visited Hsinchu Science Park in Taiwan to learn about the chip industry cluster and technology development, hoping to find a suitable entry point for Panama.
The report analyzed that Panama lacks the industrial conditions required to compete with Taiwan in wafer manufacturing, but it can consider developing regional logistics, chip distribution, light packaging and other links, and use canals and logistics infrastructure to seize business opportunities in the supply chain.
The congressman also mentioned that Taiwan Vice President Hsiao Meiqin, Foreign Minister Lin Jialong and Legislative Yuan Han Guoyu had met with the delegation. Panamanian media stated that Taiwan has shown interest in evaluating Panama as a logistics base for Latin America’s semiconductor supply chain; however, this must still be distinguished from specific investment plans and formal cooperation progress.
During this trip, the delegation also suggested that the Panamanian administration consider the establishment of a Taiwan Commercial Representative Office to promote high-tech investment, trade and industrial exchanges, saying that this approach would not necessarily change the current arrangements for diplomatic relations.
