Panama’s business chiefs Juan Carlos Varela hope for big return from new ties to Beijing

Panama’s business chiefs Juan Carlos Varela hope for big return from new ties to Beijing

Today applauded the decision of the Central American countries to establish diplomatic relations with China and hopes for Taiwan, with the hope of deepening ties with a key client of the national naval chain.

Panama’s Panamanian President Juan Carlos Varela, Panama’s Business Leaders, Diplomatic Relations, Key Customers, Central American Countries, Taiwan Although the late cost of Taiwan, an ally of various Central American nations, Broad support for the decision of President Juan Carlos Varela will launch its destiny with China.

Today applauded the decision of the Central American countries to establish diplomatic relations with China and hopes for Taiwan, with the hope of deepening ties with a key client of the national naval chain.

Although there has been regret at the price of Taiwan, an ally of various Central American countries, President Juan Carlos Varela has decided to throw his lot with China, whose growing global ambition contrasts with isolationist rhetoric US President Donald Trump.

“I am sure it was not an easy decision, given the long-term relations we have had with Taiwan, but China is a world superpower, the second world economy, the second user of the chain – and we believe this Is a positive development that will lead to more business and investment in Panama, “said Inocencio Galindo, president of the Chamber of Commerce, Industry and Agriculture of Panama.

The diplomatic change comes as China is trying to position itself as a supporter of the free trade agreement with the “Trump of America” ​​policy, which was elected in November 2016.

The Chinese authorities have also celebrated the news. Wang Weihua, a representative of the China-China Trade Development Bureau and the country’s main representative in Beijing, said several attempts have been made in recent years without success to establish formal ties.

At the end of last year, the most advanced discussions began with Varela’s team, which concluded this week, Wang said, adding that he was involved in the discussions. China is interested in Panama because of its strategic location as a center of commerce and logistics, he added.

“China has made a big bet in Latin America, where it has strategic investments, and Panama, which has no diplomatic relations, the loss of these benefits,” said he was in an interview.

“Now, Panama can enjoy what our country can offer in different sectors.” Almost a fifth of the cargo that crosses the isthmus was last year and China, which seems increasingly to the Panama Canal.

In March, channel manager Jorge Quijano said that China’s state-owned enterprises are considering the development of land around the recently enlarged water channel. A spokesman for the chain said that Quijano would address the diplomatic implications of trade on Thursday.

FUTURE
Taiwan’s economic aid helped support Central America, a region in the United States, which relies heavily on agriculture and the fight against laws and orders. His remaining allies were still in the future through their ties to Taiwan, which China considers a renegade province.

Panama’s chancellor, Isabel de Saint Malo, said Varela had expressed interest for ten years in establishing ties with China. It is anticipated that the move will lead to opportunities for trade, investment and tourism, especially to “export more Panamanian products in China.”

According to Panama statistics, total trade between Panama and China was worth $ 1.1 billion in 2016, or about 12 times the value of domestic trade with Taiwan. China’s exports accounted for the vast majority of them.

Alvin Weeden, a former Panama pilot, said the decision to break ties with Taipei in favor of Beijing should spur business and should have been taken years ago, given Panama’s dependence on world trade and China’s expedition.