Brazil's president, Luiz Inácio Lula da Silva, returns to Panama 15 years after his last visit to the Central American country, bringing with him an agenda to boost bilateral trade, against the backdrop of his support for the sovereignty of the interoceanic canal, as well as the upcoming Panamanian trial over the bribery scandal involving the Brazilian company Odebrecht.
The 80-year-old Lula is the guest of honor at the second edition of the International Economic Forum for Latin America and the Caribbean, dubbed the 'Latin American Davos,' which kicks off this Wednesday with the presence of eight dignitaries from Latin America and the Caribbean and the task of rethinking the region's positioning in the world.
The last time Lula visited Panama was in May 2011, already as a former president, as a guest of then-President Ricardo Martinelli (2009-2014) at the inauguration of the second phase of the capital's maritime walkway, known as the Cinta Costera, one of the works by the Brazilian construction company investigated for bribes and cost overruns.
His first official visit to the country, as president, was in 2007, during the administration of Martín Torrijos (2004-2009), this time to promote cooperation in infrastructure and biofuels.
The Panama Canal and Panamanian Sovereignty
According to Panamanian analyst Rodrigo Noriega, Lula's visit to Panama 'demonstrates the rapprochement of' President José Raúl Mulino's 'administration to Brazilian patronage as a way to obtain certain international backing for the cause of Panamanian sovereignty.'
This comes as the president of the largest South American power announced last August Brazil's adherence to the Canal Neutrality Treaty, at a time of tension between Panama and the United States over Donald Trump's expressed intention to 'recover' the waterway due to alleged Chinese influence, always rejected by Mulino.
The waterway is governed by a Neutrality Treaty in effect since October 1979, signed by more than 40 states and territories.
'Brazil fully supports the sovereignty that Panama has over the Canal,' Lula declared last August, accompanied by Mulino during an official visit in Brasília.
Boost to Bilateral Trade nCoinciding with Lula's visit, Brazil and Panama will sign an agreement on cooperation and facilitation of investments, which will establish rules to promote capital flows in both directions.
The bilateral relationship is experiencing a moment of 'much dynamism,' according to the Brazilian Ministry of Foreign Affairs, highlighting that Lula and Mulino have met five times since 2024 and that trade exchange increased by 78% in the last year.
The United States built the canal in the early 20th century and operated it for more than eight decades, until its transfer to Panama on December 31, 1999.
