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INDIA PANAMA RELATIONS

8th July, 2023

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Context

  • The Election Commission of India and the Electoral Tribunal of Panama signed a Memorandum of Understanding in Panama City to establish the institutional framework for their ongoing cooperation in the field of election management and administration.

Panama

About

  • Panama is a transcontinental country spanning Central America and the northern part of South America.
  • The country was part of the Spanish Colonization.

Borders

  • It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south.

Capital and largest city

  • Its capital and largest city is Panama City, whose metropolitan area is home to nearly half the country's over 4 million inhabitants.

Strategic Location

  • Its location on the Isthmus of Panama is strategic.
  • By 2000, Panama controlled the Panama Canal which connects the Atlantic Ocean and the Caribbean Sea to the north of the Pacific Ocean.

Continental Divide

  • The dominant feature of Panama's geography is the central spine of mountains and hills that forms the continental divide.
  • The mountain range of the divide is called the Cordillera de Talamanca near the Costa Rican border.

Highest Point

  • The highest point in the country is the Volcán Barú, which rises to 3,475 meters (11,401 feet).

Economy

  • Panama is well known for the Panama Canal which helps ships to move from the Atlantic Ocean to the Pacific Ocean.
  • Hence the economy revolves around the services, tourism, trading, and other industries that support the Canal Activities.

Important Cities              

  • Colon, David, La Chorrera, Santiago, Changuinola, Penonome, Bugaba, Puerto Armuelles, Anton, Chepo, Chitre, Sweet water, Capira, Chame, Soná.

Major Exports

  • Mineral fuels, mineral oils, ores, slag and ash, pharmaceutical products, ships, boats and floating structures, edible fruit and nuts, peel of citrus fruit or melons, electrical machinery, and equipment, machinery, mechanical appliances, nuclear reactors, boilers, commodities not elsewhere specified, natural or cultured pearls, precious or semi-precious stones, fish and crustaceans, mollusks, vehicles other than railway or tramway rolling stock, footwear, gaiters.

Major Exports

  • Mineral fuels, mineral oils, ships, boats, and floating structures, commodities not elsewhere specified, machinery, mechanical appliances, nuclear reactors, boilers, electrical machinery and equipment, pharmaceutical products, vehicles other than railway or tramway rolling stock, organic chemicals, beverages, spirits and vinegar, footwear, gaiters.

India - Panama Bilateral Relations

India-Panama relations are deep-rooted, dating back to the middle of the 19th century. In fact, it was the first country in Central America where India established a resident mission.

Political

  • India-Panama relations are the oldest in the Central American region, dating back to the middle of the 19th Century when groups of Indians came to Panama to work on the construction of Panama Railways.
  • The diplomatic relations between India and Panama were established in 1962.
  • Panama has a Resident Mission in New Delhi and has recently designated a new position of Consul General, Mumbai for providing better and expedited visa-issuance facilities for Indian businessmen and tourists.
  • India enjoys warm and cordial political relations with Panama.

Architecture of Interaction

  • Agreements signed include- an Agreement on Cooperation in the field of Agricultural Research and Education and a Visa Exemption Agreement for Diplomatic and Official Passport holders.

Two LOCs were also announced:

    • Setting up of a Center for Biodiversity & Drug Discovery for US$10 million, and
    • Setting up of a Center for Technology & Innovation for US$15 million.
  • In 2018, Panama announced that the National Immigration Service will grant a stamped visa with multiple entries and exits for up to five years, according to the verification criteria by officials, to nationals of five countries, including India.
  • Panama has, by and large, been supportive of India’s candidatures in all international forums. It supported India on its candidature for International Telecommunication Union (ITU), United Nations Economic and Social Council (ECOSOC), United Nations Human Rights Council (UNHRC), International Civil Aviation Organization (ICAO), International Tribunal for the Law of the Sea (ITLOS), International Court of Justice (ICJ), etc.
  • Panama has also supported India’s candidature for a non-permanent seat on the United Nations Security Council (UNSC).

Bilateral Agreements

  • Cooperation in Maritime Transportation and Port Development Agreement has been approved by both sides.
  • Agreements in the field of Cultural Exchange, Traditional Medicines and Homeopathy are few of the other agreements that are under consideration between the two countries.
  • Visa Exemption Agreement for Diplomatic & Official Passport holders was signed in 2018.

Trade and Economic Relations

  • Panama is India's largest trade partner in Central America, with bilateral trade reaching $610 million in 2022.

Exports to Panama

  • India’s Exports to Panama were US$313.37 Million in 2022, according to the United Nations COMTRADE database on international trade.

Major Imports from India

  • Wood and articles of wood, wood charcoal, Ores, slag and ash, Iron and steel, Aluminium and articles thereof, Pulp of wood or of other fibrous cellulosic material, machinery, mechanical appliances, nuclear reactors, boilers, raw hides and skins, copper and articles thereof, electrical machinery and equipment, Vehicles other than railway or tramway rolling stock, Paper and paperboard, articles of paper pulp, of paper or of paperboard, Preparations of cereals, flour, starch.

Major Export items to India

  • Vehicles other than railway or tramway rolling stock, Articles of apparel and clothing accessories, knitted or crocheted, Tobacco and manufactured tobacco substitutes, pharmaceutical products, ships, boats, and floating structures, other made-up textile articles, sets, worn clothing, machinery, mechanical appliances, nuclear reactors, boilers, man-made staple fibers, plastics and articles thereof, footwear, gaiters and the like, rubber and articles thereof.

Culture

  • Sri Sri Ravi Shankar, the founder of the Art of Living Foundation visited Panama in 2018 after a gap of 12 years. He was presented with a parchment as a “distinguished guest of the Province of Panama” for his quality as a humanitarian leader and peace ambassador. He visited Panama again in August 2019 when he addressed and interacted with a large cross-section of Panamanian society.
  • Nobel Peace Prize Laureate Shri Kailash Satyarthi visited Panama in Feb 2017, at the invitation of the First Lady of Panama, who had visited India in Dec 2016 for participation in the "Laureates and Leaders for Children: Summit 2016”.
  • An ICCR-sponsored Rajasthani Dance Troupe of 8 members, led by Bundu Khan Langa, presented a highly appreciated programme of Rajasthani Folk Dances and Songs on July 23rd and 24th, 2015 at the Teatro Anita Villalaz, in Casco Viejo, Panama City.
  • In connection with the celebration of the 150th Birth Anniversary of Mahatma Gandhi, Gandhiji’s famous Bhajan “Vaishnav Jan To” was recorded by a famous Panamanian singer Ms. Patricia Vileg and the same was uploaded on social media.
  • Amando Durante, Scientist from Panama travelled to India and participated in the KumbhMela in February 2019.
  • The International Day of Yoga celebrations: The Embassy organized the sixth annual celebrations of International Days of Yoga from 2015 to 2020, at the prestigious venues of Parque´ Omar and City of Knowledge in cooperation with local Yoga institutes and Yoga practitioners, and this year virtually. The events were supported by the Offices of the First Lady, the Mayor of Panama, and the National Cultural Institute of Panama (INAC).
  • The Embassy has been bringing out special supplements on India during the past three years, to mark the Independence Day on 15th August highlighting India’s economic achievements and its vibrant culture.

India Technical and Economic Cooperation (ITEC):

  • Under India-SICA cooperation, India had set up an IT Centre of Excellence in the City of Knowledge in August 2006 and after operating it successfully for about two years, it was handed over to the Panamanian authorities in July 2008.
  • Carlos Ríos Martínez, a Panamanian scientist at INDICASAT (AIP) was awarded the NAM S&T Centre Research Training Fellowship for Developing Country Scientists (RTFDCS) for 2015-16. He worked at the Indian Institute of Chemical Technology, Hyderabad.
  • An 8-week Nano Satellite Assembly and Integration training (UNNATI) at the UR Rao Satellite Centre, Bengaluru from January to March 2019.

Development Partnership Initiative – Donation:

  • Government of India has donated a medical aid package for Covid related medical assistance to Panama, consisting of 1,10,000 HCQL tablets and other medicines and medical supplies and the consignment of medicines was delivered to the Ministry of Health of Panama during June-July, 2020.

Indian Community

  • It is estimated that there are around 15,000 PIOs and NRIs (mostly Gujaratis and Sindhis) in Panama.
  • The Sindhi community is mostly engaged in wholesale/retail trade and micro-credit business. The community is financially well-settled and has contributed to Panamanian society.
  • There are several places of Indian worship in Panama- a Hindu Temple, a Gurudwara, and two Mosques in Panama City, and another Hindu Temple in Colon.

PRACTICE QUESTIONS

Q. India-Panama relations are deep-rooted, dating back to the middle of the 19th century. Shed light on the areas of cooperation between India and Panama.

https://pib.gov.in/PressReleasePage.aspx?PRID=1937927