Panama's New President-Elect Gathers Pro-Business Team

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

Panama's President-elect Jose Raul Mulino has announced his first cabinet selections, emphasizing a pro-business approach. Mulino, set to start the transition next month, appointed business leader Felipe Chapman as economy and finance minister and economist Javier Martinez-Acha as foreign minister. "The campaign is over; it's our job to lead with the best people," Mulino stated.

Chapman, son of former Planning Minister Guillermo Chapman, is expected to bring sound fiscal management. Julio Molto, former national police head, will serve as trade minister, overseeing the closure of the First Quantum copper mine.

Despite legal troubles, Mulino plans to follow the economic strategy of former President Martinelli, who significantly boosted Panama's economy from 2009-2014. Analysts warn that fiscal consolidation remains a challenge for the new administration.

Mulino also named Jose Icaza, ex-head of Panama's chamber of commerce, as minister for the Panama Canal, which faces issues due to a recent drought. Mulino still needs to appoint interior and education ministers.

Read more at Reuters

Why This Matters:

Panama is a crucial hub for global trade, thanks to the Panama Canal. Any changes in Panama's political landscape and economic policies can directly impact international shipping routes and logistics operations. Mulino's focus on pro-business strategies and his commitment to sound fiscal management could mean smoother operations and potential growth opportunities in the region.

However, challenges like the drought affecting the Panama Canal might cause disruptions, so it's essential to stay informed.

Our Take:

Mulino's pro-business cabinet could be a game-changer for Panama's trade efficiency, but watch out for those drought-related hiccups at the Panama Canal! Keeping an eye on Panama's political and economic moves could help you anticipate and navigate potential supply chain disruptions.

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Jennifer Joslyn
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