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Caribbean & Central America - August 2014 (ISSN 1741-4458)

PANAMA: Restoring ties with Venezuela

One of Panama’s President Juan Carlos Varela’s first acts upon taking office on 1 July was to restore ties with the Venezuelan government led by President Nicolás Maduro. These were severed by Maduro in March in protest at Panama’s efforts to have the Organization of American States (OAS) discuss the internal political situation in Venezuela [RC-14-03]. Varela and the new Partido Panameñista (PPA) government have a clear interest in restoring ties given trade concerns and the continued dispute over the failure of Venezuelan companies to pay debts to suppliers in Panama’s Colón Free Trade Zone (FTZ).

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