Caribbean & Central America - September 2017 (ISSN 1741-4458)

President Juan Carlos Varela last month named Francisco Escobar Pedreschi as Panama’s first ambassador to China following the establishment of diplomatic relations in June [RC-17-07]. This follows other signs of burgeoning ties, such as a visit by a high level government delegation to China, also last month, to discuss trade and security.

Named to the post on 22 August, Escobar Pedreschi had previously served as Panama’s ambassador to Canada from 2009-2014, and to Cuba from 2014-2017. A statement by Panama’s foreign ministry regarding Escobar Pedreschi’s appointment underlined his credentials in finance and trade. This is likely to be a priority for the Varela government in this emerging partnership as it seeks to build on an already flourishing economic relationship with China, currently Panama’s fourth largest export market and third largest source of imports. Escobar Pedreschi has a degree in finance, specialising in international markets and trade, and has worked for a US trade logistics company based in the Colón Free Zone.

The announcement regarding Escobar Pedreschi’s appointment came weeks after a high-level Panamanian government delegation began a five-day visit to China on 8 August. Headed up by Public Security Minister Alexis Bethancourt and the director of the national security council, Rolando López, the delegation included officials from the ministries of foreign affairs; economy & finance; and trade & industry, as well as Panama’s maritime authority and the tourism authority. As regards trade and investment, the delegation met representatives from China’s trade ministry and the Council of China for the Promotion of International Trade (CCPIT) (the most important institution for the promotion of foreign trade in China) and discussed efforts to promote Panama as a regional headquarters for Chinese public and private banks, enterprises, and organisations. These discussions also follow a trade forum which took place in July organised by Panama’s chamber of commerce, industries & agriculture (CCIAP), alongside the CCPIT and the Chinese embassy in Panama aimed at exploring mutual trade opportunities.

Another issue flagged up by the Varela government as being of “extreme priority” was security: the two sides reportedly discussed plans to “work together in the fight against illegal migration, to ensure the legitimate interests and rights of our nationals, cooperation and exchange of information in order to pursue criminals and illicit money and exchange and cooperation in training of officials”.

Sanctions against Venezuela

On 22 August, President Varela announced that as of 1 October Venezuelans travelling to Panama would require a stamped visa to enter national territory. The move follows a meeting that President Varela held with US Vice President Mike Pence during the latter’s visit to Panama that month as part of a tour of Latin America. During the meeting President Varela gave his backing to regional efforts to pressure Venezuela into restoring democratic order following the installation of a constituent assembly last month by the government led by President Nicolás Maduro (see sidebar). President Varela, who also said that he would grant immigration status to the 25,000 Venezuelans registered before 30 June, said that the sanctions would be maintained “until the democratic order is restored, the constitution is restored and human rights are respected in Venezuela”. His decision regarding the visas follows his announcement at the end of May, in response to security concerns (mainly due to increased coca production in neighbouring Colombia), of new immigration measures for foreign nationals from Colombia, Nicaragua, and Venezuela, reducing the amount of time that they are permitted to stay as tourists in Panama from 180 days to 90.

Other moves against Venezuela

President Varela’s announcement regarding the imposition of visas follows other moves in the region against Venezuela such as the Lima Declaration, signed on 8 August by 12 Latin American countries, which “condemns the rupture of Venezuela’s democratic order” and refuses to recognise the “illegitimate constituent assembly”, and the 5 August decision by the Southern Common Market (Mercosur) to suspend Venezuela because of its breaches of the bloc’s democracy clause.