Panama: Approval of agreement to join Mercosur
The president signed an agreement to join Mercosur, aiming to establish a free trade area and enhance economic cooperation.
The president on October 13, 2025, signed into law an agreement with the Southern Common Market (Mercosur) countries. The agreement was signed in Montevideo on December 6, 2024.
The agreement aims to establish a free trade area by progressively eliminating tariffs and restrictions affecting trade in goods, services, and investment among member states. It also seeks to create a regulatory framework to promote reciprocal investments and economic and trade cooperation among member states.
Following the approval of this framework agreement, Panama will begin bilateral negotiations with each Mercosur member state to define specific rights, obligations, and preferences for its relations with each country.
Read a November 2025 report (Spanish) prepared by the KPMG member firm in Panama