Ecuador and Panama open a new commercial chapter

Ecuador and Panama have taken a step that sounds modest in diplomatic language but could prove important if it survives changes in government. The two countries signed terms of reference for negotiations on a Partial Agreement for Economic Complementarity. It is not yet a trade treaty. It is the roadmap for discussing one.

That distinction matters because the real challenge begins now: turning a rapidly improving bilateral relationship into concrete results for companies, workers and citizens. Ecuador’s starting point is limited but favourable. In the first half of 2026, its non-oil exports to Panama reached $58.1 million, while imports totalled $44.8 million, producing a $13.1 million surplus. Panama ranked 24th among destinations for Ecuadorian non-oil sales in 2025, leaving room for expansion.

The agreed terms allow negotiations on market access, rules of origin, trade facilitation, sanitary measures, technical barriers, trade defence and dispute settlement. They also leave open the possibility of later discussions on services, digital trade, small and medium-sized businesses, and investment.

For Ecuador, Panama offers a logistics and maritime platform for reaching new markets and expanding exports into Central America. Its Canal, ports, air links, Colón Free Zone, financial services and regional connections could help Ecuadorian companies internationalise. Panama, in turn, could gain new suppliers, investment and productive complementarities. None of those opportunities will materialise simply because documents have been signed.

The rapprochement also rests on a wider political context. Ecuador removed Panama from its tax-haven list in 2025 after progress on tax-information exchange, while Panama lifted retaliatory measures that had weighed on relations for years. In August 2026, Panama added Ecuador to its friendly-countries regime, creating a migration route for Ecuadorians who meet the requirements. President José Raúl Mulino’s visit to Ecuador expanded the agenda to organised-crime security, migration-information sharing and the possible extension of the Panama-Colombia electricity interconnection project to Ecuador. The relationship now reaches beyond trade, but its consolidation will require continuity, capable negotiating teams, private-sector follow-through and measurable results.