AGP Executive Report

Earthquake Alert: A magnitude 7.7 quake struck southern Panama, triggering tsunami warnings across parts of Central and South America. No casualties or major damage have been confirmed; aftershocks were reported, and officials urged coastal residents to follow guidance. Tax Status: The European Union removed Panama from its tax blacklist and moved it to a review category, citing progress on transparency and tax cooperation. Maritime Enforcement: Panama’s maritime authority restricted three locally flagged vessels named in U.S. sanctions and began procedures to cancel their registrations. Drug Seizure: SENAN seized 1,513 packages of suspected drugs south of Punta Burica in Chiriquí and detained three people aboard a speedboat. Canal and Trade: The Panama Canal extended its long-term slot program to Panamax locks for the 2027 dry season. Diplomacy: President José Raúl Mulino’s Vietnam visit concluded with both countries pledging to deepen economic and diplomatic ties.

Drug Interdiction: SENAN seized 1,513 packages of suspected drugs south of Punta Burica and arrested three crew members after a high-speed chase. Shipping and Sanctions: The US sanctioned 17 Iran-linked tankers, including Panama-flagged Starway. Panama’s maritime authority restricted three vessels on the US list and began cancelling their registrations; it said no ships on the UK’s Russian shadow-fleet list remain registered in Panama. Separately, 12 crew members were injured when a Panama-flagged ship was struck in the Strait of Hormuz. Panama Canal: The Canal Authority extended its LoTSA program to Panamax locks for the 2027 dry season and plans an extra transit slot from Oct. 15, while raising draft limits to 49 feet. Diplomacy: President José Raúl Mulino wrapped up a visit to Vietnam, with both countries pledging deeper cooperation and stronger economic ties. Public Spending: Lawmakers approved shifting $6 million from school construction funds to maintain eight security-service helicopters, drawing questions over which schools may lose support. Hospital Probe: Five officials at David’s José Domingo de Obaldía Hospital face a six-month investigation into alleged petty-cash embezzlement.

Maritime Security: Twelve crew members were injured when a projectile struck the Panama-flagged vessel On Peace in the Gulf region; ten were evacuated for medical care. Panama’s maritime authority said all crew were accounted for and no pollution was reported. Diplomacy: President José Raúl Mulino wrapped up a four-day Vietnam visit, with both governments exchanging cooperation agreements and highlighting Panama’s role as a trade and logistics bridge between Southeast Asia and Latin America. Canal: The Panama Canal expanded its long-term slot allocation program to Panamax locks for the 2027 dry season, giving shippers another way to plan transits amid tight capacity. Environment: An Interpol-led operation across nine countries, including Panama, recorded 233 arrests, recovered more than 1,000 live animals and identified 60,000 hectares of illegally cleared forest. Economy: The World Bank projects Latin America and the Caribbean will grow 2.2% this year, citing Panama among countries sustaining stronger growth.

Maritime Security: Twelve crew members aboard the Panama-flagged tanker On Peace were injured when a projectile struck the ship in the Gulf; ten were evacuated for treatment. The vessel is being towed to Oman, and the projectile’s origin is unknown. Panama Canal: The Canal is extending its advance slot program to Panamax locks for the 2027 dry season. Meanwhile, ship diversions through the Strait of Magellan jumped 70% year over year in August and September as Canal restrictions squeezed traffic. Diplomacy and Trade: President José Raúl Mulino’s Vietnam visit brought new cooperation pledges and a business forum; two-way trade reached about $478 million in 2025. Domestic Accountability: A judge legalized the arrest of former Social Security Fund director Enrique Lau Cortés as prosecutors pursue allegations of unjust enrichment and money laundering. Economy and Environment: The World Bank forecasts Panama’s economy will grow 4.2% this year and about 4.1% annually through 2028. Panama also joined an Interpol-led regional crackdown that reported 233 arrests tied to environmental crimes.

Panama Canal: The Canal Authority is expanding advance bookings to Panamax locks for the 2027 dry season, offering 51 packages covering 288 slots as low water threatens reliable schedules. Vietnam Ties: President José Raúl Mulino’s visit produced new cooperation agreements and a business forum, where bilateral trade was reported at about $478 million in 2025. Ports and Shipping: Panama’s comptroller is sending prosecutors more audit material on former Panama Ports Company executives and regulators, raising the stakes in the Hutchison dispute. Separately, Tocumen Airport and Singapore’s SATS will explore cargo facilities and new trade links between Asia and the Americas. Environmental Crime: An Interpol crackdown across nine countries led to 233 arrests and exposed suspected links between illegal Amazon forest clearing and companies abroad; Panama was among the countries involved.

Panama Canal Disruption: Drought linked to El Niño has forced Panama Canal restrictions, with ships taking longer routes and transit limits tightening as water levels fall. Water Crisis in Azuero: Pig-farm waste and unmanaged runoff have left about 200,000 people on Panama’s Azuero Peninsula without safe clean water for over a year, with residents still told to boil water. El Niño Risk for Central America: A new report warns El Niño could raise costs across the region, including potential impacts on canal revenues and shipping schedules. Diplomacy in Vietnam: Panama President José Raúl Mulino met Vietnam’s top leadership in Hanoi, with both sides highlighting cooperation in trade, maritime affairs, logistics, and digital transformation. EU Tax Blacklist Update: Panama is set to be removed from the EU’s non-cooperative tax blacklist on Oct. 9, ending a long-running designation. Maritime Wildlife Study: Researchers say ship noise in Panama’s waters is reducing the chances of recording humpback whale songs by up to 45%. Trade & Connectivity: Panama’s canal neutrality protocol is set to gain a new partner as Singapore joins, while the canal also announced a new long-term slot allocation program for Panamax and Neopanamax locks.

Panama-Vietnam Push: President José Raúl Mulino and First Lady Maricel Cohen de Mulino toured Hanoi’s Temple of Literature and held talks with Vietnam’s top leadership, with both sides pledging deeper cooperation in trade, investment, ports, finance, agriculture, tourism and transport, plus multiple new agreements including maritime transport, customs, civil aviation and anti–transnational crime. Canal Watch: The Panama Canal announced a new Long-term Slot Allocation (LoTSA) phase for 2027, extending predictability for both Neopanamax and a new Panamax pilot program, with sealed-bid competitions set for November. Shipping Security: India condemned an attack on the Panama-flagged MT On Peace in the Strait of Hormuz that injured 12 crew members (11 Indians), urging an immediate halt to attacks and calling for restored navigation and commerce. Sports & Region: Curaçao booked a Concacaf Nations League quarterfinal vs Panama, while Panama also advances in the same bracket. Business & Culture: SAGSE unveiled its 2027 LatAm gaming roadmap with Panama set as a Central America hub, and Panama’s role also shows up in regional film co-production efforts.

Canal Diplomacy: Singapore will join the Protocol to the Treaty on the Permanent Neutrality and Operation of the Panama Canal, backing free transit and maritime security during President José Raúl Mulino’s Vietnam trip. Bilateral Push: Mulino’s Vietnam visit (Oct. 5-8) is aimed at attracting investment and positioning Panama as a logistics gateway for Vietnamese goods, with multiple agreements expected. Money Laundering Probe: Panama’s tax-credit scandal deepens as former BAC Panama executive Arnold Salgado Galeano is arrested over alleged links to “Operation Pandora,” tied to irregularities in the e-Tax 2.0 platform. Public Health Watch: CDC issues a travel alert for Panama as dengue cases rise in the U.S., with Florida reporting a record surge. Migration Tragedy Case: A U.S. arrest was made in a 2022 migrant smuggling boat capsizing that killed 39 people, including a route that involved Panama. Security Shift: The U.S. says $52m in military aid redirected from Slovakia will support partnerships with Colombia, Ecuador, Panama and Peru.

Panama diplomacy: President José Raúl Mulino and his wife began a four-day official visit to Vietnam, aiming to deepen ties after nearly 15 years of limited high-level exchanges. Canal updates: The Panama Canal Authority will add a transit slot on Oct. 15 (33 slots from 32) and immediately raise the neopanamax draft limit to 49 feet as Gatun Lake levels improve and El Niño risks are planned for. Local governance & corruption: The Comptroller’s Office says it seized three properties in Penonomé linked to former VP José Gabriel “Gaby” Carrizo over alleged $1.3m unjustified enrichment, after irregularities were flagged. Environment & rights: A push for a first-ever “ecocide” law in Latin America targets severe environmental destruction, with criminal liability for senior decision-makers. Migration & work: In Costa Rica, health checks are being stepped up for Indigenous migrants crossing from Panama to work in the coffee harvest, with thousands expected this season. Security & justice: Panama-related court and investigations coverage continues, including a major drug-trafficking case abroad and ongoing scrutiny of money-laundering networks.

Caribbean Anti-Cartel Push: The U.S. Southern Command says it carried out another lethal strike on a “go-fast” boat in the Caribbean, killing four and citing “established narco-trafficking routes,” while also not providing proof the vessel was actually carrying drugs. Panama Diplomacy: President José Raúl Mulino’s Oct. 5–8 official visit to Vietnam is framed as a major step to deepen trade, maritime and logistics ties after 50 years of relations. Local Search & Safety: Panama’s SENAN and prosecutors continue searching in Bocas del Toro for two missing fishermen after their boat “Basti Girl” disappeared. Weather Watch: IMHPA warns of downpours, storms and a higher risk of flooding, river overflow and landslides across multiple regions. Investment & Infrastructure Pitch: Panama’s foreign minister met business groups in Singapore to promote major projects like the Fourth Bridge and airport expansion, aiming to attract foreign capital. Real Estate Expansion: Sotheby’s International Realty adds Panama to its regional network of 65 offices.

Real Estate & Investment: Sotheby’s International Realty adds Panama to its regional network, expanding to 65 offices across the Caribbean and Latin America. Foreign Investment Push: Panama’s Foreign Minister Javier Martínez-Acha met business leaders in Singapore to pitch the 2025-2029 strategic plan and major projects, including the Fourth Bridge, Tocumen airport expansion, and regional airport work aimed at jobs and growth. Diplomacy: President José Raúl Mulino’s Oct. 5-8 official visit to Vietnam is framed as a historic milestone, with new opportunities in trade, maritime logistics, investment, and people-to-people ties. Culture & Media: Panama and the Dominican Republic signed an agreement to promote film and audiovisual co-productions, building on their broader Latin American film framework. Public Safety: SENAN and the Public Ministry continue searching in Bocas del Toro for two missing fishermen and their boat “Basti Girl,” urging the public to report any sightings. Weather Watch: IMHPA warns of downpours and storms across parts of the Caribbean and Pacific slopes, with elevated flood, landslide, and river-overflow risk. Local Governance: Arraiján’s Metro funds for the Juan Demóstenes Arosemena community board—nearly $1 million—are under audit after questions about where the money went.

Traffic & Mobility: Panama’s ATTT is drafting updates to the Traffic Regulations that could require a license for electric scooter and motorcycle riders, arguing anyone using public roads must know traffic rules; the proposal is still under review. Public Safety & Justice: Judge Carmelo Sambrano ordered detention of 9 of 10 people arrested in Operation “Elite,” targeting the “Los Iluminati” gang tied to murders, robberies, extortion, and drug trafficking in eastern Panama province. Local Accountability: Arraiján officials are demanding an audit after nearly $1 million in Metro funds for the Juan Demóstenes Arosemena community board reportedly hasn’t translated into completed projects. Immigration & Education: A new passport provision supports Panamanian students studying abroad. Tourism & Culture: Panama’s “Ruta del Trapiche” is being set up as a tourism, cultural, and gastronomic circuit. Weather Watch: Authorities forecast strong rain and storms, urging residents to avoid unnecessary travel in affected areas. Aviation Connectivity: Guyana and Panama signed an Air Services Agreement to expand passenger and cargo options. Air Travel Updates: Caribbean Airlines will resume Trinidad–Caracas flights on Oct. 31 and add Panama charters starting Dec. 1. Retail Security: Police deployed about 1,000 units in shopping centers during Panama’s Black Weekend to deter crime. Housing & Transport Policy: Airbnb is pushing back against a proposed 15% tax on short-stay rentals, calling it discriminatory versus hotels.

Panama–Aviation & Diplomacy: Panama President José Raúl Mulino begins a three-day state visit to Singapore (until Oct 5), aiming to deepen legal and maritime cooperation and attract investment across logistics, sustainability, and agri-trade. Regional Air Connectivity: Guyana and Panama signed a new Air Services Agreement to expand passenger and cargo options, while Caribbean Airlines also announced it will resume Trinidad–Caracas flights on Oct 31 and add Tobago–Toronto service from Oct 25, plus charter flights between Trinidad and Panama starting Dec 1. Security & Public Safety: Panama’s National Police deployed about 1,000 officers across shopping centers during Black Weekend to deter crime and protect shoppers. Trade & Travel Policy: Airbnb warned Panama’s proposed 15% tax on short-stay rentals would be discriminatory versus hotels and could hit small hosts. Environment: A study suggests Panama’s remaining harlequin frogs may survive because local weather can limit the deadly chytrid fungus. Energy & Sanctions Watch: A U.S. Coast Guard interception tied to fuel shipments to Cuba is reported to have involved a vessel that loaded in Panama, challenging Havana’s claims about fuel arrivals.

Copper Mine Restart Watch: A Panamanian government commission is set to recommend restarting the suspended Cobre Panamá mine via a state partnership with First Quantum, after audits and a Supreme Court ruling left the project in limbo—this could reshape jobs, taxes, and environmental politics. Tax & Tourism Tension: Airbnb is pushing back against a proposed 15% ITBMS “tourist tax” on short-stay rentals, arguing it’s discriminatory versus hotels and could hit small local hosts. Immigration Policy Ripples: Panama’s residency-by-investment model is cited in Belize’s plan to create an investor permit under amendments to its Immigration Act—another sign the region is competing for capital. U.S.-Panama Security Funding: The Trump administration is redirecting $52.1 million in U.S. military financing toward Panama (and others in Latin America), drawing pushback from congressional Democrats. Medicare for Expats: A Panama relocation-focused alert warns some Medicare Advantage plans may drop overseas emergency coverage in 2027, urging expats to review notices and switch during open enrollment. Aviation Connectivity: Guyana and Panama signed an air services agreement to expand travel options, while regional carriers keep adding routes that could boost Panama’s links.

Panama Diplomacy: President José Raúl Mulino and his wife will visit Vietnam Oct. 5–8 to deepen cooperation after 50 years of diplomatic ties, with meetings planned with Vietnam’s top leaders. U.S. Funding Fight: The Trump administration is redirecting $52 million in military aid away from Europe and the Middle East to Panama, Peru, Ecuador and Colombia, drawing pushback from top Democrats who say Congress’s Ukraine-linked purpose is being ignored. Air Connectivity: Caribbean Airlines expands regional links with Tobago–Toronto nonstop service starting Oct. 25, resumes Trinidad–Caracas flights Oct. 31, and adds charter flights between Trinidad and Panama during Christmas and Carnival. Maritime & Security: The U.S. Coast Guard says it has stopped vessels carrying oil to Cuba again, working with Mexico after earlier enforcement resumed. El Niño Pressure: A report warns Super El Niño could drive about 1,200 additional heat-related deaths in South Africa through early 2027, highlighting urgent cooling and early-warning needs. Panama Canal Watch: New coverage flags ongoing Canal cost and transit pressures as global shipping reroutes around peak season.

Immigration & Due Process: The U.S. is using “third country removals” via a new deal with Equatorial Guinea, raising alarms that people detained by ICE are sent to places they’ve never known, with details still murky. Regional Security: The “Shield of the Americas” bloc backed Bolivia’s crackdown on drug trafficking and corruption, urging investigations to stay active and cases to reach court. Human Rights: Human Rights Watch says the U.S. detained Nicaraguan exiles after the Ortega-Murillo government stripped them of nationality, including people with pending asylum claims. Panama Diplomacy & Travel: Panama’s President José Raúl Mulino heads to Singapore and Vietnam to sign agreements and attract investment, while Guyana and Panama signed an Air Services Agreement to expand flights. Maritime & Trade: Panama is pushing a regional maritime strategy and is set to increase daily Canal transits. Environment & Water: A new drinking-water fountain using air humidity was inaugurated in La Chorrera, and Panama is also moving on drought resilience and water storage initiatives. INTERPOL Chemical Security: INTERPOL warned that criminals and terrorists are exploiting tech and supply chains to obtain hazardous chemicals, with a congress held in Panama.