Brazil’s President Luiz Inácio Lula da Silva confirmed that Brazil will support starting free trade talks between Mercosur and Panama. He made this announcement during a meeting with Panama’s President José Raúl Mulino at the Mercosur summit in Buenos Aires.

Brazil currently leads Mercosur, a trade group made up of Argentina, Brazil, Paraguay, Bolivia, and Uruguay, which together represent over 270 million people and a combined GDP of more than $4.5 trillion.

Lula said he wants these trade negotiations to begin soon. He will visit Panama in January for a regional economic forum. President Mulino will travel to Brazil in August with business leaders to discuss investment, especially in Panama’s ports and logistics.

Panama’s Tocumen International Airport and the Panama Canal are key points in these talks because they connect Latin America to the rest of the world.

Panama became an associate member of Mercosur in December 2024. This means Panama can take part in some trade benefits without being a full member. Panama’s economy depends heavily on services and logistics, and its trade with Mercosur countries is still small.

Brazil Pushes Mercosur–Panama Trade Talks as Bloc Seeks New Markets. (Photo Internet reproduction)

From 2018 to early 2024, Panama exported $39.8 million worth of goods to Brazil, Argentina, Uruguay, and Paraguay, with Brazil buying most of it. The main exports were scrap metals, frozen fish, and medicines.

Mercosur is now looking for new trade partners and has recently finished talks with the European Free Trade Association. The bloc is also negotiating with the European Union, Canada, and the United Arab Emirates.

Brazil wants to attract more investment and modernize its industries by opening up to new markets. The main goal of these talks is to reduce trade barriers and create more business opportunities.

Panama wants to use its strong logistics network to attract investment and increase exports. Brazil and other Mercosur countries want to trade with more partners and rely less on traditional markets.

Both governments say that improving infrastructure and trade links will help business in the region. Over the years, Mercosur’s joint funds have supported more than $1 billion in regional projects.

The focus now is on practical steps to make trade easier and more profitable for both sides. This story is about two countries working together to open new trade routes and strengthen their economies.

The negotiations are based on official statements and solid facts, with both sides aiming for real, measurable results.