Panama Foreign Policy

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Panama Foreign Policy
Panama maintains a positive, constructive, and traditional approach to its foreign policy with the international community. Even though, it is not a great power, it has a soft power due to the Canal that receives vessels and boats passing by every day from everywhere in the world. This unique feature attracts other states to negotiate and make agreements with the petite country. Democracy has shaped their foreign relations, therefore diplomacy has been the only way in which they dealt with big powers to smaller countries. Panama has developed a friendly, although rational communication with Asia and communist countries, meanwhile having a tight relationship with the West and the other sovereign states. It moves on, puts aside burden of the past and focus to have a wide and in depth relationship with Colombia and Costa Rica, the border countries of the small country.
China implemented a law in which did not allowed any of his trade partners to recognize Taiwan as a country and only recognize ‘The One and True China.’ If this law was to be ignored no economic trades were to be done with China, all trade partners need it to decide in which country to recognize. Panama was among the 23 countries, which decided to still recognize Taiwan. However, Panama was the only country that still has trade agreements and relationship with ‘The One and True China.’ The Central American country foreign policy sticks to its traditional political approach. As the president Torrijos in 2008 announces that nothing would change in the way they treat China or Taiwan. Panama has this strong influence in China due to the Canal and its international position. The Canal provides them a soft power over the big emerging country. China does...

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...he factors that have been discussed above, their relationship is strong since the day of their independence and after the U.S. returned the Canal to Panama. The close association of even using the same currency, the dollar, says plenty in how Panama deals with the foreign market and diplomacy of the West. Panama follows a westernized approach to deal with all the countries, although it differentiates with the fact that they don’t hold any grudges or sanctions against another state like the Americans (Mark,2013). Nevertheless, to say it is impressive how it has an open market, agreement, and involvement with the biggest power the U.S., but also its biggest debtor China. The cooperation between the two promotes the stability and growth of the country. Panama would keep on prospering and securing more its position worldwide with their diplomatic approach to any affair.

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