CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Panama To Join CABEI

Panama To Join CABEI

by Mike Godfrey,, Washington

08 September 2006

At a recent meeting between Panama's President, Martin Torrijos (pictured) and Harry Brautigam, Executive President of the Central American Bank for Economic Integration (Cabei), it was agreed that Panama will become an 'extra-regional' partner of Cabei before the end of 2006.

With this status, Panama will have access to funding of about US$60m to assist in improvement of living standards and for use in certain defined infrastructure projects, likely to include the widening of the Panama Canal, generation of alternative energy, and tourism.

Cabei was founded in 1960 by Guatemala, El Salvador, Nicaragua and Costa Rica to promote regional economic and social integration. Other extra-regional partners now include Mexico, China, Argentina, Colombia and Spain. Belize and the Dominican Republic are also in the process of joining.

The Panamanian legislature has approved the government's plan to widen the Panama Canal, but has made it subject to a binding nationwide referendum which is set to take place later this year. The cabinet approved the plan in July.

Under the expansion plans, two 3-chamber locks will be constructed at both ends of the canal. This will create a third lane of traffic wide enough to handle the largest of modern container ships and tankers. New approach channels will also be prepared, whilst existing channels will be dredged to ensure large craft can enter the system.

The $7.5 billion project will take about seven years and employ up to 8,000 people. Nearly five percent of total world trade transits the Panama Canal. Of this trade, 88 percent flows between the United States and Asia.

The canal is already operating near full capacity and forecasts are for increased demand from ever-larger vessels.

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »