President Tsai Ing-wen’s visit to Panama will be the first leg of her first overseas trip since she took office on May 20th. At the invitation of Panamanian President Juan Carlos Varela, the visit is aimed at strengthening ties with the Central American ally and demonstrating Tsai’s emphasis on international shipping.
While in Panama, Tsai is expected to exchange views with Varela on issues of mutual concern. She will also visit the container terminal built by Taiwan-based Evergreen Marine Corporation.
Taiwan and Panama have maintained strong ties that have lasted a century. As of now, Taiwan has invested more than US$1.6 billion in Panama. The country’s first lady Lorena Isabel Castillo de Varela also attended Tsai’s inauguration last month.
Panama has sent letters of invitation to heads of state from 70 countries for the canal expansion ceremony, including Chinese President Xi Jinping though it was reported that a Chinese Commerce Department official will attend the ceremony on Xi’s behalf.
An estimate by Panama shows that China is the Panama Canal’s second largest user, after the United States. Taiwan ranks 18th in the use of the Panama Canal.
About 5% of the world’s merchant shipping goes through the Panama Canal, bringing revenues of US$1 billion per year. Panama is hoping that the expansion project that began 2007 will triple the figure within 10 years.