How boost in maritime ties with Panama powers India’s LAC trade goals

India and Panama on Wednesday agreed to boost maritime ties in key areas such as logistics, shipping, maritime security, skill development, and digital transformation.

The upgrade to a strategic maritime and defence partnership between the two nations, who have been partners in this field since the 19th century, aims to combine Panama's rise as a logistics hub with India's growing maritime capabilities.

The Wednesday talks between the two nations saw India's Union Minister for Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal, in conversation with Panama's Minister of Foreign Affairs, Javier Martínez-Acha Vásquez.

"Our shared vision is to transform this partnership into one of the key pillars of India's engagement with Latin America and the Caribbean," Sonowal said at the talks.

More specifically, the talks are expected to include four priority areas on which the two countries will work to boost maritime and defence ties.

These are maritime security; technical collaboration between India's Directorate General of Shipping (DGS) and the Panama Maritime Authority; maritime education and skilling; and future-oriented cooperation in digital maritime transformation, including artificial intelligence, smart port logistics, and maritime single-window systems.

Though it is not yet known if India is actively in talks with Panama for a free trade agreement (FTA), Vasquez's bilateral talks with Sonowal indicate the country's broader foray into trade engagements with resource-rich countries and regional blocs across Latin America and the Caribbean (LAC) nations, as well as those in Africa.

The broader objective is to build a network of FTAs with these nations, which will diversify India's access to critical minerals and reduce its dependence on any one country, a Moneycontrol report said, citing officials.

“The government is domestically making its own critical mineral policy while the Commerce Ministry is using FTAs to do so,” the report added, citing one of the officials.

Boosting maritime trade with the Central American nation of Panama is key to these objectives, because it not only enhances India's access, transit time, and supply chain resilience to the LAC, but also establishes a foothold for it in a growing logistics hub, à la Panamanian transshipments.

In that regard, Sonowal has also proposed expediting discussions on a bilateral agreement on maritime transportation and port development; expanding ties in green ship recycling; strengthening seafarer welfare and skill development; and promoting collaboration in port modernisation, warehousing, digital innovation and maritime infrastructure.

Vasquez has also been invited to participate in the India Maritime Week 2026 in New Delhi.