Relationship dossier
Mexico
Panama
Relationship assessment
A trade partnership with a history of tax-policy friction
Mexico toward Panama
+35Mexico entered into a free trade agreement with Panama, which took effect in 2015 and established a framework for bilateral trade. Mexico's tax treatment of Panama has also been a source of friction.
Panama toward Mexico
+35Panama entered into a free trade agreement with Mexico, which took effect in 2015 and established a framework for bilateral trade. Panama objected to Mexico's tax treatment of Panama, creating bilateral friction.
Overall relationship
+35The free trade agreement provides a durable basis for economic cooperation, while the dispute over Mexico's tax treatment of Panama shows that bilateral relations have not been free of friction. The known relationship is principally structured around trade, with limited information about other areas of sustained government cooperation.
How to read these scores
Scores are rough judgments, not objective measurements or current verification. Directional scores describe government policy and conduct, not public opinion. The overall score is an independent estimate, never an average.
- −100
- Extreme sustained hostility
- −50
- Substantially adversarial
- 0
- Mixed or neutral, supported by knowledge
- +50
- Substantially cooperative
- +100
- Exceptionally close sustained partnership
“Not assessed” means there is no recorded score. Pair existence makes no claim about diplomatic recognition or established relations.
Relationship context
Overview
Mexico and Panama have a substantive trade framework: their free trade agreement took effect in 2015 and provides a basis for bilateral economic cooperation. Relations have also experienced friction over Mexico's tax treatment of Panama. The known relationship combines practical cooperation with a specific, though limited, dispute.
Areas of tension
- Panama objected to Mexico's designation of Panama under its tax rules.
Key developments
The Mexico–Panama free trade agreement took effect, establishing a framework for bilateral trade.
Major uncertainties
- The scale and implementation of cooperation under the free trade agreement are unclear.
- The current status of the tax-treatment dispute and any subsequent resolution are unclear.
- Details of cooperation beyond trade are limited.