Throughout the early months of 2025, Panama faced a number of global challenges. Since the re-election of Donald Trump in 2024, the administration has placed Panama in the spotlight with suggestions of the United States needing more control of the Panama Canal.
On the one hand, many feel that the comments made by the US administration is nothing more than a smokescreen used to distract Americans and the wider media from actual issues being pushed aside in favour of a captivating headline. Lawyers pointed out that, by proxy, the US still has the most control of the Panama Canal, with Blackrock planning to acquire key ports from CK Hutchinson in a transaction worth over $22 billion. Others however are still apprehensive of a difficult future if a worst-case scenario forms in which military presence by the US is increased and investment in the region is suddenly stopped.
The May 2024 elections, which saw the centre-right party Realizando Metas and José Raúl Mulino take power after the disqualification of former president Ricardo Martinelli, was pointed to as a reason for the slowdown in investment, particularly in the debt issuance market.
In banking and finance, there has been a lot of interest in the fintech sector in Panama, which continues to experience growth as the country seeks to become an attractive destination for fintech clients. While there is currently a lack of legislation governing the use of cryptocurrency, as both crypto and electronic transactions still rely on old corporate laws dating back to the early twentieth century, lawyers are excited to see how the new Panamanian government manages this growing market.
This has also led to firms such as Veló Legal seeing a gap in the market and offering clients a unique practice focused on fintech and crypto-related services, as well as other firms exploring new options about receiving payment for services in cryptocurrency. Law firms are also confident that the current government seems to be positive on international investment.
Within M&A, there has been significant activity focused on the energy, telecoms and banking sectors, as well as an uptick in infrastructure and PPP projects aimed at improving sections of the Pan-American Highway.
In estate planning, law firms are confident that, for high-net-worth individuals and families from Latin America, Panama remains a preferred jurisdiction to structure their wealth and assets owing to the confidentiality that is offered by the country.
In dispute resolution, litigation and arbitration has been on the rise both locally and internationally. Aviation litigation continues to be a growing area, with court rulings reportedly leading to improvements in the sector to avoid aviation accidents. Panama’s main airline, Copa Airlines, has continued to expand its operations. Due to the airline being a primary reason for increased connectivity between cities and countries in the Americas, Panama has become a go-to hub for aerial transportation, bringing in more revenue from industry sectors including food and beverages and pharmaceuticals.
Looking at the legal market, full-service law firms such as Alemán, Cordero, Galindo & Lee, Arias, Fábrega & Fábrega, Morgan & Morgan, Galindo, Arias & López and Alfaro, Ferrer & Ramírez continue to be dominant forces in Panama. They are then followed by other leading local firms including Fabrega Molino, Icaza, González-Ruiz & Alemán, Patton, Moreno & Asvat, LOVILL, Quijano & Associates and Pardini & Asociados. Smaller, boutique practices including the aforementioned Veló Legal also manage to compete in this space, as do disputes specialists Britton & Iglesias, Delvalle, Escalona, Levy & Corró, which is noted for its strong aviation practice, and IP-focused Estudio Benedetti.
International law firms also continue to play an active role in the country, with Dentons and ECIJA having a strong presence in the market.