Although Panama declared its independence from Colombia 103 years ago, both countries enjoy excellent commercial and cultural relations.

Although Panama formally broke ties with Colombia almost 103 years ago, everything indicates that both countries are once again becoming closer and closer, at least in the business sector.

In the last five years, some of the best known Panamanian companies have been purchsed by Colombian consortiums, including cookie-and-sweets producer Pascual (bought by Grupo Bavaria); Cemento Panama (purchased by Cementos del Caribe) and more recently Blue Ribbon Producs, S.A.

There are approximately 50,000 Colombian-owned companies registered in Panama, although the vast majority of them are only "on paper". In addition to this, 600 Panamanian companies are in the hands of or ared directed by Colombians.

According to the Colombo-Panamanian Chamber of Commerce, Colombian investment on the Isthmus is calculated in US$2 billion, fueled in recent years by projects such as the Multicentro Mall, in the exclusive neighborhood of Punta Paitilla and the construction of beach and city hotels, such as the Royal Decameron Costa Blanca (province of Coclé) and the Radisson Decapolis, in Panama City.

The increasing Colombian investment has prompted the arrival of large numbers of middle and upper class Columbians, who by far, comprise the largest segment of expats in Panama. Approximately 3,000 Colombian families live in the exclusive suburbs of Albrook, Clayton and Diablo.

The project will be not far from a number of tourist developments on the Pacific coast.

The construction of a “mega port” in the area of Farfán, at a cost of over US$600-million, continues to generate controversy. The former administrator of the Panama Maritime Authority, Jerry Salazar, described it as "unnecessary" because the present ports satisfy the existing demand.

Mr. Diego Eleta, President of the Chamber of Commerce, Industries and Agriculture of Panama, speaking of the plan of a Mega Port on the Pacific coast of Panama, recommiends a global plan and not independent plans, so that the impact that the different projects have on each other can be clearly seen.

Referring to the proposed location of the port opposite beach, residential and hotel sites, he indicated that the port development plan must consider tourist development the environment. He added that he is in agreement with developing port activity, but he emphasized that the hotel industry should be heard and a viable solution sought.

Hotel groups are looking for the port to not affect areas of touristic potential.