Trends in International Economics Relations of Central America, Panama, and the Dominican Republic: Trade, Tourism, Toreign Direct Investment, and International Cooperation

This paper analyses the evolution of the international economic relations of the countries in Central America, Panama and the Dominican Republic (CAPADR), in the areas of international trade, tourism, foreign direct investment (FDI) and international cooperation. It also discusses the impact of the post-pandemic context, the reconfiguration of global supply chains, and global geopolitics on these relations.

In recent years, (i) the United States (US) has remained the regions main trading partner in goods and services, FDI and foreign aid for CAPADR; (ii) CAPADR countries and the rest of Latin America have become the second largest economic partners in these areas, which highlights their growing economic and political integration with the rest of the region; (iii) there has been an increase in the participation of the Asian bloc of countries, particularly in terms of FDI from China in countries with diplomatic and strategic ties, although its participation is still limited in relation to other blocs; and (iv) the positioning of the European bloc in CAPADR remains limited and stable over time but stands out in the area of foreign aid, especially regarding issues of sustainable development and the environment. However, there is heterogeneity between countries in each of the aspects under study.