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Cocaine is produced in Colombia and largely sold in the USA after transshipment through Mexico. Panama is often part of the route taken to move cocaine from Colombia to Mexico to the USA. The press announced on August 8, 2008 that over a ton of cocaine was impounded when members of the Mexican Golfo drug cartel were apprehended recently.

Panama Geography

Panama is the land bridge that connects North and South America. Panama is bordered on the South and East by Colombia and on the North and West by Costa Rica. Panama’s border with Colombia is Darien Province which is largely undeveloped jungle and ideal for cocaine smuggling.

Proximity to Colombia

Colombia has been embroiled in a forty year long civil war in which the rebels have resorted to kidnapping and sale of cocaine to finance their operations. Unfortunately for Panama rebels often hide across the border of Panama in the Darien to avoid Colombian Special Forces in hot pursuit.

Except for El Salvador and Belize all of the Central American countries and Mexico span the continent from Pacific to Atlantic. Thus over land drug traffic must pass from Colombia to Panama and then to Costa Rica, Nicaragua, Honduras, Guatemala and then Mexico.

Cocaine News Panama

Crime rates are pretty low in Panama. Despite press reports of local, personal crimes Panama compares well to the rest of Latin America. North American and other tourists and residences living in well to do areas are pretty save. However, there is one crime that thrives in Panama and that is the transshipment of cocaine.

On August 8, 2008 the Costa Rican press carried this story.

“Panama Nabs Mexico Drug Suspects

“PANAMA - A drug band, allegedly members of the Mexican Golfo drug cartel, have been detained in Panama with over one ton of cocaine, mass media reported Friday.

“The detention of six Mexicans and two Colombians took place Thursday night in Las Cumbres neighborhood, in the outskirts of the capital, during a police operation after receiving suspicious warnings, they stated.

“According to the first reports, among the Mexicans are three women, one a little girl.

“Police sources told reporters that nearly 1,076 kg of cocaine have been found in one of the rooms of the residence.

“Over 25 tons of that illegal substance has been seized this year in the country, during its illegal transfer to the United States, its main world market.”

Twenty-five tons sure sounds like a lot cocaine. It is of note that MSNBC reported the seizure of 21.4 tons of cocaine from a ship off the coast of Panama in March which then accounts for the largest percentage of that 25 tons.

The financial incentives for cocaine are very strong as cocaine goes for less than $2,000 a kilo in Panama and over $20,000 in major US cities. However, Panama is notorious for its terrible prison conditions. We highly discourage investment in cocaine in Panama.

On the other hand Panama is in a real estate boom and if you are looking for investment opportunities come to see us at ABPanama where we have over 23 years experience managing real estate portfolios.