What Happened
Panama is preparing for a new European Union audit this year as it tries to lift the yellow card imposed by Brussels over concerns linked to illegal, unreported and unregulated fishing. The warning, in place since 2019, has made it harder for Panamanian seafood products to reach the European market and has put the country’s fisheries controls under close scrutiny.
The review will be carried out by the European Commission’s Directorate-General for Maritime Affairs and Fisheries, which will assess whether Panama has strengthened fleet monitoring, traceability and enforcement enough to qualify for a green card. If the EU is not satisfied, the yellow card could remain in place or be escalated to a red card, which would effectively block access to the European market for Panamanian-flagged fishing vessels and exporters.
How Panama Is Responding
Eduardo Carrasquilla, administrator of the Aquatic Resources Authority of Panama, said the country has already completed the regulatory changes required by the EU. He added that Panama now says it has 100% observer coverage across its fleet, with observers connected in real time to the authority’s monitoring center to track loading, unloading and transshipment operations.
That monitoring push matters because the EU’s fisheries policy is focused not only on catches, but also on whether products can be traced from the sea to export. In practical terms, Panama must show that its rules are not just written on paper but enforced across industrial and artisanal operations.
Panama’s international fishing fleet has about 160 vessels, with roughly 30 actively fishing, mainly for tuna in the Pacific and Atlantic. The country also has about 80 refrigerated vessels used to transport and store fish products. According to ARAP, the next major step is to finish a national traceability platform that can follow fish from capture to export.
Why the Traceability System Matters
The planned Trazar Agro Panamá system is expected to be completed in June, with pilot testing targeted for the end of that month. Once in place, it is meant to cover about 450 industrial vessels and around 3,800 artisanal fishing boats. For Panama, this is more than an administrative upgrade: it is the backbone of the evidence the EU will use to judge whether the country can be trusted as a responsible fishing supplier.
Carrasquilla said Panama expects the EU audit between September and October and hopes to obtain green card status by early next year. If that happens, the country could expand seafood sales in Europe, improve investor confidence and strengthen the position of its fishing sector in global markets.
Economic Stakes For Panama
Fishing exports closed 2025 at about $275 million, with shrimp leading the sector at more than $130 million. The United States and Taiwan remain Panama’s main export markets, while Europe accounted for only 8% of fish production last year. That means the EU is still a relatively small destination, but one with strategic value because of its size, purchasing power and regulatory prestige.
The fishing industry grew 18% last year, and officials see room for further expansion if Panama secures the green card. Carrasquilla also pointed to the new Puerto Armuelles port, scheduled to open in February next year, as a possible tuna hub for the Eastern Pacific. He said peripheral seafood markets will be developed and the fuel subsidy for artisanal fishing will be strengthened, with more than 1,400 artisanal boats already registered under the subsidy program.
For Panama, the coming EU review is about more than one export market. It is a test of whether the country can align its fisheries sector with international standards while supporting jobs, exports and coastal livelihoods at the same time.