Panama elects new president on pro-investor, migrant trail shutdown plank

Latin America's transit powerhouse Panama elected Jose Raul Mulino as its new president. Deemed an investor favourite candidate, Mulino rose to the favour of voters by pledging to revive the economy, crack down on drug cartels and shut down the illegal migration routes to the United States.

Mulino ran in place of the fugitive former leader Ricardo Martinelli, who was banned from participating and sought asylum in Nicaragua's embassy after a money laundering conviction.

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With 87 per cent of votes tallied on Sunday (May 5), Mulino, a 64-year-old lawyer, had 34 per cent of the vote, to 25 per cent for his nearest rival Ricardo Lombana.

The election authority declared Mulino the winner after the other main candidates all conceded.

Mulino accepted his victory and said he would seek the formation of a government of national unity. He will take office on July 1, replacing President Laurentino Cortizo, who was not eligible for re-election.

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Panama has been battered by unrest, credit rating downgrades, low water levels in the Panama canal and the closure of a major copper mine that has led to massive trade deficit with China. During the campaign, Mulino said he would use public works projects and incentives for foreign investors to target nominal economic growth of 7 per cent.

Panama had been the top performing economy in Latin America for past few decades. But according to the International Monetary Fund, the Latin American country will grow just 2.5 per cent this year.

But the top public contention is the way to reopen First Quantum Minerals Ltd's $10bn copper mine. The country's Supreme Court in December ruled that a contract for the mine violated the constitution and ordered it shut.

In his concession speech, the outgoing President Lombana warned his successor Mulino against renegotiating the mine contract, warning that this would bring people into the streets.

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Community protests across the country have focused on new sources of water for the Panama canal after a severe drought this year led to the restriction of transits through the waterway.

Mulino’s policies may also have an impact on the US presidential election in November in which migration is one of the voters' top concerns.

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Mulino has said he will shut the trails through the dense jungle region between Colombia and Panama.

More than half a million migrants passed through this route last year.

Mulino has also promised a "full-frontal assault" on drug trafficking.

(With inputs from agencies)