Chinese President Xi Jinping's state visit to Panama, the first of its kind since the two countries established diplomatic relations in June 2017, highlights Panama's importance under the Belt and Road Initiative, according to Rosmer Jurado, president of the Panamanian Association of Exporters (APEX).

Talking to CGTN ahead of Xi's arrival in the country of 4.07 million people, Jurado said that Panama has the potential to "become the gateway to the Americas due to our geographic position and well-developed logistic, financial and commercial hub."

A country that has been at the center of international trade for centuries, Panama is well-known for the canal that connects the Atlantic to the Pacific, which was extended in 2016 and saw a record amount of cargo in 2017.

Of the 13,548 vessels to pass through the canal in the 2017 fiscal year, more than 1,000 were from China, a sign of growing ties on trade between the two countries.

China is now the second largest user of the Panama Canal, and more than 90 percent of Chinese goods destined for Panama are exported further to other Latin American countries via the Colon Free Trade Zone.

According to Jurado, "the outlook for increasing investment and trade looks very positive" after four rounds of negotiations on a China-Panama free trade agreement, with the APEX president saying "I believe an agreement will be reached soon."

Eric Dormoi, owner and head of international business development at Exporta Consulting, told CGTN that the export business community in Panama is positive about Xi's visit, which sends a message that both sides "want to strengthen their friendship and diplomatic and commercial ties."

Dormoi told CGTN that his company offers solutions to Chinese investors looking to establish a presence in Panama, facilitating joint ventures and providing legal aid among other services.

With Panama, a long-established export hub ever since the era of the Spanish conquistadores in the 16th century and the 19th century's California gold rush, Dormoi expressed hope that more Chinese companies would follow Huawei in establishing their Latin American headquarters in Panama.

"Today Panama has 144 shipping routes reaching over 1,700 ports in 160 countries," explained Dormoi, adding that the country is also considered the air "hub of the Americas," thanks to its routes across the region and on to Europe.

Looking forward to Xi Jinping's state visit, Dormoi told CGTN that bilateral ties are still young and both sides are in a learning process, saying "we need to understand about China and China needs to understand us."

Panama's agricultural sector had a strong presence at the first China International Import Expo, held in Shanghai last month, with Dormoi describing how food exporters would like to see China's sanitation authorities grant approval to their products, allowing their exports access to the Chinese market.

"Chinese authorities have been auditing Panamanian manufacturers and agricultural farms for several months now and I understand that significant progress has been made," said Dormoi, adding that "hopefully several protocols will be signed during the upcoming visit."