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The article addresses the transition of Panama towards a sustainable model through the implementation of the circular economy. A literature review and critical analysis of selected articles were carried out, as well as consultation of government documents and plans related to sustainability and waste management in the country. The research reveals that the implementation of the circular economy in Panama is still in its early stages, but presents great potential to address the environmental and economic challenges of the country. Challenges such as lack of coordination and the need to improve infrastructure and technical capacity are identified. Collaboration between different sectors is proposed to achieve a successful transition. It is concluded that the circular economy can be a key tool in achieving a sustainable model, but strong commitment and collaboration from all sectors are required. Implementation of incentives, appropriate regulations, and promotion of research and development of sustainable technologies are recommended.