News
Thursday 12th June 2025.
June 11, 2025
National Assembly President Dana Castañeda announced that members of the Banana Industry Workers Union (Sitraibana) are committed to immediately lifting the closures in the province of Bocas del Toro.
Another of the agreements announced includes the commitment of the Assembly’s board of directors, together with the heads of the different benches, to debate and adopt the bill submitted by the Executive Branch , which establishes a special regime for banana industry workers in the recently approved Law 462 that reforms the Social Security Fund (CSS), which was agreed upon in the minutes on May 22, 2025 with union representatives, the Ministry of Labor and Labor Development (Mitradel) and the Ministry of Commerce and Industries (MICI).
Additionally, the representative announced that she will establish direct communication with Chiquita Brands to learn about the current status of its operations and its future outlook for employees.
The Sitraibana delegation, made up of 17 people, including leader Francisco Smith, held talks with the Assembly’s board of directors since Tuesday, June 10.
On May 27, the government declared a state of emergency in Bocas del Toro, seeking to reopen blocked roads without violent action.
The union has been holding a work stoppage and blocking roads in various parts of Bocas del Toro since April 28, rejecting Law 462 and demanding a review of Law 45 of 2017, which establishes pension regulations for the banana sector and which, according to union members, was overturned by Law 462.
The strike was declared illegal by the Fifth Section Labor Court of Changuinola on May 19; however, the union appealed the decision. The status of the strike is unknown at this time.
The agreement comes after several weeks of dialogue with various ministers.
The most recent action was the letter that the President of the Republic, José Raúl Mulino, sent to Smith along with the Archbishop of Panama, José Domingo Ulloa, seeking a dialogue that would achieve a definitive cessation of the protests in Bocas del Toro.
Previously, a high-level commission of the Executive Branch , made up of five ministers, attempted to reach agreements with the union in Changuinola, Bocas del Toro, but to no avail.
Panama is taking another step away from China, and also from the Asian technology market. However, contrary to the usual communication from the Panamanian government itself, the removal of Huawei ‘s telecommunications towers was announced by the U.S. Embassy in Panama on Tuesday, June 11.
The US diplomatic mission reported on the towers’ removal, along with the Ministry of Security . However, the ministry has not yet issued an official statement. When contacted by La Prensa , the ministry indicated that it “will issue a statement” soon.
In total, towers will be removed in 13 different locations across the country. Seven will be replaced with US technology in four provinces, at a cost of $8 million, without specifying the manufacturer.
In a statement, the Embassy asserted that this is “safe technology” and its installation will be completed within two years. They also emphasized that this action seeks to “curb China’s malign influence in our hemisphere.”
The rift between Panama and China did not begin with this announcement. Its origins date back to the beginning of former US President Donald Trump’s term, when he claimed that China’s “malign influence” “controls” the Panama Canal.
Added to this are recent statements by the United States ambassador to Panama, Kevin Marino Cabrera, who warned that one of his priorities will be to “counteract China’s malign influence in the region.”
Although President José Raúl Mulino has denied Chinese influence in the Panama Canal, he has implemented measures ranging from the withdrawal of the Belt and Road Initiative to the recent removal of towers belonging to the private Chinese operator Huawei .
All this comes as Trump and his Chinese counterpart, Xi Jinping, are negotiating tariffs in London, England, following a trade war marked by threats.
If the so-called “malign influence” is linked to China’s economic interests in the region, the Panamanian case offers a different perspective. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Panama is not among the countries that have received the largest inflows of foreign direct investment from the Asian giant.
That list was headed by Brazil, Peru, Mexico and Argentina until 2024.
In contrast, Panama continues to receive more foreign direct investment from the United States . Figures from the Comptroller General of the Republic, updated to 2024, reflect this: US capital leads foreign investment in Panama. ECLAC also identifies the United States as the isthmus’s main trading partner until this year.
The region’s technology sector, in particular, poses a significant challenge for the United States. Since 2010, Latin America and the Caribbean have sent more technology goods to the United States than they receive.
In contrast, trade with China reflects a growing gap: more than 60% of Latin American and Caribbean technology goods come from the Asian country, while the region sends only 5%.
The Minister of Public Works (MOP), José Luis Andrade , filed a criminal complaint with the Public Prosecutor’s Office on Wednesday afternoon, June 11, for alleged cost overruns in the projects for the Fourth Bridge and the tunnel for Line 3 of the Panama Metro , which occurred during the previous administration.
According to the minister, there was possible negligent management in the aforementioned projects. He stated that, due to “poor decisions,” additional costs will be generated, estimated so far at approximately $1.84 billion .
Andrade explained that the Fourth Bridge project over the Panama Canal registered an increase of $128 million over the original contract cost, in addition to $566 million in financing costs. Regarding the Panama Metro , he indicated that an estimated cost overrun of $1.145 billion was incurred due to the construction of a tunnel “that was not originally necessary.”
The minister also noted that unilateral changes in the design, scope, and payment method led to the signing of an addendum to the contract .
He recalled that, through that addendum, the previous administration decided to exclude the monorail for Metro Line 3 from the Fourth Bridge project , without offering further explanation. “Based on this, the Panama Metro sought another alternative and opted for the construction of a tunnel,” he explained.
Andrade also indicated that Laurentino Cortizo ‘s administration suspended the Fourth Bridge project from July 1, 2019, until mid-2023.
Upon leaving the Public Ministry, Andrade emphasized that the changes made by the previous administration will result in additional expenses for the State of $1.84 billion.
He stated that the original design included the installation of a monorail at a cost of $1.5 billion and that the previous administration made modifications that lowered the cost to about $1.3 billion, but that these changes don’t work.
He emphasized that correcting that aspect alone would cost $128 million, in addition to the cost of the tunnel under the Panama Canal.
The water crisis that has affected more than 100,000 people in the Azuero region for two weeks has led authorities to declare a state of emergency .
The problem, caused by the contamination of the La Villa River , has left communities in all the districts of the province of Herrera and 16 districts in the province of Los Santos without access to safe drinking water .
The National Institute of Aqueducts and Sewers (IDAAN) reported that the water currently coming through the taps is not safe for human consumption and warned the population not to use it for drinking, cooking, or washing utensils .
In fact, health experts have told La Prensa that contact with this contaminated water can cause skin or general health problems
Idaan reiterated that only bottled water or water distributed by tanker trucks should be consumed , and that they are already working to resolve this environmental emergency.
Panama’s pork producers’ associations offered technical support to any pig farm owner who needs it, in order to address the water crisis in Azuero .
In a statement, the associations indicated their commitment to protecting the environment and the health of the population. Therefore, they expressed their willingness to provide support with the “necessary resources.”
They stated that they aim to collaborate with the authorities, especially the Ministry of the Environment, to ensure that all producers have the necessary tools to enable them to produce responsibly and sustainably within the context of a circular economy.
“The unions are not part of the problem; we are part of the short-, medium-, and long-term solution, collaborating with authorities to update regulations and supporting ongoing oversight and supervision of the Panamanian pork industry,” they added.
The National Energy Secretariat released this Wednesday the fuel prices that will take effect starting this Friday, June 13, with a slight decrease.
95-octane gasoline will drop by $0.01 cent per liter and will sell for $0.90 ($3.41 per gallon), while 91-octane gasoline will also drop by $0.01 cent and will be priced at $0.85 per liter ($3.22 per gallon).
Regarding diesel, it was reported that its price will remain at $0.77 per liter ($2.91 per gallon).
The new fuel prices will take effect from 6:00 a.m. this Friday, June 13, until 5:59 a.m. on Friday, June 27.