News

Thursday 30th January 2025.

January 29, 2025

 

Amid diplomatic tension over the administration of the Panama Canal , the governments of Panama and the United States had their first meeting to unify criteria.

It was learned that yesterday, Tuesday, January 28, 2025, a meeting took place between the Panamanian Vice Foreign Minister Carlos Ruiz-Hernández and the Secretary for Western Hemisphere Affairs of the State Department, Michael Kozak , in the office of the US official.

The Wall Street Journal reported yesterday that President José Raúl Mulino had launched a diplomatic offensive in the US capital, leading to this first meeting between the senior official of Donald Trump ‘s administration and the person designated for this mission by Panama.

Sources from the State Department, consulted by La Prensa , indicated that the government of Panama, headed by Mulino, would have entrusted the mission of this delicate first contact to Ruiz-Hernández, who in the past was ambassador in charge at the UN and who until recently worked as a lawyer for an international firm, in addition to developing analysis and studies of international policy at the Center for Strategic and International Studies (CSIS) in Washington.

This first contact between the two governments takes place prior to the visit to Panama by the United States Secretary of State, Marco Rubio.

Since December 21, 2024, Trump, who was the president-elect of the United States at that time, has stated that he would recover the Panama Canal, stating that the Torrijos-Carter Treaties are not being complied with. He continues to argue that China has an alleged influence on the interoceanic route, something that Mulino has categorically rejected.

The Mulino administration, like the Panama Canal authorities, have reaffirmed that the waterway is managed by Panama, without influence from another country.

Trump has continued to make that point ever since, and mentioned it again at his inauguration on Monday, January 20, 2025.

On Tuesday, the US Senate Commerce Committee held a hearing on the Panama Canal tariffs and alleged interference by China.

The administration of the Panama Canal, in Panamanian hands, will be discussed by Rubio when he visits the country this weekend and meets with Mulino and the administrator of the maritime route, Ricaurte Vásquez.


Amid diplomatic tension with the United States, Panama Canal administrator Ricaurte Vásquez reaffirmed on Wednesday, January 29, that the waterway “is a 100% Panamanian institution.”

This was Vásquez’s message in a letter sent to the more than 8,000 collaborators of the Panama Canal.

Vásquez points out that the statements made about the Panama Canal in recent weeks in national and international media have been closely followed .

“The Panama Canal is aware of the importance of its role in global trade and supply chains. In this regard, we have made multi-million dollar investments to remain competitive, increase our capacity and provide a safe, reliable and continuous service,” states the letter signed by the Canal administrator.

In his letter, Vásquez emphasized that the direction of foreign relations on this issue is the responsibility of the Executive Branch, in accordance with the Constitution and the law. In addition, the Canal administration collaborates with these efforts, providing all the necessary information for the best interests of our country.

“At times like this, we must remember who we are and what we represent: a 100% Panamanian institution that operates with excellence thanks to its human talent ,” said Vásquez.

This weekend, the arrival of the United States Secretary of State, Marco Rubio , is scheduled for Panama. He will meet with the President of Panama, José Raúl Mulino, and the administrator of the Canal, Ricaurte Vásquez, among other authorities.

Rubio’s visit to Panama is part of a tour that includes several Latin American countries, and the Panama Canal will be the central theme of the meeting.


As January draws to a close, approval of the reform of Law 163 of the Social Security Fund is still delayed in the National Assembly.

The Minister of Economy and Finance, Felipe Chapman, said he hopes that the deputies will speed up the approval because time is running out to have a system that allows for sustainable pensions.

“I still hope that the National Assembly of Deputies will have the commitment to approve the proposed reforms as soon as possible. The first meeting was on August 8 of last year and we still do not have an approved reform,” he said.

He said that the issue of CSS is urgent and there is little time to address this problem.

Chapman, who participated in the International Economic Forum of Latin America and the Caribbean organized by CAF, the region’s Development Bank, in Panama, said that in addition to the CSS, Panama faces the challenge of cleaning up public finances, controlling spending and maintaining investment grade.

He said that currently international economic issues have developed an adverse environment impacted by rising interest rates.

“Time is of the essence and the longer we delay approving the CSS, the more it will cost citizens,” Chapman said.

The minister also said that Panama must also address the challenge of the mine, which was closed following the Supreme Court ruling that declared the contract between the Panamanian State and Cobre Panama unconstitutional.

“There is the issue of the mine, it is an inherited issue that we will address and we are not going to avoid any of these problems that are the State’s,” he added.

He said they are taking steps to put their house in order, such as better management of public finances and spending and paying off overdue debts.

He also said that Panama is focused on developing new investments in the Panama Canal, such as the construction of a water reservoir in Río Indio and a gas pipeline project.

On the issue of risk rating, he admitted that the mining crisis accelerated the decision to lose the investment grade rating by the Fitch agency, which downgraded Panamanian sovereign debt in March of last year.


The Secretary of the Panama Railway , Henry Faarup , announced that the work for the construction of the Panama-David railway begins with the layout of the route, a process that will take approximately three months and will be carried out in parallel with other fundamental studies for the development of the project.

Faarup explained that, in addition to the layout, demand and environmental impact studies will be carried out, with the collaboration of the Ministry of the Environment from the beginning of the process. “We have asked the Ministry of the Environment to accompany us throughout the process, from now on, to have that approval already done, basically,” he said.

At the same time, he stressed that construction of the project should begin this year 2025 , which would cost close to $4 billion.

On Monday, January 27, 2025, President José Raúl Mulino met with the American company Architecture, Engineering, Consulting, Operations, and Maintenance (AECOM) to begin work on the master plan for the Panama-David train.

One of the points highlighted by Faarup is the impact that the project will have on job creation at a national level. “The railroad will provide work for many. Imagine that there are around 70 bridges that need to be built. With that alone there is employment for many Panamanian companies,” he said.

He added that the project will be developed in different stages and will require both national and international companies, due to the need for specialized knowledge in certain areas.

He explained that, unlike other mega-projects such as the Panama Metro or the expansion of the Canal, which were constructions concentrated in a single point, the railway will be a project distributed throughout the country, benefiting various provinces and cities.

Faarup also explained that the work will be divided into two large parts: the civil infrastructure and the superstructure. “The superstructure is the slab, the sleepers, the rails, the electrical system, the communication. The railway requires a lot,” he explained.

The Panama-David railway also has a key projection in the logistics and commercial sphere. Faarup pointed out that the infrastructure will allow taking advantage of the Panama Canal ports, which offer multiple routes and lower costs.

Asked whether the visit of the US company to President Mulino, amid diplomatic tension with the United States, could be interpreted as a diplomatic gesture, Faarup said it was a coincidence.

“There is a saying that goes: ‘There are no coincidences, only causalities.’ The American company was already contracted, what was done was the kick-off , and well, that was already planned a couple of weeks before. But it was timely,” he concluded.


Environment Minister Juan Carlos Navarro said on Wednesday, January 29, 2025, that strict controls are being maintained during the closure of the Donoso copper mine and confirmed that ammonium nitrate has begun to be removed from the site.

“We are carrying out strict supervision. In fact, ammonium nitrate, which is used for explosions, is being removed from Panama, which is another guarantee that there are no mines,” Navarro said upon his arrival at the opening day of the International Economic Forum of Latin America and the Caribbean, which is being held in Panama.

As he passed through the La Prensa transmission point , Navarro reported that the Ministry of Security is in charge of supervising the removal of this material.

Regarding this aspect, the head of Security, Frank Ábrego , said that so far, about 60 tons of ammonium nitrate have been removed and that the process is carried out with the respective security measures.

Last Thursday, January 16, the Cobre Panama company began removing 7,960 tons of ammonium nitrate found in one of the mine’s deposits in Donoso, Colón province.

Regarding the topics discussed at the Economic Forum, Navarro stressed that they are related to sustainability and, in turn, are related to the environment.

He recalled that, in the case of Panama, there are other important environmental issues to address, such as water for the Panama Canal, migration through Darien, which has damaged ancient forests, garbage in Panama and the Cerro Patacón landfill, among others.


President José Raúl Mulino held a meeting this Tuesday, January 28, with his Paraguayan counterpart, Santiago Peña , who is on an official tour of Panama with a delegation of businessmen.

The inclusion of Panama as an associate state of Mercosur was one of the central themes of the meeting, which took place at the Palacio de las Garzas in the afternoon.

“It was a fruitful conversation,” Mulino said during the joint conference. He said that Panama is moving forward in its goal of becoming a full member of the South American forum.

He said that the country has many similarities with Paraguay and ample opportunities to share experiences, especially in the agricultural sector.

For his part, Peña thanked the Panamanian president for the reception and said that he particularly values ​​the personal relationship he maintains with Mulino and with Panama.

He noted that, like Panama, his country experienced a 35-year dictatorship, and so he deeply appreciates the democratic principles of both nations.

He also described Panama’s accession to Mercosur as a wise decision and expressed his hope that other countries will also join the bloc.


 

More articles