Chiquita Brands’ Return to Panama: Agreement Soon to be Published

The Memorandum of Understanding signed between the National Government and the banana company Chiquita Brands for its return to operations in the country will be made public soon. The agreement was signed in Brazil and establishes a plan for the reactivation of the banana industry in the province of Bocas del Toro.  The Minister of Commerce and Industry, Julio Moltó, reported that the content of the agreement will be published to ensure transparency.  He explained that the return plan will be carried out in two phases, with the hiring of a total of 5,000 employees. According to the agreement, the company must restart operations within 45 days of signing the agreement.  Moltó clarified that the agreement is based on the goodwill of both parties and does not include compensation. 

“The company is committed to entering into a contract, with a very attractive economic model that we will detail in due course, to continue producing this product,” Moltó stated.  He added that procedures have been facilitated at various institutions to ensure the company can resume operations as planned.  Regarding unionization, the minister emphasized that it is a workers’ right, and that all banana workers are free to join a union or not, as they choose.  The President of the Republic, José Raúl Mulino, personally led the negotiations that led to the signing of the agreement, and stressed that this agreement puts an end to several months of uncertainty for the Bocas del Toro community.  With this agreement, Chiquita will invest $30 million to reactivate production on 5,000 hectares of banana land and reactivate banana exports.  The goal is for operations to be fully operational by February 2026 at the latest.