A month after leaving the country, Chiquita announces return to Panama
After months of uncertainty and weeks of bilateral negotiations, the Panamanian government announced the long-awaited return of multinational banana grower and producer, Chiquita, to the Bocas del Toro province.
The announcement was made after the Panamanian president, José Raúl Mulino, met with company executives in Brazil, where both parties struck a deal by signing a Memorandum of Understanding. The document established a cooperation framework between Chiquita and the Panamanian government for the reorganization of the local banana industry.
The Mulino administration had already taken significant and public steps towards the return of the company. Earlier this week, the Cabinet Council authorized the local Minister of Commerce and Industry, Julio Moltó, to make all necessary arrangements with Chiquita and relevant agencies to ensure the multinational's return to Panama.
The company ceased operations in Panama back in July, after a 3-month-long worker strike that resulted in at least $75 million in losses. In May, Chiquita fired over 6,000 workers, and two months later, its administrative team had left the country.
An understanding to reinvigorate Panama's banana industry
Under the Memorandum of Understanding, Chiquita pledged a $30 million investment to reactivate over 12,000 acres of banana plantations. In the first stage of the agreement, the company committed to generating 3,000 jobs, to which 2,000 more will be added over time.
The document aims to ensure Chiquita's operations resume to full capacity by February 2026, at the latest.
On the other hand, the document also states that the Panamanian Government will create a technical experts panel composed of State and company representatives to supervise the fulfillment of the agreement.
“I'll always work to promote investment, production, and job creation," said President Mulino. "What's done is done—now, we need to focus on administering the country to the benefit of Panamanian families and, in this particular case, of the inhabitants of Bocas del Toro."
The head of state celebrated the agreement, stating that the document marks a new beginning for the Panamanian province.
On the Chiquita side, the company emphasized that its decision to return to the Caribbean country is a direct result of the confidence instilled by the Mulino administration, as well as Panama's rule of law and valuable workforce.
Chiquita's President, Carlos López Flores, signed the memo accompanied by Panama's ministers of Commerce and Industry, and Agricultural Development, who represented the government.
“This agreement marks a new beginning in which we'll resume operations in the country under a more sustainable and efficient model, generating dignified jobs and contributing to the social and financial development of both the country and the Bocas del Toro province,” said López Flores.
*All images courtesy of the Panamanian Government.
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