Panamanian government discloses terms in Chiquita agreement

Last month, banana giant Chiquita Panama signed a Memorandum of Understanding (MoU) with the Panamanian government, aiming to revitalize production in Bocas del Toro, a region historically tied to the banana industry. 

The government, along with the Ministry of Commerce and Industries and the Ministry of Agricultural Development, is partnering with Chiquita to ensure the deal’s implementation. 

President José Raúl Molino announced the agreement, which is set to modernize and expand the sector while also generating up to 5,000 jobs.

A commitment to boost the industry 

The MoU was signed during a meeting at the end of August between Panamanian government officials and Chiquita executives in Brazil. However, details regarding the document had been unknown until now. 

Under the MoU, Chiquita will hire approximately 3,000 workers for land clearing and agricultural recovery. The company will hire an additional 2,000 people later on to handle harvesting and packing. The multinational will also assume responsibility for technical supervision, quality control, transportation, trade, and marketing.

The agreement prioritizes “employment, worker welfare, community development, and productive growth in the region,” the Panamanian government said in a press release.

Chiquita will modernize its facilities and operations to comply with international food safety standards, occupational health, and agricultural sustainability.

The MoU includes additional commitments to provide "decent employment and community development programs" and promote innovation and technical training across the banana value chain.

Safeguarding investment in Central America

The Panamanian government, on the other hand, stated it will support the initiative by streamlining permits, enacting the rule of law to provide safety for investors, and launching social and job retraining programs.

The MoU has an initial duration of 24 months and calls for the creation of a Technical Monitoring Committee to oversee its implementation.

Chiquita has operated in Panama for over a century, with Bocas del Toro historically serving as a key hub for its export operations. The region’s banana industry has faced challenges in recent years, including labor disputes and declining productivity.

The MoU is pending review and endorsement by the Panamanian Comptroller General before it can be formally enacted.

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