Panama’s Economy Hit Hard by Cobre Panama Contract Protests

Panama’s National Council of Private Enterprise (Conep) has reported major economic losses, estimating the damage at over $1.7 billion.

These losses follow protests against a new contract for the Cobre Panama project. The government enacted this contract on October 20.

The protests included street closures and large marches. They began after a quick approval of the contract by the National Assembly of Deputies.

This approval happened in just three days, despite various sectors raising concerns.

The government, led by President Laurentino Cortizo, claims the new contract is beneficial. They argue it’s better than the previous one and will help the country.

However, civil society groups have criticized it. They believe it was made without enough consultation and harms Panama’s environment.

Conep’s president, Rubén Castillo, spoke about this issue in Panama City. He said the primary and agri-food sectors have lost about $150 million.

He warned that these losses would increase if the roads remain closed.

Castillo urged the government to stand firm and use legal and institutional ways to solve conflicts.

He also emphasized the need to end road blockades. These blockades are affecting nearly 900,000 people in the western part of Panama.

Castillo highlighted the impact on small and medium-sized businesses. These businesses form 95% of Panama’s business sector, creating 45% of the jobs.

He also noted the effect on international investment. The ongoing protests are slowing down Panama’s recovery.

They are hurting sectors like agro-logistics and the agri-food industry.

Banking Association of Panama

The Banking Association of Panama (ABP) has also expressed concern. They pointed out the negative effects of street closures and acts of vandalism and violence.

These acts are hurting Panama’s economy and the quality of life of its people.

Tourism representatives have mentioned the damage to their industry. Street closures are disrupting activities, including the cruise season.

Amidst these issues, the President sanctioned a law on November 3. This law bans new mining concessions in Panama.

The Industrial Union of Panama (SIP) reported canceled exports to Central American countries. This is due to the blockades affecting trade.

About ten legal challenges against the new Cobre Panama contract are now in the Supreme Court. Several of these challenges are awaiting a decision.