Panama’s Supreme Court ruled that the long-standing concession allowing Hong Kong-based CK Hutchison subsidiary Panama Ports Company (PPC) to operate major terminals at the Balboa and Cristóbal ports near the Panama Canal was unconstitutional, citing irregularities in the contract and legal framework. President José Raúl Mulino said port operations will continue during a transition, with temporary management by another firm and plans for a new concession process. The decision is seen within the broader geopolitical context of US-China competition over control and influence in strategic infrastructure . China criticised the ruling and vowed to protect its companies’ rights, while Panama affirmed uninterrupted service at the canal’s logistics hubs.

Copa Airlines restores ticket sales between the United States and Venezuela

Copa Airlines announced it has resumed ticket sales for flights linking the United States and Venezuela via Panama, following a US government decision to reopen commercial airspace over Venezuela. The move allows passengers to purchase single itineraries such as Caracas–Panama–Miami with through check-in and simplified travel procedures. This restart follows previous suspensions of services to Venezuelan destinations, part of broader shifts in aviation ties in the region. Copa’s restored sales are expected to ease travel for travellers between the Americas and strengthen Panama’s role as a regional hub.

Panama hosts record-breaking International Economic Forum with 70 countries

The Foro Económico Internacional América Latina y el Caribe 2026, organised by CAF and the Government of Panama in Panama City, concluded with historic participation from more than 6,500 leaders, officials and decision-makers from 70 countries, including presidents, prime ministers, investors and Nobel economists. The event featured over 50 high-level panels and more than 400 bilateral meetings that addressed key regional challenges such as economic integration, sustainable development, energy transition and technological innovation. Attendees included the presidents of Panama, Brazil, Colombia, Ecuador, Guatemala and Bolivia, as well as the prime minister of Jamaica and Chile’s president-elect. The forum consolidated Panama’s role as a regional hub for economic and policy dialogue, while fostering opportunities for cooperation and investment across Latin America and the Caribbean. Experts highlighted the strategic importance of collective action on globalisation pressures, infrastructure and climate priorities. The high turnout marks one of the largest gatherings of political and business leadership in the region in recent years.

Nuclear energy interest rises amid growing power demand

Officials and experts at a recent international forum highlighted growing regional interest in nuclear energy, including in Panama, as a complement to renewable sources to meet rising electricity demand and ensure energy security. The Director General of the International Atomic Energy Agency (IAEA) said that Panama, along with other Latin American countries, is exploring nuclear as a reliable energy option alongside solar and wind. Delegates noted that nuclear could support stable baseload power and help transition to low-emission energy systems as part of long-term planning. Multilateral financial institutions expressed willingness to back nuclear projects to enhance regional energy portfolios.

Rubén Blades to represent Panama at Pirineos Sur 2026 festival

Panamanian cultural icon Rubén Blades has been selected to represent Panama at the Pirineos Sur Festival 2026 in Spain, showcasing the nation’s music and artistic heritage on an international stage. The internationally renowned singer, songwriter and actor will perform as part of the festival’s diverse global lineup, bringing Latin American rhythms and storytelling to European audiences. This honour highlights Panama’s cultural exports and strengthens its visibility in global arts circuits, building cultural diplomacy alongside tourism and creative industry promotion. Event organisers and national arts officials celebrated the selection as a point of pride.

Panama’s government has proposed a shift in fuel policy that would make ethanol blending mandatory in gasoline and introduce accompanying fiscal adjustments for fuel products. According to officials, the initiative aims to reduce carbon emissions, support agricultural sectors that produce biofuel feedstocks, and align energy policy with environmental commitments. The proposal would reshape the current fuel taxation scheme, though exact blend ratios and timelines are yet to be finalised. Lawmakers and industry stakeholders are now reviewing the plan, with debates expected over costs, infrastructure readiness and impacts on consumers and transport sectors. Critics caution that mandatory ethanol could raise fuel prices if implementation is not carefully managed.

Court upholds Ministry of Public Works fine against Fourth Bridge consortium

Panama’s Third Chamber of the Supreme Court has ruled that a fine imposed by the Ministry of Public Works (MOP) on the consortium responsible for the Fourth Bridge project is not illegal. The court found that the sanction, related to contractual compliance issues, fell within legal bounds and did not violate due process. The decision was welcomed by the MOP as an affirmation of the government’s authority to enforce infrastructure contracts, but it drew scrutiny from the contractor, which has argued that the penalty was disproportionate. The ruling could affect future infrastructure disputes and reinforces legal oversight on major public-private projects. Legal experts say the case highlights the judiciary’s role in balancing state interests and investor rights.

Allegations surface over “secret” Panama Canal expansion project

Reports have emerged alleging a secret project linked to the Panama Canal expansion, suggesting that undisclosed plans may be underway for additional waterway works beyond the official multipurpose programme. Critics and analysts argue that if true, such covert initiatives could divert resources and undermine transparency in one of the country’s most strategic assets. Government agencies and canal authorities have not publicly confirmed the specifics of the alleged project, but the discussion has intensified scrutiny of governance practices and public communication surrounding canal operations. Panama’s waterway is central to national income and global shipping, so any suggestion of hidden plans draws considerable attention from civil society and economic stakeholders.

Trade deficit with Mercosur hits US$490 million

Panama’s commercial deficit with Mercosur nations (a South American trade bloc including Argentina, Brazil, Paraguay and Uruguay) has reached approximately US$490 million, according to the latest statistics. Analysts attribute the imbalance to higher Panamanian imports of vehicles, electronics and manufactured goods from Mercosur countries compared to Panama’s exports in agriculture and services. Business associations are calling for renewed focus on export competitiveness and diversification to narrow the gap, while trade experts note that Panama’s strategic position as a logistics hub makes balanced trade with regional partners both a challenge and an opportunity. The deficit figure underscores ongoing structural trade issues that policymakers are seeking to address.

Preparations begin for the 2026 “Mil Polleras” parade

Organisers have begun finalising plans for the 2026 Mil Polleras Parade, a celebrated cultural event showcasing Panama’s traditional dress and folk heritage. Preparations include the rental of tarimas (stages/platforms) at a cost of about US$54,000, indicating the scale and logistical complexity of the festivities. The “Mil Polleras” event draws participants and spectators from across the country and abroad, highlighting regional costumes, music and dance. Officials say early planning is essential to ensure safety, scheduling and cultural programming, as well as to accommodate expected tourism. The parade remains a hallmark of Panamanian identity and civic pride.

" People who have lived here for years, peacefully, happily, now because of the whim of the government and the whim of the ACP, they impose this desire. I don’t agree," said Ernesto Maceno, a farmer from the region.

Residents have been seen placing Panamanian flags on their land in protest, symbolising their claim to sovereignty. Many worry about losing their homes, schools, cemeteries, and crops to flooding if the project goes ahead.

"This is not a life project, it’s a death project. Because we have to stop this here. Because if we don’t stop it here, my God, where are we going? This is shameful," said Álvaro Maceno, another local farmer.

Despite widespread concern, authorities have provided limited information about the project’s environmental and social impacts, and there are no clear guarantees for possible resettlement. The Panamanian government has not yet responded to the growing opposition.

According to the ACP, around 40 percent of U.S. container traffic passes through the canal, with U.S. trade representing roughly 73 percent of its total operations. The modernisation effort aims to secure Panama’s role in global commerce — but for the communities of Río Indio, it raises deep questions about sovereignty, survival, and the true cost of development.

The case revolved around the Grupo Unidos por el Canal (GUPC) consortium, led by Sacyr alongside Italy’s Salini Impregilo and Belgium’s Jan de Nul, which accused the Panama Canal Authority (ACP) of design errors that inflated costs. The ICC, however, ruled that the contractors assumed those risks when signing the 2009 contract, confirming the ACP’s stance.

For investors, the ruling reinforces Panama’s reputation as a country where the rule of law prevails in complex international disputes — a reassuring sign in a region often criticised for legal uncertainty. It highlights the ACP’s professional management of the canal, a strategic asset that generates around 6% of the country’s GDP and continues to attract global trade and private investment.

The verdict also sets a precedent for other states engaged in large infrastructure projects: it shows that governments can successfully defend themselves against corporate claims when contracts are clear and institutions remain firm.

For Sacyr, the loss represents not only a financial setback but also reputational damage in future tenders. For Panama, it consolidates its image as a dependable and sovereign player in global infrastructure and a reminder to investors that the canal remains a stable, well-governed engine of trade.

President José Raúl Mulino claimed that a U.S. Embassy official had made threatening remarks directed at him. This revelation stirred political discussions both domestically and internationally, raising questions about diplomatic relations between Panama and the United States. Mulino emphasised the importance of maintaining national sovereignty and transparency in foreign affairs while calling for clarification from diplomatic channels.

Mulino supports life sentences

In a strong stance on public safety, President Mulino declared that individuals convicted of heinous crimes “have no right to live,” expressing his support for the implementation of life sentences in Panama. His statement reflects a push toward harsher penalties and has ignited debate among human rights advocates, legal experts, and political figures about proportional justice and constitutional limits.

Chamber of Commerce urges the Assembly to discuss anti-corruption projects

The Panamanian Chamber of Commerce publicly urged the National Assembly to prioritise and discuss pending anti-corruption bills. Business leaders argue that the approval of these projects is critical to restoring public trust, strengthening institutions, and improving the country’s global reputation. The Chamber stressed that transparency reforms are essential for sustainable economic growth and foreign investment.

Panama strengthens fiscal transparency and bets on development with two new bills

The Panamanian government introduced two new bills designed to boost fiscal transparency and promote national development. These legislative efforts aim to modernise financial oversight, enhance accountability in public spending, and align with international standards for combating tax evasion and illicit financing. Authorities believe the measures will improve Panama’s standing with global financial institutions and reinforce investor confidence.

Statute reforms and a presidential candidacy in the fight for Panameñismo

Internal political shifts are underway within the Panameñista Party, where leaders are considering statute reforms and a new presidential candidacy. These moves are part of an effort to rejuvenate the party’s image and strengthen its position ahead of upcoming elections. The ongoing debates highlight ideological divisions and strategic recalibrations among party members, signalling a potentially transformative phase in Panama’s political landscape.