Economic Policy

Panama’s Banana Crisis Exposes Global Labor Struggles and Hidden Costs to American Consumers

By Economics Desk | August 29, 2025

After firing thousands over a controversial strike, Chiquita Brands signs a shaky deal to resume operations in Panama—yet the real victims are both Panamanian workers and American families facing higher prices.

In a move that highlights the growing tension between multinational corporations, labor rights, and global supply chains, Panama’s President José Raúl Mulino recently signed an agreement with banana giant Chiquita Brands to restart operations in Panama. This development follows a contentious strike earlier this year where thousands of banana workers protested against changes to the country's social security system — a strike deemed illegal by Mulino and met with harsh corporate retaliation. The dispute escalated rapidly after Chiquita fired thousands of striking workers in May, citing $75 million in losses. The agreement signed this week in Brazil commits the company...

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