December 27, 2024.
First of all, Merry Christmas and Happy Hanukkah – I hope everyone had wonderful celebrations so far and are looking forward to the New Year, regardless of what Trump wants to do with Panama.
But, what a crazy last few days, eh?! President-elect Donald Trump has gone over the top by recently expressing his desire for the United States to regain control over the Panama Canal. He criticized the fees charged by Panama for canal transit, describing them as “ridiculous” and unfair to the U.S. economy. Trump stated that if these practices continue, the U.S. would demand the canal’s return. Whaaaaaaat!?!?
In response, Panama’s President José Raúl Mulino firmly rejected Trump’s demands, emphasizing Panama’s sovereignty over the canal. Mulino stated that the canal’s rates are determined based on market conditions and operational costs, not set arbitrarily. He also assured that the canal remains under Panamanian control, dismissing concerns over potential foreign influence. These concerns are primarily due to China’s ever-increasing interest over Latin America, in general and more specifically their influence with previous panamanian government administrations (not so much the present government).
Then, China chimed in: Specifically, China’s Foreign Ministry expressed support for Panama’s sovereignty over the canal. Spokesperson Mao Ning emphasized that the canal is a significant creation of the Panamanian people and a vital international waterway. She stated, “China has always supported the people of Panama in their just struggle for sovereignty over the Canal,” and reiterated China’s respect for Panama’s control, recognizing the canal as a permanently neutral international passage.
This looks like a good time to pause for an abbreviated history lesson:
The Panama Canal was originally started by the French in 1881 under the leadership of Ferdinand de Lesseps, the engineer behind the successful construction of the Suez Canal. However, the project faced significant challenges, including tropical diseases like malaria and yellow fever, as well as engineering difficulties related to Panama’s mountainous terrain.
The French effort ultimately failed, and the project was abandoned in 1889. That was only 8 years time where nearly 25,000 people died during the process. Nearly 15 years later, the United States later took over construction in 1904.
The construction of the Panama Canal differed significantly between the French and American approaches, particularly in the chosen design to overcome the challenging geography and hydrology. The French, under Ferdinand de Lesseps, attempted a sea-level canal similar to the Suez Canal, requiring a straight channel with no locks. This approach faced insurmountable obstacles, including the mountainous terrain, landslides in the Culebra Cut, and the unpredictable flooding of the Chagres River. In contrast, the Americans implemented a lock-and-lake system, leveraging the Chagres River to create an elevated artificial lake, Gatun Lake, and using locks to raise and lower ships as they traversed the canal. This design drastically reduced the need for excavation and provided better control over water flow, ultimately enabling the project’s completion in 1914 and establishing it as an engineering marvel.
The Panama Canal was later transferred to Panama in 1999 following the Torrijos–Carter Treaties signed in 1977. These treaties ended U.S. control over the canal, granting Panama full sovereignty.
What did all of this cost the USA? After purchasing the rights from France at $40 million, another $10 million to Panama plus a yearly fee of $250,000 (agreed upon in 1904), and actual construction costs, the USA invested more than $375 million which was a massive amount of money at the time. It was considered the one of the most expensive and aggressive projects in history. In today’s dollars, with inflation, this would be equivalent to $9.69 Billion Dollars!!
Trump’s statements have sparked a diplomatic dispute, with Panama asserting its independence and control over the canal, a vital conduit for international maritime trade. Analysts note that any U.S. attempt to reclaim the canal would face significant legal and geopolitical challenges.
These headlines once again show his provocative nature. If Panama doesn’t lower their transit rates, he’s gonna take it away and return it to the United States. This is doubtful. If you’ve analyzed Trump even slightly, you’d know this is classic Trump theatrics—an exaggerated statement designed to grab attention and stir the pot. It’s his signature strategy: get people riled up, laughing, or even arguing amongst themselves. Then, just when tensions peak, he steps in to negotiate, often reaching an agreement that satisfies most parties—except, of course, his die-hard critics who never fail to oppose Mr. Orange.
And then, if that weren’t enough, he signaled his choice for the US Ambassador to Panama. This guy came at us out of nowhere. He announced Kevin Marino Cabrera for this post. A Miami-Dade County Commissioner and former Florida state director for Donald Trump’s 2020 campaign, Cabrera is a graduate of Florida International University with a degree in Political Science. He built a career as a lobbyist and political strategist, known for his staunch conservative values and support for Trump. His election to the Miami-Dade County Commission in 2022 focused on public safety, economic development, and limiting government overreach. Cabrera has faced controversy over his participation in a 2018 protest involving members of the Proud Boys, though he denies any affiliation with the group. Recently nominated by Trump as the U.S. Ambassador to Panama, Cabrera’s nomination highlights his ties to the administration and his understanding of Latin American affairs.
But what qualifications does he have for a position as ambassador? It’s hard to tell. I suppose he does have some political experience. Or maybe its his ties to Florida’s diverse Latin American community, and his role in high-profile political campaigns. As Florida state director for Donald Trump’s 2020 campaign, Cabrera demonstrated strong organizational and leadership skills in a state with significant strategic importance to U.S.-Latin America relations. His tenure as a Miami-Dade County Commissioner has given him insight into governance and policymaking in a region deeply connected to the Americas. Additionally, his background as a lobbyist navigating complex political and legislative environments suggests a capacity for diplomacy and negotiation. While he lacks formal diplomatic experience, his political network and familiarity with Latin American affairs align with the administration’s priorities for the region. Or maybe Trump just said, “Ah Fk – it…. This one will do just fine!”
No matter how you look at it, one thing is clear: everything after January 20, 2025, promises to be a wild ride. Or, as Elon Musk so succinctly put it, “2025 is gonna be lit.” Whether that means “exciting” in the sense of African American Vernacular English, or the world descending into a fiery chaos of brimstone and drama, remains to be seen. Regardless, I’ll be ready—armed with fresh popcorn and a bottle of Zacapa XO—to watch it all unfold.
TOP NEWS and TIDBITS:
The Electric Rates Remain Unchanged for 2025
After constant power outages and complaints about the electricity service in the country, President José Raúl Mulino announced that he has contacted the National Public Services Authority (Asep) to suspend the adjustment of rates. The president stressed that there will be no increase in rates until companies improve the service. “Rest assured that expensive electricity is not coming starting next month,” he told the public.
According to a report provided by the government, the only entity that is contemplating a minimal increase of 0.09, or less than 1%, is the electrical distribution company Chiriqui S.A. (EDECHI), which belongs to the Naturgy conglomerate. The rest, the electrical distribution company Metro – Oeste (EDEMET) and Elektra Noreste S.A. (ENSA), will maintain the current tariff amounts in effect.
Since the beginning of his term, President Mulino has strongly criticized the quality of the electricity service in the country and even promised to implement stringent measures to order the situation. In this sense, Naturgy’s companies were fined around 14 million dollars for failing to comply with the existing quality service standards in electricity. Meanwhile, ENSA was imposed a sanction of 7.3 million dollars for irregularities in the service during the years 2011, 2012, 2013, and 2014.
According to Asep, the three penalized companies will have to apply a credit in favor of affected customers. By October 2024, the entity received a total of 8,416 complaints regarding electrical failures.
Christmas Eve Left More Than 100 People Apprehended by the National Police
In the last 24 hours, as part of operation “Providencia”, the National Police reported the apprehension of 106 people throughout the country. According to the report, 57 of the detainees were arrested on official charges, 28 for administrative offenses, 16 in flagrante delicto and five related to micro-trafficking offenses.
During the operational actions, eight raids were carried out, resulting in the seizure of five firearms, 22 ammunition, 207 drug packages and 28 reeds of cocaine. Seven vehicles reported stolen or stolen were also recovered.
In traffic matters, authorities issued a total of 1,061 infractions to drivers. The most recurrent offenses included 192 for speeding, 25 for inadequate lights, 19 for expired licenses, and 23 for cell phone use while driving. In addition, eight drivers were sanctioned for presenting alcoholic breath and seven for proven drunkenness.
Authorities also reported the towing of 48 vehicles with tow trucks as part of these control actions.
In addition, in the early hours of the morning of December 25, in the Curundú district, a parking activity was deactivated in one of the multi-family houses of the sector.
Specifically in the sector of Viejo Veranillo and the buildings of Brooklincito, where there was a stage with activities and a large number of people under the influence of alcohol.
The same happened in the district of Arraiján, where several parking lots were deactivated in the sectors of Vacamonte, El Tecal, La Floresta and El Chorrillito, in order to guarantee the safety of each citizen and avoid unfortunate situations.
Panama Canal: How the Toll Increase Process Works
During a press conference held this Friday, December 26, the President of the Republic, José Raúl Mulino, referred to the Panama Canal toll increase process, highlighting the transparency and rigor of the procedure.
“In the Canal, tolls are not set at the whim of the president or the administrator, there is an established process to set Canal tolls, which has been respected from day one to date, a public and open process,” said the president.
Mulino emphasized that the hearings related to tolls have the participation of relevant cargo traders and prominent users in Latin America, ensuring an inclusive approach to decision making.
Panama, Leader in Tobacco Use Control, Confronts Free Marketing of Vapers
Studies reveal that children as young as 10 years old are using tobacco in schools or at home.
The areas with the highest prevalence of consumption are Bocas del Toro and the Guna Yala region, and the lowest are Herrera and Veraguas.
In Panama, 95% of the population over 15 years of age does not use tobacco.
Panama continues to be a reference in the fight against smoking in the region; the country is a leader in tobacco control in the Americas and the fourth in the world, but it is currently facing the free commercialization of vapes that have already reached supermarkets and pharmacies without a clear law on their sale.
After the ruling of the Supreme Court of Justice which declared Law 315 unconstitutional, the commercialization of vapers has been left in a legal limbo which the Ministry of Health intends to correct by means of a new legislation which could reach the National Assembly next year.
According to Dr. Norma Astudillo, head of the Department of Situation Analysis and Health Trends of the Ministry of Health (Minsa), currently only 5% of the population over 15 years of age consumes tobacco products, a historic figure that highlights the success of public policies implemented for more than 40 years.
However, 10 months after the decision of the supreme court, some commercial premises have taken the step to commercialize them, creating shelves with artifacts of all colors, flavors, smells and shapes, in full view of consumers, without making it clear whether or not they are allowed to be sold to minors under 18 years of age.
This situation has raised concerns due to the availability and visibility of these products, which may appeal especially to young people.
Health effects and use among young people
Astudillo warned about the serious effects of vaping, including lung diseases such as EVALI (lung injury associated with the use of electronic cigarettes), cardiovascular problems and increased risk of addiction. Studies in Panama show that some young people start smoking as early as 10 years old, which highlights the need to strengthen prevention and education both in schools and at home.
According to Dr. Norma Astudillo, the regions with the highest prevalence of tobacco use in Panama are Bocas del Toro and Guna Yala. These areas present additional challenges due to their proximity to the sea and their exposure to illicit trade, which increases the availability of tobacco and vape products. For this reason, prevention and control efforts are being focused on these regions as a priority.
A joint fight
- Since 1983, Panama has implemented measures such as educational campaigns, tobacco taxes and cessation programs for smokers, as well as collaborating with international organizations such as the World Health Organization. The country also leads research on the harms of these products and has developed international award-winning campaigns to raise awareness of the risks.
- The inter-institutional work to combat smoking in Panama is coordinated and multidimensional, involving various government entities, medical organizations and civil society. According to Dr. Astudillo, these are the main institutions and their role in this fight:
Key commissions for a tobacco-free Panama
- National Tobacco Control Commission
- Integrated by directorates of the Ministry of Health (Minsa).
- Its main task is to coordinate policies and strategies for tobacco prevention and control.
Tobacco-Free Health Council
- Composed of inter-institutional entities, such as the Ministry of Education (Meduca), non-governmental organizations, medical associations and other key agencies.
- This council promotes education and awareness in schools and communities.
Commission for the Implementation of the Illicit Trade Protocol
- Involves ministries such as Foreign Affairs, Trade, Economy and Finance, as well as the General Directorate of Revenue.
- It focuses on combating the smuggling of tobacco products, which especially affects coastal and border regions.
Collaborative Efforts
- Education and prevention in schools: They work together with Meduca to inform young people about the harms of tobacco and prevent early onset of consumption.
- Cessation clinics: Panama has 50 free clinics to help people quit smoking, an effort led by Minsa with the support of medical organizations.
- Awareness campaigns: From social networks to messages on tobacco products, campaigns seek to educate the population about the risks of smoking.
Evidence-based approach
- The country conducts regular research and multi-center studies, including surveys of 13-15 year olds, to understand consumption patterns and design effective policies.
- Tobacco cessation clinics in Panama are a key part of the strategy to reduce the consumption of tobacco products and support smokers who wish to quit.
These are the most relevant details:
Main characteristics of the clinics:
- The doctor emphasized the need for all sectors of society to work together to keep Panama a tobacco-free country.
- The State has the responsibility to watch over the health of the population, but each person has the duty to take care of his or her own health. Tobacco and vape products are harmful, and it is our decision to protect ourselves,” he concluded.
Panama Mayor’s Office Creates Special Zones and Schedules for the Nighttime Economy
The decree introduces two special zones, called nighttime recreation or amusement zones.
The Mayor’s Office of Panama created special zones and schedules with the purpose of promoting entertainment tourism and strengthening the nighttime economy.
Therefore, it issued Mayoral Decree N°12-2024, which regulates the hours of operation of commercial establishments dedicated to the sale of alcoholic beverages, as their main activity.
“This decree will enter into force as of its publication in the Official Gazette,” recalled the Mayor’s Office of Panama in a communiqué distributed this December 24.
The statement emphasized that the new regulation does not modify the general hours established for those businesses, which continue to be the following:
Sunday to Wednesday: 9:00 a.m. to 3:00 a.m. the following day.
Thursday to Saturday: 9:00 a.m. to 4:00 a.m. the following day.
However, the decree introduces two special zones, called night recreation or amusement zones, where “businesses that have night permits and comply with the legal requirements may operate without restriction of hours of establishments classified under level 2, article 2-A of Law 55 of 1973”.
These special zones are:
- The Amador Causeway, from Van Hock Street to Flamenco Island.
- The Historical Monumental Complex of the Old Town of Panama.
In addition, it is established that hotels and event halls are exempt from the time restrictions, as long as the activities are carried out behind closed doors and the established noise standards are respected.
MEDUCA, Revalidation 2025: Will 9th and 12th Grade Students Receive their Diplomas?
Students in 9th and 12th grades who failed between 1 to 3 subjects must participate in the Student Academic Recovery Program (PRAE) of the Ministry of Education (MEDUCA) and upon successful completion of this process will receive their diplomas over the counter at their school.
The cost of the program will be B/. 7.00 per subject, which will be used to pay the participating teachers and to acquire the necessary resources for the implementation of the PRAE.
When will the 9th and 12th grade certificates be delivered?
According to the calendar of dates shared by MEDUCA, the delivery of certificates and diplomas for 9th and 12th grade students who complete revalidations will be delivered starting February 28, 2024.
