Panama Security Agreement Protests Mulino: Why Panamanians Are Protesting

When news broke that Panama had signed a security memorandum with the United States in April 2025, many Panamanians saw it as more than a routine diplomatic move. For weeks, tens of thousands have taken to the streets, denouncing the pact and a separate pension reform as threats to national sovereignty. This article unpacks the protests, the politics behind them, and what they mean for President José Raúl Mulino’s young government.

Protests entered third week May 16, 2025 · Reported protesters thousands · Security agreement signed April 2025 · Pension reform enacted 2025 · Prior mass protests 2023

Six key facts frame the current crisis.

Why are people in Panama protesting?

What triggered the 2025 protests?

• Pension reform law enacted in 2025 that changes how workers’ retirement funds are managed (Americas Quarterly (policy analysis publication))
• A security memorandum of understanding signed with the United States in April 2025 that protesters say violates sovereignty (Democracy Now! (independent news organization))

University students led the first marches in early May, and within days tens of thousands joined in Panama City and other cities. The protests quickly became the biggest challenge Mulino has faced since taking office in 2024.

What is the pension reform law?

In 2025 Panama’s congress approved a reform that raised the retirement age and altered the contribution system. Critics say it shifts the burden onto workers while reducing benefits. The law was part of a broader fiscal package pushed by Mulino’s government (Americas Quarterly).

What is the US‑Panama security memorandum?

On 9 April 2025, U.S. Secretary of Defense Pete Hegseth signed a bilateral security cooperation memorandum in Panama City. The document was described by officials as allowing U.S. troops to deploy around the Panama Canal area for joint training and security operations. The Center for Strategic and International Studies (CSIS) called it “a modest agreement” that nonetheless tests Mulino’s ability to balance cooperation with sovereignty (CSIS (Washington think tank)).

How does President Mulino respond?

Mulino has stated unequivocally that Panama will not renegotiate the security pact. He called the protests “the result of political interests,” not genuine public outrage (Associated Press (international wire service)). The government insists the memorandum is routine cooperation, not a transfer of sovereignty.

Is Panama friendly to the US?

What is the US‑Panama security agreement?

• Formally a memorandum of understanding on security cooperation, signed on 9 April 2025 (Americas Quarterly)
• Allows U.S. military personnel to operate around the Panama Canal for joint exercises and security operations (Democracy Now!)
• Neither country has published the full text; exact terms remain unclear

Panama and the United States have long‑standing security ties. The U.S. Department of State notes that bilateral cooperation covers counter‑narcotics, maritime security, and humanitarian missions (U.S. Department of State (federal government diplomatic arm)). The 2025 memorandum extends that framework, but opponents say it goes too far by stationing foreign troops on sovereign soil.

How have protests affected US‑Panama relations?

The demonstrations have not led to a formal diplomatic rift, but they have reshaped the domestic political landscape. Mulino’s government continues to call the pact mutually beneficial. Meanwhile, former U.S. President Donald Trump’s comments about “taking back” the Panama Canal have been cited by protesters as evidence of continued U.S. ambitions in the region (Americas Quarterly).

What is the history of US military presence in Panama?

The United States maintained military bases in Panama until 1999, when the Panama Canal and all U.S. military installations were transferred to Panamanian control under the Torrijos‑Carter Treaties. For many Panamanians, the memory of foreign troops is still raw. The 2025 pact brings that history back into public debate.

Why did the USA give back the Panama Canal?

Which president signed the Torrijos‑Carter Treaties?

U.S. President Jimmy Carter and Panamanian leader Omar Torrijos signed the treaties in 1977. The agreements set a timeline for the complete turnover of the canal and the surrounding Canal Zone to Panama by noon on 31 December 1999 (U.S. Department of State).

Why was the canal returned in 1999?

The handover was the culmination of decades of Panamanian nationalist pressure and a U.S. policy shift under Carter, who argued that the canal’s continued U.S. control was a source of resentment. The treaties guaranteed permanent neutrality of the waterway. By the 1990s, the strategic value of a foreign‑controlled canal had diminished, and the U.S. agreed to withdraw.

For Panamanians, the return of the canal remains a powerful symbol of sovereignty. That is why the 2025 security memorandum, which again involves U.S. troops near the canal, struck a nerve.

Why this matters: every debate about the canal today echoes the sovereignty argument that led to the 1977 treaties. The 2025 pact is seen by many as a step backward from the handover.

Does the US pay to use the Panama Canal?

Who manages the canal?

The Panama Canal Authority (ACP), a Panamanian government entity, operates the canal. It sets tolls and schedules independently. All ships, including U.S. military and commercial vessels, pay standard tolls (U.S. Department of State).

How much does the US pay annually?

The United States, as a canal user, pays no special fee. Tolls are paid per transit by the operator of each vessel. U.S. military ships are subject to the same rates as any other nation’s vessels. There is no annual lump‑sum payment from Washington to Panama for canal access.

The canal is a major revenue source for Panama, generating over $2.5 billion annually in recent years. The U.S. is the largest single user, but it gets no discount—a point protesters often highlight when arguing that the security pact gives Washington a military foothold it does not pay for.

The trade‑off: Panama earns billions from the canal but now faces internal pressure over a security deal that critics say gives the U.S. military access without a financial quid pro quo.

Is Panama left or right wing?

Is Mulino’s government left or right?

President Mulino is widely considered right‑wing. He ran on a platform of fiscal discipline, law‑and‑order, and pro‑business policies. His party, Realizing Goals (RM), occupies the center‑right of Panama’s political spectrum.

What are the political leanings of the protesters?

The protest movement is broad. University students, labor unions, left‑leaning civil society groups, and even some centrist professionals have taken part. The demonstrations are not explicitly partisan but are unified in opposing what they see as neoliberal reforms and a threat to national sovereignty.

The 2025 protests draw a direct line from the 2023 demonstrations against the First Quantum copper mine contract, which also united a diverse coalition. Then as now, the grievances cut across traditional left‑right divides (Americas Quarterly).

The catch: Mulino’s right‑wing base overlaps with nationalist sentiment, but his security pact has alienated that same nationalist segment. The protests are therefore not a simple left‑vs‑right fight.

Timeline: Key dates in the Panama protests

• 2023 – Mass protests erupt against the First Quantum mining contract, which was later voided by Panama’s Supreme Court.
• 2024 – José Raúl Mulino wins the presidential election on a platform of anti‑corruption and economic growth.
• 9 April 2025 – U.S. Secretary of Defense Pete Hegseth signs a security cooperation memorandum in Panama City (Americas Quarterly).
• Late April/early May 2025 – Pension reform law takes effect; student‑led protests begin (Democracy Now!).
• 6 May 2025 – Thousands march in Panama City; described as the largest protest yet against the agreement (WCVB).
• 16 May 2025 – Protests enter third week; Mulino states he will not renegotiate the security pact (Associated Press).

Voices from the protests

“This agreement violates our sovereignty. We will not accept foreign troops on our land again.”

— Student protester in Panama City, as reported by Associated Press

“The protests are the result of political interests, not the will of the people.”

— President José Raúl Mulino, speaking to reporters, quoted by Associated Press

“Controversial deals with the U.S. have supercharged demonstrations, testing Mulino on multiple fronts.”

— Analysis by Americas Quarterly

Panama’s 2025 protests are more than a flashpoint: they reflect deep‑seated anxieties about sovereignty, economic justice, and the legacy of the canal’s return. President Mulino’s bet that cooperation with Washington will bring security and investment may be strategically sound, but he now faces a domestic backlash that could define his entire term. For Panamanian leaders, the choice is clear: either address the nationalist sentiment behind the protests with genuine transparency, or risk turning a manageable dispute into a prolonged crisis that erodes public trust and foreign confidence.

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