Protests against electricity tariff in Panama to escalate unless amendment to increase government spending is passed

On 14 July, major union agglomerate National Front for the Defence of Economic and Social Rights (Frente Nacional de Defensa de los Derechos Económicos y Sociales: FRENADESO) announced nationwide protests from 16–20 July, against the government's increase of electricity tariffs on 5 July. The National Union of Workers of Construction and Similar Industries (El Sindicato único nacional de trabajadores de la industria de la construcción y similares: SUNTRACS) backed protests, as well as teachers' unions UNEP and UNECEP, which said they would carry out a 24-hour strike from 16 July. Protests in Colón city over living conditions in March resulted in injuries of police officers and civilians, and the burning of a heritage site while a month-long strike by SUNTRACS in April–May incurred losses of USD250 million. On 13 July, the government announced a suspension of the new tariff; however, unions have demanded the full removal of the tariff and increased spending on social welfare and public education. The government is seeking the support of the opposition dominated National Assembly to pass a legal modification, which would allow the government to increase spending, eliminate the new tariff, and widen the fiscal deficit.

Significance: Protests are likely to involve road blockades in the capital Panama City, Colón city and Chiriquí, especially on the dual carriage Transistmica motorway near Panama University in Panama City. As was the case during protests from 10–13 July near Panama University, confrontations between anti-riot police and protestors are likely to involve stone throwing, petty vandalism, roadblocks using logs, burning tyres, and other debris, posing minor damage risks to nearby property. Police are likely to respond by arresting protesters instigating violence or causing property damage. If the legal modification to increase spending is passed, this would reduce the likelihood of escalating protests and prospects for further cross-union coordination, reducing associated disruption risks. However, if the government does not increase spending for public education or welfare in the 2019 National Budget this would increase risks of protests and road blockades over the next two–four weeks.