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Panama Hats are made exclusively in Ecuador. These are hand woven and are made from a plant called the Toquilla (History of Hats). The hat has been traced back to the 16th century when Incas used the Toquilla plant for hats. Why is this hat called the Panama when it is made in Ecuador? It became known as the Panama because the workers involved with the construction of the Panama Canal used the hats for protection from the sun while they worked. The Panama became known as the most fashionable summer hat (History of Hats). The hat gained popularity when President Theodore Roosevelt was seen wearing it when he visited the construction of the Panama Canal. These hats vary in prices and time taken to be woven. The finer the hat the more expensive is it and the more time is takes to be woven. The skill of weaving these hats are very unique and have been passed down from generation to generation.