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Central America

Panama government and protesters strike deals to clear key highway

AFP

Panama’s government and indigenous leaders reached a second deal Sunday to clear all remaining demonstrators from the Panamerican Highway in exchange for lower fuel prices, ending a two-week blockade that had stymied food deliveries.

The government released footage from the signing of an initial agreement in far-west Chiriqui province, where most of the Central American country’s food is produced, and of a blocked section of the highway being cleared.

Angered by high prices and corruption, protesters had clogged the highway linking Panama to the rest of Central America over the past two weeks. Large trucks and banner-waving demonstrators paralyzed the strategic route, making it hard for the country of 4.4 million to feed itself. 

To avert the crisis, a second deal was signed later Sunday in Santiago de Veragua, a city 250 kilometers (155 miles) northwest of Panama City, the epicenter of the negotiations and a protester stronghold.

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“Many Panamanians have suffered from these stoppages,” said Vice-President Jose Gabriel Carrizo after signing the agreement. “This is a huge government effort.”

The deal establishes the fixed price of fuel for 91 and 95 octane gasoline and diesel, and is effective from July 18.

“The traffic of cars and heavy equipment in Veraguas is free,” Eduardo Cortés, who participated in the demonstrations on the highway, told AFP by phone.

The proposal of 3.25 dollars per gallon (3.78 liters), was better than the 3.30 offered in the deal made earlier in the day with the indigenous community of the Ngabe-Bugle Comarca in Chiriqui.

“This has not been easy, we have made progress with (reducing the cost of) the basic food basket,” said Luis Sanchez, a spokesman for the organizations promoting the protests.

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In Panama City, a hundred people gathered on the waterfront to demonstrate. They all wore black, in contrast with the white suits worn by lawmakers during official ceremonies.

Food costs are “higher than what is earned. We have a big social problem,” lawyer Jaqueline Hurtado told AFP. “People are fed up and have taken to the streets to demonstrate for things to change.”

Retiree Iliana Arango said: “In my 68 years of life, I am tired of seeing governments that promise, go up, steal, go down, the next one follows and here we are lacking everything, medicine, education, food.”

Year-on-year inflation in Panama of 4.2 percent was recorded in May, along with an unemployment rate of about 10 percent and fuel price hikes of nearly 50 percent since January. 

Despite its dollarized economy and high growth figures, the country has a high rate of social inequality. 

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Economic woes have led to a shortage of fuel in some parts of the country, and stalls at food markets in the capital have run out of products to sell. 

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Central America

U.S. and El Salvador maintain close partnership, embassy says

The Chargé d’Affaires of the United States Embassy in El Salvador, Naomi Fellows, said on Monday that relations between the two countries remain “very close” and that both governments continue to work together in several areas of shared interest.

Speaking at a press conference, Fellows highlighted the longstanding friendship between the United States and El Salvador, as well as the achievements reached through bilateral agreements.

“In terms of our relationship with El Salvador, it continues to be very strong, very close. We are partners on security issues, on economic development; partners on migration, and on many other matters,” she said.

Fellows added that the relationship remains solid and is expected to continue strengthening through joint actions and cooperation initiatives.

On security, she noted that the administration of U.S. President Donald Trump has underscored the results of the measures implemented by the government of President Nayib Bukele to improve public safety in the country.

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Senior U.S. officials have visited El Salvador to observe firsthand the impact of the Territorial Control Plan, including tours of the Terrorism Confinement Center (CECOT).

Fellows also emphasized the strong personal ties between the two nations, pointing to family and friendship connections that link Salvadorans and Americans.

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Central America

Taiwan’s $10 million donation after 2001 earthquakes allegedly diverted in El Salvador

Amid the national tragedy left by the earthquakes of January 13 and February 13, 2001, a controversial corruption scandal emerged that later implicated former presidents Francisco Flores and Elías Antonio Saca, as well as senior executives of the ARENA party.

Although there were efforts to conceal a scheme involving the misuse of public funds, subsequent investigations revealed that between October 2003 and April 2004 the government of Taiwan, led at the time by President Chen Shui-bian, delivered at least three checks totaling $10 million in donations to El Salvador. The funds were diverted and never recorded by the Technical Secretariat for External Financing, the government body responsible for coordinating and monitoring international cooperation resources.

The plight of more than 1.5 million earthquake victims prompted an outpouring of international solidarity. However, it also fueled ambitions among sectors that allegedly took advantage of the emergency to improperly appropriate resources intended to ease the suffering of those affected.

Part of the $10 million donation was earmarked for the construction of housing for residents of Las Colinas, one of the communities hardest hit by the 7.7-magnitude earthquake that struck on January 13, 2001, at 11:35 a.m. Plans also included the creation of a memorial park to honor the 525 victims buried by landslides.

At a press conference in January 2014, Alejandro Flores, president of the Las Colinas community board, stated that residents received some assistance from Taiwanese cooperation funds. However, he clarified that this support came from different resources and that the destination of the $10 million donation was never known to them.

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Central America

El Salvador reports safest year in its history, security cabinet says

Officials from the institutions that make up El Salvador’s Expanded Security Cabinet on Monday, January 5, presented the results achieved through the country’s security strategies during 2025.

Authorities highlighted a significant reduction in homicides, the arrest of all perpetrators involved in killings, and the seizure of millions of dollars’ worth of illegal drugs throughout the past year.

“We have reached the day when, as the Expanded Security Cabinet, we present the national security report,” said Minister of Security Gustavo Villatoro.

Villatoro detailed the number of days with zero homicides recorded during the administration of President Nayib Bukele, as well as during the state of exception in 2025.

“We have accumulated 1,102 days without homicides during President Nayib Bukele’s administration, of which 988 occurred during the state of exception,” Villatoro explained.

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The security minister underscored the government’s fight against impunity, noting that in 2025 authorities arrested those responsible for every homicide reported during the year.

“We closed 2025 with 82 homicides, all of which have been solved. That means we achieved a 100% homicide clearance rate and 0% impunity in homicide cases,” Villatoro said.

“These figures clearly show that the security measures promoted by the government were exactly what the country needed, and today we can say with full authority that we are the safest country in the entire Western Hemisphere,” he added.

Villatoro also reported the homicide rate per 100,000 inhabitants at the end of the year.

“In 2024, we closed with a homicide rate of 1.9 per 100,000 inhabitants. In 2025, we reduced it to 1.3, which represents 32 fewer homicides compared to the previous year,” he said.

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According to official data, of the 82 homicides recorded in 2025, 43 were linked to social intolerance, 31 to family-related disputes, and eight to criminal activity. Villatoro emphasized that El Salvador is the only country able to report a reduction of more than 50% in street and violent crimes, including theft, assault, rape, extortion, vehicle theft and robbery.

“2025 represents the safest year in our national history, and all of this is due to the daily efforts of thousands of men and women in uniform and in public service,” Villatoro stated.

Meanwhile, Defense Minister René Francis Merino Monroy noted that another key factor behind the country’s low crime figures has been the strengthened security shield implemented by authorities in the fight against drug trafficking.

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