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.
“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.
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.
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.
Central America
Nicaragua’s Alliances With U.S. Rivals Could Trigger More Sanctions, Analysis Says
The administration of U.S. President Donald Trump is expected to maintain political and economic pressure on the government of Nicaragua, led by Daniel Ortega and Rosario Murillo, due to its growing alliances with Russia, China and Iran, according to an analysis released Monday by the Centro de Estudios Transdisciplinarios de Centroamérica (Cetcam).
The report states that tensions between Washington and Managua have increased since the beginning of Trump’s second term and could worsen amid the regional political climate, particularly because of developments in Venezuela and Cuba.
Cetcam researchers noted that since the second half of 2025, the U.S. government has intensified criticism of the Sandinista administration, mainly regarding political prisoners, human rights, religious freedom and what it describes as the authoritarian model established by Ortega and Murillo.
“With this background, it is possible to foresee that Washington will maintain pressure, including sanctions, against the Ortega-Murillo dictatorship,” the think tank stated in its report.
The study also warns that one of Washington’s main concerns is the strengthening relationship between Managua and countries considered strategic rivals of the United States, particularly Russia, China and Iran.
Among the developments highlighted is the recent ratification by the Russian Senate of a military cooperation agreement signed with Nicaragua in 2025. The deal is expected to strengthen strategic coordination and Russia’s presence in Central America for an initial five-year period.
According to Cetcam, the move will “hardly go unnoticed” by the United States.
Central America
Guatemala swears in new attorney general after controversial exit of Consuelo Porras
The new Attorney General of Guatemala, Gabriel García Luna, officially took office on Sunday and pledged to restore public confidence in the institution while strengthening efforts against corruption and organized crime.
“Today does not mark the beginning of just another administration. Today marks an opportunity to restore dignity to Guatemala’s criminal justice system,” said García Luna, who was appointed by President Bernardo Arévalo.
García Luna succeeds Consuelo Porras, whose tenure began in 2018 and became highly controversial due to accusations of undermining democratic institutions and obstructing anti-corruption investigations.
Porras was sanctioned by the United States, the European Union, Canada, and the United Kingdom, among others, over allegations related to corruption and interference in judicial processes.
Her administration was also criticized for allegedly attempting to block President Arévalo’s inauguration in 2024 and for pursuing legal actions against former anti-mafia prosecutors, judges, journalists, and Indigenous leaders, many of whom later went into exile.
During his inauguration speech, García Luna acknowledged that many Guatemalans had lost trust in the Attorney General’s Office.
“For years, many Guatemalans lost confidence in the institution, not because they stopped believing in justice, but because justice stopped believing in them. Today begins the duty to restore that trust,” he stated.
The new attorney general also admitted he inherited an institution “with deep wounds.”
The United States has accused Porras of obstructing anti-corruption investigations to protect political allies and secure political favors.
Critics argue that such actions benefited the so-called “pact of the corrupt,” an alleged network of political, economic, and criminal interests believed to exert influence over Guatemala’s justice system.
Central America
Mulino Vows Tougher Crackdown as Homicides Increase in Panama
Panamanian President José Raúl Mulino said Thursday that his administration will not negotiate with gangs in an attempt to curb the wave of violence that has recently shaken the country and fueled growing public concern over insecurity.
“I am not going to sit down, nor is the security minister going to sit down with the leader of any gang to negotiate,” Mulino stated while rejecting any possibility of dialogue with criminal organizations.
According to statistics from the Public Ministry of Panama, the country recorded 62 homicides in April, nearly double the 34 reported during the same month last year. In March, authorities registered 53 killings, representing a 20% increase compared to the same period in 2025.
Panamanian authorities say the country’s two main gangs, among more than 180 criminal organizations identified nationwide, are behind the recent escalation in violence.
The National Police of Panama stated that disputes over territorial control, recruitment of new members, and drug theft between rival gangs are driving the increase in murders and armed attacks.
Mulino also expressed concern about innocent civilians becoming victims of the violence.
“They are in restaurants, they are in schools, and they become victims of these shootings,” the president said.
The Panamanian leader further called for tougher judicial measures against gang leaders and drug trafficking operators, criticizing court decisions that grant house arrest to suspects linked to contract killings and organized crime.
“We are going to act as we must to defend the overwhelming majority of Panamanian citizens, who are not criminals and are not drug traffickers,” Mulino stated.
Authorities believe that rising cocaine production in South America and Panama’s role as a transit route for drugs destined for the United States and Europe continue to strengthen gangs involved in narcotics trafficking.
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Central America5 days agoArévalo Announces Overhaul of Guatemala’s Prison System Amid Security Crisis
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Central America3 days agoGuatemala swears in new attorney general after controversial exit of Consuelo Porras
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Central America5 days agoMulino Vows Tougher Crackdown as Homicides Increase in Panama
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International13 hours agoGabriel García Luna Pledges to Restore Public Trust in Guatemala’s Prosecutor’s Office
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Central America13 hours agoNicaragua’s Alliances With U.S. Rivals Could Trigger More Sanctions, Analysis Says