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.

Central America

Panama and OECD sign deal to boost investment climate and global integration

The Government of Panama and the Organisation for Economic Co-operation and Development (OECD) signed an agreement this Friday in Paris aimed at improving the country’s investment climate through data exchange, expert missions, and policy benchmarking.

“This is not a symbolic act. It is a strategic decision. A statement of intent. A commitment to transformation,” said Panama’s Foreign Minister, Javier Martínez-Acha, following the signing, according to an official statement.

The Memorandum of Understanding (MOU) was signed by Martínez-Acha and OECD Secretary-General Mathias Cormann at the organization’s headquarters in the French capital.

According to Panama’s Foreign Ministry, the agreement establishes “a solid and forward-looking framework for cooperation,” enabling high-level technical collaboration through data sharing, comparative policy analysis, expert missions, and evidence-based recommendations.

Authorities stated that the initiative is expected to enhance the investment environment, boost competitiveness, and improve predictability, while also strengthening governance, fostering innovation, increasing human capital, and aligning the education system with global economic demands.

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The agreement also opens the door for Panama to deepen its participation within OECD bodies, allowing the country to take part in discussions where global standards are defined.

Since taking office in July 2024, President José Raúl Mulino has prioritized efforts to remove Panama from international lists that label it as a tax haven, which his administration considers discriminatory.

As part of this strategy, the government restricted the participation of most European companies—except those from Spain, Italy, and Greece—in public tenders for major infrastructure projects, including a planned railway to the border with Costa Rica and a gas pipeline near the Panama Canal. This move came after the European Union kept Panama on its list of non-cooperative jurisdictions for tax purposes.

Over the past year, Panama has made progress in this area, including its removal from the European Parliament’s money laundering list and Ecuador’s tax haven list.

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Central America

Guatemala court overturns arrest warrants against former CICIG officials

Indigenous leaders in Guatemala announce increased protests

Colombian Attorney General Luz Adriana Camargo and current ambassador to the Vatican Iván Velásquez were both members of the International Commission Against Impunity in Guatemala, a UN-backed body created to investigate corruption networks within the Guatemalan state between 2007 and 2019.

Investigations led by the CICIG resulted in the imprisonment of high-ranking officials. According to international organizations, the arrest warrants issued against Camargo and Velásquez were seen as retaliation for their anti-corruption work.

In mid-2025, an appeals court in Guatemala ordered their detention after prosecutors accused them of obstruction of justice and influence peddling, among other charges. The ruling alleged that they had favored business figures linked to Odebrecht who were under investigation.

However, the Constitutional Chamber of the Supreme Court later ruled that the lower court had “overstepped its authority” by issuing the arrest warrants illegally, according to local media reports.

Camargo and Velásquez had immunity due to their roles within a United Nations-backed entity.

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“A month before the end of the term of the corrupt attorney general, Consuelo Porras, it seems the situation is beginning to change in Guatemala,” Velásquez wrote on social media.

Porras—sanctioned by the United States Government and the European Union over allegations of corruption and anti-democratic actions—is set to leave office on May 16 unless she is reappointed by President Bernardo Arévalo, with whom she has been at odds after attempting to block his inauguration two years ago.

The CICIG was unilaterally dissolved by former Guatemalan president Jimmy Morales (2016–2020).

Central America

Honduras police launch high-impact operations amid security concerns

The director of the Policía Nacional de Honduras, Rigoberto Oseguera, presented a recent assessment of the country’s security situation and announced the deployment of high-impact operations in the department of Olancho.

The police chief identified the municipality of Choloma, in the department of Cortés, as one of the most critical areas for crime at a regional level. This comes despite an overall downward trend in violence across the Valle de Sula.

Oseguera also noted that the Central District—comprising Tegucigalpa and Comayagüela—records a high number of homicides. However, he explained that the rate remains comparatively low due to population density, although crime levels in Francisco Morazán still require special attention.

He added that the police have deployed five tactical intervention teams across key regions, including Valle de Sula, Olancho, Francisco Morazán, and the southern part of the country. In addition, authorities have identified multiple criminal incidents in the municipality of Concordia.

“It is a serious situation. These are long-standing social problems in the region, but it is time to act and not make excuses,” Oseguera emphasized.