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 Will Not Be Threatened, President Says Amid Rising Tensions With China

Panamanian President José Raúl Mulino warned on Thursday that his country “will not allow itself to be threatened,” while expressing hope that tensions with China will ease following the cancellation of a contract allowing a Hong Kong-based company to operate ports along the Panama Canal.

Earlier this week, China, through its Hong Kong and Macao Affairs Office, said Panama would pay “a high price” for annulling the concession that has allowed a subsidiary of CK Hutchison Holdings to manage two ports on the interoceanic waterway since 1997.

The decision has angered Beijing, which, according to Bloomberg, has urged its state-owned companies to suspend negotiations on new projects with the Central American country.

“Panama is a dignified country and will not allow itself to be threatened by any nation on Earth,” Mulino said during a press conference when asked about China’s warnings.

However, the president added that he hopes the situation will not escalate. “I hope this does not spiral further; there is no reason for it to do so,” he said.

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The ruling by Panama’s Supreme Court came amid pressure from U.S. President Donald Trump, who has threatened to reclaim the Panama Canal—built by the United States—arguing that it is “under Beijing’s control.”

China’s Foreign Ministry spokesperson Lin Jian warned on Wednesday that Beijing “will firmly defend the legitimate and lawful rights and interests of Chinese companies.”

Central America

Bukele’s Approval Rating Climbs to 91.9% in El Salvador, Survey Shows

Approval of Salvadoran President Nayib Bukele reached 91.9% at the end of 2025, up from 85.2% recorded in midyear, according to a survey conducted by the research unit of La Prensa Gráfica (LPG Datos) and published on Thursday.

According to the newspaper, the high approval rating is “mainly driven by improvements in security.” Of those surveyed, 62.8% said they “strongly approve” of Bukele’s performance, while 29.1% said they “somewhat approve.”

The main reasons cited for approving the president were the perception that security in the country has improved (33%), followed by the belief that the government has delivered changes and overall improvements (14.3%), and the view that Bukele has done a good job in general (11%), the report said.

Meanwhile, 5.9% of respondents said they disapprove of Bukele’s administration. Among them, 25.4% said that improvements have been limited solely to security, 5.6% cited a lack of transparency, and 2.8% pointed to arbitrary detentions.

“The approval of President Nayib Bukele stands at one of the highest levels since the start of his administration,” La Prensa Gráfica noted. According to the survey’s historical data, Bukele’s peak popularity was recorded in 2020 during the COVID-19 pandemic, when his annual average approval reached 92.5%, a figure even higher than that seen during the state of emergency.

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Regarding campaign promises, 64.2% of Salvadorans believe that Bukele “is fulfilling the promises he made,” while 22.9% say he has “partially fulfilled” them, and 6.6% say he has “not fulfilled his commitments.”

When asked about the main “failure” of the president’s administration, 37% said there were none, while 10% pointed to the economy.

Central America

Laura Fernández Says She Will ‘Never’ Allow Authoritarianism in Costa Rica

Costa Rica’s president-elect, right-wing leader Laura Fernández, said she will “never” allow authoritarianism under her government, in her first speech after winning Sunday’s presidential election.

Fernández, the political heir of outgoing President Rodrigo Chaves, has been accused by her opponents of seeking to steer the country toward authoritarian rule through her hardline proposals against drug trafficking and plans to reform state institutions.

“I, as the new president of the Republic, will never allow authoritarianism or arbitrariness—things that no one wants in Costa Rica,” Fernández said to cheers from her supporters gathered at a hotel in the capital.

The 39-year-old political scientist criticized her rivals for centering their campaign on what she described as a narrative of “authoritarianism and dictatorship.”

“They tried to scare voters, but the electorate did not fall into the trap,” she said.

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Without offering details, Fernández acknowledged that her administration will seek to change the country’s “political rules of the game,” in what she described as a necessary step for Costa Rica, one of Latin America’s most stable democracies.