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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

Juan Orlando Hernández thanks Donald Trump after U.S. pardon

Former Honduran President Juan Orlando Hernández expressed his gratitude on Wednesday to U.S. President Donald Trump after being pardoned on Monday following more than three years in a New York prison, where he had been sentenced in 2024 to 45 years for drug trafficking and firearms offenses.

Hernández thanked Trump on social media platform X, stating: “President Trump, thank you for listening and responding when it was most needed. You saw the injustice committed against me and my country and corrected it. Your support for Honduras, your leadership, and your timely decision meant everything to my freedom and my nation. You have my respect and gratitude forever.”

In his message, Hernández began by saying: “THANK GOD. All glory be to Him. I am a free man. I said it when I left my home, I said it when I was unjustly convicted, and I say it today as I regain my freedom. I am innocent.”

He also expressed deep appreciation to his family and friends who “never stopped fighting and praying” for him, while blaming, as Trump had, the administration of former U.S. President Joe Biden for his conviction. Hernández described his trial as a manipulated process orchestrated by the Biden-Harris administration and the deep state, claiming there was no real evidence, only accusations from criminals seeking revenge.

Hernández was extradited to the U.S. in April 2022 and sentenced in June 2024. His wife, Ana García, told EFE that Hernández had written to Trump on October 28, his 57th birthday, requesting a pardon, which Trump granted. García added that the couple has not yet decided whether Hernández will return to Honduras, where he could face investigations for alleged corruption, according to Attorney General Johel Zelaya.

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Central America

Honduras Extends Voting by One Hour Amid High Turnout, CNE Announces

The National Electoral Council (CNE) announced that polling stations will remain open an extra hour due to the high voter turnout in Honduras’ general elections this Sunday.

These elections—the twelfth since the country returned to constitutional order in 1980 after nearly two decades of military governments—will now run until 6:00 p.m. local time (00:00 GMT), the CNE said in a statement.

The extension may only be applied for the additional hour established in the Electoral Law, and polling stations may close only after the last voter already in line at closing time has cast their ballot, ensuring that all those waiting are able to participate, the CNE added.

More than six million of Honduras’ ten million inhabitants were called to the polls to elect the successor to leftist President Xiomara Castro, as well as 298 municipal mayors, 128 members of the national Congress, and 20 representatives to the Central American Parliament.

The presidential race features Rixi Moncada, candidate of the ruling Liberty and Refoundation Party (Libre); Nasry Asfura of the National Party, the main opposition force—publicly endorsed by U.S. President Donald Trump—and Salvador Nasralla of the Liberal Party, also running from the opposition.

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Before the extension was announced, the CNE had indicated it would release its first preliminary report around 9:00 p.m. local time (03:00 GMT) and a second one at 11:00 p.m. (05:00 GMT). Final results must be published within 30 days following the election.

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Central America

Honduras’ China–Taiwan Future Hinges on Sunday’s Presidential Election

The future of Honduras’ diplomatic relations with China—or a possible reestablishment of ties with Taiwan—will hinge on the results of the presidential election taking place this Sunday, November 30. The ruling left-wing party is seeking to remain in power, while conservative parties aim to return to government.

If the ruling party’s candidate, Rixi Moncada of the Liberty and Refoundation (Libre) Party, secures victory, Honduras is expected to deepen its relationship with China. The country established formal diplomatic ties with Beijing in March 2023, cutting relations with Taiwan entirely under President Xiomara Castro.

However, the bilateral trade relationship with China has not yielded the expected benefits. Economic Development Minister Fredis Cerrato acknowledged that negotiating with Beijing has proven challenging. “We are proceeding with caution,” he said, referring to ongoing efforts to secure better conditions for Honduran exporters and business owners, who are demanding greater speed in technical agreements.

With Castro’s term ending in just two months, the long-anticipated free trade agreement with China has yet to be finalized. Despite this, Chinese companies have already secured multimillion-dollar contracts in infrastructure projects across the country, particularly in the energy sector.

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