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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

Guatemala Dismantles Largest Cocaine Lab Found in 15 Years Near Mexico Border

Security forces in Guatemala discovered what authorities described as the largest cocaine laboratory dismantled in the country in the last 15 years, located in the southwest near the border with Mexico, officials announced on Wednesday.

Guatemalan Defense Minister Henry Sáenz said during a press conference that the operation was carried out as part of “Operation Ring of Fire,” a large-scale security initiative launched by the Guatemalan government and military to reinforce border controls and combat organized crime, particularly along the Mexican border.

The operation focused on the community of Zanjón San Lorenzo, in the municipality of Ayutla, San Marcos department, where authorities uncovered a sophisticated criminal compound made up of three interconnected buildings equipped to carry out the full cocaine production process.

“What we can preliminarily observe in these facilities is the complete production cycle used to produce cocaine ready for consumption,” Sáenz stated, adding that the investigation remains ongoing and additional findings could emerge.

The minister highlighted the scale and complexity of the laboratory, comparing it to previous major drug seizures in the country.

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“The last major laboratory we found was in El Estor, Izabal, in 2019, and that facility only processed coca paste,” he explained.

Authorities arrested eight individuals during the raid and seized a cache of weapons that included 14 military-style assault rifles, three 9mm pistols, and 1,306 rounds of ammunition.

Security forces also confiscated cash totaling 74,461 quetzales (approximately $9,600), $26,787 in U.S. currency, and 118,000 Mexican pesos.

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Central America

Opposition leader highlights migration crisis in Panama speech

Opposition leader María Corina Machado recalled on Monday, during her final day in Panama, the thousands of Venezuelan migrants who crossed the dangerous Darién Gap jungle on their journey toward North America in search of better living conditions.

Speaking before Panama’s National Assembly, Machado stated that “more than 500,000 Venezuelans have crossed the Darién in search of freedom,” adding that many did not survive the journey.

Her remarks highlighted the Darién Gap as a central route in the recent regional migration crisis, where thousands of migrants—mostly Venezuelans—have attempted to travel north through one of the most dangerous jungle passages in the Americas.

According to migration data cited in recent years, the Darién route has seen daily flows of over a thousand migrants at its peak, reflecting the scale of the humanitarian challenge in the region.

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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.

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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.

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