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
Panama seizes over 1,200 drug packages in container bound for Lithuania
Authorities in Panama reported the seizure of 1,251 packages of suspected drugs hidden inside a shipping container bound for Lithuania, just days after intercepting another shipment of similar size headed to the same destination.
The Panama Public Prosecutor’s Office stated on social media that, through its Colón Drug Prosecutor’s Office and in coordination with the National Anti-Drug Directorate, authorities carried out the operation. The illicit substance was discovered inside a container scheduled for export.
Last Friday, officials also seized 1,506 packages of drugs in another container destined for Lithuania.
While authorities have not specified the type or exact weight of the seized substance, drug packages in Panama typically weigh around one kilogram each, and cocaine remains the most commonly confiscated narcotic in the country.
So far this year, Panamanian authorities have reported multiple drug seizures. Among them was a shipment of 5,356 packages intercepted on January 17, when agents of the National Aeronaval Service (SENAN) stopped a vessel near the Pearl Islands archipelago in the Pacific.
According to official figures, in 2025 Panama seized 129 tons of drugs and 47.8 tons of chemical precursors, highlighting ongoing efforts to combat international drug trafficking.
Central America
Guatemala narrows emergency measures to hardest-hit gang violence areas
The government of Guatemala has narrowed the scope of its state of emergency to the areas most affected by gang violence, Interior Minister Marco Antonio Villeda announced on Thursday.
The measure comes two months after coordinated attacks attributed to the Barrio 18 left 11 police officers dead.
President Bernardo Arévalo initially imposed a state of siege in mid-January following the violence, which was reportedly in retaliation for government intervention in three prisons where gang leaders had staged uprisings.
That measure, which allowed arrests without a warrant, expired after one month. It was then replaced by a less restrictive “state of prevention,” alongside an increased security deployment in Guatemala City and surrounding areas.
According to Villeda, the state of prevention has been extended for two additional weeks but will now apply primarily to the central department of Guatemala — home to the capital — and Escuintla, which have recorded the highest levels of homicides and criminal activity.
“We need to continue these joint operations between the police and the military to maintain control,” the minister said.
The measure will also remain in effect in border departments including Petén, San Marcos and Huehuetenango, which border Mexico, as well as Izabal, which borders Honduras and Belize, in an effort to prevent the entry of criminal groups linked to drug trafficking.
Villeda added that in the past two weeks, homicides have dropped by 25% and extortion cases by 33% compared to the same period in 2025.
Central America
Costa Rica closes embassy in Cuba, citing human rights concerns
The government of Costa Rica announced on Wednesday the closure of its embassy in Cuba, a move that signals a further deterioration in diplomatic relations between the two nations.
Foreign Minister Arnoldo André confirmed that Costa Rica has also requested the withdrawal of Cuban diplomatic personnel from San José, leaving only consular representation in place.
According to André, the decision is driven by concerns over the worsening human rights situation on the island, including increased repression against citizens and opposition figures.
He also noted that Cuba’s ongoing economic and social crisis—marked by shortages of food, medicine, and basic services—has made the operation of the embassy increasingly difficult.
President Rodrigo Chaves backed the measure, stating that his administration does not recognize the legitimacy of Cuba’s political system.
In response, the Cuban government rejected the decision, calling it a “unilateral” move taken under pressure from United States.
“Under pressure from the United States, Costa Rica has limited its relations with Cuba to consular matters,” Cuba’s Foreign Ministry said, describing the action as “arbitrary.”
Despite the diplomatic setback, Cuban authorities stated that historical ties between the two nations would endure.
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