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

Honduras coffee exports jump nearly 30% in March despite price drop

Coffee exports from Honduras rose by 29.6% year-on-year in March, according to data released Monday by the Instituto Hondureño del Café.

During the third month of the 2025–2026 harvest season, Honduras exported 1,373,817 46-kilogram bags of coffee, up from 1,059,744 bags shipped in March of the previous cycle.

Despite the increase in volume, the average price per bag fell to $307.55, compared to $364.70 recorded in the prior harvest.

Between October and March, total export revenues reached $1.36 billion, representing a 32% increase from the $1.032 billion reported during the same period of the 2024–2025 season.

The United States remained the main destination for Honduran coffee, accounting for 36.5% of total shipments. It was followed by Germany with 16.1% and Belgium with 12.4%.

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In regional terms, Europe absorbed 52% of exports, while North America accounted for 42%, according to the institute’s report.

Honduras remains the largest coffee producer in Central America and ranks among the top six producers worldwide.

Central America

Guatemala extends state of prevention and expands it to new regions

The president of Guatemala, Bernardo Arévalo, announced on Monday that his government will extend the state of prevention for 15 more days in six departments and expand the measure to two additional regions as part of efforts to combat organized crime.

Speaking at a press conference, Arévalo said the decision was approved by the Cabinet and formalized through a decree. The measure will remain in place in the departments of Guatemala, Escuintla, Izabal, Petén, San Marcos, and Huehuetenango, and will now also apply to Sacatepéquez and Quetzaltenango.

The president emphasized that the strategy has contributed to reducing homicide rates in the country and will remain a key component of his administration’s security policy.

Defense Minister Henry Sáenz said the measures are “essential to strengthen the government’s presence in areas where security gaps existed” and to weaken organized criminal groups.

Under the state of prevention, the Policía Nacional Civil, supported by the military, is granted broader powers to confront criminal organizations, particularly gangs and drug trafficking networks. The measure also restricts public demonstrations, which can be dispersed by security forces.

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Guatemala has been under heightened security measures since January 18, following a coordinated attack by gangs that left 11 police officers dead, prompting the government to reinforce its response to organized crime.

Central America

Costa Rica urges China to halt actions against Panama-flagged vessels

The government of Costa Rica on Saturday called on China to halt retaliatory actions against vessels flying the Panamaflag, amid escalating tensions over control of two strategic ports linked to the Panama Canal.

In a statement shared on social media, Costa Rica’s Foreign Ministry warned that the situation “puts global trade at risk” and expressed its “deep concern and strongest condemnation” over what it described as “arbitrary and unjustified delays and inspections in Chinese ports.”

The Costa Rican government urged “full respect for international law, particularly the United Nations Convention on the Law of the Sea,” while reaffirming its “unconditional support and solidarity” with Panama.

San José’s position aligns with growing international criticism from countries including Honduras, Peru, Paraguay, Israeland Ukraine.

Paraguayan authorities described the detentions as “unacceptable” and pointed to what they called “undue pressure” on the Panamanian government.