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

U.S. extradites Iranian man over alleged sanctions evasion scheme

The United States has extradited from Panama an Iranian national accused of evading economic sanctions against Iran by illegally exporting U.S. technology. He is scheduled to appear this Monday before a court in Seattle.

Reza Dindar, 44, was extradited on April 17 after being detained in Panama since July 2025 on charges related to export control violations between 2011 and 2012, allegedly carried out through companies based in China.

The defendant appeared before a U.S. district court in Seattle, where he faces charges of violating sanctions imposed by the United States on Iran in 1995 during the administration of Bill Clinton. These sanctions prohibit the unauthorized export, re-export, or supply—directly or indirectly—of U.S. goods, technology, or services to Iran or its government.

According to the indictment, between 2010 and 2014, Dindar led the company New Port Sourcing Solutions in Xi’an, China, which allegedly concealed the procurement of U.S. products for shipment to clients in Iran.

Central America

Bukele administration surpasses 1,100 homicide-free days amid ongoing crackdown

El Salvador's PNC adds 85 days without murders and April is on track to be the safest in Salvadoran history

On Saturday, April 18, the Policía Nacional Civil (PNC) reported that no homicides were recorded in El Salvador, bringing the total to 17 days without murders.

With this update, the country has accumulated 91 homicide-free days so far in 2026. January closed with 27 such days, followed by 24 in February and 23 in March, according to police data.

During the administration of President Nayib Bukele, a total of 1,193 days without homicides have been registered. Of those, 1,079 have occurred since the implementation of the state of exception.

This extraordinary security measure has been extended 49 times by the Asamblea Legislativa de El Salvador, with the latest extension in effect from April 1 to April 30, 2026. Under the measure, more than 91,700 gang members and collaborators have been detained and prosecuted for illicit association.

Central America

Panama and OECD sign deal to boost investment climate and global integration

The Government of Panama and the Organisation for Economic Co-operation and Development (OECD) signed an agreement this Friday in Paris aimed at improving the country’s investment climate through data exchange, expert missions, and policy benchmarking.

“This is not a symbolic act. It is a strategic decision. A statement of intent. A commitment to transformation,” said Panama’s Foreign Minister, Javier Martínez-Acha, following the signing, according to an official statement.

The Memorandum of Understanding (MOU) was signed by Martínez-Acha and OECD Secretary-General Mathias Cormann at the organization’s headquarters in the French capital.

According to Panama’s Foreign Ministry, the agreement establishes “a solid and forward-looking framework for cooperation,” enabling high-level technical collaboration through data sharing, comparative policy analysis, expert missions, and evidence-based recommendations.

Authorities stated that the initiative is expected to enhance the investment environment, boost competitiveness, and improve predictability, while also strengthening governance, fostering innovation, increasing human capital, and aligning the education system with global economic demands.

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The agreement also opens the door for Panama to deepen its participation within OECD bodies, allowing the country to take part in discussions where global standards are defined.

Since taking office in July 2024, President José Raúl Mulino has prioritized efforts to remove Panama from international lists that label it as a tax haven, which his administration considers discriminatory.

As part of this strategy, the government restricted the participation of most European companies—except those from Spain, Italy, and Greece—in public tenders for major infrastructure projects, including a planned railway to the border with Costa Rica and a gas pipeline near the Panama Canal. This move came after the European Union kept Panama on its list of non-cooperative jurisdictions for tax purposes.

Over the past year, Panama has made progress in this area, including its removal from the European Parliament’s money laundering list and Ecuador’s tax haven list.