Central America

China reopens embassy in Nicaragua after diplomatic switch

AFP

China reopened its embassy in Nicaragua on Friday, a few weeks after the Central American country switched diplomatic recognition from Taiwan to Beijing.

That change was a political win for China, which claims Taiwan as part of its territory and has stepped up pressure to isolate the self-ruled island on the international stage.

The announcement three weeks ago leaves Taiwan with just 14 diplomatic allies, even as Taipei strengthens ties with multiple unofficial Western friends including the United States.

Nicaraguan Foreign Minister Denis Moncada, speaking at a ceremony marking the reopening of the embassy, said: “You are welcome in our Nicaragua… with the certainty that both countries have ahead of us a future of successes and victories in our brotherly relations.”

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The new Chinese embassy will be under the orders of Yu Bu, who inaugurated it at the ceremony with Moncada and other officials including Laureano Ortega, a son of and advisor to President Daniel Ortega.

China has spent decades encouraging Taiwan’s dwindling diplomatic allies to switch sides, including three others in Latin America in recent years — Panama, El Salvador and the Dominican Republic.

On December 9, the Ortega administration announced that Nicaragua was following suit.

“The People’s Republic of China is the only legitimate government representing all of China, and Taiwan is an inalienable part of Chinese territory,” Moncada said at the time.

A firebrand Marxist in his youth, Ortega ruled Nicaragua from 1979 to 1990. He previously changed recognition to China in 1985 but a successor, Violeta Chamorro, switched it back five years later.

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The restoration of ties with China comes as the United States and the European Union intensify sanctions against Nicaragua. Ortega won a fourth term in office in November in elections in which his main rivals were in jail.

Central America

U.S. and Guatemala Sign Trade Deal Granting Zero Tariffs to Most Exports

The United States signed a reciprocal trade agreement with Guatemala on Friday, under which 70.4% of Guatemalan exports will enter the U.S. market tariff-free.

Guatemalan President Bernardo Arévalo highlighted the importance of the agreement, stating that it creates a framework of cooperation, certainty, and new opportunities for producers, workers, and entrepreneurs in the country. His remarks were shared in a video published on his official social media channels.

In 2025, 30.3% of Guatemala’s total exports were destined for the United States, amounting to approximately $4.3 billion. As a result, the agreement is expected to directly benefit key sectors of the Guatemalan economy, including agribusiness, manufacturing, and the textile industry.

“Today we have taken another step toward consolidating a country that, when it moves forward united, generates confidence, attracts investment, and creates real development opportunities for all its people,” Arévalo added.

The agreement with Guatemala follows a similar trade deal signed by the United States with El Salvador on Thursday, which includes the elimination of a 10% tariff on Salvadoran imports.

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Central America

Panama Supreme Court Strikes Down Panama Ports Concession as Unconstitutional

Panama’s Supreme Court of Justice has ruled unconstitutional the concession contract granted in 1997 to Panama Ports Company (PPC), a subsidiary of the Chinese conglomerate CK Hutchison, which operates two strategic ports along the interoceanic canal. The decision was announced on Thursday, January 29, 2026, following two lawsuits filed by the Comptroller General’s Office.

The ruling directly affects the management of the ports of Balboa, on the Pacific coast, and Cristóbal, on the Atlantic side, both of which have been operated by the company for nearly three decades. According to Panama’s Comptroller General, Anel Flores, an audit uncovered irregularities in the contract that resulted in more than $1.3 billion failing to enter state coffers.

“It is a predatory contract, abusive to the interests of the country,” Flores stated.

The Supreme Court determined that Law 5 of 1997, its subsequent amendments, and the automatic extension granted in 2021 are unconstitutional. The ruling noted that the contract renewal took place without adequate oversight and amid allegations of corruption, despite the Panamanian state holding only a 10% stake in the company.

Central America

Guatemala President Says Starlink Terminal Found Inside Prison

Guatemalan President Bernardo Arévalo revealed on Tuesday that a Starlink terminal was discovered inside a prison in the country, highlighting corruption and the illegal introduction of advanced communication technology into the penitentiary system.

Arévalo did not specify which prison the device was found in but stressed that Starlink’s ability to connect directly to low-orbit satellites makes it particularly difficult to disrupt, posing a serious security risk.

The disclosure was made during a press conference attended by Interior Minister Marco Antonio Villeda and Defense Minister Henry Sáenz.

On January 6, specialized units of Guatemala’s National Civil Police (PNC), members of the Army and prison security personnel carried out Operation Sentinel at the Renovación 1 Maximum Security Prison for Men, located in Escuintla. According to the Interior Ministry, the operation aimed to reduce criminal activity, prevent illicit acts and stop the trafficking of prohibited items inside the prison.

During the operation, authorities also dismantled businesses operating near several prisons after detecting routers that were allegedly used to redirect internet signals into penitentiary facilities, according to local outlet Emisoras Unidas.

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Tensions escalated further over the weekend of January 17 and 18, when inmates affiliated with gangs staged riots in three prisons. During the unrest, they took prison guards and a psychologist hostage, demanding extra-large beds, air conditioning, transfers to other facilities and access to the internet.