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

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.

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Central America

Guatemala court overturns arrest warrants against former CICIG officials

Indigenous leaders in Guatemala announce increased protests

Colombian Attorney General Luz Adriana Camargo and current ambassador to the Vatican Iván Velásquez were both members of the International Commission Against Impunity in Guatemala, a UN-backed body created to investigate corruption networks within the Guatemalan state between 2007 and 2019.

Investigations led by the CICIG resulted in the imprisonment of high-ranking officials. According to international organizations, the arrest warrants issued against Camargo and Velásquez were seen as retaliation for their anti-corruption work.

In mid-2025, an appeals court in Guatemala ordered their detention after prosecutors accused them of obstruction of justice and influence peddling, among other charges. The ruling alleged that they had favored business figures linked to Odebrecht who were under investigation.

However, the Constitutional Chamber of the Supreme Court later ruled that the lower court had “overstepped its authority” by issuing the arrest warrants illegally, according to local media reports.

Camargo and Velásquez had immunity due to their roles within a United Nations-backed entity.

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“A month before the end of the term of the corrupt attorney general, Consuelo Porras, it seems the situation is beginning to change in Guatemala,” Velásquez wrote on social media.

Porras—sanctioned by the United States Government and the European Union over allegations of corruption and anti-democratic actions—is set to leave office on May 16 unless she is reappointed by President Bernardo Arévalo, with whom she has been at odds after attempting to block his inauguration two years ago.

The CICIG was unilaterally dissolved by former Guatemalan president Jimmy Morales (2016–2020).

Central America

Honduras police launch high-impact operations amid security concerns

The director of the Policía Nacional de Honduras, Rigoberto Oseguera, presented a recent assessment of the country’s security situation and announced the deployment of high-impact operations in the department of Olancho.

The police chief identified the municipality of Choloma, in the department of Cortés, as one of the most critical areas for crime at a regional level. This comes despite an overall downward trend in violence across the Valle de Sula.

Oseguera also noted that the Central District—comprising Tegucigalpa and Comayagüela—records a high number of homicides. However, he explained that the rate remains comparatively low due to population density, although crime levels in Francisco Morazán still require special attention.

He added that the police have deployed five tactical intervention teams across key regions, including Valle de Sula, Olancho, Francisco Morazán, and the southern part of the country. In addition, authorities have identified multiple criminal incidents in the municipality of Concordia.

“It is a serious situation. These are long-standing social problems in the region, but it is time to act and not make excuses,” Oseguera emphasized.