Central America

Honduras leader offers rebel deputy post to end congress crisis

AFP

Honduras’ president-elect Xiomara Castro made a last ditch attempt late Wednesday to solve a congressional crisis with hours left before her inauguration.

Last week two rival factions within her left wing Libre party elected their own duelling presidents of Congress.

Castro backs the claims of Luis Redondo of her coalition partner Savior Party of Honduras (PSH).

But Jorge Calix, a deputy within her own Libre party, has led a band of close to 20 rebels, with support from the right wing National and Liberal parties, to launch a rival claim.

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Late on Wednesday, Castro tried to break the impasse by offering Calix a role in her cabinet.

“I proposed to Jorge Calix that he joins my government in the position of Cabinet Coordinator for the sake of uniting in the Reformation of Honduras,” Castro wrote on Twitter.

She did not, however, explain what the role entailed, although it appears to be something akin to a chief of staff.

“Thank you President @XiomaraCastroZ, it was a great pleasure speaking with you,” said Calix in a reply to her post on Twitter.

“For me and for anyone, it would be a great honor to form part of the government of resistence and national reconciliation. You will soon receive my answer,” he wrote.

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The offer came a day after the two rival factions held competing first sessions presided over by their respective presidents.

Redondo took office as president of the Congress in the building that houses the legislative body.

In parallel and via video link, Calix was also installed as head of Congress by his own loyalist faction.

Calix was joined by around 70 deputies while only around 40 were in the parliament building, although the Redondo faction achieved a quorum as substitute lawmakers stood in for those that were absent.

The crisis broke out last week when a group of Libre dissidents ignored an agreement with the PSH, whose support was key to Castro winning the November elections.

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Rival lawmakers came to blows in the dispute.

PSH leader Salvador Nasralla had agreed to withdraw his presidential candidacy and support Castro, in return for the position of vice president and a member of his party being named president of Congress.

But the dissidents argued that Congress should be led by the party with the most members — Libre has 50 deputies compared to just 10 for the Savior party.

Control of parliament is key to Castro’s anti-corruption and political reform platform in a country battered by poverty, migration and drug trafficking.

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Central America

Costa Rica Goes to the Polls as Voters Choose Continuity or Change

Costa Ricans head to the polls today to elect the president of the republic and 57 members of the Legislative Assembly for the 2026–2030 term. Voters must choose between continuing the political project of outgoing President Rodrigo Chaves by supporting the ruling right-wing candidate Laura Fernández, or opting for a change in direction proposed by the opposition.

Fernández, representing the Pueblo Soberano Party (PPS), leads opinion polls with close to 40% of voting intention, bolstered by the outgoing president’s approval rating, which exceeds 50%. Chaves is barred from seeking immediate re-election under Costa Rican law.

Trailing far behind is Álvaro Ramos of the National Liberation Party (PLN), with less than 10% support. He is followed by Claudia Dobles of the Citizen Agenda Coalition (CAC), Fabricio Alvarado of New Republic (NR), and Ariel Robles of the Broad Front (FA), each polling between 3% and 5%. Undecided voters, who account for more than 30% of the electorate, could determine the outcome of the presidential race or force a runoff.

In a statement, Costa Rica’s Supreme Electoral Tribunal (TSE) reaffirmed its commitment to transparent and secure elections. “As has been the case for more than 76 years of democratic life in our country, the Supreme Electoral Tribunal guarantees all Costa Ricans that the national elections to be held this Sunday, February 1, will meet the highest standards of security and absolute transparency, allowing us to continue enjoying electoral processes in peace and freedom,” the institution said.

Authorities reported that 53,251 party observers will take part in the electoral process. Of these, 12,472 belong to the Social Christian Unity Party, 11,524 to Pueblo Soberano, 10,451 to the PLN, and 4,141 to the Citizen Agenda Coalition, among others. In addition, six political parties have sworn in 7,520 members of polling station boardsdeployed nationwide.

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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.