Central America

Xiomara Castro becomes first woman president of Honduras

AFP

Leftist Xiomara Castro was sworn in Thursday as the first woman president of Honduras, vowing to reform the crime- and poverty-stricken nation into a “socialist and democratic state.”

Castro, 62, took the oath at a massive ceremony attended by international dignitaries after an embarrassing week of fighting within her party that challenged her authority.

In her first official address at the Tegucigalpa National Stadium, Castro denounced “the social and economic tragedy confronting Honduras” and promised to make work of improving education, healthcare, security and employment.

She said she was inheriting a “bankrupt” country which she intended to reshape into a “socialist and democratic state.”

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Honduras’s public debt is about $17 billion.

The oath was sworn before Judge Karla Romero, flanked by Castro’s choice of Congress president, Luis Redondo, who draped the presidential sash over his new boss before a crowd of about 29,000.

The guests included US Vice President Kamala Harris, King Felipe VI of Spain and Taiwan Vice President William Lai.

– ’12 years of struggle’ –

Castro’s election last November brought an end to 12 years of right-wing National Party (PN) rule that followed the ousting of her husband Manuel Zelaya as president in a 2009 coup.

“Twelve years of struggle, 12 years of resistance. Today the people’s government begins,” Castro said on Twitter Thursday.

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But the lead-up to the swearing-in was marred by a disruptive rivalry within her Libre party, which is in a majority alliance in Congress.

Libre factions split on who should be the legislature’s new president, coming to blows in the Congress chamber and then holding rival inaugural sittings.

Castro accused supporters of Redondo’s rival for the Congress presidency, Jorge Calix, of being in cahoots with the PN and other forces she said wanted to undermine her anti-corruption drive.

Juan Orlando Hernandez of the PN, her predecessor, is accused by US prosecutors of protecting drug traffickers in exchange for bribes.

– ‘Everyone wants to leave’ –

Castro assumes office with a full load of tasks ahead of her.

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Hondurans are fleeing the country in droves, often to the United States, in search of work and a better life.

Castro spoke of a poverty rate of 74 percent, a figure she said “in itself explains the caravans of thousands of people of all ages fleeing to the north — Mexico and the United States — looking for a place and a way to survive in spite of the risk to their lives” from gangs and smugglers along the way.

“Everyone wants to leave because there’s no work. If there were more job opportunities here, there would be no need to look for another country,” university student Jensi Davila told AFP in Tegucigalpa.

Adding to the exodus, Honduras’s murder rate is nearly 40 per 100,000 inhabitants.

Among the crowd celebrating Castro’s inauguration, seamstress Esther Lopez expressed hope that the situation “is going to change, because Xiomara has been supporting the cause of the poor for many years and because of ‘Mel’ Zelaya, who was a good president.”

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– Migration talks –

Harris urged Castro to fight corruption, seen as a root cause of Central American migration, in talks after the inauguration ceremony.

The first foreign official to have a bilateral meeting with Castro, Harris welcomed the priority the new president had placed “on countering corruption and impunity, including her intent to request the assistance of the United Nations in establishing an international anti-corruption commission,” a readout from Harris’s office said.

Castro needs international support to renegotiate foreign debt of $11 billion.

It is an issue, according to former prime minister Edgardo Paz, which requires agreement “with the multilateral institutions where Washington has a lot of influence.”

Castro also held a meeting with Lai, who conveyed Taiwan President Tsai Ing-wen’s congratulations to Castro on becoming Honduras’s first woman leader, according to a statement from Tsai’s office.

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Honduras is one of just 14 countries to recognize Taiwan.

China, which considers Taiwan part of its territory, has spent decades encouraging the island’s allies to switch sides, with much success.

On the election campaign, Castro vowed to “immediately open diplomatic and commercial relations with mainland China” if she won.

According to the presidential statement, Lai — who came bearing a consignment of Covid-19 prevention supplies — said he invited Castro to visit the self-ruled island, adding that a meeting between Taiwan and Honduras’s first woman presidents would be a historic moment.

Separately, Harris and Lai had a brief exchange at the inauguration, Taiwan’s Central News Agency said, an encounter that will likely stoke US-China tensions.

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They shared “a simple greeting” in which both “spoke briefly,” the agency said.

Their conversation was the first public interaction between US and Taiwanese vice presidents since Washington switched diplomatic recognition from Taipei to Beijing in 1979, according to Fan Shih-ping, a political analyst at Taiwan’s National Normal University.

Castro announced part of her cabinet Thursday, with her son Hector Zelaya as private secretary and Jose Manuel Zelaya — her husband’s nephew — as defense minister.

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.