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.
“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.
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.
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
Mass deportations begin: Central American migrants face unemployment and despair
Migrants from Guatemala, El Salvador, Honduras, and Nicaragua account for 38% of all individuals with deportation orders from the United States. If Donald Trump’s mass deportation plan is fully executed, more than 200,000 Central Americans could be sent back to their home countries in 2025 alone.
But are these governments prepared to receive them and withstand the economic blow of reduced remittances?
“Look at my wrists. They put the shackles so tight, all the way down,” described a Salvadoran migrant, recounting his harsh repatriation journey in late January. He was on one of the first deportation flights under Trump’s second term.
“I have nothing—no money, no job, none of the opportunities I dreamed of,” expressed a Honduran migrant, who was forcibly returned to his country in early 2025.
These testimonies, documented by Central American media, paint a picture of desperation and uncertainty among recent deportees.
During his campaign, President Trump vowed to carry out “the largest mass deportation in history”. Since his return to the White House, images of deported migrants have dominated official channels, underscoring the high priority of this policy on his administration’s agenda.
Central America
Nicaragua rejects UN Human Rights Council following calls for ICJ Action
The government of Daniel Ortega announced on Thursday that Nicaragua is withdrawing from all activities related to the United Nations Human Rights Council. The decision comes after a report by the UN-appointed Group of Human Rights Experts on Nicaragua, which urged the International Court of Justice (ICJ) to take action against the country for revoking the nationality of Nicaraguan citizens.
“Nicaragua conveys its sovereign and irrevocable decision to withdraw from the Human Rights Council and from all activities related to this Council and its associated mechanisms,” said Vice President Rosario Murillo, speaking through official state media.
Central America
Panama may cancel Chinese port contract as Trump threatens to ‘retake’ canal
Panama’s Attorney General’s Office has recommended annulling the 1997 concession granted to a Chinese company to operate two key ports at the entrances of the Panama Canal, citing constitutional violations. The move comes as U.S. President Donald Trump threatens to “retake” the waterway, claiming it is under Beijing’s control.
The request was made by Panama’s Chief Prosecutor, Luis Carlos Gómez, to the Supreme Court, which is currently reviewing two legal challenges against the concession contract awarded to Panama Ports Company, a subsidiary of Hong Kong-based Hutchison Holdings.
At the same time, the company is facing an audit by Panama’s Comptroller’s Office to determine whether it has fulfilled its financial obligations to the government.
According to Gómez, the contract is “unconstitutional”, and he has urged the court to invalidate it. In a document obtained by AFP, he argues that the agreement violates 15 articles of the Panamanian Constitution, as it “improperly transferred exclusive state rights, impacting social and public interests.”
Additionally, Gómez claims that the contract undermines free competition, grants unjustified tax exemptions, and that the automatic 25-year renewal in 2021 was agreed upon under unfair conditions for the public interest.
The lawsuits seek to void the contract that allows Panama Ports Company to operate the Balboa and Cristóbal ports, located at the Pacific and Atlantic entrances of the canal, respectively. The plaintiffs argue that the company has evaded taxes and received illegal benefits in violation of the Constitution.
The legal battle unfolds as Trump raises concerns over China’s influence in the canal, which the U.S. built and operated until its handover to Panama in 1999. Trump has hinted at taking back control of the waterway, despite the fact that it is managed by an independent Panamanian authority.
Washington sees the presence of a Chinese company at the canal’s entry points as a national security risk, even though both the U.S. and China are the top users of the strategic trade route. The canal, which handles 5% of global maritime trade, underwent a major expansion in 2016 to accommodate larger vessels.
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