Central America

Guatemala government repeals mandatory car insurance amid mass rejection

The massive rejection of mandatory vehicle insurance left the Guatemalan government with no choice but to backtrack on its decree. However, the government and the organizations involved in the protests will work on two additional points to strengthen road safety and provide financial protection to victims of traffic accidents, as reported by the central administration.

President Bernardo Arévalo announced, through a video posted on his social media, the repeal of agreements 46, 47, 48, and 49 of 2025 to end the blockades and restore normal mobility throughout the country. These agreements outlined the acquisition of insurance and penalties for motorcyclists, private vehicles, public transportation, and freight transport that failed to comply with the regulations. The measure was scheduled to take effect in May. “The necessary implementation of mandatory insurance for transportation has raised understandable doubts in many households, and these doubts add to the legitimate discontent that is causing frustration today. I understand these doubts, I understand this frustration,” the president stated.

In response to the protests, the Ministry of the Interior and the organizations committed to setting up a technical working group to discuss the regulations for implementing Article 29 of the 1996 Traffic Law, within a year. Additionally, “they will work on drafting a proposal for a general transportation law,” because the current legal framework is outdated for the different transportation modalities, both current and future, the president added.

“Let us remember that traffic accidents and fatalities are among the most tragic events for the people of Guatemala. Traffic accidents are the leading cause of death in the country, and we must work to change this reality,” he concluded.

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Central America

Honduras coffee exports jump nearly 30% in March despite price drop

Coffee exports from Honduras rose by 29.6% year-on-year in March, according to data released Monday by the Instituto Hondureño del Café.

During the third month of the 2025–2026 harvest season, Honduras exported 1,373,817 46-kilogram bags of coffee, up from 1,059,744 bags shipped in March of the previous cycle.

Despite the increase in volume, the average price per bag fell to $307.55, compared to $364.70 recorded in the prior harvest.

Between October and March, total export revenues reached $1.36 billion, representing a 32% increase from the $1.032 billion reported during the same period of the 2024–2025 season.

The United States remained the main destination for Honduran coffee, accounting for 36.5% of total shipments. It was followed by Germany with 16.1% and Belgium with 12.4%.

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In regional terms, Europe absorbed 52% of exports, while North America accounted for 42%, according to the institute’s report.

Honduras remains the largest coffee producer in Central America and ranks among the top six producers worldwide.

Central America

Guatemala extends state of prevention and expands it to new regions

The president of Guatemala, Bernardo Arévalo, announced on Monday that his government will extend the state of prevention for 15 more days in six departments and expand the measure to two additional regions as part of efforts to combat organized crime.

Speaking at a press conference, Arévalo said the decision was approved by the Cabinet and formalized through a decree. The measure will remain in place in the departments of Guatemala, Escuintla, Izabal, Petén, San Marcos, and Huehuetenango, and will now also apply to Sacatepéquez and Quetzaltenango.

The president emphasized that the strategy has contributed to reducing homicide rates in the country and will remain a key component of his administration’s security policy.

Defense Minister Henry Sáenz said the measures are “essential to strengthen the government’s presence in areas where security gaps existed” and to weaken organized criminal groups.

Under the state of prevention, the Policía Nacional Civil, supported by the military, is granted broader powers to confront criminal organizations, particularly gangs and drug trafficking networks. The measure also restricts public demonstrations, which can be dispersed by security forces.

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Guatemala has been under heightened security measures since January 18, following a coordinated attack by gangs that left 11 police officers dead, prompting the government to reinforce its response to organized crime.

Central America

Costa Rica urges China to halt actions against Panama-flagged vessels

The government of Costa Rica on Saturday called on China to halt retaliatory actions against vessels flying the Panamaflag, amid escalating tensions over control of two strategic ports linked to the Panama Canal.

In a statement shared on social media, Costa Rica’s Foreign Ministry warned that the situation “puts global trade at risk” and expressed its “deep concern and strongest condemnation” over what it described as “arbitrary and unjustified delays and inspections in Chinese ports.”

The Costa Rican government urged “full respect for international law, particularly the United Nations Convention on the Law of the Sea,” while reaffirming its “unconditional support and solidarity” with Panama.

San José’s position aligns with growing international criticism from countries including Honduras, Peru, Paraguay, Israeland Ukraine.

Paraguayan authorities described the detentions as “unacceptable” and pointed to what they called “undue pressure” on the Panamanian government.