Central America

Costa Rica extends humanitarian status and grants work permits to stranded migrants

The Costa Rican government announced on Tuesday the extension of a humanitarian migration category and the granting of work permits to a group of migrants from various nationalities who were stranded in the country after being deported from the United States last February.

“A new extension of this humanitarian category has been published, allowing these individuals to maintain regular status in Costa Rica for six months. One of the new features is that they now have the right to work, which will help facilitate their integration into the country,” said Migration Director Omer Badilla.

In February, Costa Rica received two flights carrying 200 deported migrants from the United States, including 81 minors. They came from Nepal, China, Russia, India, Congo, Afghanistan, Armenia, Azerbaijan, Georgia, Ghana, Iran, Jordan, Kazakhstan, Turkey, Uzbekistan, and Vietnam. The Costa Rican government said at the time that this was part of an agreement with the Trump administration for Costa Rica to serve as a transit point for migrants returning to their countries or a third country.

The migrants were taken to the Temporary Migrant Care Center (CATEM) in southern Costa Rica near the Panama border. Nearly half returned voluntarily to their countries, others sought asylum in Costa Rica, some left the center, and others remain voluntarily.

Currently, 25 migrants remain at CATEM voluntarily. According to authorities, the humanitarian migration status allows them free mobility and now the possibility to seek employment.

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The acceptance of these 200 migrants sparked controversy in Costa Rica, with several NGOs denouncing that authorities violated human rights by not allowing the migrants to move outside CATEM for two months until the humanitarian migration status was first established in April.

Central America

Illegal crossings at U.S.-Mexico border plunge 92% in historic shift

In an unprecedented shift, the number of illegal crossings at the U.S.-Mexico border dropped by 92% in June compared to the same month last year, according to data from the U.S. Department of Homeland Security (DHS).

Only 6,070 people were intercepted along the southwest border—marking the lowest figure in a quarter century. This sharp decline signals a new chapter in the region’s migration history.

The “crackdown on irregular migration” in the United States—as described by International Organization for Migration (IOM) Director Amy Pope—has triggered a domino effect across several Latin American countries. However, Pope does not consider this to be an isolated case. “What we are seeing in the U.S. is similar to what’s happening globally when there is a demand for migrants,” she told DW, warning of the labor and social consequences this situation is generating.

Regional Trends Reflect the Shift

Panama and Honduras are two clear examples of the regional impact. In the Darién Gap—a historic migration route to the north—migration fell by 99.7% in April 2025 compared to April 2024, according to Panamanian President José Raúl Mulino. Authorities even shut down the main migrant station in the area.

Honduras also recorded a drastic drop in northbound migration. According to an IOM report, only 14,270 people set out between January and March 2025, compared to 133,518 during the same period in 2024.

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At the same time, so-called “reverse migration” is increasing: individuals, discouraged or without resources, are choosing to return to their countries of origin. In Colombia, more than 9,000 migrants have crossed back through the Darién Gap so far this year, according to the country’s Office of the Ombudsman.

Central America

Panama’s President Mulino: “We are regaining international trust” to exit tax haven lists

Panama’s President José Raúl Mulino stated on Tuesday that the Central American country is “regaining international trust” regarding lists that label it as a tax haven, and that it hopes to be removed from these lists in the near future.

“At the international level, we are regaining confidence. Panama is taking firm steps to get off the European Union’s list, thanks to the coordinated work of various institutions,” Mulino said during his first-year report speech before the deputies.

The Panamanian president emphasized that he has “increased” his “engagement” with the Organisation for Economic Co-operation and Development (OECD) “not only with the aim of leaving these lists but also to begin our path toward joining that important group of democratic states and prosperous economies.”

Since taking office on July 1, 2024, Mulino has stressed that he will work to have Panama removed from what he calls “discriminatory” lists that consider it a tax haven. He has even focused part of his official conversations during trips to Europe on this issue.

Currently, Panama has strengthened banking regulations following the 2016 Panama Papers scandal. However, it remains on some lists, such as that of the Netherlands, while it has been removed from others, including the Financial Action Task Force’s (FATF) grey list in 2023.

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Additionally, the European Commission recommended in June that Panama be removed from its list of jurisdictions with a high risk of money laundering and terrorist financing. The European Parliament and member states still have a month (extendable to two) to review the proposal, and unless opposed, it will take effect after that period.

Central America

Castro to address FfD4 in Spain as Global Financial Reform takes center stage

Honduran President Xiomara Castro will participate in the Fourth International Conference on Financing for Development (FfD4), to be held in Seville, Spain, from June 30 to July 3, Honduran Ambassador to Spain Marlon Brevé announced on Saturday.

The president is expected to arrive in Seville on Sunday and deliver her address on Monday, according to the diplomat.

Castro will be accompanied by Foreign Minister Javier Bu, her private secretary and son Héctor Zelaya, and Finance Minister Christian Duarte.

Spain is hosting the FfD4 conference at a critical time, as global development cooperation budgets face constraints while humanitarian needs continue to grow due to conflicts, political instability, and the climate crisis.

The conference will bring together world leaders, international organizations, private sector representatives, and civil society, aiming to review and reorient global development financing strategies.

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Organized by the United Nations Department of Economic and Social Affairs (UNDESA) through its Office for Financing for Sustainable Development, this high-level forum has been held since 2002 to promote structural financial reforms.

Key goals of the FfD4 include mobilizing greater volumes of capital at lower costs and reforming the international financial architecture to support the 2030 Agenda for Sustainable Development and meet the urgent needs of developing nations.