Central America
Panama government reduces fuel prices in face of protests
AFP
Panama’s president announced a reduction in gasoline prices and freezing of rates for several other essential products Monday in the face of continuing protests against inflation and corruption.
“I understand the dissatisfaction of various sectors with the situation we are experiencing, caused by the effects of the pandemic and the consequences of the conflict in Ukraine,” Laurentino Cortizo said in a statement.
The price of gasoline for private vehicles will be reduced to $3.95 per gallon from July 15, he said, a drop of 24 percent from the price at the end of June.
Public transportation has already benefited from the lower price since May.
On Monday, hundreds protested in Panama in the second week of demonstrations against increases in fuel prices, which have risen 47 percent since January.
Cortizo also announced that his government would draft a decree to freeze the prices of a dozen essential food products.
Several unions, however, say that protests will continue until there is a general reduction in prices and gasoline rates drop below $3 per gallon.
In the western provinces of Veraguas and Chiriqui, near the border with Costa Rica, protesters blocked the Inter-American Highway, which connects the country to the rest of Central America.
In Panama City, a group of students clashed with police around the University of Panama, where a group of people temporarily seized a patrol car and broke its windows.
Inflation “means that fewer and fewer people can live in dignity,” said Saul Mendez, secretary-general of the country’s main construction union.
According to Mendez, for citizens to regain their purchasing power, the prices of medicine, food, electricity and fuel must be lowered or frozen, in addition to a general wage increase.
The Panamanian government set up a round table on Monday in the city of Santiago de Veraguas, one of the hotbeds of the protest, but no agreement was reached.
Central America
Guatemala Dismantles Largest Cocaine Lab Found in 15 Years Near Mexico Border
Security forces in Guatemala discovered what authorities described as the largest cocaine laboratory dismantled in the country in the last 15 years, located in the southwest near the border with Mexico, officials announced on Wednesday.
Guatemalan Defense Minister Henry Sáenz said during a press conference that the operation was carried out as part of “Operation Ring of Fire,” a large-scale security initiative launched by the Guatemalan government and military to reinforce border controls and combat organized crime, particularly along the Mexican border.
The operation focused on the community of Zanjón San Lorenzo, in the municipality of Ayutla, San Marcos department, where authorities uncovered a sophisticated criminal compound made up of three interconnected buildings equipped to carry out the full cocaine production process.
“What we can preliminarily observe in these facilities is the complete production cycle used to produce cocaine ready for consumption,” Sáenz stated, adding that the investigation remains ongoing and additional findings could emerge.
The minister highlighted the scale and complexity of the laboratory, comparing it to previous major drug seizures in the country.
“The last major laboratory we found was in El Estor, Izabal, in 2019, and that facility only processed coca paste,” he explained.
Authorities arrested eight individuals during the raid and seized a cache of weapons that included 14 military-style assault rifles, three 9mm pistols, and 1,306 rounds of ammunition.
Security forces also confiscated cash totaling 74,461 quetzales (approximately $9,600), $26,787 in U.S. currency, and 118,000 Mexican pesos.
Central America
Opposition leader highlights migration crisis in Panama speech
Opposition leader María Corina Machado recalled on Monday, during her final day in Panama, the thousands of Venezuelan migrants who crossed the dangerous Darién Gap jungle on their journey toward North America in search of better living conditions.
Speaking before Panama’s National Assembly, Machado stated that “more than 500,000 Venezuelans have crossed the Darién in search of freedom,” adding that many did not survive the journey.
Her remarks highlighted the Darién Gap as a central route in the recent regional migration crisis, where thousands of migrants—mostly Venezuelans—have attempted to travel north through one of the most dangerous jungle passages in the Americas.
According to migration data cited in recent years, the Darién route has seen daily flows of over a thousand migrants at its peak, reflecting the scale of the humanitarian challenge in the region.
Central America
Nicaragua’s Alliances With U.S. Rivals Could Trigger More Sanctions, Analysis Says
The administration of U.S. President Donald Trump is expected to maintain political and economic pressure on the government of Nicaragua, led by Daniel Ortega and Rosario Murillo, due to its growing alliances with Russia, China and Iran, according to an analysis released Monday by the Centro de Estudios Transdisciplinarios de Centroamérica (Cetcam).
The report states that tensions between Washington and Managua have increased since the beginning of Trump’s second term and could worsen amid the regional political climate, particularly because of developments in Venezuela and Cuba.
Cetcam researchers noted that since the second half of 2025, the U.S. government has intensified criticism of the Sandinista administration, mainly regarding political prisoners, human rights, religious freedom and what it describes as the authoritarian model established by Ortega and Murillo.
“With this background, it is possible to foresee that Washington will maintain pressure, including sanctions, against the Ortega-Murillo dictatorship,” the think tank stated in its report.
The study also warns that one of Washington’s main concerns is the strengthening relationship between Managua and countries considered strategic rivals of the United States, particularly Russia, China and Iran.
Among the developments highlighted is the recent ratification by the Russian Senate of a military cooperation agreement signed with Nicaragua in 2025. The deal is expected to strengthen strategic coordination and Russia’s presence in Central America for an initial five-year period.
According to Cetcam, the move will “hardly go unnoticed” by the United States.
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