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Central America

Nicaragua launches direct trade route with China to boost economic exchange

On Thursday, the Nicaraguan government inaugurated a direct trade route with China to enhance economic exchange between the two countries, according to official media sources.

The announcement took place at the port of Corinto, located on the Pacific coast about 150 km northwest of Managua. The cargo ship Sunny Fortune, registered under the Panamanian flag, arrived on Wednesday as the first of three monthly vessels scheduled under a commercial agreement with China.

Laureano Ortega, the presidential advisor responsible for Nicaragua-China relations and the son of President Daniel Ortega and Vice President Rosario Murillo, led the event alongside Chinese and Nicaraguan officials. He described the development as “a significant milestone” for the Central American nation.

“This is a major achievement for our country, and we will continue working to ensure this is just the beginning of increased frequency and more operations,” Laureano Ortega said, according to the portal El19digital.

In addition to inaugurating the route, the Sunny Fortune delivered machinery for the construction of the Punta Huete International Airport, located north of Managua. This airport project was awarded to the Chinese company CAMC.

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In December 2023, China and Nicaragua agreed to elevate their relationship to a “strategic partnership” following a call between Ortega and Chinese President Xi Jinping.

In January, Nicaragua and China launched a Free Trade Agreement.

Managua established diplomatic relations with China in 2021 after severing ties with Taiwan, which Beijing considers a renegade province that must be reunified, by force if necessary.

Since then, the world’s second-largest economy has supported the Nicaraguan government, which is facing sanctions from the United States and European countries following the 2018 protests against Ortega, which resulted in over 300 deaths according to the UN.

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Central America

Panama begins reverse migration by sea for 109 stranded migrants

Panamanian authorities have transported a group of 109 migrants of various nationalities by sea to La Miel, a Caribbean town on the country’s border with Colombia, to continue their return journey to South America. The move comes after the migrants failed to settle in the United States, following stricter immigration policies implemented under the administration of former President Donald Trump.

The National Migration Service (SNM) of Panama announced in a statement on Tuesday that the transfer was carried out from the Caribbean port of Colón using a vessel from Panama’s National Aeronaval Service (Senan). The operation was part of the country’s so-called “reverse flow” initiative, aimed at facilitating the safe return of migrants.

The official report noted that the group included migrants from nine different nationalities, with 75 adults and 34 minors on board. Authorities emphasized the “inter-institutional commitment to safe and humanitarian reverse migration.”

A source familiar with the process, speaking anonymously to EFE, confirmed that the vessel departed on Monday. Many of the migrants had opted into the reverse flow program after arriving at the Temporary Attention Center for Migrants (CATEM) in Costa Rica, where coordination was made with Panamanian authorities for their return.

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Central America

Ombudsman: Tear gas overused in Arimae protest crackdown

Panama’s Ombudsman Office stated on Tuesday that the National Police (PN) used excessive tear gas to disperse a protest in the indigenous community of Arimae, which escalated into a violent clash lasting several hours and leaving multiple people injured on both sides.

After a two-day visit to Arimae, a town in the Darién province about 200 kilometers from Panama City, Ombudsman Eduardo Leblanc reported that “there was clear evidence of the excessive use of tear gas in the community, which has caused various health issues among the population.”

The confrontation occurred on June 5, when police forces arrived to clear a section of the Pan-American Highway — which spans the entire country — that had been blocked by residents using tree trunks. The blockade was part of a protest against a newly enacted social security reform.

According to EFE, police responded with tear gas and rubber bullets, while demonstrators hurled rocks, sticks, arrows, and even Molotov cocktails.

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Central America

Honduras sees 7.8% rise in external public debt year-on-year

Honduras’ public sector external debt reached $9.96 billion by the end of April 2025, marking a 7.8% increasecompared to the same period in 2024, according to a report released Tuesday by the country’s Central Bank (BCH).

The figure represents a rise of $725.8 million compared to the $9.24 billion recorded between January and April 2024.

However, the debt balance decreased by $243.2 million compared to December 2024, when it stood at $10.2 billion. This reduction was primarily due to higher principal payments totaling $410.8 million, while new disbursements reached only $87.4 million, resulting in a net amortization of $323.4 million. This effect was partially offset by unfavorable exchange rate fluctuations, which increased the debt balance by $80.2 million.

By institution, the general government holds 90.8% of the debt (approximately $9.05 billion), followed by the monetary authority with 7.7% ($770 million), non-financial public enterprises with 1.3% ($126.6 million), and public financial institutions with 0.2% ($16.5 million), the BCH detailed.

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