Panama’s two-month long strike continues with teachers voting to maintain industrial action and residents claiming police overreacted in altercations across the country. The province of Azuero has issued a state of emergency for lack of drinking water whereas Bocas del Toro sees at least 20 roads closed despite police operations to reopen them. President Jose Raul Mulino has rejected a revised social security law for the third time and cancelled a trip to France to deal with heightened tension in Bocas del Toro. The province has been cut off from the rest of the country. Talks between banana union members and the National Assembly could see an agreement pass which would debate Law 45 which covers working hours, reopen Bocas del Toro, amend Law 45 and open discussions between the National Assembly and Chiquita Panama. The company had announced a further 1,600 job losses bringing the total to over 6,000 workers.

The Panama government has passed a State of Emergency in embattled province Bocas del Toro with road closures and protests continuing. This follows the sacking of thousands of banana workers at Chiquita after the company claimed losses amounting to more than US$75mn over the month-long industrial action. The company has now suspended all operations in the province. Teachers voted to continue to strike against changes to social security in Law 462 but mediation, negotiations and a public consultation have been rejected by authorities. Clashes between the national police and demonstrators in Darién turned violent. Over the past five years, states of emergency have only been decreed due to Covid, drought and floods.

Central American cargo moves at 16 km/h, equivalent to Christopher Columbus’s caravans, according to Think Huge president Juan José Daboub. The business think tank suggested that containers from Panama-Mexico need to move around 90 km/h which would require fundamental changes to road building and customs. Daboub highlighted that part of the US$7bn that has been channelled through Think Huge has gone on motorways in the Northern Triangle of El Salvador, Guatemala and Honduras. Yilport’s entry into the El Salvador port market is seen as critical to improving regional infrastructure with a 50 year, US$1.6bn commitment. 

Panama’s national strike that began 24th April, continues with more groups looking to join in the near future. Protesters are complaining about President José Raúl Mulino’s deals with the US, reform of the pension system and educational independence after police entered the University of Panama grounds. Beginning with construction and teacher unions, this has spread to pharmacists and nurses, whilst the proposed reopening of the Minera Panama risks more groups entering the streets. Many of the rallies have been organised by Sal de las Redes collective, who led anti-mining protests in 2023. Mulino countered by stating the country will not grow with strikes. 

Chinese antitrust regulators will review the deal between CK Hutchison and BlackRock over the US$19bn deal for two Panama ports. BlackRock has admitted that this could mean a delay of at least nine months on the sale of 43 ports in 23 countries. Further complicating the transaction is Panama’s Comptroller General Anel Flores filing a criminal complaint against Panama Ports, Hutchison’s Panama subsidiary, alleging an over US$300mn breach of contract with the government. This follows an audit of the Cristóbal and Balboa ports that began in January. The total loss to Panama’s public finance could reach up to US$1.2bn. Following a visit by US Secretary of Defense Pete Hegseth, Panama has agreed to an increased US military presence and cost neutral passage for US ships.

Guatemala has begun the process to join the Development Bank of Latin America and the Caribbean (CAF). The Finance Ministry revealed the news, describing the move as a ‘historic milestone for regional integration’. CAF Executive President Sergio Díaz-Granados stated that the agreement would expand their continental reach, promote economic recovery of the region and boost Guatemala’s sustainable development. To fund the capitalization required, Guatemala announced Series C shares will be made available earlier in May. Finance Minister Jonathan Menkos added that the government is looking for strategic partners for mass transit plans including the Guatemala City Metro, port improvements and construction of road infrastructure.