AGP Executive Report

Strait of Hormuz Shock: Iran is pushing to formalize and monetize control of the Strait of Hormuz with a proposed passage fee, unsettling shipping firms even as analysts say it breaks international rules—while the wider war keeps rerouting energy flows. Canal Pressure, Opportunity: That disruption is feeding a surge in Panama Canal demand: transits are up about 8% year-on-year to roughly 38 ships per day, with the waterway running near maximum capacity and waiting times climbing as tanker traffic competes for slots. Leadership Change at the Canal: Panama named engineer Ilya Espino de Marotta as the first woman to administer the Canal, set to start Oct. 1, as the waterway faces rising geopolitical and climate-linked uncertainty. Conservation Spotlight: Panama’s hammerhead shark protection gets a boost via a Charles Darwin Foundation partnership focused on research, stronger rules, and support for artisanal fishers. Security-Training Angle: A RAND report argues U.S. Security Force Assistance can be a cost-effective lever in Latin America, including Panama.

Panama Canal Leadership: President José Raúl Mulino has appointed engineer Ilya Espino de Marotta as the Panama Canal’s first female administrator, starting Oct. 1 for a seven-year term—a major shift as the waterway faces rising traffic, climate pressure, and geopolitical fallout. Shipping Pressure: With the Strait of Hormuz disruption still reshaping tanker routes, the Canal is running near maximum capacity, and waiting times are climbing as demand spikes for U.S. energy exports to Asia. Marine Conservation: Panama also moved to strengthen shark protection, signing a regional agreement focused on hammerhead sharks and rays with the Charles Darwin Foundation, including research, stronger rules, community training, and conservation-linked financing. Nature & Development: On the ground, projects like Canopy Venao in Playa Venao are pushing regenerative land use and biodiversity credits—showing how conservation and growth are being forced to share the same space.

Panama Canal Leadership Shift: President José Raúl Mulino has named engineer Ilya Espino de Marotta as the Canal’s first female administrator, starting Oct. 1, 2026 for a seven-year term, as the waterway faces rising global pressure and climate risk. Hormuz-Driven Traffic Surge: With the Strait of Hormuz disrupted, the Canal is running near maximum capacity, and transits are up 8% year-on-year in 2026—pushing competition for slots, higher auction prices, and longer waits. El Niño Preparedness: The Canal Authority is also stockpiling water reserves to avoid repeating past El Niño disruptions, keeping daily transits steady while planners watch the rainy season. What’s Not Panama (But Still in the Mix): The week’s other headlines skew toward global sports and shipping spillovers, with limited conservation-specific updates beyond the Canal’s climate and water planning.

Panama Canal Leadership: President José Raúl Mulino named Ilya Espino de Marotta as the first woman to lead the Panama Canal, starting Oct. 1, after a weeks-long board review; she has served as deputy administrator since Jan. 2020. Gambling Oversight: Panama approved Bill No. 403, tightening rules for land-based and online gambling with a responsible-gambling model, including a mandatory 10% profit contribution to mental health support for addiction treatment. Biodiversity Updates: Panama moved to update its Key Biodiversity Areas network, signing an MoU to map and document priority sites under the Kunming-Montreal framework. Regional Cooperation: Curaçao hosted the first official PARLATINO Caribbean Commission meetings, with Panama among the delegations focused on climate, sustainable development, and regional coordination. Ongoing Watch: EU fishing scrutiny continues as Panama faces an audit tied to its yellow-card status.

Gambling Crackdown: Panama’s National Assembly approved Bill No. 403, tightening rules for land-based and online betting with a responsible gambling push—10% of profits will fund treatment for problem gambling via INSAM, and minors are blocked using mandatory biometric checks for online users. Biodiversity Update: Panama also took a conservation step by signing an MoU to update its Key Biodiversity Areas (KBAs), feeding into the country’s 30×30 protection goals. Maritime Spotlight: The U.S. Navy’s nuclear carrier USS Nimitz is now operating in the Caribbean, underscoring how security and shipping remain tightly linked. Ongoing Trade Pressure: Panama’s EU fishing “yellow card” review is due this year, with a potential market hit if compliance on traceability and IUU controls falls short. Regional Context: Elsewhere, the week included a Caribbean PARLATINO commission launch in Curaçao and fresh talk of climate-driven strain on cities and coasts.

Caribbean Climate & Conservation Push: Curaçao is hosting the first official PARLATINO Caribbean Commission meetings (May 20–21), with a focus on climate change, environmental protection, sustainable development, and regional cooperation—Panama is sending delegates. Biodiversity Update for Panama: Panama’s Environment Ministry signed an MOU to update the country’s Key Biodiversity Areas (KBAs), a step tied to the Kunming-Montreal goals and the 30x30 target. EU Fishing Pressure: Panama is facing a new EU audit this year after a long-running “yellow card” over fishing compliance and traceability; the outcome could shift access to EU markets. Canal Watch on Water & Delays: The Panama Canal Authority says it’s monitoring El Niño-linked variability and maintaining full operations for now, but dry-chamber maintenance in June could cut daily slots and worsen congestion. Maritime Geopolitics: Global shipping routes are increasingly shaped by conflict and sanctions, with the U.S. Federal Maritime Commission signaling a tougher stance to protect U.S. cargo interests.

Biodiversity Update: Panama’s Ministry of Environment has started the formal process to update the country’s Key Biodiversity Areas (KBAs), signing an MOU with the KBA Association and the Amphibian Survival Alliance—an effort meant to map and document priority sites that will feed into Panama’s biodiversity strategy and its 30×30 protection goal. Fishing Watch: The EU is set to audit Panama again this year over illegal fishing controls, with Panama facing the risk of losing market access if it can’t move from a “yellow card” to a “green card.” Canal Pressure: Canal congestion is building ahead of June maintenance at the Gatun Locks, which could cut daily transit slots and worsen delays. Marine Safety & Trade: The week also highlights how global shipping is being reshaped by wider maritime disruptions, keeping Panama’s logistics role in the spotlight.

Panama Canal Watch: The ACP says it will keep full operations through the end of 2026, with no transit restrictions despite El Niño-linked dryness—reservoirs are being monitored weekly and water-saving steps are already in place. Maritime Economy Spotlight: A new look at Panama’s maritime future highlights how the sector is pushing for smarter rules, workforce training, and practical environmental upgrades. Climate Pressure: A “Super El Niño” is forecast to intensify global supply shocks and food insecurity, while Panama’s canal planning continues to treat climate variability as the new normal. Regional Ripples: Across the world’s shipping map, Hormuz tensions keep rerouting trade and feeding congestion fears—exactly the kind of pressure that can spill into Panama’s schedules. Public Health Move: Panama’s fast-food law now requires free bottled water in combo meals, aiming to cut sugar intake.

Shipping Shock, Hormuz to Panama: With no end in sight to the Strait of Hormuz crisis, companies are rerouting and building backups—UAE firms are even exploring a new east-coast export hub anchored at Fujairah to cut reliance on the strait. Canal Watch: Closer to home, the Panama Canal Authority says it’s keeping full operations for now, with no transit restrictions through Dec. 31, 2026, even as it monitors El Niño-linked water variability and maintains 38 daily transits. Next Bottleneck: Still, congestion is building and June lock maintenance (June 9–17) is expected to squeeze daily capacity down to 16 slots, likely worsening queues and freight pressure. Health Policy: Panama’s Ministry of Health backed a new law requiring fast-food combos to include free bottled water as a swap for sugary drinks. Local Roads: In Chiriquí, MOP launched “Tapa Huecos” patching in Alto Boquete to address deteriorated streets.

Panama Canal Watch: The ACP says it will keep full operations through Dec. 31, 2026, even as El Niño conditions build—reservoir monitoring shows no need to cut the current 38 daily transits. Canal Congestion Pressure: Still, queues are already growing, and June dry-chamber maintenance at Gatún Locks (June 9–17) could squeeze capacity by forcing more ships into the west lane, raising delay risk and freight costs. Public Health Rule: Panama’s Ministry of Health backed Law 523, requiring fast-food combo meals to offer free bottled water as a no-cost alternative to sugary drinks—an effort to curb routine sugar intake. Politics: Former President Martín Torrijos launched UNE, pitching it as a break from traditional parties and calling for a mine plebiscite ahead of 2029. Conservation Angle: With the canal’s water and traffic under stress, Panama’s climate resilience and smarter resource use remain the real conservation story this week.

Strait of Hormuz Shock: With the Strait of Hormuz effectively “managed” rather than fully closed, tanker rates have surged to record highs and Teekay Tankers says Q1 net income nearly doubled, while five weeks into the ceasefire Iran’s export activity looks constrained but not stopped. Panama Canal Watch: Panama’s canal authority says it will keep full operations—38 transits a day—through the end of 2026 despite El Niño-linked drought signals. Public Health Rule: Panama’s Health Ministry backed Law 523, requiring fast-food combo meals to include free bottled water as a swap for sugary drinks. Politics & Mining: Former President Martín Torrijos launched UNE and renewed calls for a mine plebiscite, as First Quantum estimates Panama has lost about $3.5 billion since the Cobre Panamá shutdown. Local Infrastructure: MOP announced “Tapa Huecos” road patching in Alto Boquete, Chiriquí.

Politics: Former President Martín Torrijos is back in the spotlight with a new political platform, UNE, positioning it as a break from “traditional party” politics ahead of the 2029 election—and he also floated a mine plebiscite, tying the campaign directly to one of Panama’s most divisive economic questions. Environment & Infrastructure: The Panama Canal Authority says it will not impose 2026 transit restrictions despite El Niño-linked warming and drier patterns, keeping the daily schedule at 38 transits while monitoring Gatún and Alhajuela lake levels. Governance & Anti-Corruption: Panama’s Anti-Corruption Prosecutor’s Office and National Police arrested two people in separate embezzlement cases involving fraudulent tax credits tied to DGI and CONADES. Local Works: MOP announced “Tapa Huecos” road patching in Alto Boquete, Chiriquí, targeting deteriorated streets in a high-traffic tourism hub. Mining Fallout: First Quantum says Panama has lost about $3.5 billion since the Cobre Panamá mine closure, underscoring the long tail of the shutdown.

Panama Canal Watch: The Panama Canal Authority says it will not impose 2026 transit restrictions despite El Niño-linked dryness, keeping the schedule at 38 daily transits after reviewing reservoir levels and weather data. Water Infrastructure: President José Raúl Mulino used his weekly address to inaugurate the Panama Norte Hydraulic Ring, tying the project to the government’s push to improve drinking-water access while also ruling out cabinet changes. Conservation & Enforcement: Panama’s wider region saw a jaguar seized in Honduras after authorities found it kept as a pet—an example of how wildlife trafficking crackdowns are still urgently needed. Local Roads: In Chiriquí, MOP announced “Tapa Huecos” patching in Alto Boquete to address deteriorated streets affecting safety and daily mobility. Governance & Integrity: Panama’s anti-corruption prosecutors reported arrests tied to alleged embezzlement involving tax credits and CONADES-linked funds. Economy Pressure Point: First Quantum says Panama has lost about $3.5 billion since the Cobre Panamá mine halt, underscoring the long tail of environmental and economic fallout.

Road Repairs in Boquete: Panama’s Ministry of Public Works is rolling out “Tapa Huecos” patching in Alto Boquete, targeting deteriorated streets after an inspection tour—small fixes, but crucial for daily safety and traffic flow. Water Infrastructure Push: President José Raúl Mulino opened the Panama Norte Hydraulic Ring and used his weekly address to flag more drinking-water projects, while also ruling out cabinet changes. Conservation & Wildlife Enforcement: A separate enforcement spotlight hit wildlife trafficking in the region, with authorities seizing a live jaguar kept as a pet in Honduras and sending it to rehabilitation. Regional Context: The week also carried reminders that Panama’s economy and environment are tightly linked to wider shocks—from shipping disruptions to climate risk—while Panama’s mine-closure fallout continues to echo in reported losses. Media in Panama: Netflix’s “Outlast: The Jungle” is set to move into Panama’s jungle for Season 3, with a June 10 release.

WFZO & Special Economic Zones: Panama-linked global trade governance got a boost as NEPZA’s managing director, Dr. Olufemi Ogunyemi, was re-elected to the World Free Zones Organisation board in Panama, backed by bloc votes from Africa, Europe and Latin America. Panama’s water push: President José Raúl Mulino opened the Panama Norte Hydraulic Ring at Caimitillo and ruled out cabinet changes, keeping water reliability and security at the center of the weekly agenda. Mining fallout: First Quantum says Panama has lost about $3.5 billion since the Cobre Panamá mine closure, underscoring the long economic ripple beyond the site. Conservation & wildlife: Camera traps on Barro Colorado Island captured Northern tamanduas, adding to Panama’s long-running biodiversity monitoring story. Media spotlight on Panama: Netflix confirmed Outlast: The Jungle Season 3 will move to the Panamanian jungle, releasing June 10.

Panama Canal & Shipping Pressure: First Quantum says Panama has lost about $3.5 billion since the Cobre Panamá mine was halted, underlining how shocks ripple through jobs, ports, and local commerce. Maritime Oversight: Panama is tightening ship-registry rules to meet international standards, including draft economic substance requirements aimed at keeping the flag off EU “non-cooperative” lists—while also restricting older vessels tied to the “shadow fleet.” Regional Climate & Water: President Mulino used his weekly address to inaugurate the Panama Norte Hydraulic Ring and ruled out cabinet changes, keeping water reliability and security front and center. Global Context for Panama: With Hormuz-linked disruptions still reshaping fuel and shipping costs, Panama’s canal and flag policies are landing in a week of heightened chokepoint risk. Expats & Cost of Living: A new study ranks Panama among the cheaper tax-free options for Britons, with estimated monthly costs around £580.