AGP Executive Report

Panama–Costa Rica Energy Clash: Panama has ordered the “immediate and indefinite” suspension of electricity sales to Costa Rica, escalating a long-running agricultural trade fight after President Laura Fernández publicly pressed for action. Trade Pressure: Mulino framed the move as reciprocity, while Panama points to the unresolved WTO dispute over restrictions on Costa Rican fruits and meats. Road Access Fix: Costa Rica’s MOPT will run a no-appointment practical driving test event at the National Stadium on June 17 to cut licensing delays. Health Tech in Alajuela: Rhythmlink inaugurated a new medical device production facility in El Coyol, Alajuela, aimed at expanding neurodiagnostic and monitoring components. Tourism & Culture: Costa Rica hosts the 2026 K-POP World Festival national final at UCR on May 30, and the country’s tourism calendar keeps filling with new events and travel offers. Finance Watch: Global Ship Lease reported Q1 2026 results, including strong contracted revenue and a declared dividend.

Panama–Costa Rica Trade Clash: Panama has suspended electricity sales to Costa Rica, framing it as retaliation amid an escalating farm-trade dispute that Costa Rica says has no legal basis after a WTO win. Regional Diplomacy: The two countries’ fight is now spilling into wider political channels, with Central American partners urging Bolivia protests to stay peaceful—showing how quickly regional tensions can turn into cross-border pressure. Aviation Shifts: JetBlue is ending its Orlando–San José route on July 8, adding to recent low-cost capacity losses after Spirit exited Costa Rica—while Chicago Rockford International is adding Costa Rica’s Liberia Guanacaste as a 2027 vacation destination. Security & Finance: Costa Rica’s OIJ carried out major raids in the “Lusso” money-laundering case tied to narcotics, seizing luxury assets and detaining suspects. Tourism & Business: Costa Rica is pushing exports and tourism visibility abroad, including a major Expo ANTAD 2026 delegation, as the country continues to market itself as a high-value investment destination.

Medical Tourism Expansion: Medical Tourism Packages (MTP) says it’s opening new Caribbean-to-Latin America coordination routes into JCI-accredited hospital networks across Panama, Colombia, Mexico, and Costa Rica, aiming to cut the big out-of-pocket gap U.S. patients face. Regional Decision-Making: A Central American Integration System (SICA) update tackles how regional bodies make decisions faster, after years of slow consensus on cross-border problems. Costa Rica FX Pressure: The Central Bank reported record dollar-buying to slow the colón’s rise, while exporters—especially pineapple producers—are now pushing for clarity as currency strength squeezes margins and jobs. Health & Safety: A tropical wave hit Costa Rica’s Caribbean coast with flash flooding and road closures in Limón. Crime Crackdown: The OIJ carried out the “Lusso” operation, detaining eight and seizing luxury assets tied to alleged money laundering. Tourism & Connectivity: Lufthansa will add flights between Frankfurt and San José for the 2026-27 season. Sustainability Push: Costa Rica’s Payment for Ecosystem Services 2.0 expands beyond forests to mangroves, coral reefs, and ocean conservation.

Judicial crackdown: Costa Rica’s OIJ hit a suspected “Lusso” money-laundering network tied to narcotics, detaining 8 people and seizing luxury assets after raids across Escazú, Santa Ana, Alajuela, Heredia and Pérez Zeledón, including a $3m mansion and a high-end car collection. Flood risk: A tropical wave battered the Caribbean coast, triggering flash flooding and river overflows in Limón, with evacuations and road closures reported as heavy rain surged through the night. Currency watch: The Central Bank logged its biggest-ever annual dollar-buying push to steady the colón, buying $774m since February 19 as the currency hit historic lows. Tourism & connectivity: Lufthansa will add flights between Frankfurt and San José (3 to 5 weekly) for the 2026–27 winter season, while JetBlue trims routes and exits Manchester-Boston to focus on Fort Lauderdale. Culture & business: The Central Bank released the final ₡25 collectible coin in its province landmarks series, honoring Teatro Nacional, as Costa Rica’s tourism momentum continues into a record high season.

Central Bank FX Push: Costa Rica’s Central Bank (BCCR) just set a new record for dollar-buying to steady the colón, snapping up $774 million between Feb. 19 and May 18—faster than the prior 2017 full-year high—while the reference dollar hit another historic low (¢453.20 on May 18). Tourism Connectivity: Lufthansa is boosting Frankfurt–San José service to five weekly flights for the 2026–27 winter season, starting Oct. 25, using a 787-9 with its Allegris cabin. Regenerative Hospitality: Hotel Belmar’s new Artista villas open June 1 in Monteverde, a car-free enclave of 10 regenerative luxury units. Digital Finance: PayPal USD (PYUSD) is now available in 70 markets via PayPal accounts, aiming for faster, lower-cost cross-border transfers. Energy & Billing Tech: BMI’s insurance platform went live in Costa Rica on Actisure, while JASEC is moving to a unified prepaid/postpaid billing system via Congero’s Embrix. Politics & Culture: A Chaves remark calling Laura Fernández “minister” during a meeting sparked fresh chatter, and Costa Rica’s regenerated forests are showing wildlife “sound” back in PES-restored areas.

Aviation & Tourism Surge: Breeze Airways will add its first-ever nonstop Tampa–San José route starting Oct. 3 (Wednesdays and Saturdays) and a new Tampa–Punta Cana service from July 2, while Lufthansa boosts Costa Rica–Frankfurt to five weekly flights in the 2026–27 winter season with a 787-9 and its Allegris cabin. Tourism Momentum: ICT data shows Costa Rica’s 2025 visitor total was up just 1% year-on-year, but the late-year rebound carried into 2026, with Q1 air arrivals up 12.9% and record high season at both main airports. Energy & Tech Modernization: JASEC selected Congero Technology to replace its electricity billing with a cloud, AI-ready platform that unifies prepaid and postpaid billing. Conservation Results: An ETH Zurich-led study finds restored forests under Costa Rica’s PES program sound more like protected forests than pastures, suggesting wildlife activity is returning. Trade Watch: Costa Rica and Panama remain locked in a long-running dairy and meat tariff/phytosanitary dispute, with Fernández pushing for international action.

Bolivia Crisis Escalates: Protests and road blockades have left La Paz “under siege,” emptying markets and even draining hospital oxygen, as supporters of Evo Morales clash with police and multiple sectors demand President Rodrigo Paz’s resignation. Trade Tension Watch: Costa Rica and Panama are still locked in a tariff and phytosanitary fight tied to dairy and meat, with Fernández pushing for international action after years of WTO back-and-forth. Household Strain Despite Growth: Costa Rica’s GDP is still expanding, but household income momentum is slipping—real and nominal income both weakened, with sharper drops for highly skilled workers. Energy Meets AI Demand: Costa Rica’s near-total renewable electricity record is now being pitched as a draw for AI data centers, but the real question is whether the grid—and water—can absorb the new load. Weather Alert: IMN warns of afternoon thunderstorms and downpours, especially on the Pacific and mountain areas. Business Ties: Global Sae-A Group chairman attended Laura Fernández’s inauguration, signaling continued investment links.

Renewables vs. AI demand: Costa Rica’s clean-power advantage is getting a new test as AI data centers start pitching the country’s 98.6% renewable electricity record for low-carbon computing—while raising fresh questions about how much new power (and water) the grid and watersheds can handle. ICE says the system should add 600 MW by 2030, but the local data-center footprint is still small (about 20 MW across a few operators), even as Navégalo markets enterprise AI infrastructure. Tourism & culture: The Extreme American Rodeo hits San José on June 7, and Costa Rican cinema scores another Cannes moment with Valentina Maurel’s “Forever Your Maternal Animal.” Digital shift: TikTok has overtaken Instagram as Costa Rica’s second most used app, a signal for brands that still rely on Instagram-first marketing. Trade & politics: Laura Fernández escalates her dispute with Panama over blocked agricultural exports, calling it a “trade blockade,” and orders international action.

World Cup roster nerves: With May 26 looming, the USMNT’s final World Cup squad decision is tightening around fitness questions—especially Chris Richards’ ankle after Brentford, while injuries to Patrick Agyemang and Johnny Cardoso have opened spots. Port leadership in the region: Aqaba Container Terminal named Jose Rueda as CEO, tapping decades of shipping and terminal experience, including managing Costa Rica’s APM Terminals Moin. Costa Rica tourism spotlight: The new Caño Negro bridge is cutting the La Fortuna–Monteverde drive to about 1h50m, reshaping itineraries and boosting El Castillo as a stopover. Digital shift: TikTok has overtaken Instagram as Costa Rica’s second most used social network (58% vs 47%), a clear signal for how businesses should market. Trade pressure: President Laura Fernández escalated Panama dispute language to “trade blockade,” pushing her foreign minister toward international action over blocked agricultural exports. Bolivia spillover: Regional governments—including Costa Rica—expressed concern as Bolivia’s unrest and road blockades disrupt supplies.

Tourism & Rights: Barceló Hotel Group apologized after a Guanacaste resort refused entry to a certified guide dog, sparking a public accessibility backlash and promising staff training. Infrastructure & Travel: Costa Rica’s new 112-meter Caño Negro bridge (in service since April 24) is cutting the La Fortuna–Monteverde drive to about 1h50 via Route 936, giving El Castillo a bigger role on the tourist map. Migration: Costa Rica received its fourth U.S. deportation flight under the March migration deal, bringing 12 foreign nationals (including people from Bolivia, Chile, China, France and Madagascar); 95 people have arrived since April 11. Trade: President Laura Fernández escalated the Panama dispute, calling Panama’s restrictions a “trade blockade” and pushing her foreign minister toward international action. Sports: Sebastián Brenes Mata won Gran Premio New York City for his second win of the season. Regional Watch: Bolivia’s unrest continues as security forces clash with protesters over fuel and jobs.

Trade Tensions: Costa Rica President Laura Fernández has escalated her fight with Panama, calling Panama’s agricultural restrictions a “trade blockade” and ordering Foreign Minister Manuel Tovar to pursue “international diplomacy and actions” to reopen the market for Costa Rican beef, pork, poultry, dairy, and fruits like strawberries, pineapples, plantains and bananas. Tourism & Nature: Costa Rica will host the North American Bird Fair Costa Rica 2026 in Sarapiquí (June 4–7), spotlighting wildlife tourism and conservation. Regional Migration Anxiety: A U.S. migration pact is stoking uncertainty across the region, with partners in Panama, Costa Rica and Ecuador warning about sovereignty and human-rights risks. Bolivia Unrest: Bolivia detained 57 people during anti-government clashes amid fuel and economic grievances, while roadblocks continued around La Paz. Business & Travel: Tourism momentum stays strong: Costa Rica logged 1,033,777 visitors in Q1 (+11.3% vs 2025), led by the U.S. and Canada.

Trade Clash Escalates: Costa Rica’s President Laura Fernández has ordered Foreign Minister Manuel Tovar to pursue “international diplomacy and actions” over Panama’s long-running agricultural trade restrictions, calling it a top priority after the dispute moved beyond Comex talks; affected exports include beef, pork, poultry, dairy, bananas, pineapples, strawberries and more. Tourism Momentum: Costa Rica opened 2026 strong, topping 1.03 million international visitors in Q1 (+11.3% vs. 2025), with North America leading and the colón/dollar squeeze still a pressure point. Ports & Contracts: ICTSI is pushing for a review of Costa Rica’s Puerto Caldera concession process after a Comptroller General ruling asked parties to respond to alleged bidding irregularities. Currency Watch: The dollar hit another historic low against the colón (¢453.94 in Monex), tightening costs for dollar earners. Conservation & Culture: A new bird census in the Cubujuquí corridor logged 2,366 birds across 183 species, while Cannes buzz continues for Valentina Maurel’s “Forever Your Maternal Animal.”

Healthcare Exodus Talk: Americans are increasingly weighing Spain and Japan as alternatives to costly, exhausting U.S. care—citing rising premiums, deductibles, and long waits. Costa Rica–Panama Trade Clash: President Laura Fernández is escalating her dispute with Panama over restrictions on Costa Rican dairy, meats, bananas, plantains, pineapples and strawberries, moving the fight beyond Comex to Foreign Minister Manuel Tovar and promising “international actions.” Port Concession Pressure: ICTSI’s appeal is accepted for review over alleged irregularities in the Puerto Caldera tender, after it says it was wrongly excluded and that the winning bid faced no engineering issues despite its claims. Currency Watch: The dollar hit another historic low versus the colón, keeping pressure on visitors and dollar-income residents. Global Sports Business: FIFA locked in China World Cup broadcast rights through 2031 at about $60M, far below its earlier target.

Illegal Mining Crackdown: Costa Rica is moving to jail people tied to illegal gold mining for up to a decade, with a new bill pushing harsher penalties not just for miners but also for financiers and the supply chain. Public Safety: The OIJ warns of a surge in vehicle break-ins in San José, with hundreds of complaints already logged this year and a peak risk window in the late afternoon. Port Business: Puerto Caldera’s next concession is in limbo again as ICTSI’s challenge gets accepted by the Comptroller General, triggering a review after alleged tender irregularities. Tourism & Culture: Costa Rica keeps scoring global wins—Juan Santamaría Airport takes a top regional award, and Cannes selection momentum continues with new films spotlighting local talent. Health Policy: The country approved a phased RSV vaccination plan for older adults, starting with those over 75.

Port Watch: Costa Rica’s Comptroller General has accepted ICTSI’s appeal over the Puerto Caldera terminal concession, ordering a five-business-day hearing and reopening questions about how the tender was handled after ICTSI was excluded and the contract went to the sole Sunset Consortium. Aviation & Tourism: Juan Santamaría International Airport won Skytrax’s 2026 “Best Regional Airport” award for Central America and the Caribbean, while the Costa Rican Tourism Board staged an “Energía Pura Vida” roadshow in Toronto and Montreal to deepen trade ties. Health Policy: Costa Rica approved a phased RSV vaccination plan for older adults, starting with those over 75 as CCSS prepares procurement studies. Public Safety: OIJ warned San José drivers of a surge in vehicle break-ins, with 534 complaints in early 2026 and the highest risk Tuesday afternoons. Business & Tech: Intel is relocating part of its Costa Rica production to Vietnam’s Saigon Hi-Tech Park as it expands chip assembly and testing.

Port Watch: Costa Rica’s Puerto Caldera concession fight just escalated: the Comptroller General (CGR) admitted ICTSI’s appeal and will run a formal review after the terminal operator was excluded from the tender, with a five-business-day hearing for the government and the winning bidder to respond. What’s at stake: INCOP had moved forward with a 30-year deal for a sole remaining bidder after ICTSI was cut over a debt-to-equity requirement—an exclusion ICTSI says came after its compliance was previously accepted and that the evaluation method was changed without justification. Aviation Boost: Separately, Juan Santamaría International Airport was named the best regional airport in Central America and the Caribbean in the Skytrax 2026 awards, reinforcing Costa Rica’s travel pull as competition heats up. Public Safety: In San José, OIJ warns of a surge in vehicle break-ins, with 534 complaints logged in early 2026.