AGP Executive Report

Livestock Biosecurity: The USDA confirmed a second New World screwworm case in Zavala County, Texas, just 5.6 miles from the first detection, keeping the outbreak inside a movement control zone while officials ramp up sterile-fly production and surveillance. Industry Impact: Ranchers and analysts warn the pest could still spread through the summer, threatening already tight cattle supplies and pushing beef prices higher. Response Push: Texas Gov. Greg Abbott says a $750M sterile-fly facility won’t be fully operational for over a year, urging faster construction and full state support to USDA. Regional Link: The fly’s resurgence traces back to outbreaks across Panama, Central America and Mexico, with Canada also moving to restrict livestock from affected areas. Panama Trade Watch: Separately, Panama Canal planners are adjusting draft limits and prequalification timelines for new port and an interoceanic energy corridor as El Niño risks water management.

Panama Canal & Shipping: The ACP says El Niño is unlikely to disrupt transits this year, but it is tightening rules: it will lower the Neopanamax draft limit to 49.5 feet from July 1 and has updated prequalification steps for Corozal and Telfers port terminals plus the Energy Corridor (propane, butane, ethane). Agriculture & Biosecurity: New World screwworm has been confirmed in Texas for the first time since 1966, with a second case in Zavala County and a push to accelerate sterile-fly production—US officials say Panama is a key source for flies. Regional Security & Trade: The US seized the Iran-linked supertanker Davina in the Indian Ocean and announced fresh sanctions tied to Iran’s “Ghost Fleet,” while the Arab League urged UN action over oil tanker attacks in the Strait of Hormuz. Culture & Tourism: Panama formalized its accession to an Ibero-American certified cultural routes network (PRICI), aiming to boost heritage tourism and local development. Governance & Crime: A US-Latin America bloc condemned alleged drug-funded efforts to destabilize Bolivia’s government, naming Panama among signatories.

Panama Canal Operations: The Panama Canal Authority will cut the maximum Neopanamax draft from 50 feet to 49.5 feet starting July 3 to conserve water as El Niño risks build, a move that could slightly tighten shipping capacity during peak demand. Livestock & Food Security: New World screwworm has been confirmed in a Texas calf, triggering quarantine and heightened livestock monitoring across the U.S.; officials stress it’s a production threat, not a food-safety issue, but economists warn of major economic damage if it spreads. Regional Animal Safeguards: Georgia has announced animal import safeguards after the Texas detection, while Kansas and other states step up rancher and veterinarian guidance. Cyber & Compliance: The FBI is warning about the Silent Ransom Group’s fast-flux infrastructure used for data theft and extortion, pushing more scrutiny on DNS and hosting practices. Energy Sanctions: U.S. sanctions targeting Iran-linked LPG smuggling and shadow-banking networks aim to choke off regime revenue streams.

Livestock Biosecurity: The U.S. USDA confirmed a New World screwworm infestation in a 3-week-old calf in Zavala County, south Texas—first detection in Texas since 1966—prompting quarantine and sterile-fly releases as officials warn the larvae can destroy living tissue in cattle, pets, wildlife and rarely humans. Panama Link & Trade Pressure: Reports say the outbreak’s northward movement has been tied to containment failures after the pest was long held at the southern end of Panama, raising fresh concerns for regional cattle flows and cross-border enforcement. Canal & Shipping Watch: Separately, Panama Canal congestion hit a yearly high as a June 9-17 dry chamber overhaul cuts daily transit slots, pushing wait times higher and driving U.S. Jones Act waivers for domestic shipments. Maritime Security: The week also flagged renewed risks around cargo routes, including attacks near the Middle East affecting containership operations.

Livestock & Food Security: The USDA confirmed a New World screwworm case in a 3-week-old calf in south Texas (La Pryor/Zavala County), the first in decades, triggering a 20-kilometer quarantine zone, movement controls, expanded surveillance, and sterile-fly releases to stop establishment; officials stress it doesn’t infest food, but it can devastate cattle health and ranch economics if it spreads. Panama Canal & Trade Resilience: Panama Canal Authority officials say they’re revisiting El Niño planning to avoid the kind of vessel restrictions that caused congestion during the 2023-24 drought, with draft-limit rules under review for a potentially longer dry season. Maritime Trade Context: A new map highlights global maritime chokepoints and how disruptions in a few corridors can ripple across supply chains. Regional Business & Pharma Supply: Farmagenericos Colombia says its AI procurement engine is cutting drugstore purchasing costs by about 50% and speeding deliveries to as fast as 24 hours across 6,000+ pharmacies in Latin America. Diplomacy & Connectivity: India–LAC Future Cooperation Forum in New Delhi focused on trade, innovation, and supply-chain resilience.

Agriculture & Food Security: USDA confirmed the New World screwworm fly in South Texas for the first time since 1966, with a confirmed case in a three-week-old calf near La Pryor and a 20-kilometer infested zone, quarantines, movement controls, and expanded surveillance plus sterile-fly releases to stop spread. Panama Canal & Logistics: Panama Canal Authority is revisiting draft and transit rules to avoid repeating 2023-24 drought disruptions as El Niño could bring a longer dry season, with planners already reviewing vessel limits and possible moderate draft restrictions. Maritime & Trade Policy: A U.S. push to rebuild maritime capacity is back in focus as lawmakers review MARAD and FMC budget requests, aiming to expand the U.S.-flag fleet, modernize shipyards, and strengthen oversight amid supply-chain and China-linked shipbuilding concerns. Cybersecurity: ESET reports China-linked cyber-espionage groups have increased targeting of Latin American and Caribbean government entities, including Panama. U.S.-Panama Outreach: U.S. Ambassador Kevin Marino Cabrera’s “Embassy on the Road” visit to Veraguas included water infrastructure support for IDAAN and a new virtual English training program for educators. Education & Skills: Panama’s CedarBridge Academy highlighted technical and vocational learning, including a Panama language immersion trip, during a visit by Education Minister Crystal Caesar.

Cybersecurity & Governance: ESET says China-linked threat groups FamousSparrow and NegativeGlimmer have stepped up cyber operations, including targeting government agencies in Panama, as Latin America and the Caribbean face rising state-backed digital pressure. Agriculture Risk: USDA warns the New World screwworm is now detected about 25 miles from the U.S.-Mexico border in Mexico’s Coahuila state, prompting intensified surveillance and a plan that includes sterile fly releases (with production tied to Panama). Public Safety & Corrections: Panama’s La Joyita prison saw a major escape after gang clashes during inmate transfers, with 195 reported escapees and injuries, while authorities move forward with an $85m tender for a new rehabilitation-focused prison complex. Maritime & Trade: Posidonia 2026 opened in Athens amid Strait of Hormuz disruption, with Panama’s President José Raúl Mulino attending as shipping and environmental compliance pressures stay front and center. Labor Rights: ITUC’s 2026 Global Rights Index lists Panama among the world’s worst for workers’ rights, alongside Turkey and others, citing union and labor-rights restrictions. Education & Skills: CedarBridge Academy highlighted Panama language immersion and hands-on technical tracks spanning engineering, construction drafting, robotics, agriculture-related show entries, and textiles.

Maritime & Panama Canal: Panama’s President José Raúl Mulino opened Posidonia 2026 in Athens and backed the country’s maritime push as shipping faces Strait of Hormuz disruption; separately, the Panama Canal Authority selected Spain’s Armon Shipyard to build 10 additional hybrid harbour tugs to boost daily maneuvering capacity and cut local emissions. Tax & Finance: Panama passed Ley 641, a 15% levy on multinationals that can’t prove real economic activity in-country, aimed at meeting EU “economic substance” expectations while raising compliance costs for shell entities. Shipping Security: MSC confirmed its Panama-flagged MSC Sariska V was hit twice by projectiles off Iraq; MSC says the crew was unharmed and calls the attack unjustified. Agriculture Biosecurity: The USDA warned New World screwworm is nearing the U.S. border after detections in Mexico, with Panama noted as the only sterile-fly production source—raising stakes for regional livestock protection. Industry Orders: Lakeland Fire + Safety expanded Latin American fire-protection orders, including new contracts in Panama.

Panama Tax Reform: Panama passed Ley 641, a 15% levy on multinationals that can’t prove real economic activity locally, aimed at getting the country off the EU blacklist—effective FY2027 and focused on shell entities, not firms with genuine staff and premises. Maritime & Logistics: Panama’s Canal Authority ordered 10 more hybrid harbour tugs from Spain’s Armon Shipyard to boost daily manoeuvring capacity while cutting local emissions. Global Shipping Security: MSC confirmed its Panama-flagged MSC Sariska V was hit twice by projectiles off Iraq; Iran’s IRGC claims a missile strike, while investigators and MSC dispute the “targeted” narrative. Diplomacy & Trade Promotion: President José Raúl Mulino joined Greece’s PM at Posidonia 2026, opening Panama’s pavilion and meeting shipping leaders to support the registry, logistics, and maritime investment ties. Labour & Compliance Watch: Panama was cited in an ITUC-style report as among the worst for workers’ rights in IT—another pressure point for companies operating in Panama. Fire Safety Procurement: Lakeland Fire + Safety expanded Latin American orders, including new contracts in Panama for structural fire suits, rescue gear, turnout gear, and wildland protection.

Maritime Security & Panama Shipping: Iran’s IRGC claimed it hit the Panama-flagged MSC Sariska V with a cruise missile in the Arabian Gulf near Umm Qasr, after UKMTO reported a projectile-triggered explosion and a second impact that caused a fire (later extinguished), with no crew injuries reported—another reminder that Panama-linked fleets face rising risk in the northern Gulf. Port & Trade Connectivity: Panama’s role as a logistics bridge to Latin America stayed in focus as coverage highlighted how the Panama Canal is being used for rerouted energy flows amid Strait of Hormuz disruption. Labor Rights Watch: Panama was named among the 10 worst countries for workers’ rights in the ITUC Global Rights Index, landing in the lowest category over weak guarantees and repression. Energy & Sanctions Spillover: France detained a Russia-linked oil tanker in the Atlantic tied to sanctions-evasion “shadow fleet” activity, underscoring how enforcement actions ripple into global shipping routes. Workforce & AI: The UN’s labor agency urged that AI productivity gains must reach workers via better wages and protections.

Maritime Security: A Panama-flagged MSC containership (MSC Sariska V) was hit by an unidentified projectile off Umm Qasr, Iraq, triggering a large explosion and fire; accounts differ between attack claims and mechanical failure, while UKMTO urges caution as incidents cluster around the northern Arabian Gulf. Canal & Trade Pressure: Chilean prosecutors warn organized crime is shifting routes through the Strait of Magellan to bypass tougher enforcement and Panama Canal restrictions, aiming to move weapons, drugs, and people. Sanctions & Shipping Compliance: France detained a Russia-linked oil tanker in the Atlantic tied to sanctions-evasion “shadow fleet” activity, escalating the legal and operational risk for global shipping networks. Panama Business & Industry: Etesa completed its move into the PH Sky Business Center despite the Carretero brothers being added to the U.S. OFAC Clinton List, keeping attention on how sanctions spill into local real estate and corporate operations. Local Enforcement: Panama police dismantled a synthetic-drug network across West Panama after 10 raids, arresting 12 tied to THC, Tusi, and methamphetamine production and sales. Logistics Outlook: A new report flags hurdles for Panama-flagged shipping as the IMO debates a Net Zero Framework, with major concerns about cost, fuel availability, and compliance uncertainty.

Panama Canal & Shipping: Panama is pushing to renew its maritime agreement with China, even as U.S. pressure around the canal and stricter Chinese inspections for Panamanian-flag vessels complicate talks; separately, the canal extended the deadline for firms seeking concessions for two ports plus a gas pipeline, after clarifications and document questions. Maritime Policy & Security: Panama’s Ministry of Security is advancing cyber defense reforms aimed at tighter governance over strategic infrastructure sectors, including energy, telecoms, finance, transport, water, food, and submarine cables. Infrastructure Maintenance: Engineers and MOP officials outlined a medium- and long-term maintenance plan for the Bridge of the Americas after the April fire, including deck and rivet replacement. Regional Trade & Industry: Panama’s logistics push for deeper trade with India highlights the country’s Indian-Panamanian business footprint and calls out logistics as the biggest untapped lever. Global Energy & Trade Pressure: Reports say Iran is charging “safe passage” fees through the Strait of Hormuz, while shipping activity and canal transit demand rise as LNG and energy flows shift amid Middle East tensions. Agriculture Biosecurity: Texas cattle producers are monitoring the New World screwworm threat after cases spread in Mexico, with U.S. import bans already affecting feedlots and prices.

Canal & Shipping Diplomacy: Panama is pushing to renew its maritime agreement with China as U.S. pressure around the Panama Canal continues, even after Panama canceled a Hutchison-linked port concession—while President José Raúl Mulino heads to Greece for Posidonia to back maritime ties and address concerns over tougher inspections of Panamanian-flag vessels. Port & Infrastructure Procurement: The deadline for pre-qualifying for Panama Canal port concessions (Corozal and Telfers Island) plus a gas pipeline has been extended to let bidders answer clarifications and submit stronger proposals. Canal Operations & Capacity: Canal activity is rising as LNG and energy shipments increase, and the canal continues recovering from drought-related capacity limits. Engineering & Safety Works: Panama’s Bridge of the Americas will need medium- and long-term maintenance, including replacing rivets and the road deck after the April fire. Security & Trade Disruption: A China-linked hacking campaign is targeting maritime, energy, and political networks across the Gulf, with Panama appearing in the broader pattern. Agriculture & Food Security: IICA member states, including Panama, backed a new strategic plan focused on food security and agricultural resilience. Regional Health Risk: Screwworm outbreaks are spreading across Mexico and Central America, prompting new monitoring and quarantine steps that could hit livestock supply chains.

Canal Procurement: Panama extended the deadline for firms to pre-qualify for the concession and construction of two Panama Canal ports (Corozal and Telfers Island) plus the gas pipeline, after questions and clarifications required more time to submit “robust” proposals. Maritime Security: An INTERPOL-backed operation across 20 countries seized 3,308 illegal firearms and 56 tonnes of drugs, with 8,701 arrests and major regional cooperation support. Infrastructure & Safety: Specialists say the Bridge of the Americas needs a multi-year maintenance plan after the April 6 fire—ranging from cleaning and repainting to replacing the road deck and existing rivets. Energy & Shipping Demand: Rising LNG and energy shipments are lifting demand for canal transit routes as the canal recovers from drought limits and Middle East tensions keep supply-chain risk high. Cyber Risk for Shipping: A report says China-linked hackers used Middle East conflict to intensify cyber-espionage targeting maritime, energy, and government networks, with Panama named in the wider pattern. Diplomacy & Trade: President José Raúl Mulino will visit Greece June 1–6, including a stop at Posidonia’s Panama pavilion, as maritime cooperation stays front and center.

Maritime Security: Russian drones hit three foreign-flagged commercial ships in the Black Sea export corridor, including a Panama-flagged vessel, sparking fires and injuries and renewing worries for shipping safety. Sanctions & Energy Trade: The U.S. Treasury expanded “maximum pressure” sanctions on Iran’s military-linked oil network, adding tankers and companies tied to Iranian crude flows as a ceasefire decision nears. Panama Canal Pressure: New reporting highlights how El Niño conditions and chokepoints are squeezing global fleet capacity, with a separate note that the canal is close to full capacity. Shipping Industry Watch: Posidonia 2026 in Athens is projected to generate €100M+ for Greece, with high-level maritime participation including Panama’s president and IMO leadership. Agriculture Policy: IICA member states backed a 2026–2030 strategic plan focused on food security and agricultural resilience, with Panama among participating delegations. Local Industry Angle: Researchers confirmed green stones in Panama’s ancient tombs were Colombian emeralds, underscoring long-running regional trade links.

Maritime & Sanctions: The U.S. Treasury hit Iran’s military-linked oil trade again, sanctioning eight tankers (including a Panama-flagged vessel) and 15+ entities tied to “dark fleet” shipments, even as a ceasefire extension is reportedly being negotiated. Biosecurity at the border: CBP warned South Texas travelers about the New World screwworm threat, as USDA keeps livestock imports shut and reports new detections near the U.S./Mexico line. Panama Canal & reliability: A new industry brief flags how Panama’s port and canal growth raises the stakes for equipment reliability, maintenance, and heat-treatment needs to avoid costly downtime. Trade corridors: The Capricorn Bioceanic Corridor is in its final stretch on the Paraguay-Brazil border, aiming to cut export times to Asia by 10–15 days. Shipping security: Ukraine says Russian drones struck three foreign merchant vessels in the Black Sea corridor, with Panama among the flags mentioned. Regional demand: WTTC forecasts Central and South America travel & tourism to outpace global growth in 2026, with visitor spending up sharply.