In a decision with implications for the national sovereignty of member states under US trade pacts, a World Bank tribunal has approved a Canadian mining company's controversial lawsuit against the government of El Salvador. In 2009, Pacific Rim Mining filed the suit under the rules of the US-Central America Free Trade Agreement (CAFTA), demanding hundreds of millions of dollars from the Salvadoran government, which rejected the Vancouver-based company's application for mining permits.

Mexico's Foreign Relations Secretariat (SRE) announced on July 31 that the government of President Felipe Calderón Hinojosa was normalizing diplomatic relations with Honduras and that the Mexican ambassador, Tarcisio Navarrete, would return to Tegucigalpa in a few days to resume his functions. Mexico broke off relations with Honduras on June 29, 2009, one day after then-president José Manuel ("Mel") Zelaya Rosales was removed by a military coup d'état.

On July 26 Nike, Inc and the General Workers Central (CGT), one of Honduras' three main labor federations, announced that the Oregon-based sports apparel giant was paying $1.54 million to some 1,600 workers laid off in last year's closure of two Nike subcontractors in the Choloma region of the northwestern department of Cortés. The package also includes a year of medical coverage through the Honduran Social Security system, a training program and priority for hiring at other factories that Nike may use in the country. The fund is to be administered by the CGT; the Solidarity Center of the AFL-CIO, the main US labor federation; and the Workers Rights Consortium (WRC), a US-based labor rights monitoring group.

US Trade Representative Ron Kirk announced July 30 that the US will file a case against Guatemala for labor rights violations. The case, filed under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), will be the first time the US has pursued a labor violations claim against a free trade partner.

Nicaragua's President Daniel Ortega on July 20 accused Colombia of granting exploration permits to oil companies on Nicaraguan territory. Ortega was referring to disputed waters along the Caribbean maritime border between the two countries. The Colombian government sold permits to 80 foreign companies for 230 sites across the country last month—including in the disputed waters. A case over the dispute is still pending at the International Court of Justice (ICJ).

As of July 15 a campaign started by students at various North American campuses in the fall of 2009 around the labor practices of Oregon-based Nike, Inc in Honduras seemed to be on its way to winning several new victories. In an internal June 28 letter, Cornell University president David Skorton announced that the institution would let its sports apparel licensing agreement with the giant sportswear firm lapse on Dec. 31 "unless significant progress is made" in resolving severance pay issues from the January 2009 closing of two Honduran plants, Vision Tex and Hugger de Honduras. Two weeks later, on July 14, Pennsylvania State University spokesperson Geoff Rushton said in an email that the university was urging Nike "to play a positive role in assisting" the laid-off workers and was "continuing to monitor the issue."

Panama's National Front for the Defense of Social Rights (FRENADESO) called an end to the 24-hour national strike that shut down construction work and schools with a claimed 95% effectiveness July 13. The strike, called in protest of a new anti-union law, included a march estimated at 1,000 in Panama City. The general secretary of the CONUSI labor federation, Gabriel Castillo, called the strike a "success," while business leaders said that it did not affect most sectors of the economy.

Costa Rica has granted the US military a six-month window to bring 7,000 Marines, five planes and 46 warships into its territory to help intercept north-bound narcotics. The permission, granted by a 31-8 vote of the Legislative Assembly on July 2, allows the US to use the country's territory through Dec. 31. Some legislators voiced concern about the authorization, saying it gives the US a "blank check" to use the nation's territory and threatens its sovereignty. Public Security Minister José María Tijerino said specific requests to dock US military ships must be submitted one month in advance. (Tico Times, July 5)