Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States have released a joint statement supporting Panama while criticizing Chinese economic retaliation, following a Hong Kong-based conglomerate's loss of a legal dispute over the management of ports on the Panama Canal.
Panama's Supreme Court in late January annulled contracts that had allowed a subsidiary of Hong Kong's CK Hutchison to administer the Balboa and Cristobal port terminals on the Panama Canal, deeming the decades-old agreements unconstitutional.
In their joint statement on Tuesday, the six countries claimed that after the court ruling, China retaliated against Panama with “targeted economic pressure” on Panamanian-flagged ships. China detained nearly 70 Panamanian-flagged ships in March, according to the US Federal Maritime Commission, a number “far exceeding historical norms”.
“These actions – following the decision of Panama’s independent Supreme Court regarding the Balboa and Cristobal terminals – are a blatant attempt to politicise maritime trade and infringe on the sovereignty of the nations of our hemisphere,” the signatories said.
US Secretary of State Marco Rubio said separately on X that Washington was “deeply concerned” by China’s economic pressure on Panama. “We stand in solidarity with Panama. Any attempts to undermine Panama’s sovereignty are a threat to us all,” he said.
China has previously accused the US of “bullying” and trying to smear its reputation in Latin America, while describing the Panamanian Supreme Court ruling as “absurd” and “shameful”.
US Federal Maritime Commission head Laura DiBella said last month that Beijing’s detention of Panamanian ships had repercussions for both Panama and the US. “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” DiBella said.
Panama’s decision to invalidate the contracts came amid heightened media attention around the Panama Canal following threats by US President Donald Trump to seize the strategic waterway. Trump had alleged in his inaugural address in January 2025 that China was “operating” the canal and pledged that the US would “take back” control.
US officials allege that China has also retaliated against shipping giants Maersk and MSC, whose subsidiaries were granted 18-month contracts to administer the Balboa and Cristobal terminals after CK Hutchison was removed. Representatives of both companies were summoned by China’s Ministry of Transport for “high-level discussions”, while Chinese shipping giant COSCO has suspended operations at the Balboa terminal.
CK Hutchison, through its Panama Ports Company subsidiary, is separately pursuing international arbitration against the government of Panama and seeking more than $2bn in damages.
David Smith, an associate professor at the University of Sydney’s US Studies Centre, said the dispute and China’s retaliation are the latest example of how shipping has become a political target. “We have taken for granted that the world runs on container ships just freely sailing around the world. What we’re seeing now is that states know how vulnerable shipping is,” he told Al Jazeera.
Source: www.aljazeera.com