US and Allies Issue Statement Supporting Panama’s Sovereignty

A diplomatic dispute over control of key canal ports has prompted a show of support for Panama from across the Americas, with the US, Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago backing the country’s sovereignty and warning that China is trying to turn maritime trade into a political weapon while encroaching on the independence of governments in the hemisphere.

“We are monitoring with vigilance China’s targeted economic pressure and the recent actions that have affected Panama-flagged vessels,” the statement said.

“Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure.”

The statement follows a ruling by Panama’s Supreme Court in late January that struck down the legal basis for the 1997 concession that had allowed CK Hutchison’s Panama Ports Company to run the Balboa and Cristobal terminals, positioned on the Pacific and Atlantic ends of the Panama Canal.

CK Hutchison, which had operated the ports for almost three decades, has challenged the decision, accusing Panamanian authorities of illegally taking property and opening an international arbitration case against the country in a claim exceeding $2 billion.

After the Panamanian court’s decision, detentions and inspections of Panama-flagged ships in China rose sharply in what appeared to be retaliatory action.