The United States and five Latin American countries have issued a joint statement supporting Panama's sovereignty amid alleged Chinese economic retaliation. According to UPI, the signatories—Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the US—warned that China's actions against Panama-flagged vessels could disrupt regional maritime trade.
Key Takeaways
The United States and five Latin American countries issued a joint statement condemning China's economic retaliation against Panama following a Supreme Court ruling that invalidated port contracts linked to CK Hutchison. The signatories warned that China's actions could disrupt regional maritime trade and undermine sovereignty.
- Six nations issue joint statement supporting Panama's sovereignty
- China retaliates after Panama court ruling on port contracts
- Nearly 70 Panamanian ships detained in March, per US Federal Maritime Commission
- US officials warn of potential commercial and strategic consequences
- CK Hutchison seeks $2 billion in damages through international arbitration
The statement follows a January ruling by Panama's Supreme Court declaring unconstitutional contracts linked to port terminals in Balboa and Cristóbal. Al Jazeera reported that China detained nearly 70 Panamanian ships in March, a number described as "far exceeding historical norms" by the US Federal Maritime Commission.
The signatories claimed these actions amount to targeted economic pressure against Panama's sovereignty. U.S. Secretary of State Marco Rubio expressed concern over what he described as China-led economic pressure, stating that any attempt to affect Panama's sovereignty represents a risk for other countries in the region. Reuters noted that the cancellation followed mounting US pressure to curb Chinese influence around the strategic canal.
The Panamanian court ruling was followed by a surge in detentions and inspections of Panama-flagged vessels in China, according to Reuters. CK Hutchison, which operated the ports for nearly 30 years, has rejected the court ruling and launched an international arbitration case against Panama, claiming damages of more than $2 billion. US officials warn that these actions could result in significant commercial and strategic consequences.
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