The United States and five Latin and Central American nations have issued a joint statement declaring solidarity with Panama in response to what they described as "targeted Chinese economic pressure on Panama-flagged vessels".
The statement, released on Wednesday by the governments of Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States, alleged Chinese actions following a landmark ruling by Panama's Supreme Court over the Balboa and Cristóbal terminals — two strategically vital ports at either end of the Panama Canal long operated by a China backed firm, CK Hutchison.
"We are monitoring with vigilance China's targeted economic pressure and the recent actions that have affected Panama-flagged vessels," the six nations said. "These actions — following the decision of Panama's independent Supreme Court regarding the Balboa and Cristóbal terminals — are a blatant attempt to politicize maritime trade and infringe on the sovereignty of the nations of our hemisphere."
In the Court ruling, Panama's Supreme Court struck down the legal basis for a 1997 concession in late January, effectively terminating the Hong Kong-based firm's right to run the Balboa and Cristóbal terminals. The ruling came after sustained American pressure to limit Beijing's footprint around the waterway, which carries roughly five percent of worldwide maritime traffic.
CK Hutchison, which had managed the two ports for nearly three decades, reportedly, refused to accept the decision — accusing Panamanian authorities of unlawfully seizing its assets and filing an international arbitration claim seeking over $2 billion in damages.
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In what observers characterized as retaliation for the court ruling, Chinese authorities, allegedly, sharply increased the detention and inspection of Panama-flagged ships calling at Chinese ports, drawing condemnation from Washington and the Federal Maritime Commission.
The statement framed China's response to the court ruling as "an assault not just on Panama but on the entire Western Hemisphere's freedom of trade."
"Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure," the joint statement read. "Any attempts to undermine Panama's sovereignty are a threat to us all."
The declaration arrives as Washington has been pressing to reduce Chinese operational influence over the Canal Zone, a waterway through which an estimated five percent of global maritime trade passes annually. The Trump administration has repeatedly raised concerns about Chinese control of port facilities flanking the canal.
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The six nations closed with a unified pledge of regional solidarity. "We stand in solidarity with Panama," they said. "We remain dedicated to facing all threats to ensure the Americas remain a region of freedom, security, and prosperity."
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