US, allies release joint statement supporting Panama’s sovereignty

(Reuters)

April 28 – The United States, Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago ​released a joint statement in support of ‌Panama’s sovereignty on Tuesday, saying recent actions by China are an attempt to politicize maritime trade and infringe on the sovereignty ​of nations 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.”

Panama’s Supreme Court in late January invalidated the legal framework supporting ​the 1997 concession granting CK Hutchison’s Panama Ports ​Company the right to operate the Balboa and Cristobal terminals ‌on ⁠the Pacific and Atlantic sides of the Panama Canal.

The cancellation followed mounting U.S. pressure to curb Chinese influence around the strategic canal, which handles about 5% ​of global maritime ​trade.

CK Hutchison, ⁠which operated the ports for nearly 30 years, has rejected the court ruling, ​accused Panamanian authorities of unlawfully seizing property, ​and ⁠launched an international arbitration case against the country, claiming damages of more than $2 billion.

The Panamanian court ruling was ⁠followed ​by a surge in detentions and ​inspections of Panama-flagged vessels in China in apparent retaliation.