US and Latin American allies back Panama over Panama Canal terminals
The United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago backed Panama on April 29 as pressure built around Panama canal terminal operations linked to China. The joint statement said the freedom of their region is non-negotiable and tied the dispute to Panama’s Supreme Court ruling on the Balboa and Cristobal terminals.
Panama Supreme Court ruling
Panama’s independent Supreme Court invalidated the legal framework supporting a 1997 concession that let Panama Ports Company operate the Balboa and Cristobal terminals. Panama Ports Company is a subsidiary of CK Hutchison, and the January ruling effectively ended CK Hutchison’s decades-long control over the terminals.
CK Hutchison rejected the decision and accused Panamanian authorities of unlawful expropriation. The company also launched international arbitration proceedings seeking more than USD 2 billion in damages.
China pressure on vessels
The joint statement said the countries were monitoring with vigilance China’s targeted economic pressure and recent actions that affected Panama-flagged vessels. It described those actions, which followed the Supreme Court decision, as an attempt to politicize maritime trade and infringe on the sovereignty of the nations of the hemisphere.
Reports emerged after the January ruling of increased inspections and detentions of Panama-flagged vessels in China. The Panama Canal handles roughly 5 per cent of global maritime trade, which keeps the terminal dispute tied to a route used far beyond Panama.
Rubio backs Panama
Marco Rubio, the U.S. Secretary of State, echoed the joint statement on X and said, “The sovereignty of our hemisphere is non-negotiable.” Rubio also wrote, “We are deeply concerned by China's targeted economic pressure after the Balboa & Cristobal terminals decision.”
Rubio added, “We stand in solidarity with Panama.” The statement and Rubio’s post leave the dispute centered on whether Panama can carry out the court ruling without further pressure on Panama-flagged vessels, while CK Hutchison’s arbitration moves forward.
