The United States and several Latin American and Caribbean allies issued a joint statement Tuesday backing Panama amid rising tensions with China following a dispute over key Panama Canal ports.
The statement, supported by the United States and countries including Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, warned against what it described as Chinese retaliation after Panama moved to reclaim control of two major ports from a Hong Kong-based firm linked to billionaire Li Ka-shing.
"These actions — following the decision of Panama's independent Supreme Court regarding the Balboa and Cristobal terminals — are a blatant attempt to politicize maritime trade and infringe on the sovereignty of the nations of our hemisphere," the joint statement said.
"Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure. Any attempts to undermine Panama's sovereignty are a threat to us all," it added.
U.S. Secretary of State Marco Rubio echoed the message in a post on X.
"The sovereignty of our hemisphere is non-negotiable. We are deeply concerned by China's targeted economic pressure after the Balboa & Cristobal terminals decision," he wrote.
"We stand in solidarity with Panama. Any attempts to undermine Panama's sovereignty are a threat to us all."
The dispute stems from a January ruling by Panama's Supreme Court that annulled long-standing concessions held by a subsidiary of Hong Kong-based CK Hutchison to operate the Balboa and Cristobal ports, two strategic facilities located at the Pacific and Atlantic entrances of the Panama Canal.
The court found the contracts unconstitutional, ending an arrangement that had been in place since the late 1990s and triggering a government takeover of the terminals under President Jose Raul Mulino.
The ports are critical to global commerce, sitting at either end of the canal, a waterway that handles a significant share of international maritime trade and is central to supply chains linking the United States, Asia, and Latin America.
Since Panama assumed control in February, U.S. officials and regional partners say China has increased inspections and detentions of Panama-flagged vessels docking at Chinese ports, disrupting maritime traffic and raising concerns about economic coercion.
The standoff reflects broader geopolitical tensions between Washington and Beijing over influence in Latin America and control of critical infrastructure, with the Panama Canal emerging as a focal point in that rivalry.
China rejected the accusations.
Foreign Ministry spokesperson Lin Jian said the claims were "completely unfounded and merely distortion of facts," adding that vessel inspections were routine and accusing the United States of politicizing the issue.
Panamanian officials have defended the court's ruling as a matter of national sovereignty and the rule of law, while also seeking to ease tensions and maintain stable trade relations with both global powers.
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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