US, Bolivia, Costa Rica, Guyana, Paraguay, Trinidad Issue Joint Statement on Panama Sovereignty

The United States and a group of Latin American and Caribbean nations have issued a joint statement backing Panama’s sovereignty and expressing concern over what they described as Chinese economic pressure on Panama-flagged vessels. The statement was released by the governments of Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States amid rising tensions linked to port operations near the Panama Canal.

According to the statement, the countries are closely monitoring recent actions affecting ships registered under Panama’s flag. They alleged that the measures followed a ruling by Panama’s Supreme Court concerning the Balboa and Cristóbal terminals, two strategically important ports located at opposite ends of the canal. The signatories said such actions appeared aimed at politicising maritime trade and undermining regional sovereignty.

The controversy centres on a legal dispute involving CK Hutchison, a Hong Kong-based company that had operated the two terminals for decades under a concession dating back to 1997. Panama’s Supreme Court reportedly struck down the legal basis for that agreement earlier this year, effectively ending the company’s rights to continue managing the facilities. The decision has drawn significant international attention.

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Reports cited in the dispute claim Chinese authorities increased inspections and detentions of Panama-flagged vessels arriving at Chinese ports after the court ruling. While Beijing has not publicly accepted the allegations in the statement, the signatory nations said any attempt to exert economic pressure on Panama would be unacceptable. They described Panama as a key pillar of the global maritime trading system.

The Panama Canal remains one of the world’s most critical shipping routes, handling an estimated five percent of global maritime trade each year. Because of its strategic importance, control and influence around canal-linked infrastructure have become increasingly sensitive geopolitical issues. Washington has repeatedly voiced concern over Chinese commercial presence in areas connected to the canal.

In their closing remarks, the participating governments pledged continued solidarity with Panama and a commitment to preserving freedom of trade, security and prosperity across the Americas. The statement highlights how commercial disputes around strategic infrastructure are increasingly intersecting with broader geopolitical rivalries, placing Panama once again at the centre of international attention.

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