US, Allies Back Panama's Sovereignty In Joint Statement

  • 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 politicise 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's1 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 ⁠
  • The Panamanian court ruling was followed by a surge in detentions and inspections of Panama-flagged vessels in ​China in apparent retaliation.
  • On Wednesday, China's foreign ministry called ​the ⁠statement "entirely baseless and misleading", accused the United States of politicising ports, and said it would take steps to safeguard China's interests in Panama.
  • "China ⁠also ​urges the relevant countries not to be ​deceived or exploited by malevolent forces," added Lin Jian, a foreign ministry spokesperson.

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 1CK Hutchison Holdings Ltd. is an investment holding company, which engages in the development, innovation, operation and investment in different business sectors. It operates through the following segments: Ports and Related Services; Retail; Infrastructure; Husky Energy and Telecommunications. The company was founded on December 12, 2014 and is headquartered in Hong Kong.

(Source: Reuters)