U.S. and Allies Stand with Panama Against China's Economic Pressure

The United States, along with several regional allies, has issued a joint statement supporting Panama's sovereignty amid what they describe as selective economic pressure from China. The statement, endorsed by Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, emphasizes that any attempts to undermine Panama's sovereignty pose a threat to all signatories. The countries express concern over China's actions, including the detention of Panamanian-flagged ships in Chinese ports, which they view as an effort to politicize maritime trade. This situation is critical as the Panama Canal is vital for U.S. container traffic, accounting for about 40% of annual shipments. The U.S. aims to counter China's influence in the region, especially following Panama's Supreme Court ruling that annulled a contract with a Chinese-operated company.

Key Details: • Joint statement issued by the U.S. State Department and five Latin American countries. • Panama Canal is crucial for U.S. trade, handling 40% of annual container traffic. • China's Foreign Ministry has dismissed U.S. claims as unfounded. • Panama's Supreme Court ruling in January annulled a contract with Panama Ports Company.