U.S. Strongly Supports Panama Amid Tensions with China Over Trade

The U.S. government has expressed strong support for Panama's sovereignty while criticizing China for allegedly detaining Panamanian-flagged vessels in retaliation for the cancellation of contracts at two ports previously operated by Chinese interests. Secretary of State Marco Rubio highlighted concerns that these actions undermine global supply chains and increase costs for businesses and consumers. Approximately 40% of U.S. container traffic passes through the Panama Canal annually, making the situation critical for international trade. The tensions between Panama and China have escalated following a ruling by Panama's Supreme Court that annulled a contract with Panama Ports Company, leading to claims of over $2 billion in damages from the company. Panama's government maintains its actions are lawful and necessary.

Key Details: • U.S. Secretary of State Marco Rubio emphasized support for Panama's sovereignty. • Around 40% of U.S. container traffic uses the Panama Canal. • China's actions reportedly affect about 80 vessels. • Panama Ports Company claims damages exceed $2 billion due to contract annulment. • Panama's Supreme Court upheld a ruling against Chinese-operated ports.