US, allies release joint statement supporting Panama’s sovereignty

WASHINGTON – The United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago released a joint statement in support of Panama’s sovereignty on April 28, 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’s Panama Ports Company the right to operate the Balboa and Cristobal terminals on the Panama Canal’s Pacific and Atlantic sides, respectively.

The cancellation followed mounting US pressure to curb Chinese influence around the strategic canal, which handles about 5 per cent of global maritime trade.

CK Hutchison, a Hong Kong-registered company 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 US$2 billion (S$2.5 billion)

The Panamanian court ruling was followed by a surge in detentions and inspections of Panama-flagged vessels in China in apparent retaliation.

On April 29, 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 Mr Lin Jian, a foreign ministry spokesperson. REUTERS