U.S. and 6 other nations support Panama's sovereignty, concerned about China's economic pressure

WASHINGTON (Central News Agency) – The United States, Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago today issued a joint statement expressing support for Panama's sovereignty and noting that China's recent actions constitute an attempt to politicize maritime trade and infringe upon the sovereignty of nations in the Western Hemisphere.

Reuters and Agence France-Presse reported that a statement issued by the U.S. State Department noted, "We are closely following targeted economic pressure by the PRC and recent actions affecting Panama-flagged vessels."

The statement said China's actions are "a blatant attempt to politicize maritime trade and infringe upon the sovereignty of nations in our hemisphere."

It added, "Panama is a pillar of our maritime trading system and must be free from any external pressure or interference. Any attempts to undermine Panama's sovereignty threaten us all."

The dispute originates from a Panamanian Supreme Court ruling at the end of January, which revoked the contract of Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, stripping it of the operating rights for Balboa Port on the Pacific side and Cristobal Port on the Atlantic side of the canal.

This decision by the Panamanian court came amidst continuous pressure from the United States to curb China's growing influence around the strategically important canal. The Panama Canal handles approximately 5% of global maritime trade.

CK Hutchison Holdings, which operated these ports for nearly 30 years, refused to accept the court's ruling, accusing the Panamanian authorities of illegal expropriation of assets and has filed for international arbitration, demanding over $2 billion in damages.

Since the Panamanian court's ruling, there has been a significant increase in cases of Panama-flagged vessels being detained and inspected in Chinese ports, which is widely seen as a retaliatory measure by China. (Compiler: Tsai Chia-min) 1150429

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