The US State Department, together with several South American countries including Bolivia, Paraguay, and Costa Rica, issued a joint statement supporting Panama and warning against growing Chinese influence in the region.
The statement emphasized that Panama is a critical pillar of global maritime trade and must remain free from external pressure, adding that any attempt to undermine its sovereignty would be seen as a broader threat to regional stability. The move comes amid rising tensions with China, whose Foreign Ministry responded by declaring it would defend its strategic interests in Panama.
The friction escalated after Panama’s Supreme Court canceled a major port deal with Hong Kong-based Hutchison Ports, which had operated key facilities along the Panama Canal. The company has since launched legal action against Panama, demanding $2 billion in compensation. At the same time, reports indicate China has begun delaying ships flying the Panamanian flag, raising concerns over economic retaliation.
NEWSRAEL: WHY THIS IS IMPORTANT