The United States has cautioned China about its actions affecting Panama-flagged ships, emphasizing the threat to a crucial global trade route and the potential rise in costs for businesses and consumers. US Secretary of State Marco Rubio expressed serious concerns over China’s recent measures against these vessels, highlighting the use of economic tools to undermine Panama’s rule of law. Rubio stated that such actions, including detentions and delays, disrupt global supply chains, escalate expenses, and diminish trust in the international trade system.
The dispute arises from increased inspections and detentions of Panama-flagged vessels at Chinese ports, causing delays and operational disruptions without seizures. This conflict follows a Panama Supreme Court ruling on the Balboa and Cristóbal terminals, annulling a concession to a Hong Kong-based firm and enabling the government to take over the ports with new operators. Rubio praised the court’s decision for upholding transparency, the rule of law, and ensuring accountability of private operators to the public interest, portraying Panama as a dependable partner for global investments and business ventures.
Affirming support for Panama’s sovereignty, the United States stands in solidarity with the country, aiming to enhance economic and security collaboration. The Panama Canal, a vital conduit for global trade handling approximately 5% of maritime commerce, faces potential disruptions in vessel movements impacting supply chains across energy, manufacturing, and consumer goods. Concerns have mounted within US officials regarding China’s influence near the canal’s strategic infrastructure.
