US Secretary of State Marco Rubio said that “the sovereignty of our hemisphere is non-negotiable,” warning China’s recent economic actions tied to Panama’s maritime sector.
The US criticised Chinese economic retaliation after a Hong Kong-based conglomerate lost a legal dispute over the management of ports on the Panama Canal.
Rubio’s statement comes amid growing tensions over what US officials describe as “targeted economic pressure” by China following a ruling by Panama’s Supreme Court concerning the strategic Balboa and Cristóbal terminals—key gateways to global shipping routes connected to the Panama Canal.
In unusually strong language, Rubio emphasized that any external attempt to influence or coerce nations in the Americas, particularly through economic leverage, will be viewed as a direct threat to regional stability. “We stand in solidarity with Panama,” he said, underscoring a unified stance against what he framed as interference in sovereign decision-making.
Panama’s Supreme Court in late January annulled contracts that had allowed a subsidiary of Hong Kong’s CK Hutchison to administer the Balboa and Cristobal port terminals on the Panama Canal after deeming the decades-old agreements unconstitutional.
In their joint statement, the six countries claimed that following the court ruling, China has retaliated against Panama with “targeted economic pressure” on Panamanian-flagged ships.
The warning was reinforced through a joint statement issued on April 28, 2026, by the United States alongside Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago. The coalition condemned what it called China’s efforts to “politicize maritime trade” and exert pressure following Panama’s judicial decision.
The statement described Panama as “a pillar of our maritime trading system” and warned that actions affecting Panama-flagged vessels could have far-reaching consequences for global commerce. It stressed that safeguarding Panama’s autonomy is critical not just for the country itself, but for the economic and security framework of the entire Western Hemisphere.
“Any attempts to undermine Panama’s sovereignty are a threat to us all,” the statement declared, framing the issue as a collective regional concern rather than a bilateral dispute.
China detained nearly 70 Panamanian-flagged ships in March, according to the US Federal Maritime Commission, a number “far exceeding historical norms”.
“These actions – following the decision of Panama’s independent Supreme Court regarding the Balboa and Cristobal terminals – are a blatant attempt to politicise maritime trade and infringe on the sovereignty of the nations of our hemisphere,” the signatories said.
This development highlights intensifying strategic competition between the United States and China in Latin America, particularly around infrastructure, trade routes, and economic influence. With the Panama Canal remaining one of the world’s most vital shipping corridors, control and influence over related assets carry significant geopolitical weight.
The joint declaration signals a coordinated effort among American nations to push back against external pressure and reaffirm a shared commitment to regional independence, security, and economic stability.
