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Panama may cancel Chinese port contract as Trump threatens to ‘retake’ canal

Panama’s Attorney General’s Office has recommended annulling the 1997 concession granted to a Chinese company to operate two key ports at the entrances of the Panama Canal, citing constitutional violations. The move comes as U.S. President Donald Trump threatens to “retake” the waterway, claiming it is under Beijing’s control.

The request was made by Panama’s Chief Prosecutor, Luis Carlos Gómez, to the Supreme Court, which is currently reviewing two legal challenges against the concession contract awarded to Panama Ports Company, a subsidiary of Hong Kong-based Hutchison Holdings.

At the same time, the company is facing an audit by Panama’s Comptroller’s Office to determine whether it has fulfilled its financial obligations to the government.

According to Gómez, the contract is “unconstitutional”, and he has urged the court to invalidate it. In a document obtained by AFP, he argues that the agreement violates 15 articles of the Panamanian Constitution, as it “improperly transferred exclusive state rights, impacting social and public interests.”

Additionally, Gómez claims that the contract undermines free competition, grants unjustified tax exemptions, and that the automatic 25-year renewal in 2021 was agreed upon under unfair conditions for the public interest.

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The lawsuits seek to void the contract that allows Panama Ports Company to operate the Balboa and Cristóbal ports, located at the Pacific and Atlantic entrances of the canal, respectively. The plaintiffs argue that the company has evaded taxes and received illegal benefits in violation of the Constitution.

The legal battle unfolds as Trump raises concerns over China’s influence in the canal, which the U.S. built and operated until its handover to Panama in 1999. Trump has hinted at taking back control of the waterway, despite the fact that it is managed by an independent Panamanian authority.

Washington sees the presence of a Chinese company at the canal’s entry points as a national security risk, even though both the U.S. and China are the top users of the strategic trade route. The canal, which handles 5% of global maritime trade, underwent a major expansion in 2016 to accommodate larger vessels.

 

 

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Central America

First woman elected president in the Americas, Violeta Chamorro, dead at 95

Violeta Barrios de Chamorro, former president of Nicaragua and the first woman in the Americas to be democratically elected head of state, passed away this Saturday in Costa Rica at the age of 95. A pivotal figure in Nicaragua’s transition to democracy, Chamorro achieved a historic victory over Sandinista leader Daniel Ortega in the 1990 elections, heading a broad opposition coalition.

The Chamorro Barrios family confirmed her death in a statement:
“Our mother, Violeta Barrios de Chamorro, former president of Nicaragua, passed away today, June 14, 2025, at 2:21 a.m. (08:21 GMT) in San José, Costa Rica, at the age of 95, after a long illness.”

“Doña Violeta died peacefully, surrounded by the love and affection of her children and the extraordinary care of those who looked after her. She is now in the peace of the Lord,” her children Pedro Joaquín, Claudia Lucía, Cristiana, and Carlos Fernando Chamorro Barrios wrote.

Chamorro’s victory in 1990 marked a significant turning point in Central American politics, ending more than a decade of Sandinista rule and initiating a fragile but hopeful democratic chapter in Nicaragua’s history.

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Central America

Nicaraguan exile coalition urges Costa Rica to receive U.S. deportees fleeing Ortega regime

The Coalition of Nicaraguans in Exile urged Costa Rican President Rodrigo Chaves on Sunday to receive opponents and critics of the Ortega-Murillo regime currently residing in the United States who may be deported by the administration of Donald Trump.

“We appeal to you, Mr. President, to kindly consider, as an act of humanity and in accordance with the principles of international refugee law, the reopening of entry and temporary reception pathways for Nicaraguan citizens deported from the United States,” the coalition stated in a letter addressed to Chaves.

They specifically requested the reopening of entry for those Nicaraguans who had previously sought asylum or refugee status in Costa Rica and who express a well-founded fear for their lives and personal safety if returned to Nicaragua.

The organization, which identifies itself as committed to defending and promoting the human rights of Nicaraguans “forced into exile by the repression of the Sandinista dictatorship,” expressed its appeal with “urgency and deep concern.”

In the letter, the coalition emphasized the dramatic situation faced by thousands of Nicaraguans who fled political persecution under Daniel Ortega’s regime and are now at risk of deportation from the United States.

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Central America

Panama begins reverse migration by sea for 109 stranded migrants

Panamanian authorities have transported a group of 109 migrants of various nationalities by sea to La Miel, a Caribbean town on the country’s border with Colombia, to continue their return journey to South America. The move comes after the migrants failed to settle in the United States, following stricter immigration policies implemented under the administration of former President Donald Trump.

The National Migration Service (SNM) of Panama announced in a statement on Tuesday that the transfer was carried out from the Caribbean port of Colón using a vessel from Panama’s National Aeronaval Service (Senan). The operation was part of the country’s so-called “reverse flow” initiative, aimed at facilitating the safe return of migrants.

The official report noted that the group included migrants from nine different nationalities, with 75 adults and 34 minors on board. Authorities emphasized the “inter-institutional commitment to safe and humanitarian reverse migration.”

A source familiar with the process, speaking anonymously to EFE, confirmed that the vessel departed on Monday. Many of the migrants had opted into the reverse flow program after arriving at the Temporary Attention Center for Migrants (CATEM) in Costa Rica, where coordination was made with Panamanian authorities for their return.

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