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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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International

Trump Says Iran Is Welcome at 2026 World Cup but Warns of Security Concerns

The President of the United States, Donald Trump, said Thursday that the national football team of Iran is “welcome” to participate in the 2026 World Cup, although he suggested it might be safer for the team not to take part in the tournament.

“The Iranian national soccer team is welcome at the World Cup, but I really don’t think it’s appropriate for them to be there, for their own safety,” Trump wrote on his social media platform Truth Social.

His comments came a day after Iran’s sports minister, Ahman Donyamali, said that there are currently no conditions for the country to participate in the tournament following the killing of Iran’s Supreme Leader, Ali Khamenei, during a military offensive launched on February 28 by Israel and the United States.

“After the corrupt government killed our leader, there are no conditions that allow us to take part in the World Cup,” the Iranian official said. He added that the country has faced two wars in the past eight or nine months, resulting in thousands of civilian deaths, making participation in the tournament unlikely.

On Tuesday, the president of FIFA, Gianni Infantino, met with Trump at the White House.

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Following the meeting, Infantino said that Trump reiterated that Iran’s national team would be allowed to compete in the FIFA World Cup 2026.

“We discussed the current situation in Iran and the fact that the Iranian team has qualified to participate in the FIFA World Cup 2026. During the conversation, President Trump reiterated that the Iranian team is, of course, welcome to compete in the tournament in the United States,” Infantino wrote on Instagram.

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Central America

UN Rapporteur Warns of “Deep Crisis” in Guatemala’s Judicial System

The United Nations Special Rapporteur on the Independence of Judges and Lawyers, Margaret Satterthwaite, said Monday that Guatemala’s judicial system is facing a “deep crisis” after evaluating the country’s institutional situation.

Speaking at a press conference in Guatemala City, the UN official explained that several factors have weakened judicial independence and placed the justice system in a “critical” situation.

Among the main problems identified were the “instrumentalization of justice,” concentration of power, and persecution of judicial officials, elements that, according to Satterthwaite, undermine the functioning of the rule of law in the country.

Satterthwaite presented these conclusions while releasing her final report on the visit she carried out in May 2025, when she spent 12 days in Guatemala assessing the performance of the judicial system.

During her stay, she met with judges, prosecutors, public defenders, lawyers, lawmakers, civil society organizations, and representatives of Indigenous communities, as well as officials from the executive, judicial, and legislative branches. These meetings took place in Guatemala City and in the departments of Quetzaltenango and Alta Verapaz.

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The rapporteur also reiterated her concern about the role of the Public Ministry of Guatemala, noting that the information collected points to the existence of a policy of criminalization against justice operators.

Despite this scenario, Satterthwaite expressed confidence that Guatemala can reverse the situation, highlighting that the country’s Constitution has previously demonstrated the ability to guarantee respect for the rule of law.

She also stressed that key appointments expected in the coming months will be decisive for the future of the judicial system, including the selection of a new Constitutional Court of Guatemala, a new Supreme Electoral Tribunal of Guatemala, and a new attorney general to replace the current head of the Public Ministry, Consuelo Porras.

“The appointments scheduled for 2026 to the Constitutional Court, the Supreme Electoral Tribunal, and the Public Ministry will be decisive in determining whether the current patterns of institutional capture and impunity will be consolidated or reversed,” the rapporteur concluded.

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Central America

UN Report Warns of Nicaragua’s “Transnational” Surveillance Network Targeting Dissidents

A special panel of the United Nations accused the government of Nicaragua on Tuesday of diverting public funds to finance the repression of political opposition both inside and outside the country, including through what it described as a “transnational network” of surveillance and intelligence.

The panel presented a new report to the press on the situation in the Central American nation, which has been governed since 2007 by President Daniel Ortega and his wife and vice president Rosario Murillo.

Based on dozens of interviews and extensive documentary evidence, the report states that since 2018—the year when student protests erupted and were violently suppressed—public funds have been diverted to support repression, including money originally allocated for social assistance programs and public sanitation projects.

According to the report, a “parallel structure” was created within the ruling Sandinista National Liberation Front to channel resources toward security operations, pro-government armed groups, and party activities.

The investigation was carried out at the request of the United Nations Human Rights Council.

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Another key finding of the report concerns the existence of a surveillance and intelligence network that extends far beyond Nicaragua’s borders, allegedly used to monitor, intimidate, and target hundreds of thousands of Nicaraguans living abroad.

The report documents an intelligence structure involving the military, police, migration authorities, the telecommunications regulator TELCOR, diplomatic missions, and operators linked to the FSLN.

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