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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

Guatemala sees road blockades amid protests against lawmaker pay hikes

At least 16 points are blocked in Guatemala on Monday by the Committee for the Development of Rural Communities (Codeca), which is protesting the salary increase for members of Congress. The lawmakers are set to receive their third paycheck since the salary adjustment was approved in November 2024.

Although the Congressional Board of Directors announced the suspension of the salary increase at the end of March through an official document, it was later stated that the measure must be ratified by the full legislative body, requiring the approval of at least 81 of the 160 members. No reversal of this decision has been made so far. The salary of lawmakers has risen from GTQ 29,150 ($3,784) to GTQ 66,300 ($8,607). Their third elevated salary will be issued on Monday, according to local media.

The 23 deputies from the Semilla party, with which Bernardo Arévalo won the presidency, did not vote in favor of the proposal when it was presented. However, reports suggest that this may have been part of a negotiation with the opposition to approve a reform to the Law Against Organized Crime, aimed at ending legal persecution against them, as reported by the media outlet República. “The government must remember that the people defended it and it must serve the people,” stated Codeca’s official post on X (formerly Twitter).

Other grievances raised by the protesters include the rising cost of basic goods, demands to halt water privatization, an end to forced evictions, and the resignation of Attorney General Consuelo Porras.

The Constitutional Court (CC) granted a provisional injunction on Sunday, ordering the government to allow free movement. While the court permitted the protest to proceed, it stated that the rights of the general public to mobility and access to commercial transport services should not be interrupted.

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Nicaragua’s Ortega and Murillo Mourn Pope Francis, Acknowledge ‘Difficult’ Relationship

Nicaraguan President Daniel Ortega and Vice President Rosario Murillo, who also serve as co-leaders of the country, expressed their condolences on Monday following the death of Pope Francis, acknowledging that their relationship with the late pontiff had been “difficult” and “troubled.” Nicaragua officially suspended diplomatic ties with the Vatican during his papacy.

“Our relationship, as Nicaraguans who are believers, devoted and faithful to the doctrine of Christ Jesus, was difficult and troubled—unfortunately shaped by adverse and painful circumstances that were not always understood,” Ortega and Murillo wrote in a message of condolence.

“Despite the complexity and hardships, despite the manipulation we all know occurred, despite everything, we kept our hope alive through Christian faith,” they continued. “We understood the distance, and above all, the complicated and strained communication that prevented better relations. We also recognized the confusion caused by strident voices that disrupted any attempt at genuine interaction.”

Pope Francis had previously compared the Ortega regime to communist dictatorships and even to Hitler, a remark that further strained relations between Managua and the Holy See.

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Central America

Cardinal Rodríguez to Attend Funeral of Pope Francis: “He Was Very Dear to Me”

Honduran Cardinal Óscar Andrés Rodríguez announced on Monday that he will attend the funeral services of Pope Francis, who passed away at the age of 88 at his residence in Casa Santa Marta due to a stroke.

“We will be there throughout the novena and then, God willing, at the burial,” Rodríguez said in a phone interview with HRN Radio in Tegucigalpa, apparently calling from Spain.

He added that the last time he saw Pope Francis was in October 2024, during and at the end of that year’s synod, and that they remained in contact through email. “Sometimes, the Pope would even call me,” said Rodríguez, who was born on December 29, 1942, and was made a cardinal by Pope John Paul II on February 21, 2001.

Rodríguez expressed deep sorrow over the passing of Pope Francis, saying: “He was a very dear person to me.”
However, he also shared a message of hope, pointing out that the Holy Father passed away during Easter: “This is a sign. He gave his life completely like the Lord Jesus, and though he died, we believe in faith that he has risen, now with Christ in eternal life.”

Rodríguez, who for ten years coordinated the Vatican’s Council of Cardinals, was one of the eight cardinals selected by Pope Francis to help govern the Catholic Church and reform the Roman Curia.

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In January 2023, upon turning 80, Rodríguez stepped down as Archbishop of Tegucigalpa, and Pope Francis appointed Spanish priest José Vicente Nácher Tatay as his successor.

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