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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

El Salvador to host World Cup qualifiers vs. Guatemala and Panama at Estadio Cuscatlán

El Salvador’s national football team will host its final round World Cup qualifying matches against Guatemala and Panama at Estadio Cuscatlán, the honorary president of the National Sports Institute (INDES), Yamil Bukele, announced Thursday via a statement on his X account.

The official explained that this decision comes after the American rock band Guns N’ Roses, originally scheduled to perform at Estadio Cuscatlán on Saturday, October 4, will now hold their concert at Estadio Jorge “El Mágico” González. This change allows both of La Selecta’s qualifying matches to be played at the “Coloso de Monserrat.”

“After a series of efforts and in response to popular demand, we are pleased to announce that our senior national team’s CONCACAF World Cup qualifying matches next October (Oct. 10 vs. Panama and Oct. 14 vs. Guatemala) will take place at Estadio Cuscatlán,” the statement reads.

Bukele also thanked the event promoters and the band for agreeing to the stadium change. “We sincerely thank Guns N’ Roses and StarTicket for agreeing to move the concert originally scheduled for October 4 at Estadio Cuscatlán,” the statement adds.

Additionally, Bukele expressed gratitude to the FESFUT Regularization Commission for their efforts with CONCACAF to make this possible, and he urged fans to stay tuned to official channels to purchase tickets and support La Selecta in their World Cup qualifying campaign.

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Honduran president Xiomara Castro suspends activities due to influenza

Honduran President Xiomara Castro announced on Thursday that she has “temporarily” suspended her public activities due to a severe influenza virus.

“A strong influenza virus requires me to rest, trusting that I will be fully recovered for the grand celebration of our National Independence Day” next Monday, Castro stated on the social media platform X.

The president had planned to participate in several inaugurations across the northern, central, and eastern regions of the country throughout the week. She added that “these events will be rescheduled for new dates.”

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Central America

Nicaragua’s government expels bishops, priests, and nuns in religious persecution

At least 261 religious figures, including the president of the Nicaraguan Episcopal Conference, Carlos Enrique Herrera, have been expelled as part of the persecution by Daniel Ortega and Rosario Murillo’s regime against the Catholic Church, reported the NGO Colectivo Nicaragua Nunca Más in its report Faith Under Fire.

The report details that among those expelled are bishops Silvio Báez, Rolando Álvarez, Isidoro Mora, as well as the Apostolic Nuncio in Managua, Waldemar Stanislaw Sommertag, along with approximately 140 priests, over 90 nuns, ten seminarians, and three deacons from different dioceses in the country.

“Since the expulsion of Nuncio Sommertag in March 2022, relations between Nicaragua and the Vatican have significantly deteriorated,” the NGO noted.

The report also documents the closure of 5,609 non-profit organizations, of which 1,294 were religious, including churches, universities, schools, clinics, and humanitarian organizations. Most of these had their assets confiscated by the Sandinista government. Additionally, the telecommunications regulator TELCOR shut down 54 media outlets, including 22 religious radio stations and TV channels.

Repression has extended to other religious denominations, with forced disappearances and criminalization of evangelical pastors, control over temples, media censorship, fiscal pressure, property confiscation, and the cancellation of legal status for the Moravian Church. Pastor Rudy Palacios remains in detention as part of this pattern of persecution.

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The NGO emphasized that churches, especially the Catholic Church, played a key role in the 2018 national dialogue, denouncing abuses and providing refuge to injured protesters, which fueled the government’s hostility.

In 2023, Pope Francis described Ortega’s regime as a “blatant dictatorship”, to which the Nicaraguan president responded by dissolving the Society of Jesus and labeling the Church as a “mafia” and “anti-democratic.”

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