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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

OAS urges swift recount in Honduras as election results remain uncertain

The Organization of American States (OAS) electoral observation mission in Honduras reported findings of a “lack of expertise” and “delays” in the vote-counting process, but stated that it found no indications that would cast doubt on the results of the November 30 general elections, according to a report presented to the organization’s Permanent Council.

The delay by electoral authorities in releasing the final results “is not justifiable,” said former Paraguayan foreign minister Eladio Loizaga while reading the report.

Honduras marked two weeks on Monday without knowing who its next president will be, following elections in which conservative candidate Nasry Asfura, backed by U.S. President Donald Trump, holds a lead of less than two percentage points over fellow right-wing contender Salvador Nasralla.

Accusations of fraud have dominated Honduras’ political landscape since polls closed on the last Sunday of November.

In addition to Nasralla’s complaints, the current government led by leftist President Xiomara Castro has described Trump’s support for Asfura as an “electoral coup.”

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The U.S. president has warned of “serious consequences” if the current results were to change and strip Asfura, a 67-year-old businessman, of his lead.

Although more than 99 percent of the votes have been counted, nearly 2,800 tally sheets contain “inconsistencies” and must be reviewed through a special recount, the National Electoral Council (CNE) said.

“The Mission urgently calls on the electoral authorities to immediately begin the special recount and to pursue all possible avenues to obtain official results as quickly as possible. The current delay in processing and publishing the results is not justifiable,” the head of the OAS mission told members of the organization.

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Central America

Panama seizes over three tons of drugs hidden in Caribbean port container

Panama’s National Air and Naval Service (Senan) reported on Sunday the seizure of more than three metric tons of drugs that were concealed inside a shipping container at a port terminal on the country’s Caribbean coast.

According to a statement posted on X, Panamanian aeronaval authorities confirmed the confiscation of 3,205 packages of a suspected illicit substance hidden inside a container in transit through Panama, at a port facility in the Caribbean province of Colón. Each package typically weighs approximately one kilogram.

Earlier this week, Senan agents also seized an additional 2.2 metric tons of drugs and arrested five individuals, including a Colombian national, in separate operations linked to drug trafficking activities.

Panama serves as a major transit route for drugs produced in South America and destined mainly for the United States — the world’s largest consumer of cocaine — and Europe. According to official figures, Panamanian authorities seized approximately 80 metric tons of illicit substances in 2024.

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Central America

Honduras election crisis deepens as CNE president denounces intimidation attempts

Tegucigalpa remains engulfed in a deep post-electoral crisis, marked by the absence of final results from the general elections held on November 30. On Thursday, the presiding counselor of the National Electoral Council (CNE), Ana Paola Hall, publicly denounced acts of intimidation that she warned could jeopardize the final phase of the process.

Following a meeting with the G-16+ diplomatic corps, Hall expressed concern over two specific incidents: a call by former president Manuel Zelaya summoning supporters of the Libre Party to gather outside the INFOP facilities—where electoral records and materials are being safeguarded—and a statement issued by the Permanent Commission of Congress accusing her and counselor Cossette López of alleged electoral crimes, an action she described as “baseless and outside their jurisdiction.”

Hall reaffirmed her institutional commitment and warned that she will not allow interference in the announcement of the results. “Honduras comes first,” she emphasized, underscoring her intention to defend the electoral process as a cornerstone of democracy.

Meanwhile, the preliminary results place Nasry ‘Tito’ Asfura, candidate of the National Party, in the lead with 40.52%of the vote, followed closely by Salvador Nasralla of the Liberal Party, with 39.48%. The ruling party’s candidate, Rixi Moncada of Libre, is in third place with 19.29%. Around 0.6% of the tally sheets—many of them showing inconsistencies—have yet to be reviewed.

The Organization of American States (OAS) called an extraordinary session of its Permanent Council to analyze the situation, while civil organizations and governments such as Paraguay’s urged respect for the popular will.

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Honduran President Xiomara Castro accused the United States, and specifically former president Donald Trump, of obstructing the process, while also denouncing threats from gangs against voters aligned with her party.

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