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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

U.S. and Regional Allies Back Panama Amid Dispute With China

The United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago issued a joint statement in support of Panama’s sovereignty, arguing that China’s recent actions represent an attempt to politicize maritime trade and undermine the sovereignty of nations in the hemisphere.

“We are closely monitoring China’s selective economic pressure and recent actions affecting vessels flying the Panamanian flag,” the statement released Tuesday said. “Panama is a pillar of our maritime trading system and, as such, must remain free from undue external pressure.”

The statement comes amid growing tensions surrounding the Panama Canal and the operation of key ports linked to global trade.

At the end of January, Panama’s Supreme Court invalidated the legal framework supporting the 1997 concession that granted Panama Ports Company, a subsidiary of CK Hutchison, the right to operate the Balboa and Cristóbal terminals located on the Pacific and Atlantic entrances of the Panama Canal.

The ruling followed mounting pressure from the United States to curb Chinese influence around the strategic waterway, through which roughly 5% of global maritime trade passes.

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CK Hutchison, which managed the ports for nearly three decades, rejected the court’s decision and accused Panamanian authorities of illegally confiscating its assets. The company has launched international arbitration proceedings against Panama, seeking more than $2 billion in damages.

Following the court ruling, reports emerged of increased detentions and inspections of Panamanian-flagged vessels in China, actions widely viewed as retaliatory measures.

On Wednesday, China’s Foreign Ministry dismissed the joint statement as “completely unfounded and misleading,” accusing the United States of politicizing port operations and warning that Beijing would take steps to protect its interests in Panama.

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Central America

International Project Tackles Gender Violence in Indigenous Communities in Panama

Efforts to combat machismo and gender-based violence in Panama’s indigenous communities are advancing through international cooperation projects, including an initiative presented this week that is evolving from women’s empowerment toward a new phase focused on educating husbands and sons.

The project, led by the organization HIAS with support from the Spanish Cooperation Agency, is being implemented in the Emberá-Wounaan indigenous territory in the Darién jungle region near the Colombian border.

Originally created to bring state services closer to remote communities, the initiative focused on access to healthcare — particularly sexual and reproductive health services — but later expanded to promote broader access to fundamental rights.

“The project emerged from the understanding that strengthening the rights of the population as a whole was essential to achieving fairer, more cohesive and inclusive societies capable of fighting poverty,” Itziar González, general coordinator of Spanish Cooperation in Panama, told EFE.

HIAS Country Director in Panama Oliver Bush explained that the initiative includes “a very strong component of empowerment for women and adolescent girls in the Emberá-Wounaan communities, aimed at recovering the historical worldview in which women have always played a fundamental role in decision-making within their communities.”

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The program also includes prevention, mitigation and response mechanisms against gender-based violence, an area that will be reinforced during the project’s second phase.

“It will include a component focused on positive masculinities, where we will work with men, because men are an important factor in the prevention and mitigation of gender violence,” Bush said.

According to Bush, the initiative seeks not only to eliminate stigmas and forms of everyday sexism that are often socially and culturally ingrained in men, but also to encourage men to recognize themselves as sensitive human beings capable of contributing to healthier and more equal communities.

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Central America

Guatemala’s President to Hold Private Interviews for Attorney General Candidates

Guatemalan President Bernardo Arévalo de León announced that he will privately interview the six candidates for attorney general this week, breaking with the public format used by former President Alejandro Giammattei.

Speaking during a press conference on Monday, Arévalo said the interviews would not be open to the public because he intends to question candidates about their plans to recover the Attorney General’s Office from what he described as “political-criminal networks.”

Under Guatemalan law, the president is responsible for appointing the country’s attorney general.

The position has been held since 2018 by Consuelo Porras, whose term is set to expire on May 16 after two consecutive terms marked by local and international allegations of corruption.

Arévalo is expected to select the new attorney general later this week from a shortlist recently submitted by a nomination commission.

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The Guatemalan president has repeatedly criticized the Public Prosecutor’s Office, claiming it has been compromised by corrupt political interests.

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