Panamas President Responds to China Over Canal Ports Dispute

Panama’s President Jose Raul Mulino Responds to China’s Threat Over Eviction of Hong Kong Company from Panama Canal Ports

In a social media post, President Mulino rejected China’s threat against his country, stating that Panama upholds the rule of law and has an independent court system. The statement came after Panama’s Supreme Court invalidated a contract allowing Hong Kong-based CK Hutchison to operate two ports on the Panama Canal.

The ruling followed pressure from US President Donald Trump, who had previously threatened to take control of the canal and warned of military action. Last week, Panama’s Supreme Court ruled that CK Hutchison’s concession was “unconstitutional”, leading China’s Hong Kong and Macao Affairs Office (HKMAO) to describe the decision as “absurd” and “shameful”.

China had warned Panama that it would pay a “heavy price” if it did not recognize the situation and correct its course. The Panamanian Foreign Ministry has announced plans to issue a statement on the matter and take corresponding decisions.

The loss of CK Hutchison’s port concession on the Panama Canal has significant implications for trade between the US and China in Latin America. The concession was managed by CK Hutchison through its subsidiary, the Panama Ports Company, which had operated the ports since 1997.

Following the ruling, the Panamanian government has tapped Danish shipping company Maersk to temporarily take over management of the port terminals until a new concession is awarded.

Source: Al Jazeera