Panama Seeks Understanding With China on Port Dispute

Panama aims to reach an understanding with China to ease bilateral relations during an upcoming meeting between their foreign ministers in New York. The relationship has been strained by Panama's decision to remove a Chinese operator from two key ports and China's subsequent detention of Panamanian-flagged ships.

Panamanian Vice Minister of Multilateral Affairs and Cooperation, Carlos Guevara Mann, stated that the desired understanding involves China recognizing Panama's rule of law. He stressed that sovereign decisions made within Panama are not expressions of hostility toward any nation and should not be interpreted as such or lead to retaliation.

The meeting, scheduled on the sidelines of a UN Security Council session, is the first high-level encounter amid recent tensions. The dispute originated in February when Panama's Supreme Court ruled against the concession granted to Chinese conglomerate CK Hutchison for operating two ports near the Canal, citing it was unfavorable to state interests. This ruling followed years of complaints and came amid U.S. pressure, with then-President Donald Trump questioning China's influence.

China had warned Panama of a "high price" for removing CK Hutchison, prompting the company to initiate international arbitration seeking at least $2 billion. The vice minister expressed hope that the conversation would clarify Panama's intentions and lead to an end of the difficulties arising from the strict application of the court's ruling.