The response follows a legal defeat for a Hong Kong-based conglomerate over its management of key ports on the Panama Canal

Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States have issued a joint statement backing Panama while condemning what they describe as China’s economic retaliation.

The response follows a legal defeat for a Hong Kong-based conglomerate over its management of key ports on the Panama Canal.

In late January, Panama’s Supreme Court cancelled contracts that had allowed a subsidiary of Hong Kong’s CK Hutchison to operate the Balboa and Cristobal port terminals.

The court ruled that the long-standing agreements were unconstitutional.

In their statement released on Tuesday, the six countries alleged that China responded to the ruling by applying “targeted economic pressure” on Panama, particularly affecting ships flying the Panamanian flag.

According to the US Federal Maritime Commission, China detained nearly 70 Panamanian-flagged vessels in March far above normal levels.

The countries said these actions, coming after a decision by Panama’s independent Supreme Court, represent an attempt to politicise maritime trade and undermine the sovereignty of nations in the region.

US Secretary of State Marco Rubio also expressed concern on X, saying the United States stands in solidarity with Panama and warning that any effort to undermine its sovereignty poses a broader threat.

China has previously rejected such claims, accusing the United States of “bullying” and attempting to damage its reputation in Latin America.

It has also described the Panamanian Supreme Court’s decision as “absurd” and “shameful.”

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