China is Politicizing Trade Through Actions Against Panamanian Ships

The United States and five other allied countries in the Americas accused China on Wednesday of “politicizing maritime trade” and exerting “selective economic pressure,” following increased controls on Panamanian-flagged ships in ports of the Asian giant.  “Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago and the United States, together in our shared mission to secure our hemisphere, reaffirm that the sovereignty of our region is not negotiable,” states a press release issued by the Paraguayan Foreign Ministry.  The countries stated that they are observing “very closely the selective economic pressure exerted by China and the recent actions that have affected Panamanian-flagged vessels.” 

These actions, the signatories emphasized, constitute “a blatant attempt to politicize maritime trade and violate the sovereignty of the nations of our hemisphere.”  “Panama is a pillar of our maritime trade system and, as such, must remain free from undue external pressure. Any attempt to undermine Panama’s sovereignty poses a threat to us all,” they stressed.  The six countries noted that China’s measures come after Panama’s Supreme Court annulled the management concession for two ports near the Panama Canal to Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison group, a decision that coincided with pressure from US President Donald Trump over alleged Chinese influence over the waterway. 

In that regard, the signatory countries expressed their solidarity with Panama and emphasized that they remain “determined to confront all threats to ensure that the Americas continue to be a region of freedom, security and prosperity.”  The government of Panamanian President José Raúl Mulino has acknowledged an increase in interceptions of Panamanian-flagged ships, calling it “a product of the routine of the maritime industry,” and has called for respect for “legal sovereignty.”  The country has one of the world’s largest merchant registries, with more than 8,000-flagged vessels.  The interceptions do not necessarily imply the confiscation of the vessels or their cargo, but rather delays in departures, or additional inspections, by the Chinese port authorities.  However, Mulino himself downplayed the issue on April 9, stating that it is a “highly technical” matter and assured that they have already conveyed their “concern to the diplomatic authorities of China.”