China’s recent actions against Panama-flagged vessels raise serious concerns about the use of economic tools to undermine the rule of law in Panama, a sovereign nation and vital partner for global commerce. Detentions, delays, or other impediments to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system.

China’s actions against Panama-flagged vessels follow the recent decision by Panama’s independent Supreme Court regarding the Balboa and Cristóbal terminals. This sovereign ruling upheld transparency, the rule of law, and held private operators accountable to the public interest. The judgment also makes clear that Panama is a reliable partner for international investment and business opportunities. The United States stands firmly with Panama and looks forward to increasing our economic and security cooperation with this important partner.