On Thursday, March 19, the Panamanian government refuted a statement from Panama Ports Company (PPC) regarding the cancellation of a port contract, calling their remarks “false and defamatory.”
According to Reuters, the Panamanian government stated that the subsidiary of China Communications Construction Company Ltd (CCCC) and its affiliated companies have refused to cooperate. Panama also accused them of withholding information and impeding the coordinated transition process after the contract cancellation.
Panama Ports Company announced on Monday that the Panamanian government missed the deadline on March 13 and requested an extension due to a lack of legal representation.
Panamanian President Jose Raul Mulino rejected these claims earlier on Thursday, calling the accusations “absurd” and “pure falsehoods.”
Mulino stated that the government has hired international lawyers to safeguard the national interest.
On January 29, the Panamanian Supreme Court ruled that the terms authorizing China Communications Construction Company to operate the ports at both ends of the Panama Canal violated the country’s Constitution.
These terms granted China Communications Construction Company’s subsidiary, Panama Ports Company, the rights to develop, construct, operate, and manage the port terminals in Balboa on the Pacific side and Cristobal on the Caribbean side of the canal.
In late February, Panama ultimately canceled these contracts following the Supreme Court ruling.
Since U.S. President Trump expressed during the 2024 election his determination to “reclaim” control of the Panama Canal from China, the issue of who controls the canal has been under scrutiny.
Following the Panamanian Supreme Court decision, the U.S. State Department issued a joint statement signed by the U.S., Costa Rica, Ecuador, Guatemala, Honduras, and Paraguay, applauding the ruling and recognizing Panama’s commitment to providing a fair competitive environment for domestic and foreign investors.
President Mulino reiterated that the ports are strategic assets of the country, and the government will strive to ensure orderly proceedings.