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Panama may cancel Chinese port contract as Trump threatens to ‘retake’ canal

Panama’s Attorney General’s Office has recommended annulling the 1997 concession granted to a Chinese company to operate two key ports at the entrances of the Panama Canal, citing constitutional violations. The move comes as U.S. President Donald Trump threatens to “retake” the waterway, claiming it is under Beijing’s control.

The request was made by Panama’s Chief Prosecutor, Luis Carlos Gómez, to the Supreme Court, which is currently reviewing two legal challenges against the concession contract awarded to Panama Ports Company, a subsidiary of Hong Kong-based Hutchison Holdings.

At the same time, the company is facing an audit by Panama’s Comptroller’s Office to determine whether it has fulfilled its financial obligations to the government.

According to Gómez, the contract is “unconstitutional”, and he has urged the court to invalidate it. In a document obtained by AFP, he argues that the agreement violates 15 articles of the Panamanian Constitution, as it “improperly transferred exclusive state rights, impacting social and public interests.”

Additionally, Gómez claims that the contract undermines free competition, grants unjustified tax exemptions, and that the automatic 25-year renewal in 2021 was agreed upon under unfair conditions for the public interest.

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The lawsuits seek to void the contract that allows Panama Ports Company to operate the Balboa and Cristóbal ports, located at the Pacific and Atlantic entrances of the canal, respectively. The plaintiffs argue that the company has evaded taxes and received illegal benefits in violation of the Constitution.

The legal battle unfolds as Trump raises concerns over China’s influence in the canal, which the U.S. built and operated until its handover to Panama in 1999. Trump has hinted at taking back control of the waterway, despite the fact that it is managed by an independent Panamanian authority.

Washington sees the presence of a Chinese company at the canal’s entry points as a national security risk, even though both the U.S. and China are the top users of the strategic trade route. The canal, which handles 5% of global maritime trade, underwent a major expansion in 2016 to accommodate larger vessels.

 

 

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Central America

Nicaragua revokes legal status of 10 more NGOs, bringing total to over 5,600

The Nicaraguan government canceled the legal status of 10 more non-profit organizations on Friday (March 28, 2025), including the Swiss Foundation for Development Cooperation, bringing the total number of non-governmental organizations (NGOs) shut down since December 2018 to over 5,600.

According to the Ministry of the Interior, the Swiss Foundation for Development Cooperation, which had been registered since March 9, 2002, was found to be in non-compliance for failing to report its financial status for 2024 and for having an expired board of directors.

Among the 10 NGOs whose legal status was revoked were religious organizations, educational groups, consumer associations, and aquaculture organizations, all dissolved “voluntarily” or closed under similar reasons.

As of today, more than 5,600 NGOs have been dismantled following the popular protests that erupted in April 2018 in Nicaragua. In most cases, the assets of these organizations have been ordered to be transferred to the state.

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Central America

Panama’s president declares Darién gap ‘closed’ amid sharp drop in migrant flow

After years of receiving thousands of migrants daily traveling from the south towards the United States, the dangerous Darien jungle crossing at the Panama-Colombia border can now be considered closed, said Panamanian President José Raúl Mulino on Thursday.

“For all practical purposes, the Darien border is closed… We no longer have a migration problem coming from Colombia,” Mulino stated during his weekly conference, announcing that the migrant flow through this crossing had dropped by 97% in March compared to the same period in 2024.

Only 194 migrants have crossed the Darien from south to north this month, according to official data.

The more restrictive migration policies of U.S. President Donald Trump, since taking office on January 20, have impacted the situation, along with Panama’s increased control over the migration flow, according to experts and authorities.

Several weeks ago, the Panamanian government announced the closure of two of the three shelters located in the Bajo Chiquito and Lajas Blancas areas in the Darien, which had been set up to accommodate migrants due to the low number of people they were receiving.

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Panama has been heavily criticized by human rights groups for detaining migrants without their passports or cell phones, and under harsh conditions in these camps.

Regarding the flow of migrants traveling from north to south, many of whom are returning due to the impossibility of reaching the United States, “it has grown a little, but it has grown,” said Mulino. Most migrants continue their journey back to their countries of origin.

The majority of migrants in both cases are Venezuelan, according to the president.

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Central America

Nicaragua’s new judicial law consolidates power in Ortega and Murillo’s hands

The National Assembly (Parliament) of Nicaragua approved a law on Thursday that grants the country’s co-presidents, Daniel Ortega and Rosario Murillo, the authority to appoint the head of the Supreme Court of Justice for a six-year term, as well as the members of the National Council of Administration and Judicial Career.

The Organic Law of the Judicial System of the Republic of Nicaragua, proposed by Ortega and Murillo, was approved unanimously and swiftly by the Sandinista-controlled legislature during a session held in Managua.

This law, which repeals the Organic Law of the Judiciary, subordinates the justice system to the Presidency of the Republic, currently held by Ortega and Murillo, according to the text.

The new law establishes the figure of the judicial body rather than a state power and reduces the number of magistrates from 16 to 10.

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