Washington DC [US], April 29 (ANI): The United States and its allies have raised concerns over what they described as China's 'targeted economic pressure' on Panama following a key court decision affecting port operations linked to the Chinese firm CK Hutchison.

In a joint statement, the US, along with Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago, reaffirmed their commitment to regional sovereignty and security.

'We, the nations of Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States, standing together in our shared mission to secure our hemisphere, reaffirm that the freedom of our region is non-negotiable. We are monitoring with vigilance China's targeted economic pressure and the recent actions that have affected Panama-flagged vessels. These actions--following the decision of Panama's independent Supreme Court regarding the Balboa and Cristobal terminals--are a blatant attempt to politicize maritime trade and infringe on the sovereignty of the nations of our hemisphere,' the statement read.

The countries said the developments followed a ruling by the Supreme Court of Panama that invalidated the legal framework supporting a 1997 concession granted to Panama Ports Company, a subsidiary of CK Hutchison, to operate the Balboa and Cristobal terminals at the Panama Canal.

Describing Panama as 'a pillar of our maritime trading system,' the statement warned that any attempt to undermine its sovereignty would be seen as a broader threat. 'Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure. Any attempts to undermine Panama's sovereignty are a threat to us all. We stand in solidarity with Panama. Through our renewed commitment to peace, security, and Hemispheric cooperation, we remain dedicated to facing all threats to ensure the Americas remain a region of freedom, security, and prosperity,' it added.

US Secretary of State Marco Rubio echoed the concerns in a post on X, stating, 'The sovereignty of our hemisphere is non-negotiable. We are deeply concerned by China's targeted economic pressure after the Balboa & Cristobal terminals decision. We stand in solidarity with Panama. Any attempts to undermine Panama's sovereignty are a threat to us all.'

The dispute stems from the January ruling by Panama's top court, which effectively ended CK Hutchison's decades-long control over the terminals. The Hong Kong-based company has rejected the decision, accusing Panamanian authorities of unlawful expropriation and launching international arbitration proceedings seeking more than USD 2 billion in damages.

Following the ruling, reports emerged of increased inspections and detentions of Panama-flagged vessels in China, seen by the US and its allies as retaliatory measures.

The Panama Canal, which handles roughly 5 per cent of global maritime trade, remains a strategic chokepoint. (ANI)