Panama

Panama is a country in Central America, strategically important due to the Panama Canal, a vital waterway connecting the Atlantic and Pacific Oceans. Recently, Panama's Supreme Court ruled that the contracts allowing Hong Kong-based CK Hutchison Holdings to operate two major ports on the canal were unconstitutional. This decision, made after a lawsuit brought in 2025, effectively nullifies CK Hutchison's rights to operate these ports. The ruling was welcomed by the U.S., who sees it as countering Chinese influence in the Western Hemisphere, and criticized by Beijing. Maersk, a Danish shipping giant, will temporarily take over operations of the ports. Panama's president has assured that canal traffic will continue without disruption. The situation is significant due to the canal's global trade importance and the geopolitical implications of control over its ports, particularly amidst U.S.-China competition.