From The Rio Times · Contributing Reporter · · 2m
Panama Geopolitics Explained 2026
Panama's canal, ports and copper become flashpoint in US-China rivalry.
In brief
Panama's canal, ports and copper become flashpoint in US-China rivalry. Panama handles 13,404 ship transits in 2025 as US and China compete over canal control and port concessions. Originally reported by The Rio Times.
Key Facts
Panama handled 13,404 ship transits in 2025. It took full control of the waterway on 31 December 1999.
US and China Relations
Panama gave notice of exit from China's Belt and Road Initiative on 6 February 2025. US allows training deployments without permanent bases.
Port Concession Ruling
Panama's Supreme Court annulled the CK Hutchison port concession on 29 January 2026. China held nearly 70 Panama-flagged ships in its ports from 8 March 2026.
EU Tax List Removal
EU finance ministers removed Panama from Annex I of the EU tax blacklist on 9 October 2026. Panama stays on Annex II until OECD review.
UN Security Council
Panama holds a non-permanent seat on the UN Security Council until the end of 2026.
Power Index
Panama ranks 11th of 14 in The Rio Times Latin America Power Index with 34.2 points (October 2026 edition).
Prediction Markets
Kalshi gives 18% chance US takes control of part of Panama Canal before 20 January 2029.
US Canal Control
US signed 1903 treaty for canal zone rights. Panama took full control on 31 December 1999 under 1977 Carter-Torrijos treaties.
US Training Deployments
US and Panama signed memorandum on 9 April 2025 allowing US personnel for training and exercises without permanent bases.
China's Port Dispute
China suspended services at Balboa port on 10 March 2026 after Supreme Court ruling on port concessions.
Port Operations
Panama Maritime Authority took over Balboa and Cristóbal terminals after Supreme Court ruling on 29 January 2026.
Arbitration Claims
CK Hutchison claims damages exceeding US$2 billion after Supreme Court ruling on port concessions.
US-China Tensions
US and China accused Panama of targeted economic pressure on 16-18 July 2026 during diplomatic talks.
EU Tax Changes
EU removed Panama from Annex I tax blacklist on 9 October 2026. Panama stays on Annex II until OECD review.
Cobre Panama
Cobre Panama copper mine suspended operations after Supreme Court ruled contract unconstitutional in late 2023.
What Happens Next
Panama and China negotiate resolution for port detentions and maritime transport agreements by early 2027.
The headline
Panama handles 13,404 ship transits in 2025 as US and China compete over canal control and port concessions.
