# Panama Geopolitics Explained 2026

> Panama's canal, ports and copper become flashpoint in US-China rivalry.
- Title: Panama Geopolitics Explained 2026 · The Rio Times | Shortify
- Summary: 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…
- Keywords: panama, panama canal, china, belt and road initiative, panama ports company, cobre panama, united nations, eu tax blacklist, trade, canal neutrality, arbitration, Geopolitics
- Source: The Rio Times — https://riotimesonline.com/panama-geopolitics-explained-2026
- Author: Contributing Reporter
- Published: 2026-10-19T09:13:08+00:00
- Read time: 2 min
- Topics: panama, panama canal, us, china, belt and road initiative, panama ports company, cobre panama, united nations, eu tax blacklist, trade, canal neutrality, arbitration
## 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.
## Key takeaway

Panama handles 13,404 ship transits in 2025 as US and China compete over canal control and port concessions.