Panama values relations with both the US and China, says foreign minister

Work on the fourth bridge built over the Panama Canal has been completed and it will be open to the public soon, Panama’s Foreign Minister Janaina Mencomo told TRT World on Saturday.

The $1.3 billion project connects West Panama with Panama City, helping ease hours-long traffic jams. It was built by a consortium of Chinese firms in a country where historically the United States and Europe had played a major role as investors in infrastructure projects.

“It’s already done and we are going to inaugurate it very shortly,” Mencomo said on the sidelines of the Antalya Diplomacy Forum (ADF). “This is a company that has already passed through the bid in a very normal way. I don’t see any problem.”

Panama Fourth Bridge Consortium (CPCP) is made up of China Communications Construction Company and China Harbour Engineering Company.

The project drew attention as some experts saw it as Beijing’s way to make inroads in Panama, which straddles a waterway that handles 3 percent of the global trade every year.

Panama severed diplomatic ties with Taiwan — that Beijing claims as its own territory — a year before the project was announced in 2018.

Mencomo said the project must not be seen in the context of China-US competition for influence and it will not affect the Latin American country’s ties with Washington.

“Relationship between China and Panama will not damage or jeopardise Panama’s relationship with the United States,” she said.

“Our relation with the US is historic. There is no country in Latin America that can relate so much to the US as Panama. They stayed 100 years in my country, we share history, we share geography.”

Despite the geopolitical tensions, the US and China are key trade partners. Last year, China exported $500 billion worth of goods to the US.

“Trade between the US and China has benefited the canal,” said Mencomo. “So we are a country that cherishes open trade and we can afford to have all kinds of friends.”

Protecting trade routes

Panama Canal, built in 1914, to connect Pacific and Atlantic oceans, has obliged the Latin American country’s government to take cautious stance on international issues.

A big part of Panama government’s revenue comes from the shipping lines, that use the waterway. And to convince the ships to keep plying the trade route, the small country of 4.3 million people has to ensure security and neutrality.

“Panama has a very special position because we by international law have to remain neutral in any conflict,” said Mencomo. “Sometimes this is difficult to explain. But the canal is neutral. So we need to be very balanced with our foreign affairs.”

“Why is this important to the world? Because currently not every route is safe and one route needs to remain safe. So for us free trade, dialogue and mediation are very important to solve the problem,” she said, referring to Israel’s war on Gaza.

Panama Canal’s vulnerability became evident after the Yemen-based Houthi group launched attacks on cargo ships in the Red Sea in solidarity with Palestinians in Gaza, disrupting a vital trade route and pushing up global shipping costs.

Mencomo also highlighted close ties between Panama and Türkiye, pointing out the high frequency of direct flights between Istanbul and Panama City.

“I am the only foreign minister from the Americas who has come to this event (ADF). So this shows how important Türkiye is for us.”

“There is a lot of connection, we have a good momentum, a lot of cooperation between Panama and Türkiye.”