The Latin American Report # 489

As expected, Panamanian authorities found some dirt in the audit of the Hong Kong-based conglomerate that manages two ports located at both ends of the Panama Canal, a dynamic strongly attacked by the Trump administration, which associates it with a “violation” of the agreements by which the United States ceded jurisdiction of the strategic inter-oceanic waterway to the Central American country, and a very concerning vulnerability, of the utmost importance, in terms of national security. The narrative is that, first and foremost, it is the Asian giant that controls CK Hutchison Holdings, the referred conglomerate. Panamanian Comptroller-General Anel Flores said the audit revealed some accounts payable, accounting miscalculations, and “shadow” operations that resulted in the loss of some $300 million in revenue to the country. In a revealing timing, the information was released on the same date that the US Secretary of Defense arrived in the country for a security conference, including in his agenda activities in the canal.

“There are many violations [from CK Hutchinson Holdings-run Panama Ports] that will have to be explained,” the Panamanian comptroller said. It is clear that they gave in to U.S. pressure beyond rhetoric from the Herons Palace. The Hong Kong-based company, which has been criticized at home for bending the knee by selling its stake to another consortium, including the controversial Blackrock, would be quietly managing its ports in the Panama Canal until 2046 had it not gone for Trump's aggressive posturing since before sitting again at the Resolute desk. “China-based companies continue to control critical infrastructure in the canal area,” Hegseth said after meeting with President José Raúl Mulino. "That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable." “Together, we will take back the Panama Canal from China's influence,” the Pentagon chief also stressed. Panama's Maritime Authority, which oversees the ports, could terminate the contract after the alleged findings.

Pier 3 tangibly represents America’s and Panama’s shared commitment to the Panama Canal’s security. Thanks to over $5 million in support from @USACEHQ, we have refurbished this pier. pic.twitter.com/tjJDzygniu

— Secretary of Defense Pete Hegseth (@SecDef) April 8, 2025

The Darien Gap right now 👇

The Darien Gap, a before and after.

Once a migratory highway thousands crossed every day, the perilous jungled passage has been turned into a ghost town after Trump slashed access to asylum.

Now, 10 migrants arrive a week.

For @AP with @matiasdelacroix: https://t.co/gE9dihCTRw pic.twitter.com/2rBECrQPAR

— Megan Janetsky (@meganjanetsky) April 8, 2025

The TdA saga

A new challenge to the controversial invocation of the Alien Enemies Act has been heard by U.S. District Judge Alvin Hellerstein, who scheduled a hearing for today Wednesday following a U.S. Supreme Court ruling in part favorable to the Trump administration as part of its judicial clash with U.S. District Judge James Boasberg. The high court lifted Boasberg's stay on deportations under the rarely used late 18th century law. Yet it imposed certain restrictions on those to come, such as giving migrants scheduled for deportation enough time to defend their cases. Two Venezuelans detained in Goshen argue that they want the opportunity to prove that they are not members of the infamous TdA.

Maximum pressure

US licenses for Trinidad-Venezuela gas projects revoked, Trinidad says https://t.co/enEKaKp4DX

— Francisco J. Monaldi (@fmonaldi) April 8, 2025

Mexico

"I have personally spoken with many of the CEOs and global managers of several of the auto companies to find out what they are thinking about the future...Most of them have told us that they do not plan to change anything at this time," said Sheinbaum this Tuesday about tariffs.

Looking for alternatives

Mexico eyes more fracking as Trump sparks fear over US gas reliance https://t.co/wfzlWw0DZA

— FT Energy (@ftenergy) April 8, 2025

Widely discussed today also about Mexico

Mexico rejects unilateral US military action after report US is weighing strikes https://t.co/3gSdB02145

— Aldo N. Mena (@solidaritywmex) April 8, 2025

Argentina

This 👇 has saved Argentina and Milei himself—who went from attacking China to shaking hands with Xi—more than once. Now, through Claver-Carone, Trump is telling the Pink House it has to end this swap deal, and in somehow plain terms, Washington links that step to the possibility of finalizing the new IMF deal.

China, US clash over major Argentina currency swap line https://t.co/Tq2O9j9rHT pic.twitter.com/kylAWMV5LY

— Reuters Legal (@ReutersLegal) April 8, 2025

IMF 'mountain of dollars' key to unlock Argentina's FX controls https://t.co/GFUuBbGRr8 pic.twitter.com/KBooHDyX0l

— Reuters Politics (@ReutersPolitics) April 8, 2025

Ecuador

Last Monday, five murders—all against prison guards—took place in less than 12 hours in the violent coastal province of Manabí. The fact should not sit well with Daniel Noboa's presidential aspirations for next Sunday's elections. Yesterday, dozens of public servants linked to the penitentiary system demonstrated to demand more security and personnel. Following UN estimations, they denounce the number of prison guards should be in the order of 10,000, but there are only 2,700 right now.

Brazil

The South American giant increases egg exports to the United States at a time of crisis with the product there.

➡️ Exportações de ovos sobem quase 350% e principal destino são os EUA

Em março, o Brasil vendeu para o exterior 3.770 toneladas. Em receita, a exportação brasileira de ovos somou US$ 8,65 milhões em março

Leia: https://t.co/UKzdSimAQR pic.twitter.com/My3CHYkXyL

— Metrópoles (@Metropoles) April 8, 2025

Dominican Republic, a sad day

There will be national mourning for this 👇 painful tragedy

At least 44 people were killed and more than 140 injured when a nightclub’s roof collapsed in the Dominican Republic’s capital city early Tuesday, local officials said. https://t.co/UMh9TudQy5

— The Washington Post (@washingtonpost) April 8, 2025