Panama Lawmakers Reengage Taiwan as Canal Dispute Strains Ties with Beijing

A senior cross-party delegation from Panama's National Assembly has concluded a visit to Taiwan, underscoring renewed parliamentary engagement as Panama's relations with Beijing face growing strain over the Panama Canal.

The delegation was led by José Antonio Pérez, chair of Panama's Congressional Committee on Canals and Infrastructure and executive secretary of the Inter-Parliamentary Alliance on China (IPAC). The trip marked the second bipartisan visit by Panamanian lawmakers to Taiwan within six months, following a similar delegation in November 2025.

“Old Friends Are Still Better”

During a banquet hosted by Taiwan's Foreign Minister Lin Chia-lung (林佳龍), the 26-year-old Pérez recalled his first encounter with Taiwan nearly a decade ago, when he visited Taipei 101 during a brief layover as a teenager. The experience, he said, left a lasting impression.

More significantly, Pérez highlighted the value of long-standing ties between Taiwan and Panama, remarking that “old friends are still better than new ones.” （Related： Taiwan's Postwar Pivot: How Yin Zhongrong Engineered the Export-Led Miracle ｜ Latest ）

Although Panama severed official diplomatic relations with Taiwan in 2017 in favor of Beijing, Lin noted that bilateral trade and people-to-people exchanges have remained resilient.

Canal Politics and Rising Friction with China

The visit comes amid heightened tension between Panama and China over strategic infrastructure. In 2026, Panama's Supreme Court ruled unconstitutional a port concession agreement with Hong Kong–based CK Hutchison Holdings, a decision that directly affected operations linked to the Panama Canal.

Chinese officials subsequently warned that Panama would face a “heavy price” if it continued what Beijing described as an “obstinate” course, further straining bilateral relations.

At the same time, U.S. President Donald Trump has renewed pressure over the canal, accusing China of exercising de facto control over the critical shipping route and signaling Washington's intent to reassert its influence in the region.

Technology, AI, and “Non-Red” Supply Chains

During their stay, Panamanian lawmakers visited Hsinchu Science Park, the National Space Organization, Kaohsiung Software Technology Park, and Kaohsiung Port, focusing on Taiwan's technological and industrial capabilities.

Lin said Taiwan is open to pragmatic cooperation frameworks even in the absence of formal diplomatic ties, particularly in areas such as technology, logistics, and resilient “non-red supply chains.” Pérez expressed particular interest in artificial intelligence and economic diplomacy as potential pillars of future collaboration.

As Panama navigates intensifying strategic competition between Washington and Beijing, the repeat visits by lawmakers to Taipei suggest a deliberate effort to diversify external partnerships—using parliamentary diplomacy to explore options beyond traditional diplomatic channels.

（Related： Taiwan's Postwar Pivot: How Yin Zhongrong Engineered the Export-Led Miracle ｜ Latest ）