The Panamanian Supreme Court’s decision to annul the licences that allowed a Hong Kong based firm to operate in the Panama Canal has been met with a backlash from China. While it’s not clear if China can make Panama pay the threatened ‘heavy price’, these developments underscore that the ‘Donroe Doctrine’ has made it more difficult for Latin America to maintain strong ties with both the US and China. Elsewhere, the recent falls in precious metals prices could derail Peru’s recent run of strong growth and make Bolivia’s rebalancing altogether harder.
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