Panama Renews Maritime Agreement with China
Panama has reached an agreement with the Chinese government to renew the maritime transport agreement that grants Panamanian-flagged vessels priority in customs tariffs and bureaucratic facilitation at Chinese ports.
The Panamanian government announced that it has reached an agreement with the Chinese government to renew the maritime transport agreement that provides various advantages to Panamanian-flagged vessels at Chinese ports.
The agreement comes after complaints that Panamanian-flagged vessels had been subjected to stricter inspections at Chinese ports following the cancellation of the concession held by a Hong Kong-based company to operate two ports within the Panama Canal system.
In a written statement, Panama's Ministry of Foreign Affairs said that following negotiations held in Beijing last week, the two countries had “reached an agreement” and that the “procedures for renewing the agreement will be initiated.”
The current agreement, which expires this year, provides Panamanian-flagged vessels with preferential customs tariff treatment and simplified bureaucratic procedures at Chinese ports.
According to local media reports, around 500 Panamanian-flagged vessels were detained for inspection at Chinese ports in 2026.
However, Acting Foreign Minister Carlos Hoyos said on Monday that the number of inspections has now returned to “historic levels.”
China's tightening of inspections on Panamanian-flagged vessels intensified after a court in the Central American country ruled to cancel the contract of Panama Ports Company, a subsidiary of the Hong Kong-based CK Hutchison, which operates two terminals within the Panama Canal system.
Meanwhile, U.S. President Donald Trump had sought to gain control over the strategic waterway, arguing that the Panama Canal was being controlled by China.
However, the Panama Canal is administered by an independent state institution that operates autonomously from the Panamanian government.
