Panama seeks to renew China shipping deal despite canal tensions

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Panama City: Panamanian President Jose Raul Mulino said Thursday he remains confident that Panama can renew a maritime shipping agreement with China despite growing tensions linked to the Panama Canal and pressure from the United States.

The agreement, signed after Panama established diplomatic ties with China in 2017, provides preferential port tariffs and simplified procedures for Panamanian-flagged ships in Chinese ports. The deal is set to expire later this year.

Panama has complained that its vessels are facing stricter inspections and controls in China after a Panamanian court cancelled the concession of Panama Ports Company, a subsidiary of Hong Kong-based Hutchinson, which operated two terminals near the Panama Canal.

The issue was discussed this week during talks in New York between Chinese Foreign Minister Wang Yi and Panama’s Foreign Minister Javier Martinez-Acha.

Mulino described the meeting as an important step and said he hoped both countries could continue negotiations through respectful dialogue.

The tensions come as U.S. President Donald Trump has pushed for greater U.S. control over the Panama Canal, claiming China has influence over the key global shipping route. Panama has rejected those claims, saying the canal is managed independently by Panamanian authorities.

Pic Credit: AFP