José Raúl Mulino on Thursday expressed confidence that Panama will successfully renew its maritime shipping agreement with China despite heightened tensions linked to the Panama Canal and pressure from Donald Trump over Chinese involvement in the strategic waterway.
Panama and China established diplomatic relations in 2017 and subsequently signed a maritime cooperation agreement that grants preferential port tariffs and simplified bureaucratic procedures for vessels sailing under the Panamanian flag at Chinese ports. The agreement is set to expire later this year.
The renewal discussions come amid strained bilateral relations after Panama cancelled the concession of Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings, which operated two terminals connected to the Panama Canal.
According to Panamanian officials, Chinese authorities subsequently imposed tighter inspections and controls on Panamanian-flagged vessels operating in Chinese ports.
On Tuesday, Chinese Foreign Minister Wang Yi and Panamanian Foreign Minister Javier Martínez-Acha met in New York in an effort to ease tensions and advance negotiations over the maritime accord.
Mulino described the meeting as a “transcendental step” and said he remains optimistic that both countries can achieve a constructive outcome through “respectful dialogue.”
Martínez-Acha also stated that China signaled strong prospects for a mutually beneficial agreement based on mutual respect and cooperation.
The dispute has unfolded against the backdrop of renewed scrutiny of the Panama Canal by Trump, who has argued that China exerts undue influence over the strategic interoceanic trade route. However, Panama has repeatedly maintained that the canal is managed independently by the autonomous Panama Canal Authority and remains under Panamanian control.
