Panamanian President Mulino has expressed confidence that Panama can withstand pressure from the United States and renew its maritime agreement with China.
According to AFP, after establishing diplomatic relations in 2017, Panama and China officially signed a maritime agreement, allowing ships flying the Panamanian flag to receive preferential port tariffs in China, with relatively relaxed administrative regulations.
The aforementioned maritime agreement will expire this year.
After revoking the contract for Hong Kong's Hutchison Whampoa-owned Panama Ports Company to operate two ports on the Panama Canal, Panama complained that ships flying the Panamanian flag have faced tightened controls from Beijing. Nevertheless, Panama still seeks to renew the maritime agreement with China.
On Tuesday (May 26), Chinese Foreign Minister Wang Yi met with Panamanian Foreign Minister Martinez-Acha (Javier Martinez-Acha) in New York to discuss current China-Panama relations.
Panamanian President Mulino (Jose Raul Mulino) said at a press conference on Thursday (28th) that the foreign ministers' meeting was "a groundbreaking step" and that this was "beyond doubt."
Mulino said he is confident the negotiations between the two countries will progress smoothly and hopes for "a dialogue based on mutual respect."
Martinez-Acha also said at the press conference that Chinese Foreign Minister Wang Yi stated that the two countries have every chance to "achieve a mutually beneficial negotiation outcome on the basis of mutual respect."
This January, Panama's Supreme Court ruled that the operating contract for the two ports on the Panama Canal held by Panama Ports Company was unconstitutional, and the Panamanian government officially took over the two ports in late February. Subsequently, Beijing was accused of harassing and detaining ships flying the Panamanian flag, seen as retaliation for the ruling. Chinese officials denied the allegations, calling them "baseless and a complete distortion of facts."
The Trump administration claimed that China was controlling the Panama Canal in order to compete for control of this key waterway. In fact, the waterway is managed by a Panamanian authority independent of the Panamanian government.