Panama and China move to renew maritime shipping agreement

Panama announced an agreement with China to renew a maritime shipping treaty that gives advantages to Panamanian ships in Chinese ports.

The Panamanian Foreign Ministry said that, after negotiations in Beijing last week, the two countries had "reached a consensus" and would move forward with renewal procedures for the agreement.

The treaty ends this year. It offers preferential tariffs and simpler bureaucratic rules for ships under the Panamanian flag in Chinese ports.

The agreement comes as Panama has complained that its boats were facing tighter controls in China. The tensions followed the cancellation of a Hong Kong company's concession to operate two ports in the Panama Canal.

Local media reports said nearly 500 Panamanian vessels were detained for inspection in 2026. Acting Foreign Minister Carlos Hoyos said Monday that those numbers had returned to "the historical level".

China intensified controls of Panamanian boats after a court ruling in Panama cancelled the contract for Panama Ports Company, a subsidiary of Hong Kong firm CK Hutchison, which operated two terminals in the canal.

Trump has sought to assert control over the interoceanic waterway, arguing it was run by China. The canal is overseen by a Panamanian institution that is autonomous from the government.