Panama-China Maritime agreement progressing

Panama President José Raúl Mulino announced on Tuesday, October 6, that the Panamanian government has made progress with China on renewing the bilateral Maritime Transport Agreement after Chinese authorities detained ships.

Mulino said that the instrument is currently undergoing internal consultations by China and expressed his expectation that it could come into effect soon.

“The situation has improved considerably, and we are optimistic about the path ahead. We have also made progress on a maritime instrument that is currently undergoing internal consultations in China

On August 21, the Ambassador of the People’s Republic of China to Panama, Zhang Xiangyan, said that “the parties and their counterparts are making progress on the procedural issues” to renew the Maritime Transport Agreement, following the high-level meeting held by both countries from July 16 to 18, 2026 in the Asian country, with the purpose of renewing the agreement and exchanging technical knowledge on Port State Control supervision.

The bilateral Maritime Transport Agreement is an instrument that regulates aspects of the maritime relationship between both countries and establishes favorable conditions for Panamanian-flagged vessels in Chinese ports.

The agreement was signed after the establishment of diplomatic relations between Panama and China in 2017. It entered into force in 2018 and granted the Panamanian merchant marine most-favored-nation treatment in Chinese ports. Initially signed for a three-year period, it was renewed in 2021 for five years, expiring in July 2026.

The renewal is especially important for Panama, as it maintains one of the world’s largest ship registries. China, for its part, is home to some of the world’s major cargo ports and is a strategic market for international maritime transport.