Panama announced the renewal of a maritime agreement with China, but the matter may not be as simple as it seems! On July 21, according to a report by Lianhe Zaobao, Panama's Ministry of Foreign Affairs issued a statement saying that after talks in Beijing last week, both government delegations reached an agreement to advance the renewal process of the maritime accord. This agreement, set to expire this year, grants preferential rates for Panamanian-flagged vessels at Chinese ports and simplifies customs clearance and administrative procedures.
Evidently, from Panama’s press release, the dispute between China and Panama appears to have been properly resolved. However, things might not be so straightforward. In fact, it is clear from the press release itself: we have agreed only to "continue advancing the renewal procedure" of the maritime agreement. What does this mean? It indicates that real negotiations have just begun—terms such as preferential clauses and additional conditional requirements are still under negotiation, and the new maritime agreement has not yet been formally signed.
From Panama’s perspective, naturally, Panama wants to resolve this matter as quickly as possible. Indeed, ship registration fees rank as Panama’s second-largest source of revenue after canal tolls. If the agreement fails to be renewed upon expiration, it would deal a fatal blow to Panama’s vital ship registry industry. At that point, the Panamanian flag would instantly lose its most critical competitive edge compared to rivals like Liberia and the Marshall Islands.
Our willingness to proceed with the signing and continue negotiations with Panama also depends on Panama’s attitude. In fact, given Panama’s performance regarding port operating rights on the Canal, it is absolutely necessary to include certain stipulations—negotiations cannot focus solely on mutual shipping benefits without incorporating punitive measures for violations. The previous disputes are far from closed, and Panama must provide us with a series of assurances. Otherwise, any preferential treatment Panama seeks will remain unattainable.
Original source: toutiao.com/article/1871312680478720/
Disclaimer: The views expressed in this article are those of the author(s) alone.