Facing pressure from Trump, Panama hopes to renew shipping agreement with China

(CNA, Panama City, 28th) Despite continued pressure from US President Donald Trump to control the Panama Canal, Panamanian President Jose Raul Mulino said today that he is confident that he can renew the shipping agreement with China. Reuters reported that after Panama and China established diplomatic relations in 2017, the two sides signed a shipping agreement allowing ships flying the Panamanian flag to enjoy preferential port rates and simplified administrative procedures at Chinese ports. This agreement will expire this year. Although Panama has complained that Panamanian ships now face stricter controls in China after the concession for two ports in the Panama Canal operated by a Hong Kong company was revoked, Panama is still seeking to renew the agreement. The dispute stems from a ruling by the Panamanian Supreme Court in January to revoke the contract of the Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, causing it to lose the right to operate the Balboa port on the Pacific side and the Cristobal port on the Atlantic side of the canal. Trump argues that he should control this important transoceanic waterway, on the grounds that the Panama Canal is effectively controlled by China. Currently, the canal is managed by an autonomous agency independent of the Panamanian government. Panamanian Foreign Minister Javier Martinez-Acha met with Chinese Foreign Minister Wang Yi in New York on the 26th in an attempt to ease the situation. After the meeting, Mulino said at a press conference that the talks were "undoubtedly an important step," and that he believed the negotiations would proceed smoothly, looking forward to a "dialogue of mutual respect."