Panama renews a treaty with China to secure trade and administrative benefits

Panama reached an agreement with China after a week of negotiations to renew a treaty that grants certain commercial and bureaucratic advantages to the Panamanian fleet.

This agreement comes at a time when the government of José Raúl Mulino is denouncing the pressure being exerted by the regime of Xi Jinping after the Panamanian courts annulled the concession for two ports located near the Panama Canal to a Hong Kong-based company.

Shortly thereafter, Panama took control of these two ports—Balboa and Cristóbal—,previously operated by the Hong Kong-based company CK Hutchison Holdings.

According to a statement obtained by AFP, the two countries "reached a consensus" and will now "proceed with the renewal process" for the agreement.

Among the points agreed upon, Panama secures preferential port fees and streamlined procedures for its ships when they dock at Chinese ports.

This pact will expire this year unless a new agreement is reached.

Meanwhile, the United States continues to support the Panamanian government to prevent the Chinese communist regime from taking complete control of the Panama Canal. In April, the Department of State (DOS) reported that Beijing's "selective economic pressure," in addition to the actions it is taking in the region, "constitute a blatant attempt to politicize maritime trade and to infringe upon the sovereignty of the nations in our hemisphere."