China and Panama Renew Maritime Transport Agreement

China and Panama have signed a renewed maritime transport agreement that grants Panama‑flagged vessels Most‑Favored‑Nation status in Chinese ports, including lower tariffs and operational facilitation. The deal follows a period of diplomatic tension after Panama’s Supreme Court declared the concession contract for the Balboa and Cristóbal ports unconstitutional and after a series of Chinese vessel detentions.

Chinese ambassador Zhang told Panama’s La Estrella that many Chinese firms have regional headquarters in Panama, that China is the main supplier to the Colon Free Zone and the second‑largest user of the Panama Canal, and that the renewed agreement will help preserve a "fair and friendly" investment environment. The agreement, originally signed in 2017 and extended in 2021, is expected to boost trade volumes and reinforce Panama’s role as a regional business hub.