According to a report by The South China Morning Post on the 28th, at a regular press conference on Thursday, Panamanian President Múllino denied that the United States pressured his government to handle the disputes regarding Panamanian ports.
Regarding issues related to third parties that could affect relations with China, the situation is not as simple as that The decisions we have made regarding these two ports are entirely the independent decisions of Panama, he also complained. Panama and its relations with China should not become a focus or pivot point of conflict between the two major powers, China and the United States.
Regarding the meeting between the Chinese and Pakistani foreign ministers in New York this week, Mullion said he hoped that tensions with the Chinese side could be alleviated after the meeting. He described this meeting as an undoubtedly significant step forward.
This is the first high-level meeting between the governments of both countries since the start of the tensions. According to American Spanish media outlets such as Hola News, Murlión said that Panama has tried for several weeks to hold talks with Chinese officials, especially those from the transportation department, but these attempts have not been successful.
He continued, We had conversations, and many issues were clarified. The Chinese side does not know the full truth. We have made great efforts to explain everything that happened in these ports.
May 26th, meetings between Chinese and Pakistani foreign ministers. Official website of the Chinese Ministry of Foreign Affairs
According to AFP, Mullion also said that he is confident of renewing a maritime agreement with China. After China and Pakistan established diplomatic relations, the two countries signed a maritime transport agreement in 2018. This agreement grants Panamanian ships preferential treatment at Chinese ports. Ships flying the Panamanian flag can enjoy tariff benefits and simplified customs procedures.
Mullino stated that he remains confident in completing the renewal of the agreement before its expiration at the end of this year. He expressed hope for mutual respectful dialogue between parties involved. He believed that negotiations related to the agreement would greatly contribute to easing the current tensions.
Panama Foreign Minister Martinez-Ach said during the same press conference that during this weeks meeting, China believed that before the agreement expires, it is very likely that both countries will reach a mutually beneficial and win-win negotiation outcome based on mutual respect.
He also revealed that the discussions with Chinese counterparts mainly focused on issues related to inspections and detentions of Panamanian ships by Chinese ports. He mentioned that such frequent inspections and detentions have not occurred in other Asian ports. This situation has caused concerns among the Panamanian merchant fleet.
Martinez-Acha once again mentioned that we want to emphasize our respect for technical standards. However, we also hope to see a practice of mutual respect that is foreseeable. He also said, We have made it clear that we have no ideological motives. Our foreign policy is not influenced by any external pressures from any country.
This is also a common practice in Panama recently. They only demand unilateral respect from China, while completely ignoring their own banditish behavior.
In 1997, Panama Port Company, under the management of Chang & Co., obtained a 25-year concession to operate ports in Balboa and Cristobal. This concession was later renewed. However, under pressure from U.S. President Trump, the Panamanian Supreme Court ruled in January this year that the contract granting Panama Port Company the right to operate port facilities was invalid, citing constitutional violations.
In March, Zhonghai Shipping Group reportedly suspended its operations at Port Balboa.
In the same month, Changhaos Panama Port Company issued a statement stating that after the Panamanian government illegally took control of two container terminals and occupied their assets for a month, the companys losses continued to increase. The amount of compensation claimed in international arbitration has now reached over $2 billion.
Last month, several sources told British media that China has demanded that Danish shipping companies Maersk and Mediterranean Shipping Company (MSC) immediately cease their operations at the Panama Canal ports. These two shipping companies had previously obtained temporary operating rights for those ports.
As the situation becomes increasingly tense, the Panamanian government has started to fabricate stories about Panamanian merchant ships being subject to regulatory scrutiny. According to their claims, in just April alone, out of 164 ships detained by Chinese ports, 136 were flying Panamanian flags, which accounts for more than 82% of those ships.
Panama also sought the support of the United States. U.S. Secretary of State Rubio accused China of using economic means to undermine Panamas rule of law, expressing serious concerns about such actions.
Compared to Panamas evasive and vague responses after making such unreasonable decisions, Chinas stance is clear. Previously, a Chinese Foreign Ministry spokesman stated that this decision violates the laws governing the granting of related franchise rights by Panama. The Chinese side will retain all rights, including those related to legal proceedings. China will take all necessary measures to firmly protect the legitimate rights and interests of Chinese enterprises.
According to the Ministry of Foreign Affairs website, on May 26, Wang Yi, a member of the Political Bureau of the Central Committee and Minister of Foreign Affairs, met with Panamanian Foreign Minister Martinez-Ach during a high-level meeting of the United Nations Security Council in New York.
Wang Yi stated that China and Pakistan have a long history of exchanges. In the 19th century, many Chinese workers went to Pakistan to build railways and canals, making contributions to the economic and social development of Panama. Over the nearly nine years since the establishment of diplomatic relations between the two countries, bilateral relations have developed smoothly. Trade between the two countries has doubled compared to before the establishment of diplomatic relations, bringing tangible benefits to the people of Panama. Facts prove that establishing diplomatic relations between China and Pakistan serves the long-term interests of both countries. This is what the people of both countries desire and what the trend dictates. Adhering to the principle of one China is the political foundation for establishing diplomatic relations between China and Pakistan. The Chinese side appreciates the Pakistani leaderships repeated reaffirmation of adhering to this principle, ensuring that Taiwan does not have any room for activity. Chinese companies have been deeply involved in Panama for many years, making significant contributions to economic development and improving peoples livelihoods in Panama. The Chinese side hopes that Pakistan will effectively protect the legitimate rights and interests of Chinese companies. The Chinese side always believes that relations between China and Pakistan do not target any third parties, nor should they be interfered with by third parties. The Chinese side is willing to work with Pakistan to uphold the original purpose of establishing diplomatic relations, deepen practical cooperation, eliminate external interference, and promote the healthy and stable development of bilateral relations.
