Panama Renews Maritime Transport Agreement with China

PANAMA RENEWS MARITIME TRANSPORT AGREEMENT WITH CHINA

PANAMA----July 22, 2021--- The Panama Maritime Authority, in collaboration with the Ministry of Foreign Affairs of Panama, have renewed the Agreement on Maritime Transport between the Government of the Republic of Panama and the Government of the People's Republic of China.

This agreement came into force July 20, 2021, at the end of the renewal process between the Panamanian and Chinese authorities. However, in order to avoid interrupting its implementation it was considered that from May 17, 2021 until its entry into force, both parties would continue to benefit from its provisions.

The agreement renewal will be extended to five years, up from 3 years, and will strengthen trade relations between the two nations, and Panama Ship Registry‘s commitment to its users entering ports located in the People's Republic of China.

The renewal of this Agreement represents a series of unique advantages for shipowners who have registered their vessels under the Panamanian flag, such as:

• Appropriate measures to facilitate and expedite maritime transport to avoid unnecessary delays; granting favorable treatment in the collection of tonnage fees based on preferential rates.
• Promote maritime and port development; full and efficient use of the maritime fleet to meet foreign trade demand.
• Ensure the safety of navigation and protection of the environment (including the safety of vessels, crews, passengers and cargo).
• Improve the business relationship and exchange of scientific and technological experiences; and exchange information on international maritime organizations and conventions.
• Include the protection of the maritime environment, the development of marine resources, the observation of the sea, forecasting and warning of natural disasters and research, development and training on marine maritime issues.
• Promote the supply of services to Panama-flagged vessels.
• Increase the demand for maritime transport services for export and industrial production.
• Maintain close relations that allow free and unimpeded access of Panama-flagged vessels for cargo traffic to and from China.

The Panama merchant fleet’s vessels will maintain the same uninterrupted port tariffs benefits and preferential treatment in the ports of the People's Republic of China, reaffirming the status of "Most Favored Nation".

This Agreement on Maritime Transport is based on equality, mutual benefit, freedom of navigation and the principle of non-discrimination for Panama-flagged vessels operating in Chinese ports.