Panama demands end to discriminatory measures against its flagged ships at OAS

Panama has formally called for an immediate cessation of what it describes as discriminatory actions against ships flying its flag, raising the issue at the Organization of American States (OAS) General Assembly held in Panama City. The strong demand comes in the wake of China significantly increasing its detentions of Panamanian vessels within Chinese ports. This escalation in measures by China appears to be linked to the recent forced departure of a Chinese operator from two key terminals located near the strategic Panama Canal. During his address to the OAS plenary session, Panama's Vice Foreign Minister, Carlos Guevara Mann, issued a firm appeal: "We make a firm call for discriminatory measures against ships of Panamanian flag to cease." Guevara Mann underscored Panama's commitment to upholding the principles of freedom of navigation and the unimpeded flow of global maritime commerce. He stated that as a vital transit nation and a key service provider to international trade, Panama views the security and openness of international shipping routes as legitimate interests shared by all member states of the international community. The tension between Panama and China has been palpable, particularly after Panamanian Foreign Minister Javier Martínez-Acha urged China's permanent observer to the OAS, Xie Feng, to respect Panama's constitution. This followed Xie Feng's own address, where he called on Panama to "correct its mistakes and protect the interests of Chinese companies." The Panamanian foreign minister revealed that Chinese authorities had attempted to interfere with a ruling by Panama's Supreme Court. This ruling compelled the Chinese conglomerate CK Hutchison to relinquish control of two ports at the Pacific and Atlantic entrances of the Canal, a decision that has strained bilateral relations. The dispute originated earlier this year when CK Hutchison ceased operations at these ports after the Panamanian Supreme Court declared the original 1997 concession and its automatic renewal in 2021 unconstitutional. In response, China intensified inspections and detentions of Panamanian-flagged ships, causing significant delays and extra scrutiny. Panamanian President José Raúl Mulino noted on Monday, at the inauguration of the OAS General Assembly, that China had begun discussions with the Ministry of Transport to resolve the situation, which has already led to over 200 ships de-registering from Panama's maritime registry.