What Happened
President José Raúl Mulino said Panama received a communication from China acknowledging that the dispute over Panamanian ports is being handled in arbitration tribunals, rather than as a direct problem between the two governments. The president said he welcomed the shift in tone and viewed it as a sign that the issue can be handled with less bilateral tension.
Mulino said Panama and the company involved are defending their positions in arbitration proceedings in the United States, where both sides are presenting evidence in support of their claims. He framed the matter as a legal controversy centered on the port concession and Panama’s decision to take control of the facilities.
Port Control and Panama’s Position
The president said the port takeover was carried out under Panamanian law after the contract expired and following a court order. He said the state prepared for about a year before assuming control of the two ports and is now operating them.
Mulino stressed that the issue should not be treated as a broader conflict between Panama and China. Instead, he separated the port dispute from Panama’s diplomatic relationship with Beijing and said he had no interest in escalating the matter at the bilateral level.
Concerns Over Panamanian-Flagged Vessels
Mulino also expressed concern about the detention of Panamanian-flagged ships in Chinese ports. He said repeated complaints have already been filed with Chinese port authorities. After a recent visit by the director of the Merchant Marine to review the situation, the detentions, according to the president, have continued to increase sharply.
The president said every country has the right to enforce international safety rules for vessels entering port, including withholding departure clearance until safety problems are corrected. Even so, he argued that the pattern affecting Panamanian-flagged ships has become more serious and has triggered complaints from shipowners.
Why It Matters
The dispute touches two important maritime interests for Panama: the operation of strategic port infrastructure and the treatment of its merchant fleet abroad. With the port issue moving through arbitration and Panama pressing complaints about ship detentions, the outcome could affect commercial relations and the country’s broader shipping position.
For Panama, the message from Beijing appears to reduce the risk of a diplomatic escalation, while keeping the legal fight over the ports firmly in the hands of the courts and arbitration panels.