Panama’s president, José Raúl Mulino, is striking a conciliatory tone in an attempt to ease diplomatic tensions with China following reports of increased Chinese inspections of Panama-flagged vessels.
During a visit to the Port of Balboa, Mulino emphasised that Panama does not wish to enter into a conflict with China and that the country hopes for a swift normalisation of relations. He also dismissed the notion that the increased ship inspections are necessarily politically motivated.
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The statement comes the day after Panama’s Foreign Minister, Javier Martínez-Acha, linked the tightened controls to a Supreme Court ruling that removed the legal basis for the Hong Kong-based CK Hutchison Group’s operation of the Balboa and Cristobal terminals on the Panama Canal.
The ruling came following pressure from Donald Trump to limit Chinese influence around the strategically important canal.
CK Hutchison has since initiated international arbitration proceedings against Panama, seeking compensation of over $2 billion, and has also filed a lawsuit against the Maersk-owned company APM Terminals, which has temporarily taken over the operation of the Balboa terminal.
