China’s Measures on Panamanian Ships has Marco Rubio Warning about the Effects

China’s increasing restrictions and inspections of Panamanian-flagged vessels are raising tensions in international maritime trade, threatening the fluidity of supply chains and increasing logistics costs on key routes.  Marco also noted on April 2nd that “the recent measures taken by China against Panamanian-flagged vessels raise serious concerns about the use of economic instruments to undermine the rule of law in Panama, a sovereign country and vital partner for world trade.”

Marco Rubio Highlights Confidence in Panama and Condemns Chinese Pressure on Panamanian Ships

U.S. Secretary of State Marco Rubio addressed on Thursday the pressure tactics China has employed against Panamanian-flagged vessels following the recent Supreme Court ruling regarding the ports of Balboa and Cristóbal.  Rubio stated that these measures raise serious concerns about the use of economic instruments to undermine the rule of law in Panama, a sovereign nation and vital partner in global trade.  He also addressed the repercussions of these actions on international trade.  “Detentions, delays, or other obstacles to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system,” he added. 

Rubio further explained that the court’s decision upholds transparency and the rule of law, and requires private operators to be accountable to the public interest.  “The ruling also makes it clear that Panama is a reliable partner for international investment and business opportunities. The United States strongly supports Panama and looks forward to increasing its economic and security cooperation with this important partner,” Rubio stated.  The Panamanian government has acknowledged an increase in the detention of Panamanian-flagged ships in Chinese ports after the country’s Supreme Court annulled the concession granted to a Hong Kong company to manage two ports near the Panama Canal, amid pressure from Washington.  These detentions do not necessarily imply the confiscation of the vessels or their cargo, but rather delays in departures, or additional inspections, by the Chinese port authorities.