Panama is willing to be an open partner, attract Paraguayan investment to Panama, and learn from the productive process that Paraguay has in agriculture, industry, and eventually collaborate mutually in developing industries. "We have the most efficient port on the continent, a very important air hub, and we have the Panama Canal," he added regarding the virtues with which his country relates to Mercosur. Martínez-Acha also pointed out that Panama worked this week on proposals for bilateral cooperation with Paraguay, a country where he was on a work visit from Wednesday to Friday, which he described as "very successful." "We believe that under the security conditions for all parties, a permanent solution will be found, that the Strait of Hormuz will always remain open for the free and safe passage of all vessels, and that these points of importance for world trade are not used for geopolitical objectives," the diplomat added. According to the International Maritime Organization (IMO), 13% of chemicals and fertilizers, 9% of new cars, and 20% of the world's crude oil pass through the Strait of Hormuz, so its blockade has caused an increase in oil and its derivatives in the international market. "At this moment, Paraguay has the productive capacity and Panama has the connectivity capacity, we are a perfect complement," he asserted. Respect for "Legal Sovereignty" The Panamanian minister insisted on demanding respect for the "legal sovereignty" of his country in the face of the detention and inspection of vessels with the Panamanian flag in Chinese ports, following a Supreme Court ruling that annulled the concession to a Hong Kong company to manage two ports near the Panama Canal. The Minister of Foreign Affairs of Panama, Javier Martínez-Acha, rejected the use of the Strait of Hormuz for geopolitical purposes, while expressing hope that the temporary truce reached between the U.S. and Iran will turn into a solution that permanently ends the war and normalizes transit in the important maritime route. "That cannot be allowed," said the diplomat in an interview with EFE in Asunción, the capital of Paraguay, regarding the closure of the Strait of Hormuz applied by Iran as a measure of pressure following the offensive initiated by the United States and Israel at the end of February last year. "The effects of this conflict are already being seen globally in energy prices, regardless of where you import (the fuel)", added Martínez-Acha, who has served as head of the Ministry of Foreign Relations of Panama since July 2024. Similarly, he indicated that Panama has no problems with the supply of oil or fuels because it imports them from the United States, but it does have problems with prices due to the general increase in the resource. It is for this reason, he said, that the government of José Raúl Mulino has implemented a partial fuel subsidy regime to "face the situation" and "mitigate the impact" on consumers. Panama, an important Mercosur partner Panama, associated with Mercosur since December 2024, is the first nation outside of South America to join the bloc created in Asunción in 1991 by Argentina, Brazil, Paraguay, and Uruguay. "What worries us is the increase in the number of detentions and that they do not respond to those technical criteria, because then they could respond to a political pressure strategy. We aspire for this situation to be regularized and for us to have a bilateral relationship of respect with the People's Republic of China," he stated. Panamanian sources told EFE that out of every four ships that dock in Chinese ports, three are inspected. At the beginning of the month, the Mulino government recognized an increase in the detention of ships with the Panamanian flag in Chinese ports after the Supreme Court's decision amid pressures from the United States. These detentions do not necessarily imply the confiscation of the vessels or their cargo, but rather delays in departures or additional inspections by Chinese port authorities. Martínez-Acha added that Chinese authorities have not informed Panama about the detention of vessels with the Panamanian flag, but the country has become aware of the phenomenon through its own merchant marine's communication channels. "There are benefits in both relationships," affirmed the Panamanian foreign minister about this relationship, although he acknowledged that it is "in its beginnings".
