Singapore joins Panama Canal neutrality agreement

SINGAPORE – Singapore will join an international agreement to observe and respect the permanent neutrality of the Panama Canal, one of the busiest shipping lanes in the world.

It will also negotiate a bilateral mutual legal assistance agreement with Panama to better tackle transborder crime, said President Tharman Shanmugaratnam on Oct 5 as Panamanian President Jose Raul Mulino wrapped up a three-day state visit to Singapore.

President Mulino was in Singapore from Oct 3 to Oct 5 for his first visit to the country as head of state at the invitation of President Tharman. It is the first visit by a Panamanian head of state to Singapore in 10 years.

Speaking at a state banquet hosted in honour of President Mulino and his spouse, President Tharman said small states must work together to strengthen institutions that uphold international law amid trade disruptions and an unpredictable global landscape.

He added that Singapore and Panama share a deep interest in upholding freedom of navigation and international law, particularly the 1982 UN Convention on the Law of the Sea.

That is why Singapore has decided to accede to the protocol to the treaty concerning the permanent neutrality and operation of the Panama Canal, said President Tharman.

The treaty establishes a regime of permanent neutrality over the Panama Canal, which means – among other things – that the waterway will remain open for the peaceful transit of vessels of all nations in times of peace and war.

It was signed in 1977 by Panama and the US, which previously held control of the waterway.

The Panama Canal connects the Pacific and Atlantic oceans through Panama. The 82km-long waterway has in recent years been caught up in strategic competition between the US and China as both countries vie for influence over key ports.

Singapore’s decision signals its commitment to maritime safety and security, and to upholding freedom of navigation through the waterway, which is one of the world’s most important maritime arteries, said President Tharman.

Forty-one states, including France, Germany, Korea, Russia, Switzerland, Britain, the Philippines and Vietnam, have acceded to the protocol to the treaty, which was open for accession in 1979.

President Mulino was accompanied on his visit by a delegation comprising Panama Minister of Foreign Affairs Javier Eduardo Martinez-Acha Vasquez, Minister for Canal Affairs Jose Ramon Icaza and senior officials.

They were joined at the banquet by Singapore’s Minister for Foreign Affairs Vivian Balakrishnan, Minister for Law and Second Minister for Home Affairs Edwin Tong, Senior Minister of State for Law and Transport Murali Pillai and Minister of State for Foreign Affairs and National Development Alvin Tan.

President Tharman also noted that bilateral ties between Singapore and Panama have grown steadily since both countries established diplomatic relations 44 years ago in 1982, underpinned by their shared destinies and outlook as maritime nations.

In 2025, Panama was Singapore’s third-largest trading partner in goods in Latin America, with bilateral trade in goods, including imports from Panama like textiles, coffee and whisky, reaching $6.2 billion.

The two nations both sit at the strategic crossroads of global trade and serve as critical junctions on the “great maritime highway” between Asia and the Americas, noted President Tharman.

He said this shared history as maritime bridges makes Singapore and Panama natural partners with considerable room to deepen cooperation.

Singapore can also serve as a gateway for Panamanian companies to access South-east Asia, he noted.

Both countries have also agreed to begin negotiations on a bilateral mutual legal assistance treaty to strengthen information-sharing and legal cooperation, said President Tharman.

The agreement will provide an enhanced framework for both countries to make requests for and provide assistance with criminal investigations and proceedings, said the Ministry of Law on Oct 5.

President Tharman also announced that Singapore-based airport ground services provider SATS and Panama City’s Tocumen International Airport had signed a pact on Oct 5 to strengthen air cargo connectivity and support the development of Panama as a leading logistics gateway for the Americas.

Earlier in the day, President Mulino called on President Tharman and met Prime Minister Lawrence Wong at the Ministry of Foreign Affairs (MFA).

PM Wong and President Mulino discussed regional and international developments, as well as opportunities to strengthen cooperation in areas like trade and investment, logistics and connectivity, said MFA in a statement on Oct 5.

Both leaders also witnessed the signing of the deal between SATS and Tocumen International Airport at MFA.

In a social media post on Oct 5, PM Wong said: “There is much more we can do together, especially in logistics, given our roles as major air and maritime hubs.”

President Mulino, who became Panama’s leader in 2024, also visited the National Orchid Garden, where he had an orchid named in his honour.