(BSS/AFP) - Panama announced on Monday an agreement with China to renew a maritime shipping treaty that grants advantages to Panamanian ships in Chinese ports.

The agreement comes as Panama complains its boats are suffering tighter controls in China, following the cancellation of a Hong Kong company`s concession to operate two ports in the Panama Canal.

Following negotiations in Beijing last week, the two countries "reached a consensus" and will "move forward with the renewal procedures" for the agreement, the Panamanian Foreign Ministry said in a statement.

The agreement, which ends this year, offers preferential tariffs and easier bureaucratic rules for ships under the Panamanian flag in Chinese ports.

Nearly 500 Panamanian vessels were detained for inspection in 2026, according to local media reports, but acting Foreign Minister Carlos Hoyos said Monday that those numbers have now returned "to the historical level."

China intensified controls of Panamanian boats following a court ruling in the Central American country that cancelled the contract for Panama Ports Company -- a subsidiary of Hong Kong firm CK Hutchison -- which operated two terminals in the canal.

Trump has sought to assert control over the key interoceanic waterway under the argument it was run by China, though the canal is overseen by a Panamanian institution autonomous from the government.