Americas News
New Panama Law Limits Foreign Ownership in Bunkering
A new law in Panama signed off by President Ricardo Martinelli on June 14 restricts the foreign ownership of bunkering and other vessels in the maritime auxiliary services sector, newsroom Panama reports.
Law 41, which was introduced as Bill 613, says 75 percent of the shares of ancillary maritime industry companies must be under Panamanian ownership.
Maritime industry players from European countries and the Panama Chamber of Shipping were amongst those said to have voiced opposition to the new rules, saying that it could curtail foreign investment and may violate existing free trade agreements.
The Bulletin Panama says the motive behind the law is to protect the interests of small national companies against larger multi-nationals, but nevertheless felt the move was "a return to the past century."
Spanish and Dutch companies are amongst those who have invested in bunkering facilities in the country.
The expansion of the Panama Canal to accommodate larger ships helped the nation's economy to grow 7 percent year-over-year in the first quarter of 2013, according to Bloomberg, but traffic through the canal has declined recently as shipping firms have switched their routes to use the Suez Canal instead.
